Tag: production

By on October 9, 2017

2016 Ram 1500 EcoDiesel HFE, Image: FCA

Looking for a full-size pickup with class-leading fuel economy? Can’t lick that diesel addiction, but not willing to go heavy duty? Since 2014, the Ram 1500 HFE has been your full-size, light-duty diesel go-to, at least until the Environmental Protection Agency yanked the model’s certification for the 2017 model year.

Following this year’s minor disagreement (the EPA wanted to know what those undeclared auxiliary emission control devices were all about, Fiat Chrysler said it was no big deal), as well as the federal investigations and lawsuits that followed, the thriftiest Ram is back on the market. In late July, environmental regulators finally gave the model a clean bill of health, certifying it for sale in the U.S.

However, Ram EcoDiesels are only now finding their way onto dealer lots. (Read More…)

By on October 7, 2017

tesla model 3

It’s been of week of bad PR and reports that should have Tesla investors tugging their collars and thinking twice, though in Teslaland these well-publicised issues only propel the automaker’s stock even higher.

The company’s electric big rig (aka the Tesla Semi), rumored to have a range of 200 to 300 miles, won’t see the light of day until November 16th, CEO Elon Musk claims. That’s two months after the initial reveal date, which was subsequently pushed back until late October.

The larger problem facing the company is the slow ramp-up of Model 3 production, which kicked off in July, but only resulted in only 220 deliveries by the end of September. The company forecasted 1,500 Model 3s in the month of September, with an expected production rate of 5,000 vehicles per week by the end of the year. Blame the slow trickle of cars on a “manufacturing bottleneck issue,” the company said in a statement.

As Musk attempts to soothe fears, a new report claims the automaker was hand-building parts away from the assembly line even as the high-tech facility was supposed to be cranking out Model 3s at a steady clip. Tesla is not happy about this report. (Read More…)

By on October 3, 2017

tesla-model-3-1-610x407

While the venerable Tesla Model S and X reached more customers than ever before in the last quarter, the hotly anticipated and far cheaper Model 3 stumbled out of the gate.

In a quarterly statement released yesterday, Tesla says just 260 Model 3s made it off the Fremont, California assembly line between the launch of production in late July and the end of September. Of that number, 220 made it to customer driveways. That’s not encouraging news for investors, nor for the model’s roughly half-million reservation holders, some of whom were told at launch not to expect their vehicle until the end of next year. (Read More…)

By on October 2, 2017

Toyota TNGA platform, Image: Toyota

Of all automakers, no company holds out hope for the gasoline engine’s longevity quite like Mazda. Not only does Mazda anticipate many decades of continued hydrocarbon-fueled driving, it’s also ensuring gas stays viable by inventing a new Skyactiv engine that (supposedly) uses much less of it. That motor, a first-of-its-kind gas compression ignition four-cylinder, debuts in 2019.

For now, Mazda’s North American lineup remains pure in terms of propulsion. The promised CX-5 diesel is taking its sweet time showing up, and neither a hybrid or EV can be found among the model ranks. That will soon change, but given Mazda’s size and finances, it won’t be a Mazda platform underpinning the next Mazda EV. (Read More…)

By on October 2, 2017

2018 Chevrolet Equinox - Image: Chevrolet

The sound of workers slapping together 2018 Chevrolet Equinox crossovers is not ringing through the streets of Ingersoll, Ontario, this morning.

A strike that began late on September 17th continues today after a weekend labor update that might have heralded good news turned into just another day on the picket line. The workforce at General Motors’ CAMI assembly plant, represented by Unifor Local 88, continue advocating for a new collective agreement that cements the plant’s future in GM’s production roster.

Meanwhile, inventories of the hot-selling crossover are dwindling. (Read More…)

By on September 27, 2017

Detroit (Bryan Debus/Flickr)

Detroit’s dominance in the domestic automotive sphere continues to erode. Whereas the manufacturing hub, home to Ford, General Motors, and Fiat Chrysler Automobiles, once churned out the bulk of vehicles built — and sold — in the United States, times have changed.

