On Monday, Tesla CEO Elon Musk told employees the company intends to “flatten” its structure. That translates into fewer management executives as the automaker hires as many line workers as possible. Neither should come as a shock to those paying attention. Tesla Motors has bled high-ranking executives for a while now, and the autonomous assembly system that was supposed to revolutionize production hasn’t appeared yet.

Flattening the company’s management structure may be less about cutting costs and more about having no one to fill empty seats. That said, Musk’s announcement placed an emphasis on improving the company’s finances — echoing statements made during an earlier conference call that created some public relations hiccups. So the restructuring plan could be Tesla performing double duty.

“To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company,” Musk said in his memo to staff. (Read More…)

After a fire that rocked Meridian Magnesium Products of America’s ability to effectively supply automakers, Ford and a handful of other automakers found themselves in trouble. The Blue Oval had arguably the most to lose with its cash cow F-Series trucks seeing production idled for the foreseeable future. Fortunately, there is a ray of hope shining through the fog.

Numerous sources are claiming assembly could resume on the F-150 by this Friday. Previous estimates had Ford’s truck production being stalled for weeks. However plants in Dearborn, Michigan, and Kansas City, Missouri, are believed to resume operations by May 18th. Unfortunately, Ford’s Super Duty pickups at its Louisville truck plant won’t be getting the same treatment. Production for that facility is to remain stalled indefinitely.  (Read More…)

Ten automotive executives met with President Donald Trump this week, hoping to find ways to increase domestic production and mitigate the coming changes to corporate fuel economy regulations. The meeting, held in the White House’s Roosevelt Room, included General Motors’ Mary Barra, Ford’s Jim Hackett and Fiat Chrysler’s Sergio Marchionne. While a large portion of the event was spent discussing the administration’s attempt to roll back established fuel economy rules, Trump was focused on returning manufacturing jobs to the United States.

The president noted that FCA’s decision to spend $1 billion in order to expand truck assembly in Michigan made Marchionne more appealing than his contemporaries. “Right now, he is my favorite person in the room,” Trump said.  (Read More…)

For Lotus, life has been good under Geely. The British automaker is finally turning a profit again and now has access to more resources by way of its Chinese parent company. Presently, the brand only offers the light-and-nimble Evora for sale in the United States. But its global fleet isn’t exactly huge, either.

However, the plan calls for Lotus to expand through the introduction of a crossover vehicle, an entirely new sports car, and a rumored successor to the Esprit. The CUV, nearing the final stages of development, should take advantage of the Geely-owned Volvo SPA architecture (which underpins the XC60, among others). Lotus is also expected to adopt powertains from its kindred companies, which could include electrified units from Polestar and Volvo’s twincharged applications.

It’s unlikely the brand will set any horsepower records, which is fine (as that isn’t Lotus’ style), but the new motors should do the trick. Besides, who wouldn’t want to brag that their sports car is turbocharged and supercharged?  (Read More…)

As we told you yesterday, Ford announced it will temporarily halt production of the F-150 and Super Duty after a fire at Meridian Magnesium Products of America knocked out a key supplier. While the Blue Oval isn’t the only automaker affected by the supply shortage, as General Motors, Fiat Chrysler, BMW, and Mercedes-Benz also report the likelihood of production interruptions, Ford has the most to lose.

Taking the company’s most profitable vehicle out of the mix for a few weeks is a big deal. During a bad month, Ford might sell around 50,000 F-Series trucks in the United States. But a good month can see around 90,000 deliveries, so an unplanned idle probably has the automaker tugging at its collar a little. Fortunately, Ford currently has a 84-day supply of F-series pickups. That doesn’t mean it won’t feel the pinch if the wait on parts takes longer than expected.

The factory shutdown affects F-150 production at the Ford Kansas City Assembly Plant, which Ford said will last until at least May 14th. Super Duty lines at Kentucky Truck and Ohio Assembly have also shut down. Ford’s Dearborn Plant is expected to go down temporarily in the near future.

So, how far have the ripples spread? (Read More…)

Toyota Motor Corp. is upgrading plants in Ontario to ready them for the next generation of the RAV4. The investment goes toward the retooling of two separate assembly lines at an estimated cost of one billion Canadian dollars (or roughly $780 million USD). While Toyota Motor Manufacturing Canada Woodstock will continue building the standard version of the crossover, TMMC Cambridge will handle the hybridized variant.

As a result, assembly of the Toyota Corolla will be moved out of Ontario and into Alabama, where the automaker is building a new facility via it’s recent partnership with Mazda. A portion of the funds going toward the project will also be reserved for research and development within the province.

(Read More…)

Germany intends to stay on ex-Volkswagen Group CEO Martin Winterkorn after news broke Thursday that the former top executive faces criminal charges in the United States.

The indictment, filed under seal in March, was opened in a U.S. District Court in Detroit on Thursday during VW’s annual meeting in Germany. “If you try to deceive the United States, then you will pay a heavy price,” said U.S. Attorney General Jeff Sessions. “Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company.”

However, the burden of tangible justice will likely fall on Europe. Germany doesn’t make a habit of extraditing citizens for trial, and it’s still conducting its own investigation into VW Group’s emissions-cheating scandal — which it intends to continue.

“Our investigation strategy does not change just because the Americans have filed charges against Winterkorn,” a spokesman for the prosecutors’ office of Brunswick said on Friday. You’ll have to excuse us for not having much faith Germany’s justice system, as its current strategy appears to involve conducting as many raids as humanly possible without any results.  (Read More…)

Way back in 2013, General Motors and the Ford Motor Co. signed an agreement to collaborate on transmissions. The deal stipulated that GM would get access to Ford’s 10-speed automatic transmission, intended for rear-drive applications, if the Blue Oval could have the Hydra-Matic 9T50 nine-speed under development by The General for front-drive models — and everyone would save some money.

