As GM tools up for production of its Volt extended-range electric car, Automotive News [sub] has noticed something interesting: workers at GM’s new battery pack assembly plant are not represented by the United Auto Workers. Located in the heart of UAW territory (Brownstown Township, MI), the Volt battery plant represents the very jobs that local politicians and GM leadership hailed as the green future of the auto industry. When the plant opened, GM Chairman/CEO Ed Whitacre waxed eloquent about the opportunities:
The development of electric vehicles like the Chevy Volt is creating entire new sectors in the auto industry – an “ecosystem” of battery developers and recyclers, builders of home and commercial charging stations, electric motor suppliers and much more. These companies and universities are creating new jobs in Michigan and across the U.S. – green jobs – and they’re doing it by developing new technology, establishing new manufacturing capability, and strengthening America’s long-term competitiveness.
As long as they do so without UAW representation, apparently. Needless to say, if GM can get away with using non-union workers at a crucial plant that’s supposed to represent the firm’s future, things aren’t looking so good for our friends in organized labor.
One of the lingering concerns over the Toyota recall is whether Toyota’s “precision steel” shim fix to the recalled CTS gas pedal assembly will be a reliable long-term solution. Our analysis indicates that these questions might be well-founded, and we’re not the only ones concerned about the viability of Toyota’s proposed fix. In an interview with Toyota’s Jim Lentz yesterday evening, NPR asked why Toyota was using a redesigned pedal for new production, but only offering the shim fix to existing customers. Lentz insisted that the repaired pedals would be as good as the redesigned pedal, that the costs of repair and replacement were about the same, and that the main reason Toyota was repairing rather than replacing recalled pedals was the desire to “get customers back on the road… as quickly as we possibly can.” That’s when NPR went for the jugular.
According to a PR Newswire release, a class action suit has been filed against Toyota and supplier CTS, alleging “inherent design defects,” specifically a “lack of failsafes” in Toyota’s ETCS-i (Electronic Throttle Control System-intelligent), in use since 2001. As in not the pedal assembly. A similar suit was filed in the US last November. Today, Toyota’s Jim Lentz was emphatic that electronics were not the issue with the ongoing recall, but shortly after the US suit was filed, Toyota quietly announced that an electronic brake override system would be installed on certain vehicles with automatic transmissions. Is that as good as an admission of guilt? You can bet the lawyers are already saying so. The full release is available after the jump.
The Obama administration either decided that Toyota has been sufficiently maimed and weakened to give its wards of the state some breathing room (a theory rising in popularity amongst some conspiracy buffs), or Toyota has definitely found the definitive cure for UAS (unintended acceleration syndrome). Be it as it may, the NHTSA has approved the shim fix, says Reuters. If the Wall Street Journal got it right, recalled Toyotas may also get a re-flash, and a feature amiss in most American cars. Read More >
Kudos to Edmunds Inside Line for throwing up pictures of two Toyota gas pedal assemblies. The recalled unit, made by CTS, is shown above in a 2010 Camry. The non-recalled Denso-produced unit is after the jump.
Toyota’s recall of 2m vehicles in Europe isn’t doing much to clarify the chaos surrounding the unintended acceleration panic that is enveloping the company. Eight models are being removed from Europe’s roads, including Auris, Avensis, Aygo, Corolla, iQ, RAV4, Verso and Yaris. The fact that two of these models (iQ and RAV4) are built exclusively in Japan (European Corollas are built in Japan and South Africa), seems to suggest that the problem is not limited to gas pedal assemblies supplied by CTS, which has been blamed for the US recall. The other models are built in France (Yaris), Turkey (Auris, Verso), the Czech Republic (Aygo) and the UK (Avensis, Auris). According to Automotive News [sub], the recall affects these models built between Feb. 2005 and this month, even though
Toyota lengthened the arm of the friction lever and changed its materials on all vehicles produced in Europe using the subject accelerator pedals starting in mid-August 2009
Supplier CTS, who produced the gas pedals now under recall from Toyota, tells Automotive News [sub] that it “built parts to the automaker’s specifications and says it has no knowledge that its parts were responsible for any accidents or injuries.” Sources at CTS tell AN that although they are working on a fix with Toyota and that new pedals have been tested and are shipping to Toyota plants, “this is their recall.” That would seem to contradict the facts of the case, as Denso, Toyota’s gas pedal supplier for Japanese-built models, has not been involved in the recall. According to Inside Line, the issue with pedal return damping that has plagued CTS-supplied, US-built Toyotas has not turned up in Denso-produced gas pedals. Read More >
Though Toyota is getting the brunt of the attention for what are apparently faulty gas pedals, the fact that the problem has been traced to supplier CTS means that Toyota isn’t the only OEM that’s shutting down production until a fix for the pedals is found. Bloomberg reports that Ford’s JV with Jiangling Motors in Nanchang, China has halted production of the Ford Transit commercial van, after switching over to CTS-supplied pedals in December. “We think it’s pretty isolated, but we are aggressively running it to ground,” Ford’s Alan Mulally told analysts in today’s financial results conference call. No other Transits are said to be affected, and Jiangling says that they have not received any reports of unintended acceleration for its Transits.
