Earlier this week, we covered Toyota stressing over the feasibility of its current production plans. Automakers around the world are presently trying to suss out how to maintain solid profitability with diminished output, with Japan’s largest manufacturer suggesting the present state of the world might force it to do likewise.

While we assumed the resulting decisions would take a couple of weeks for Toyota to finalize, as it considered its many options, the company announced on Friday that it would need to cut domestic production by 20 percent for the month of April. The automaker framed this as part of its preexisting  “recovery plan” necessary to account for supply chain issues that never seem to end, saying that diminished output would gradually normalize in Japan over the spring.  Read More >

Toyota Motor Corp. is reconsidering its existing production strategy, citing ongoing global issues that are hindering its ability to manufacture vehicles at a normal pace.

Like most other automakers, Toyota has endured COVID restrictions, supply chains bottlenecks, component shortages, at least one cyberattack, and some new obstacles stemming from Russia’s invasion of Ukraine. These issues have already encouraged General Motors to pursue lower output as it focuses on selling on higher-margin vehicles. Though it’s hardly the only automaker signaling diminished production for 2022. Even the National Automobile Dealers Association is assuming 2022 will be another year of extra-tight inventories and wild markups. It’s something the industry was already doing, with Toyota becoming the next company opting to rejigger its targets to account for hard times.  Read More >

Audi and FAW Group, the state-owned partner it is effectively required to have in order to preferential treatment from the Communist Party of China, received some good news this week. Government officials have approved the duo for a new, jointly operated production facility in Changchun.

With Volkswagen Group having shifted its focus toward China in recent years, the market has become all-important for the German company. VW is currently the top-selling brand for the entire region, with its Audi subsidiary typically being the highest volume premium automaker from Europe. Building in China is good optics for brands hoping to remain popular there and has the added benefit of placing manufacturing complexes closer to relevant suppliers, especially if you’re swapping to electric vehicles.  Read More >

While it may not be on the cusp of supplanting Toyota in terms of sales, the Porsche brand has enjoyed relatively consistent growth since 2009. Despite 2020 representing a poor sales year for just about everyone who wasn’t producing vaccines, the German manufacturer weathered the storm better than most and came back to break a few records the following year.

By the end of 2021, Porsche had sold nearly 302,000 vehicles globally. It also managed to break its previous sales records in China and the United States. Considering that global production volumes have remained suppressed by supply chain problems, it was an impressive accomplishment. However, Detlev von Platen, Executive Board Member Sales & Marketing at Porsche AG, believes the automaker can still outdo itself in 2022.  Read More >

During last week’s earnings call, Tesla CEO Elon Musk confirmed that the Cybertruck would be delayed until at least 2023. That places the polygonal pickup two years behind its original schedule. But who among us with knowledge of the automaker’s production history actually thought it would be delivered on time?

Delaying products has become a hallmark of the Tesla brand and Musk doesn’t seem to be sweating it. Rather than focusing on launching a new vehicle for 2022, the business wants to prioritize increasing capacity and finalizing its move from California to Texas. Now based in Austin, Tesla made $5.5 billion last year compared with the previous record year of $3.47 billion in net income posted in 2020. Musk said the shift into routine profitability is proof that EVs are viable, adding that the company could have done even better if factory output hadn’t been so constrained last year. Unfortunately, those hurdles haven’t dissipated for 2022, encouraging the automaker to wait on both the Tesla Cybertruck and Roadster.  Read More >

The final Volkswagen Passat has rolled off the assembly line in Chattanooga, Tennessee, ending the model’s extended run on the North American market.

Designed by Giorgetto Giugiaro and introduced in 1973 using the VW/Audi B1 platform, the Passat arrived in the United States as the Dasher and was sold as a midsized luxury vehicle to people in the market for an imported economy car. The model carried different names in other parts of the world and even saw a few unique monikers used in the U.S. (e.g. Quantum) to help differentiate between the hatchback, sedan, and wagon variants sold throughout the 1980s. But it was officially known as the (B2) Passat by 1990, regardless of format.  Read More >

Ford’s sales success with the Maverick pickup has been undeniable. But if you’re in need of more evidence, the automaker has begun notifying dealerships to stop taking reservations on the base hybrid model because it doesn’t even think it can keep up with the existing backlog.  Read More >

