Category: Industry

By on November 4, 2015

2016 Volkswagen Tiguan

Improve. Increase. Rise. Grow.

These are all words that can be applied to the status of Volkswagen’s sales in the United States in October 2015.

Yes, that Volkswagen. The brand which, it was revealed in late September, was intentionally cheating on emissions tests with four-cylinder diesel engines, powerplants found under the hood of approximately one-fifth of the vehicles sold by the company in America. The brand which has seen its share price tumble as more negative information is uncovered each day. The brand which was forced to set aside billions of euros to cover some of the costs of a massive, yet-to-take-place recall.

Yes, that brand, Volkswagen, sold 74 more new vehicles in October 2015 than they did one year earlier, a 0.2-percent year-over-year increase during a period in which the auto industry produced a 13.6-percent gain. Read More >

By on November 3, 2015

Volkswagen Polo

Volkswagen on Monday said that internal testing revealed 800,000 Volkswagen cars may emit more carbon dioxide than reported and could cost the company $2.1 billion more in penalties.

New CEO Matthias Müller apologized for the deception.

“The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency,” he said in a statement. Read More >

By on October 29, 2015

02 Volkswagen Golf family

Massachusetts Sen. Edward Markey on Thursday sent a letter to the National Highway Traffic Safety Administration asking the agency to re-evaluate millions of fuel economy credits awarded to the automaker by the agency for cheating diesel cars.

The letter, which was addressed to Administrator Mark Rosekind, outlined the automaker’s exceedingly fuel efficient fleet average from 2008, which now could be in jeopardy after the automaker admitted it cheated emissions tests and could impact those cars’ mileage. Read More >

By on October 28, 2015

Matthias_Müller_2015-03-12_002

Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.

Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.

Read More >

By on October 27, 2015

2016 Ford F-150 Limited

Ford Motor Company said Tuesday that the company posted its most profitable third quarter driven by pickup sales in North America.

According to Ford CEO Mark Fields, F-150 transaction prices were up $2,800 for the third quarter in 2015 compared to the same period last year and dealers were reporting full stocks of trucks, up from this year’s shortage.

Fields stopped short of saying the new F-150 was more profitable than the outgoing generation, but said the truck was contributing — not taking away from — the company’s record profit. Representatives said high-margin cars such as the Edge, Mustang and Explorer also contributed to pre-tax profit of $2.7 billion last quarter. Read More >

By on October 27, 2015

 

In wonderful Bob Lutz fashion, the former General Motors head told entrepreneurs in Silicon Valley that making cars is hard.

“I think, like so many Silicon Valley techies, that they believe they are smarter than the world’s automobile business, and that they will do it better,” Lutz told The Associated Press. “No way.”

His argument, in a Readers Digest version: Cars are more dangerous than Walkmen and when you make things that can explode it costs money so beat it, nerds.

Read More >

By on October 26, 2015

 

Japanese tire giant Bridgestone agreed Monday to buy Pep Boys for $835 million and potentially create the largest chain of U.S. automotive service centers, the companies announced.

The deal would create a chain of more than 3,000 auto care stores — 2,200 Bridgestone-owned centers including Tires Plus, Firestone Complete Auto Care, Hibdon Tires Plus and Wheel Works, and more than 800 company-owned Pep Boys stores.

According to the companies the deal will finalize in early 2016.  Read More >

By on October 25, 2015

Matthias_Müller_2015-03-12_002

German business magazine Manager Magazin reported Saturday (via Reuters) that managerial promotions may be frozen beginning next year as the company looks to save money wherever it can amid the diesel scandal.

The company may also re-use as many parts possible when developing the eighth-generation Volkswagen Golf in order to cut costs.

Read More >

By on October 23, 2015

 

General Motors will lay off around 500 workers and eliminate one shift at its Orion Assembly due to sagging demand for small cars, the automaker announced Friday. Those workers may be sent to a nearby plant.

Automotive News first reported on the layoffs.

According to a statement from a GM spokesman, the automaker will “adjust plant production capacity to align with market demand” and eliminate one shift that builds the Sonic. Demand for the Sonic has largely remained flat since the subcompact’s introduction in 2011.

Read More >

By on October 22, 2015

Well that didn’t take long.

According to the United Auto Workers’ Facebook page, General Motors will be the target for the union’s next negotiations. The automaker’s fat profits and long-delayed raises for veteran workers will likely be targets for the union when it heads to the table to negotiate.

The union may also look to bring up wages for newer-hired Tier 2 workers at the automaker. Roughly 20 percent of the workforce is paid at the lower, hourly scale — less than Fiat Chrysler Automobiles’ 40 percent and Ford’s 27 percent.

The union represents 52,700 workers at GM.

Read More >

By on October 22, 2015

United Auto Workers at Fiat Chrysler Automobiles plants voted to overwhelmingly approve a contract with the automaker three weeks after turning back its first proposal, the union reported.

According to a statement posted on the UAW’s website, 77 percent of hourly production, 72 percent of skilled trades and 87 percent of salaried bargaining unit workers approved the contract.

Read More >

By on October 22, 2015

 

General Motors announced Thursday that it would add a second shift to a flexible Detroit plant to prepare for upcoming demand for its cars.

GM will add roughly 1,200 jobs to Detroit-Hamtramck this year to help it build new models, the automaker said in a statement. The plant builds the Chevrolet Volt, Impala and Malibu and the Cadillac ELR there on a single production line. Production of the Cadillac CT6 will start there in early 2016. Read More >

By on October 21, 2015

2014_Chevrolet-Impala-LTZ-tug-boat

General Motors is getting pickier about where it does business and the products it sells. Could that also translate to where it will build its products in the future?

In a recent piece from Automotive News’ Mike Colias, the trade publication paints a bleak picture for one of General Motors’ longest running nameplates. The subject was Impala and the question was whether the car named after an African antelope, while well received by the automotive press, could survive the guillotine in a market that increasingly prefers crossovers and SUVs over sedans.

“We have a broad portfolio. But how are we going to look at what are the right vehicles to put in the marketplace? We’ll look at what makes sense and what will generate a return,” General Motors CEO Mary Barra told Automotive News earlier this month.

Naturally, Colias brought up Impala, and the reply stopped short of commitment to the car and the segment.

Read More >

By on October 21, 2015

 

Ren Cen. GM

General Motors announced Wednesday that third quarter, adjusted profit for the company was $3.1 billion, led by truck sales in North America and car sales in China. The net revenue was down $500 million from the same period last year, which GM says is due to currency fluctuations, but the automaker’s profits were decidedly higher.

Automotive News reported that the profit margin was the largest for GM since its 2009 bankruptcy, even after its $1.5 billion charge to settle claims related to its defective ignition switch that resulted in 124 deaths.

The automaker posted an 11.8 percent profit margin — also its largest since 2009 — and said it would end the year above 10 percent.  Read More >

By on October 20, 2015

2016 Honda HR-V

During the first three months of Honda HR-V availability, U.S. sales of the Honda Fit jumped 25 percent.

Yet as the public’s HR-V awareness increased – and sales of the Fit-based subcompact CUV decreased due to supply constraints – Fit sales fell through the floor in August and September of 2015. August sales of the Fit were cut in half; September Fit volume plunged 81 percent, falling 5,349 units from what was a 41-month high in September 2014 to only 1,279 sales in September 2015.

U.S. HR-V sales in September were nearly four times stronger than Fit sales, an astonishing figure for a number of reasons. Read More >

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