Collisionrepairmag.com reports that AzkoNobel, a chemicals company from the Netherlands, has teamed up with Toyota to create Sikkens Autoclear LV, a scratch resistant, self healing clearcoat. The product has been approved by Toyota for use on the Lexus LS range as an aftermarket clearcoat to be used at Toyota dealerships and Toyota affiliated collision repair facilities around the world. According to the article, “Sikkens Autoclear LV Exclusive is highly resistant to scratches, and holds up extremely well after repeated washings, but it truly differentiates itself from other clearcoats with its outstanding self-healing characteristics when a vehicle is nonetheless damaged. With extraordinary “re-flow” properties designed into the coating, small scratches virtually disappear in minutes when exposed to a heat source at temperatures ranging from 40-80 degrees celsius–and even exposure to the sun will initiate the healing process.”
After years of spurning lithium ion batteries in favor of Nickel metal hydride cells, it seems Toyota might changing their mind. The Wall Street Journal reports that Toyota Tsusho Corp, which is 21.8% owned by Toyota Motor Corp., has secured the loans it needed from the Japanese government to buy a stake in a lithium project in Northern Argentina. The article states that “people with knowledge of the matter” (read in to that what you will), values Toyota Tsusho’s investment somewhere between $100 million and $200 million.
A strong team is only as good as its weakest link, particularly in the automotive industry. Treat your suppliers well and they’ll play fair by you. Try to screw them and they’ll collapse leaving you with serious production problems. Detroit (Chrysler in particular) had the worst reputation for treating their suppliers badly, but the Pentastar brand now claims to be trying to change all that.
Battery firm Ener1/EnerDel, which recently brought the EV firm Th!ink back from bankruptcy, has lost the battery contract for Fisker’s Karma luxury EV. According to Schaeffersresearch, Ener1 “decided it would be better pursuing higher-volume battery supply deals when larger automakers begin rolling out their versions of electric cars.” Says Ener1 CEO Charles Gassenheimer, “we have some capacity constraints on our side. We’re interested in high volume programs in the future.” The public story is that due to Ener1’s Th!nk tie-up, Fisker’s October sales roll-out was too much, too soon. The real story illustrates the complicated relationships emerging between EV firms and battery suppliers.
It’s been a while since we’ve heard the word “buyout” echoing out of Detroit, as 2008 marked the year in which auto industry employees finally started to be fired like everyone else: without a hefty severance kiss-off. Ford, on the other hand, did not get a shot at free house-cleaning in bankruptcy court, so it’s bringing back buyouts. According to Market Watch, the Blue Oval is offering blue-collar employees a $50,000 lump sum payment and a $25,000 voucher for a new vehicle or another $20,000 lump sum, as well as six months of health insurance coverage. There’s even an extra $40k for workers of “a certain age.” But this being Detroit, employee benefits are either feast or famine. While Ford’s workers are being offered cash for their jobs, the former Ford parts division Visteon announced today that it is seeking to dump pensions for 21,000 retirees in bankruptcy, following Delphi into yet another stealthy yet popular form of indirect automaker bailout.
The Freep reports that creditors in Visteon’s bankruptcy are investigating Ford’s relationship with its spun-off supplier, implying that the Blue Oval could be responsible for its financial downfall. The creditors have requested the release of documents relating to Ford’s 2000 spin-off of its parts maker, and financial transactions between the two firms since then. They’re hoping to show that Ford forced losses onto the supplier, possibly securing better claims for creditors. The creditor committee motion explains:
Since the spin-off transaction, there has been no semblance of arm’s length bargaining between Visteon and Ford. Ford appears to have utilized its insider status to control Visteon to Visteon’s detriment.
As the world recedes, South Korea grows. First Hyundai registers double digit growth in the United States and now other automakers want a piece of the South Korean action. The Korean Times reports that Renault-Nissan announced that they will increase the amount of their South Korean parts suppliers from 28 to 100 by 2013. 108 major subcontractors took part in a conference along with officials from Renault-Nissan’s purchasing organisation.
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