Intel has announced a $20 billion investment to transform a 1,000-acre plot in New Albany, Ohio, into the latest addition to its U.S. chip-manufacturing hub. Construction is scheduled to commence later this year with operations starting in 2025. But everyone’s wondering if it is going to be enough to rectify the pathetic state in which domestic vehicle production currently finds itself.  Read More >

Toyota Motor Corp is currently having to contend with idle factories in Asia, reducing the automaker’s estimated output by over 47,000 units this month. Shockingly, it’s not alleged to have anything to do with the semiconductor shortage that’s been wreaking havoc on Western markets.

With chip production having been localized primarily in China and Taiwan, Asian suppliers have had better access to them. But Eastern markets have still been subjected to other routine plant closures due to supply chain restrictions stemming from the pandemic. Existing protocols in China, combined with renewed restrictions in Japan, have created a situation impacting numerous automakers with Toyota announcing this week that it probably won’t reach its goal of manufacturing 9 million cars this year — though it made sure to include the ongoing semiconductor issue as relevant.  Read More >

Ford will be idling Mustang production this week due to an insufficient supply of semiconductor chips. For all the talk the industry made about getting over supply chain hurdles in 2021, manufacturers continue citing insufficient access to microchips as the primary obstacle preventing them from enjoying more routine operations.

The automaker confirmed the move on Tuesday, explaining that Michigan’s Flat Rock Assembly will be down until sometime next week.  Read More >

McLaren has confirmed that it will be delaying the launch of its new hybrid supercar, the Artura, until the summer of 2022. Slated to commence deliveries by the end of 2021, the company has stated that the chip shortage has forced a revised timeline.

The semiconductor shortage has been a popular excuse for automakers the world over and may still be valid. Chip manufacturers have continued prioritizing the production of newer, more advanced components yielding higher margins. However, these units typically do not make their way into automobiles and are more commonly found in smaller electronic devices. Read More >

Chevrolet’s Corvette plant in Bowling Green, Kentucky, will be seeing a week of downtime following the vicious tornadoes that swept through the United States over the weekend. With twisters populating Southern and Midwestern states, Kentucky became ground zero from some of the most devastating weather seen all year.

Governor Andy Beshear called for a state of emergency Saturday due to the extensive damage across the state, with Bowling Green yielding some of the most harrowing examples. While the Corvette factory was spared the total destruction endured by other buildings, General Motors has said the site will still need to remain closed so the necessary cleanup can be done. Read More >

It’s been decades since BMW introduced a dedicated M car, so imagine our surprise when we learned the next one would be a boxy SUV. Considering the last standalone M was the ground-hugging wedge that was the M1 coupe, we have to assume M Division engineers were either trying to challenge themselves or someone higher up figured they could make more money selling a utility vehicle.

While just a concept at present, the BMW XM boasts a fairly radical design. But the manufacturer has claimed it will retain over 90 percent of the prototype’s good (?) looks when it enters into production. There’s a lot of interesting stuff here that might make it into the finished product, including the extra-thin daytime running lights that sit atop the real headlamps that have been snuck behind tinted glass. It’s a strange beast that doesn’t seem like it’s targeting the traditional M shopper and, according to BMW, that’s because it isn’t.  Read More >

Rivian may be experiencing more production delays. Maybe this is why it now apparently has a delivery-time estimator on its build site?

Read More >

Automakers Toyota and Stellantis separately announced plans to construct lithium-ion battery plants in North America on Monday. With regulatory pressures mounting, the industry has been shifting its eggs between baskets to avoid trouble. But the ultimate goal for most brands is to transition toward selling EVs, requiring meaningful action and financial expenditures on the part of manufacturers.

We’ve already seen General Motors and Ford Motor Co. squabbling over who will nestle the biggest battery facilities between America’s Frost and Sun Belts. It’s only fitting that the remnants of the Chrysler Corporation contained in Stellantis walk the path of electrification, especially now that it’s absolutely riddled with European influence. Meanwhile, Toyota is predictably exercising a bit of caution as it similarly navigates how to modernize itself via upcoming lithium-ion plants.  Read More >