Category: Industry

By on January 28, 2017

2015 Dodge SRT Hellcat

Fiat Chrysler Automobiles rocketed out of the recession with year-over-year U.S. sales increases, eventually erasing the sudden deficit of buyers that led to its bankruptcy. Between 2009 and 2015, the resurgent automaker went from a measly 931,402 U.S. sales to a healthy, cash-generating 2,243,907.

Those gray skies sure did clear up. Happy days!

Now for last year’s sales tally: 2,244,315. Notice something unusual? That’s right, FCA tacked on just 408 sales in 2016 compared to a year prior. While sales growth can’t be counted on like the rising and falling of the sun, especially in a market that has reached a tentative plateau, it’s nonetheless concerning for FCA. The sales juggernaut sits idle in the water, yearning for headway.

Is the automaker’s problem simply that there aren’t enough places to buy Jeep, Dodge, Chrysler, Ram and Fiat vehicles? Read More >

By on January 27, 2017

dealership

The cornerstone of every healthy relationship is frank and frequent communication. Last year, consumers wanted more sport utility vehicles, but automakers still had too many cars rolling off assembly lines. Caught in the crossfire were forlorn dealerships that were incapable of providing the trucks and crossovers that customers cannot seem to get enough of.

At the 2017 National Automobile Dealers Association Conference & Expo, this issue is apparently weighing so heavily on the minds of America’s automotive purveyors that it wouldn’t be surprising if gray matter began leaking out of their ears and onto the expo floor.  Read More >

By on January 27, 2017

Vicente Fox (Gage Skidmore/Flickr)

When Mexican President Vicente Fox Quesada left office in 2006 after a six-year stint, he didn’t go quietly into political retirement.

With the advent of social media, the outspoken Fox gained the ability to launch barbs with ease and generally treat politicians like a well-used piñata. His latest target? Take a guess.

Following President Trump’s recent declarations — including a promise to renegotiate the North American Free Trade Agreement and a threat to impose a 20 percent border tax on Mexican goods — Fox spoke his mind on the issue, trolling Trump on Twitter and making statements on the U.S. auto industry that won’t get him invited to many parties in Detroit. Read More >

By on January 27, 2017

2017 Chrysler Pacifica Limited - Image: FCAThere’s good news. And there’s bad news.

U.S. sales of minivans in 2016 rose 6 percent, year-over-year, to nearly 554,000 units.

Yet after shooting out of the blocks with a 23 percent increase through the first seven months of the year — partly a response to a slow start one year earlier — minivan sales tanked in the final five months of 2016. Read More >

By on January 26, 2017

Donald Trump

Consumer products and vehicles produced outside of the U.S. could see a big hike in sticker price if the Trump administration goes ahead with a proposed plan to tax Mexican goods — and eventually all foreign goods — to the tune of 20 percent.

The White House said today the measure is being looked at as part of a wide-ranging tax overhaul package under consideration by Congress. The announcement came after an anticipated visit by Mexican President Enrique Pena Nieto went south. Read More >

By on January 26, 2017

Robert Davis - Image: Mazda USA

Mazda’s U.S. senior vice president for operations has been reassigned to a role in special assignments.

It does not appear to be a promotion.

Robert Davis, who held the position for more than half a decade, will no longer oversee all operations but will rather “lead teams in the ever-growing areas of recall compliance and cybersecurity, ” as well as legislation, regulations, and compliance.

Preaching patience, Mazda’s North American CEO Masahiro Moro revealed just last summer that, “it will take Mazda two complete generations of new vehicles to fully transform itself.”

Patience may have waned, however, as the U.S. auto industry surged to an all-time record sales high in 2016 and Mazda volume tumbled 7 percent, driving the brand’s market share down to just 1.7 percent. Read More >

By on January 26, 2017

VW logo

Christine Hohmann-Dennhardt, Volkswagen Group AG’s compliance chief, is leaving the company after disputes with VW’s senior management regarding her responsibilities. Those duties primarily revolve around ensuring the automaker adheres to regulatory requirements — something Volkswagen has had a difficult time with as of late.

After only a year with the company, Volkswagen confirmed Hohmann-Dennhardt will be leaving at the end of this month. According to an official statement, her exodus is “due to differences in their understanding of responsibilities and future operating structures within the function she leads.”

Considering her role on the supervisory board consisted wholly of seeing Volkswagen through the devastating emissions crisis while improving its image and ensuring it did not commit anymore egregious unlawful acts, you have to wonder what those differences in understanding entailed.  Read More >

By on January 26, 2017

2016 Chrysler 200 - Image: FCA

Fiat Chrysler Automobiles’ U.S. dealers entered 2017 with more than six-months’ worth of Chrysler 200 supply, according to Automotive News.

That’s enough inventory for America’s latest discontinued midsize sedan, production of which ended eight weeks ago, to linger well into summer, assuming demand remains on an even keel.

