Volkswagen spent the past year and change hinting that its Chattanooga, Tennessee assembly plant could become ground zero for an electric American product offensive, and guess what? That’s exactly what VW plans to do.

In a not-at-all surprising announcement, the German automaker said it plans to build electric vehicles at its only American plant, which just happens to have plenty of excess capacity. Backing up this promise is $800 million, which, in addition to funding the necessary tooling, should lead to the creation of 1,000 new jobs. (Read More…)

Months of speculation and rumors came to an end in Detroit Tuesday, as auto giants Ford Motor Company and Volkswagen Group officially announced they will take their relationship to the next level.

After signing a Memorandum of Understanding last year, initially to explore joint commercial vehicle production, the two automakers now say their pact will birth a midsize pickup truck for global markets. Volkswagen Ranger, anyone? (Read More…)

Shortly after General Motors announced its decision to end assembly work at two car-producing U.S. plants, Tesla CEO Elon Musk floated the possibility of a Silicon Valley rescue of either Detroit-Hamtramck or Lordstown Assembly.

Talks between GM and Tesla did occur, it turns out, but GM CEO Mary Barra doesn’t seem to think much of the chances of laid-off employees finding salvation in a Tesla intervention. (Read More…)

There will be no Ace of Base prizes for the Tesla Model X or Model S in 2019. Just days after promising to cut prices of all its cars by $2,000 in response to the company blowing through its federal tax credits faster than a record producer with a bag of high-test cocaine, the company’s Chief Executive Tweeter has announced the discontinuation of the 75D X and S models.

This is in addition to Tesla cleaving off a number of color and interior trim choices last year. At the time, it was speculated the company was doing so in an effort to streamline production.

So Elon giveth, so Elon taketh away.

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As our previous story detailed, new car buyers are leaving the passenger car market in droves, so it’s not surprising to see automakers getting up and leaving the party. General Motors capped off 2018 by announcing its intention to drop six car models, leaving the fate of its remaining sedans and hatches in question.

North of the border, it seems a seventh model has disappeared before the other six even got a chance to get their coats and boots on. According to GM Authority, citing multiple sources familiar with GM’s operations, the Chevrolet Sonic’s life has come to an end in Canada. How long will it last in its home country of the United States? (Read More…)

As General Motors takes aim at its own foot in the United States, it’s managed to become Mexico’s top automaker by volume. The company saw a nearly 3 percent U.S. decline in the fourth quarter of 2018, during which it announced the shuttering of several U.S. and Canadian facilities as part of a widespread restructuring program aimed at freeing capital for autonomous and electric vehicle development.

Meanwhile, large investments in its Mexican plants over the last few years — coming at the same time as rival Nissan’s scaling back of sedan production — has left GM as the top dog in the region. General Motors and Nissan have spent decades jousting for the top spot south of the border, alternating positions “depending on what has happened in their production levels,” according to Stephanie Brinley, principal analyst at IHS Markit. (Read More…)

The calendar reads 2019, meaning new Tesla customers can’t hope to wrangle more than $3,750 in EV tax credits from the feds — a figure that’s half as much as the incentive enjoyed by buyers up until New Year’s Eve. Of course, you may find yourself living in a state that’s happy to hand out some of its own cash. If so, lucky you.

Looking to soak up some of the difference, Tesla announced a price cut on all models Wednesday. Going forward, or at least until CEO Elon Musk decides otherwise, Tesla is shaving $2,000 from sticker prices across the board — including on the current cheapest model, which recently saw a price bump. (Read More…)

It isn’t looking good. There’s a greater-than-likely chance we’ll soon have a flexible yet unwanted assembly plant sitting vacant on the other side of the lake from Rochester, New York, joining two transmission facilities, Detroit-Hamtramck Assembly, and Lordstown Assembly on GM’s Island of Misfit Plants.

The union representing Detroit Three automakers north of the border is fighting to keep it open, buying up pages of ad space in Detroit newspapers and taking its case to the loftiest denizens of the Renaissance Center. In a week’s time, General Motors will either give the autoworkers of Oshawa something to be thankful for, or squash any remaining hope. (Read More…)

The once-mighty Chrysler brand is not a purveyor of niche sports cars, so its two-vehicle lineup continues to draw attention to itself. To call its lineup sparse would be an understatement. Still, despite a change in its priorities (sparked by the ascension of Jeep and Ram), Fiat Chrysler’s not giving up on the 93-year-old brand.

It would be weird to hop on the Chrysler Freeway in Detroit, head to Auburn Hills, pass by the Walter P. Chrysler Museum on the way, then head to Fiat Chrysler Automobiles headquarters at 1000 Chrysler Drive if the Chrysler brand didn’t exist.

While 2018 brought us news of a new (and fairly wild) Chrysler product, it also pushed two anticipated models into the Maybe Not Zone while throwing away another model’s future. Is there any hope of a Chrysler lineup that’s not a two-car parade? Apparently, there is. (Read More…)

Like most automakers, utility vehicles make up the bulk of Mazda’s sales, and the ratio is only swinging further in light trucks’ favor. While the new 3 hatch and sedan may be the freshest products on the automaker’s plate, freshly minted CEO Akira Marumoto knows what butters Mazda’s bread.

To keep the adorably midsized automaker in good standing with customers and accountants, the company is taking great pains to ensure the flow of crossovers never stems. Anywhere Mazda builds cars, Marumoto also wants crossover capacity. (Read More…)

The decision to ditch all passenger cars save for the Mustang didn’t lead to immediate pain among Ford’s American workforce, but it soon will. As the automaker’s restructuring plan has only just begun, Ford found itself spared from the kind of vitriol flung at rival General Motors, which recently outlined a workforce reduction of up to 15,000 employees.

But pain is coming — to Ford’s Van Dyke transmission plant in Sterling Heights, Michigan. Unlike the Midwestern workforce switcheroo that followed shift cuts at two plants last month, it doesn’t look like every worker will find a new home this time. (Read More…)

It won’t be a joyous Christmas for many General Motors workers. As it embarks on a wide-ranging cost-cutting plan, GM plans to cull six models and mothball five plants in the U.S. and Canada, eliminating up to 15,000 jobs in the process.

On Friday, the automaker said the process of notifying federal agencies of its plans has begun. It also offered up a glimmer for nervous workers. (Read More…)

The only minivans coming out of Detroit these days aren’t actually rolling out of Detroit, but a plant a stone’s throw from the Detroit River, on the Canadian side. Fiat Chrysler’s Windsor Assembly Plant, home to the Chrysler Pacifica and Dodge Grand Caravan, will go dark for two weeks starting on New Year’s Eve, presumably to manage inventories.

Short-lived shutdowns are commonplace at the plant, where workers assemble one of the newest and undoubtedly the oldest minivans on the market. The latter vehicle, while likely not having much of a future, certainly has a fan base. It’s not giving up on the model, and sales figures show it. (Read More…)

Tesla’s Fremont, California assembly plant once cranked out Pontiac Vibes and Toyota Matrixes under a joint venture between General Motors and Toyota, but could a current GM factory one day give way to Tesla production?

Tesla CEO Elon Musk put that possibility out there during a 60 Minutes interview on the weekend. As one might expect, Musk’s comments were greeted with skepticism. (Read More…)

Has the crossover craze taken another victim? Or is it just simply a case of a rare body style not drawing sales?

It’s not like wagons (with some exceptions — ahem, Subaru) were selling like gangbusters before the current crossover trend took off.

Still, the BMW 3 Series wagon has garnered attention from enthusiasts in search of utility. But, alas, it appears that the next-generation 3 Series won’t be sold with a wagon variant, at least not in these United States.

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