The former Big Three automakers no longer hold the majority market share in the U.S. (in 2016 it was 44.9 percent), necessitating a name demotion to “Detroit Three.” From Silicon Valley to the Midwest and South, a diverse group of automakers is busily assembling cars and SUVs for a population with very wide-ranging tastes. We’ve long since become used to the idea that many Hyundais now hail from Alabama, several Subarus come from Indiana, Honda models grow in Ohio, and BMWs arrive from South Carolina with a Southern drawl.

Now, one industry watcher claims the Detroit Three won’t even finish the year as the majority builder of North American-made vehicles. (Read More…)

By on September 27, 2017

2017 Toyota Highlander Hybrid - Image: ToyotaToyota announced yesterday that its plans to invest $10 billion in the United States, revealed earlier this year, will grow by another $374 million with big spending at five different factories in five different states.

Kentucky, Tennessee, West Virginia, Alabama, and Missouri will all benefit. Though it’s unlikely the investments will directly translate to much in the way of new employment — Toyota promises 50 new jobs in Alabama — Toyota says “these investments will help to ensure the stability of the plants’ employment levels in the future.”

At the core of the investments? Toyota is spending money to enable greater production of the new TNGA 2018 Toyota Camry’s 2.5-liter engines and hybrid transaxles. Why America? “The investment is part of our long-term commitment to build more vehicles and components in the markets in which we sell them.”

Toyota sells 200,000 vehicles per month in the United States. (Read More…)

By on September 23, 2017

[Image: GM]

The Chevrolet Equinox assembly line at General Motors’ CAMI plant in Ingersoll, Ontario, remains shuttered, and the impact from the dried-up flow of crossovers now extends across the border.

Unionized workers at the plant walked off the job Sunday night after their Unifor Local 88 bargaining team failed to reach a contract agreement with GM. Though the week began with marching and signs in Ingersoll, it ended with layoffs at an Ontario transmission plant and the promise of more in Michigan and Tennessee. (Read More…)

By on September 19, 2017

2015 Ford Transit

Ford Motor Company will be idling Transit production at its Kansas City Assembly Plant for seven days next week to account for waning sales (Update: Ford says its because of a recall. See the end of this post for details). Diminished deliveries aside, Ford’s Transit remains the preferred choice among van connoisseurs and was America’s best-selling large van in 2016. But not every year can be better than the last.

U.S. Transit sales dropped roughly 15 percent in August and stands at 80,292 units through the first eight months of the year —representing nearly a 22-percent loss against last year’s volume. Meanwhile, Canadian deliveries have been exceptional. But that’s not enough to compensate for the U.S. slump.  (Read More…)

By on September 19, 2017

2018 Honda Accord Ohio assembly plant - Image: HondaAmerican Honda’s vice president for sales, Ray Mikiciuk, won’t provide a firm forecast for sales of the 10th-generation Honda Accord. But as far as next year goes, “I don’t expect to sell fewer Accords in 2018 with this great new product,” Mikiciuk tells CNBC.

With belief in the company’s new product, Honda has invested $267 million into its Marysville, Ohio, plant where the Accord, Acura TLX, and Acura ILX are assembled. With 300 additional employees, American Honda is following the lead of Toyota’s all-new 2018 Camry.

At the Camry’s Georgetown, Kentucky, assembly plant, production of the new TNGA-based Camry required Toyota to build up its employee count to the highest level ever. That’s certainly not the way rivals are approaching America’s midsize segment. You’ll recall that General Motors cut Chevrolet Malibu production — and consequently, jobs — in Kansas City earlier this summer. Prior to the new Camry’s launch this summer, the Malibu was the freshest midsize sedan on the block, yet Malibu sales have plunged by more than a fifth in 2017.