Of course, demand for the Chrysler 200 has not flatlined, but rather continues to shrink. This means 200s built in the fourth-quarter of 2016 — or earlier — may well be readily available at a Chrysler dealer near you, not just this summer, but even toward the end of 2017.

You therefore have plenty of time to decide whether you want to take the plunge into a world of defunct nameplates. Based on recent results, it appears that more than 98 percent of midsize sedan buyers don’t. Read More >

By on January 25, 2017

Ford badge emblem logo

Ford Motor Co. has hired former Apple marketing guru Musa Tariq as part of its expanding need to make the case that it is a mobility company not simply an automaker. Taking the newly created position of vice president and chief brand officer, Tariq will help construct and differentiate the brand identify Ford is hoping to carefully curate for itself.

Cars were for your grandfather’s generation. We now have mobility solutionsRead More >

By on January 25, 2017

2016 Toyota Prius - Image: Toyota

2017 will be the fifth consecutive year of U.S. year-over-year sales decline for the venerable Toyota Prius.

The core member of the four-pronged Prius lineup — this non-Prime liftback — was once a seemingly unstoppable presence in America. Annual volume shot beyond 100,000 units in 2005 and rose to an all-time high of 181,221 sales in 2007.

But America’s post-recession enjoyment of lower fuel prices and an accompanying turn to SUVs and crossovers (plus a measure of distaste for the current model’s egregious exterior styling) led to a 98,866-unit U.S. sales result in 2016, a 12-year low for the Prius.

2017 will be worse. “We’re going to follow the market,” Toyota Motor Sales USA’s vice president for automotive operations, Bob Carter, told Wards Auto.

What’s that mean? Read More >

By on January 24, 2017

Faraday Future FF 91

When Faraday Future showcased its new car at this year’s Consumer Electronics Show, everyone temporarily forgot the company was a structural and monetary dumpster fire. A large portion of that amnesia was the result of the extremely impressive presentation put on for the FF 91’s unveiling. Some of the visual effects used by Faraday in its presentations and propaganda marketing have been so impressive, it left me wondering who the company has trusted with those projects.

One company Faraday outsourced to was The Mill — a New York-based video production company that is suing Faraday for 1.8 million dollars over failure to pay it for a graphic presentation commissioned in September.

This is an exciting return to form for Faraday Future, which announced at CES that the construction of its Nevada factory — stalled due to similar payment issues — should continue shortly. Read More >

By on January 24, 2017

White House, Washington DC

At the start of the second real workday of the Trump administration, the leaders of the Detroit Three automakers marched into the White House for a breakfast meeting with their newly minted president.

We don’t know for sure what they ate, but we can relate what they talked about. This won’t come as a shock: investment. Specifically, assembly plant investment in the U.S., rather than Mexico.

Ford CEO Mark Fields, General Motors CEO Mary Barra and Fiat Chrysler Automobiles CEO Sergio Marchionne knew the landscape they were entering. Yesterday, Trump signed an executive order that pulled the U.S. out of the Trans-Pacific Partnership and moved to renegotiate the North American Free Trade Agreement. Today, he signed an executive action to advance approval of the Keystone XL and Dakota Access pipelines.

Deals. Besides perhaps eggs and toast, Trump wanted deals. Or, at this early point, promises and assurances at the very least. Read More >

By on January 24, 2017

Omnicraft Parts

A few months from now, if you’re driving your Chevrolet to get serviced and accidentally pull into a Ford automotive center, they will probably have you covered. In a bid to snag a little piece of everyone else’s action, Ford is launching a new parts brand for vehicles made by other automakers.

Omnicraft, the first new brand for Ford’s customer service division in over half of a century, is part of a clever plot to steer consumers toward the Blue Oval while capitalizing on the thriving parts industry. The United States imports nearly $150 billion in auto parts from China each year. Omicraft gives Ford the opportunity to take a stab at usurping some of that business for itself.

Considering that the average car has been on the road for eleven years now, rolling out this this brand is a minor stroke of genius.  Read More >

By on January 23, 2017

FCA Windsor minivan assembly Dodge Grand Caravan 2011 - Image: FCA

Reactions are varied following this morning’s announcement that President Donald Trump will renegotiate the North American Free Trade Agreement and pull the country out of the Trans Pacific Partnership.

North of the border, however, the leader of Canada’s Detroit Three autoworkers was apparently dancing a jig. Unifor president Jerry Dias seemed thrilled when he appeared on talk radio to sing the praises of the president’s executive actions. Trump’s moves are “a great opportunity to right the ship,” he said. Read More >

By on January 23, 2017

2014 Jeep Grand Cherokee Summit Interior, Shifter, Picture Courtesy of Alex L. Dykes

Parking your car at Walgreens shouldn’t require a tutorial.

That’s the gist of comments made by outgoing National Highway Traffic Safety Administration administrator Mark Rosekind, who really doesn’t like fancy, overly complex automatic transmission gearshifts.

In fact, if Rosekind had his way, automakers would need a green light from the country’s road safety regulator before incorporating a new gearshift design into a production vehicle. Read More >

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