Category: Production

By on July 6, 2017

2016 Toyota RAV4/RAV4 Hybrid - Image: Toyota

We’re beginning to pummel a dying horse here but, as you already know, the North American automotive market is shrinking right now. Toyota wants to mitigate this by funneling sales into rental fleets. While this tactic has become unpopular with automakers like General Motors, others have bolstered fleet sales to cope with the lackluster demand. Hyundai, for example, has relied heavily on rental companies to boost its total volume, but the move has placed dealerships and the corporate office at odds with each other.

Toyota’s U.S. deliveries fell 3.6 percent through June of this year, which is 1.5 percent ahead of the industry’s overall decline. The automaker wants to fill the gap by ramping up volume to rental companies before the end of 2017. Like Hyundai, Toyota’s best sellers are passenger cars — which have taken the brunt of consumer apathy of late — but knows it can still unload them on Enterprise, Avis, and Hertz.  Read More >

By on July 3, 2017

2017 Hyundai Tucson - Image: Hyundai

Since 2009, Hyundai’s North American volume has seen record sales every single year. While the last few annual assessments haven’t resulted in the same volume boom as the immediate post-recession years, the company hasn’t seen any shrinkage — despite below-average incentive spending and a lineup that doesn’t exactly sync with the region’s evolving automotive tastes. Hyundai dealers are probably singing the brand’s praises and getting its logo tattooed on their staff then, right?

Not quite. While Hyundai has achieved nearly a decade of growth in the Wild West, dealers are growing increasingly disappointed with its tactics and are less than enthused about future business prospects — especially as it doesn’t appear Hyundai has any interest in scaling back car volume for the sake of SUV sales.

In fact, while both the Hyundai Elantra and Sonata remain higher-volume models, both have undergone a noticeable delivery decrease since 2012. Meanwhile, sales of utility vehicles like the Santa Fe and Tucson have nearly doubled in the same timeframe. Hyundai put 62,817 Tucson SUVs onto North American roads in 2012, and that figure rose to 113,502 last year. It could have been more, had the company been better at supplying those vehicles.  Read More >

By on July 3, 2017

tesla-model-3

Production of the Model 3 is set to begin two weeks ahead of schedule, according to Tesla Motors chief executive and second most famous Twitter user in America, Elon Musk. While that news would probably be more exciting if we had ever been given a definitive timeline for the vehicle, the CEO claims it should equate to the very first car rolling off the assembly line by the end of this week.

“Model 3 passed all regulatory requirements for production two weeks ahead of schedule. Expecting to complete SN1 on Friday,” Musk tweeted late last night, causing half a million Tesla fans to engage in a collective round of giddy, high-pitched squealing. However, the most enthralled members of the company’s rabid fan base are likely to be the 30 people who get to wrap their quivering digits around the steering wheel of their very own Model 3 before the end of July.  Read More >

By on July 2, 2017

Toyota Camry Assembly Factory Georgetown

Toyota is claiming that its TNGA modular platform represents more than a sea change for the Camry. It points to an entirely new direction for the company as a whole, highlighting its commitment to American manufacturing and a future involving more exciting vehicles.

While the latter remains to be seen, the Toyota New Global Architecture has warped the company’s midsize sedan into something almost unrecognizable. With substantially “more-aggressive” styling, the Camry is also boasting efficiency and performance gains — thanks to the platform’s low center of gravity and increased rigidity. But Toyota doesn’t want to keep the technology limited to America’s best-selling sedan, the architecture and concept are set to be baked into future vehicles as well. Because what good is cost-saving modular platform if you are only use it on a single model?  Read More >

By on June 28, 2017

BMW 2 Series, Image: BMW

BMW plans to streamline its manufacturing process by providing fewer model variants and eliminating less popular engine or equipment options. The goal here is to free up capital for research and development spending in the coming years, according to a Wednesday announcement from the brand’s chief finance officer, Nicolas Peter.