However, things didn’t play out as intended. Ford is now saying the nine-speed auto doesn’t provide enough of a fuel economy improvement to justify the added cost and weight of an extra gear. It won’t be using it, at least not in its current form. Instead, Ford engineers have decided to use a trio of transmissions with fewer gears for front-wheel-drive units. (Read More…)

After weeks of unpleasant trade talk and posturing between Washington and Beijing, China’s lead economic planner announced the country would be easing limits on foreign ownership of automotive ventures. While an official metric was not posted, it will be less than the current 50-percent cap non-Chinese automakers have been limited to since 1994. But, for all we know, China may be seeking to scrap the mandate entirely.

We did, however, get a timeline. On Tuesday, the People’s Republic announced it would remove foreign ownership caps for companies making fully electric and plug-in hybrid vehicles this year — followed by commercial vehicle manufacturers in 2020 and the rest of the car market by 2022. (Read More…)

Tesla Motors is months behind schedule. Despite promises that Model 3 production would be humming along by the end of last year, the automaker has found itself bogged down by all kinds of delays. In March, the company’s problems were exacerbated by a voluntarily recall on 123,000 Model S sedans and another high-profile crash involving its Autopilot system.

This has shaken investors’ previously unwavering faith in Tesla, and forced a significant dip in its overall share price. Last month, the company’s stock valuation took a hit that it’s just now starting to come back from. But Tesla CEO Elon Musk knows he cannot simply dazzle shareholders with new ideas and promises, and has been camping out at the factory in Fremont, California, to prove his resolve and engage in some on-sight troubleshooting.

While he has mentioned his office sleeping-bag before, we actually got to see it in a recent interview he had with CBS This Morning host Gayle King — along with the rest of the factory. Musk invited CBS to come and see the plant and discuss Tesla’s current status, providing a rare glimpse of the facility. Normally, the automaker is incredibly strict in terms of who it allows inside and no network television crew has ever been able to film the assembly process.  (Read More…)

There’s something about EV manufacturers that elevates the turnover rate of high-ranking employees. It seemed like we reported on Faraday Future losing executives almost daily for two consecutive years, but Tesla now appears to have its own difficulty retaining talent. The automaker lost two of its senior financial executives this month as it prepares to report on the Model 3 sedan’s progress (or lack thereof).

Is this the beginning of the end for the EV manufacturer? Probably not. It’s easy to obsess about Tesla’s status and speculate endlessly on the health of the brand, but the company’s all-important stock price has yet to crash and Elon Musk has promised to remain at its helm for the foreseeable future. However, the firm may need to do some housekeeping to ensure it doesn’t lose the trust of its investors.  (Read More…)

Uber CEO Dara Khosrowshahi says he expects the company to have its own autonomous cars within a year but, since the company doesn’t build cars, it needs to partner with one that does. Until now, the company has been in bed with Volvo Cars, previously stating its intention to purchase 24,000 self-driving XC90 SUVs from the brand between 2019 to 2021.

However, the relationship between the two firms isn’t exclusive or binding. That means Uber can still play the field, and may have already found a friend with benefits in Japan.

On Thursday, Khosrowshahi posted a photo on Twitter of himself laughing with Toyota Motor Corp. President Akio Toyoda and Executive VP Shigeki Tomoyama at the automaker’s headquarters. “Having fun with Akio-San and Tomoyama-San @ToyotaMotorCorp HQ,” he wrote. “Great discussions about growing our #autonomous partnership and lessons 4 me in building a great culture. And yep, those are Ichiro [Suzuki’s] bats.”

It seems Toyota could be the side piece Uber is looking for.  (Read More…)

Swelling to alarming levels roughly a year ago, General Motors’ vehicle inventory was still hovering around recession-era levels in the middle of 2017. In May, GM had a 100-day supply of light trucks and a 97-day supply of passenger cars. While that’s not a serious problem when factories are running full tilt to satisfy demand, the cooling automotive market brought reason for concern.

General Motors said there was no reason for anyone to become unsettled over the surplus. With several assembly plants undergoing retooling in the fall, executives claimed inventories would fall to normal levels before 2018. As it turned out, those production gaps played out exactly as the automaker hoped.  (Read More…)

Founder of the debt-laden technology firm LeEco has shirked orders from Chinese authorities to return to the country before the end of 2017, saying he needed to stay within the United States to fundraise for Faraday Future. Last week, the Beijing branch of the China Securities Regulatory Commission issued a notice ordering Jia Yueting to return to China to face the staggering debt attached to his various businesses and protect investors’ rights.

However, he claims he’s making too much headway with efforts to keep electric vehicle startup Faraday Future from sinking deeper into the toilet to head back to China. Instead, he has requested that his brother, Jia Yuemin, meet the regulator face-to-face last Friday to provide a report in response to the notice.  (Read More…)

Ford’s former head of performance car manufacturing, Dave Pericak, is now the engineering director for the automaker’s North American unibody vehicles. While in charge of Ford Performance, the division launched the Raptor, Focus RS, Shelby GT350, and GT. Prior to taking the helm in 2014, he was also the chief engineer of the 50th anniversary Mustang.

Now responsible for mainstream models from both Ford and Lincoln, Pericak’s previous duties will be split between Mark Rushbrook and Hermann Salenbauch. Rushbrook will handle the company’s racing efforts as Salenbauch runs Ford’s production vehicle development. (Read More…)