Ohio production of the 2018 Honda Accord began yesterday, September 18th. But what do Honda’s vague sales forecasts mean in the broader American midsize segment?

More market share. (Read More…)

By on September 18, 2017

toyota-robot-factory

Occupational hazards exist in every industry, and we used to adhere to the notion of “acceptable losses” for certain projects. Over 20,000 people are estimated to have died under the French leadership of the Panama Canal’s construction, and another 6,000 when the Americans finally finished it in 1914 — two years ahead of its target date. Fifteen years later, five men perished during the construction of the Empire State Building, which was pretty good for the time.

However, acceptable workplace-related deaths aren’t really in style anymore. One causality is too many in today’s post-OSHA world, whether you’re in the U.S. or living beyond its borders. Such was the case two years ago when a robot crushed a 22-year-old man to death at a Volkswagen assembly plant. As a result, VW and other automakers are closely watching the efforts of Germany’s Institute of Robotics and Mechatronics in order to build a safer robot.  (Read More…)

By on September 14, 2017

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

Fiat Chrysler will idle production of both the Chrysler Pacifica and Dodge Grand Caravan for over a month in autumn. But with the latter model seeing impressive sales in the United States last month, can FCA afford to hit “pause” on assembly?

Not really, but that doesn’t matter — the Grand Caravan has to meet updated U.S. safety standards if Dodge wants to keep selling them. Unfortunately, FCA only has a 19-day supply of the minivan in reserve after an exceptional August depleted inventories. On the flip side, Chrysler’s objectively good but slower-selling Pacifica has a 108-day vehicle surplus. Wait, that’s also bad news.

At least the line workers at FCA’s Windsor Assembly Plant have have some time off to look forward to.  (Read More…)

By on September 14, 2017

2018 Volkswagen T-Roc - Image: VolkswagenAmerica can’t have the Volkswagen T-Roc. Canada can’t have the Volkswagen T-Roc. As far as we know at this point, Australia can’t have the T-Roc even though the segment in which it competes owns a hefty one-tenth of the Australian market.

Volkswagen nevertheless sees huge global potential for the brand’s new subcompact crossover, all the more so since actually unveiling the new model in late August.

The Volkswagen T-Roc’s Portugal assembly plant will therefore not build a modest 70,000 annual units. Though sales aren’t yet underway, Volkswagen board member Jürgen Stackmann says the automaker has already determined it’s necessary to triple annual production, according to CarAdvice. (Read More…)

By on September 5, 2017

hyundai-sonata-eco-grille

Hyundai Motor Co. is squabbling with its Chinese partner, BAIC Motor, over efforts to reduce supplier costs. The automaker has already faced a myriad of problems with its Korean workforce and witnessed reduced volume in both China and North America this year.

However, its newest problem in the Far East isn’t simply a matter of tweaking its lineup. The issue also has political undertones as the North Korean missile crisis has pitted Beijing and Seoul at odds with each other. (Read More…)

By on August 30, 2017

Tesla Model X

August saw Tesla Motors slashing prices on practically everything that wasn’t the Model 3. The automaker has a history of endless shifting trims and pricing, and the most recent round of changes focused entirely on top-spec versions of the Model S and Model X. Earlier this month, base-model MSRPs received a haircut.

Assumedly, the automaker wants to move its existing inventory while production of the Model 3 progresses towards the coveted 500,000-units-per-year mark. Yet that ambitious goal is still miles away.

Tesla has been hesitant when it comes to providing sales figures and, while it has begun releasing delivery numbers on a quarterly basis, making monthly estimations is extremely difficult. The automaker said it hit its target of 47,000 units for the first half of 2017 but also referenced a “severe production shortfall” that hindered sales during the second quarter. It plans to make up the difference through the rest of the year and the pricing shift is likely to play a factor.

How much are you saving, exactly, if you buy a Tesla now? (Read More…)

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