With most German automakers already pushing heavily into the realm of electric vehicles, BMW’s strong presence in China is forcing it to further bolster its efforts in EV development. The country’s particularly aggressive emission regulations and mandates on electric vehicle sales means any manufacturer hoping to persist within its borders will have to ensure 12 percent of its fleet is electric by 2020 — and BMW isn’t ready.

As a result, the automaker is trimming fat wherever it can find it. Unfortunately, that means eliminating the manual gearbox for the 2 Series in the United States and abandoning certain engine options for models across the globe. While BMW wasn’t explicit as to which motors won’t be returning, odds are good it will be the fun ones that don’t sell as well, plus the diesels.  Read More >

By on June 27, 2017

2017 chrysler pacifica hybrid

Conflicting reports claim Fiat Chrysler Automobiles has either restarted, or is poised to restart, production of the Pacifica Hybrid minivan in Windsor, Ontario.

This comes after a tumultuous month for the automaker’s headline-grabbing plug-in minivan. First, a voluntary safety recall saw all Pacifica Hybrids built to date recalled for faulty inverter diodes, following incidents in which several vehicles lost power while underway. The recall then led to the shadowy shutdown of hybrid minivan production. Read More >

By on June 27, 2017

VW logo, Image: Volkswagen

Volkswagen Group is continuing to clean house and has made plans to eliminate a significant number of its management staff using the same “early retirement” tactics offered to its longstanding labor force. It’s another obvious attempt on VW’s part to remake itself into a younger, forward-thinking automaker following the diesel emissions scandal — and save itself some money in the process.

While the layoffs aren’t explicitly targeted at Germany, the majority of outgoing managers will certainly come from its European workforce. Volkswagen has declined to comment on the exact number of hangers-on potentially affected by the plan.  Read More >

By on June 26, 2017

2017 Chrysler Pacifica Hybrid (left) and Chrysler Pacifica (right) - Image: FCA

Despite being lauded for its high level of content, smooth ride, and all-electric range, Chrysler’s plug-in hybrid minivan has hit a large roadblock. After voluntarily recalling all Pacifica Hybrids due to a safety defect that could see the minivan go dark at inopportune times, it seems the assembly line has ground to a halt in Windsor, Ontario.

A recall earlier this month saw Fiat Chrysler Automobiles call back 1,368 vehicles in the U.S. and 309 in Canada following complaints of loss of propulsion. The issue reportedly stems from defective inverter diodes. While the wonky electrified powertrain hasn’t resulted in any crashes or injuries, electrified cars that suddenly stop sending current to the motor aren’t something customers or the automaker can tolerate.

It’s a serious stumble for FCA’s green halo car. Read More >

By on June 26, 2017

2015-Ford-Focus-06

Ford has plans to halt production of the compact Focus — a one-time juggernaut of a model — for an entire year. But wouldn’t you rather talk about the upcoming Ranger and Bronco?

Of course you would. You’d rather buy one, too, if only the resurrected nameplates were already on lots. Back in 2002, when Limp Bizkit was still on the charts and frosted tips hadn’t entirely disappeared from the hair scene, Ford unloaded 243,199 Focus cars to U.S. buyers. Compare that to the first five months of 2017, where 67,146 Foci left dealer lots in a marketplace where passenger car sales are falling like Brent crude prices in 2014.

It’s against this backdrop that Ford plans to temporarily pull the plug on the Focus. While there’s good reason for the shutdown, the automaker doesn’t seem all that concerned about it. Read More >

By on June 20, 2017

ford focus st, Image: Ford Motor Co.

There’s a good chance the next Ford Focus you purchase will have arrived via a slow boat from China. Despite abandoning assembly plans in Mexico earlier this year, Ford Motor Company has decided the next-generation model will remain an import, now by way of Asia.

Current Focus production in Wayne, Michigan will be eliminated in the middle of next year to make way for Ford’s upcoming Ranger pickup (in late 2018) and Bronco (in 2020). The automaker assures hourly workers they won’t suffer from layoffs resulting from the changeover, but admits to prioritizing its U.S. assembly plants for trucks and SUVs — vehicles Americans will actually buy. Read More >

By on June 12, 2017

2016 Chevrolet Cruze Grille logo, Image: General Motors

General Motors has decided to further shrink its outgoing fleet of rental vehicles to prioritize its in-house vehicle lending service, Maven, and focus on getting newer cars to customers. That does mean building fewer vehicles overall, but GM shouldn’t care if it can keep raking in the profits — something rental fleets aren’t particularly good at in lower volumes, unless you’re the one charging a daily rate.

Alan Batey, president of GM’s North American operations, claims sales to rental fleets should drop by about 50,000 units this year and an undisclosed amount in 2018. It follows the company’s trend to scale back fleet sales in general. Big businesses accounted for 16.1 percent of its total U.S. sales in 2014, but that was reduced to 11.7 percent in 2016.  Read More >

By on June 7, 2017

2017 Ford Escape Assembly Factory Production, Image: Ford Motor Company

Ford Motor Company is reducing the length of its usual summer suspensions by a full seven days in Kentucky. According to the automaker, production at the Louisville Assembly Plant will resume only “one week” after the normal July 4th shutdown. Like the horrendous Barenaked Ladies song of the same name, the news should prove very popular among a highly specific subset of America — assuming they get paid hourly and weren’t planning an extended vacation.

Normally, Ford takes around 14 days to overhaul factories for the following year’s production, but demand for the Ford Escape and Lincoln MKC has just been too high.  Read More >

By on June 1, 2017

Volkswagen Atlas in front of Chattanooga sign, Image: VW

Volkswagen’s sole U.S. assembly plant was spared any fallout from the company’s wildly expensive diesel emissions scandal, but the upcoming North American Free Trade Agreement negotiations could see VW throttle back its future plans for the facility.

The Chattanooga plant, which builds the Passat and Atlas, has seen $900 million in investment over the last couple of years. More models are anticipated, and the automaker said it expects the plant to reach full production by 2020. However, recent threats of an import tax to be levied on German automakers has VW brass in wait-and-see mode before sending any new models or money to Tennessee. Read More >

By on May 30, 2017

[2015 Mercedes C-Class, Image: Daimler AG]

Call it the Americanization of Mercedes-Benz. While the German automaker has assembled C-Class, GLE and GLS models in Alabama for some time (and, more recently, Sprinters in South Carolina), recent pressure from the Trump administration has led the automaker to reconsider what goes into those vehicles.

After being characterized by President Trump as “very bad,” it’s possible other German automakers operating in the U.S. could follow Mercedes’ lead in a bid to avoid further heat. Read More >

By on May 30, 2017

2017 Genesis G80 winter mountains - Image: Genesis Motors

Amid stagnating U.S. sales, a crash-dive in China, and a product lineup not optimally suited for growth, Hyundai is furiously crafting a salvation plan.

In North America and other utility-loving countries, the strategy is clear: more crossovers and a significant product shakeup. The little Kona is already on the way, though perhaps not as quickly as Hyundai had hoped.

China, however, presents a serious problem for the automaker. What was supposed to be a growth market for the company has now turned into the opposite. Hyundai’s share of the market has shrunk to 5 percent from last year’s 8.1 percent, which was down from years past. In March alone, after news of South Korea’s installation of a U.S.-supplied anti-missile defense system, Hyundai and Kia sales dropped 52 percent.

Determined to make the Chinese fall back into love, the automaker has a plan brewing. Read More >

Recent Comments

  • sportyaccordy: VW’s screwups started long before their focus on the American market. And I’m pretty sure...
  • Jeff S: If Marchionne and FCA don’t take an offer then the Chinese will wait till there is a carcass and start...
  • Goatshadow: Plenty of room to take a nap while it’s charging…
  • slap: The problem with the electric Microbus is that size wise it is what some would buy as a trip vehicle.
  • MGV001: For all the business savvy credited to Marchionne, I can’t believe the way he’s going about...

New Car Research

Get a Free Dealer Quote

Staff