By on May 18, 2017

General Motors Renaissance Center

In its global push for profitability, General Motors plans to yank the Chevrolet brand out of the hands of Indian consumers.

The automaker announced a wave of restructuring in overseas markets yesterday, a large part of which is the cancellation of nearly $1 billion in investment in India and the pull-out of its only brand. Until recently, GM had hoped to cater to the country’s growing middle class with a new line of region-specific Chevy models.

GM also plans to sell its South African division and cut back on staff in Singapore. The move will help the automaker free up money to funnel towards its biggest markets — North America and China. (Read More…)

By on May 17, 2017

Mark-Fields (Image: Ford)

A day after media reports described an impending mass layoff of Ford Motor Company employees, the automaker has clarified who gets to keep a job.

While the scale of the job reductions is less than previously reported — a 10-percent global workforce reduction is off the table — Ford does plan to cull its salaried North American and Asian workforce by one-tenth in a bid to cut costs.

The move comes after last week’s tense shareholders meeting during which investors and analysts grilled CEO Mark Fields over the company’s sinking market valuation. Since taking the helm three years ago, Fields has seen the company’s stock price sink by roughly 40 percent. Hourly workers aren’t affected by the plan, though the same can’t be said for white-collar employees. (Read More…)

By on March 13, 2017

2017 Chevrolet Sonic, Image: General Motors

General Motors isn’t finished slashing products or dialing back plans to bolster its financial standing.

After unloading its near century-long Opel and Vauxhall holdings to France’s PSA Group, a move that came after failed attempts to return the European brands to profitability, GM plans to turn its focus on underperforming products in North America. There’s a chance that a model you hold dear could find its way to the chopping block. (Read More…)

By on December 28, 2016

Hyundai Tucson, Image: Hyundai

Once a juggernaut, Hyundai’s recent sales and financial performance hasn’t kept pace with its lofty post-recession boom. The automaker now finds itself in one of the weakest positions in the industry for growth, all thanks to rising costs and a product lineup that doesn’t meet consumer demand.

To patch the holes and regain momentum, Hyundai has taken on some seemingly desperate cost-cutting measures. In this all-out scramble for profits, last week’s firing of its American CEO is just the tip of the iceberg. (Read More…)

By on November 8, 2016

2015 Volkswagen Golf family, Image: Volkswagen of America

In automotive terms, Volkswagen’s go-to MQB platform might end up having a lifespan somewhere between a Fox and a Panther.

Eager to stretch its meager dollars to Gumby-like proportions, the embattled automaker has announced that the platform underpinning most of its vehicles won’t die after two generations. Nah, let’s make it three, VW brand chief Herbert Diess said.

That means some vehicles, such as the stalwart Golf, will eventually ride on a platform old enough to drink in the United States. (Read More…)

By on October 12, 2016

2015 Volkswagen Beetle Classic, Image: Volkswagen Group of America

Volkswagen’s plan to cut costs by cancelling underperforming models isn’t enough to right the scandal-rocked ship.

With an incredibly powerful workers union breathing down its neck, trimming its ranks has proved a tough operation. Meanwhile, there’s only so many models it can drop, and bills are coming due from the many fines, settlements, and lawsuits stemming from the diesel debacle.

How does Volkswagen get rid of 25,000 employees while placating a union boss who sits on the supervisory board?

According to Reuters, the answer comes down to one word: attrition. Specifically, retiring Baby Boomers. (Read More…)

By on March 10, 2016

Volkswagen Chattanooga Tower

Like ripples in a pool of sulphur-rich oil, the impact from Volkswagen’s diesel emissions scandal keeps spreading.

In a cost-cutting measure designed to mitigate the growing financial damage caused by the scandal, Volkswagen is planning to cut 3,000 administration jobs in Germany, according to Reuters.

(Read More…)

By on May 1, 2015

Lotus Evora S Circa August 2013

After going broke for so long, Lotus Cars CEO Jean-Marc Gales says his company will be back in the black by March 2017, when FY 2016 ends.

(Read More…)

By on August 12, 2014

VW XL1s

Volkswagen AG execs will have to go back to the drawing board to determine where to cut costs after its works council demanded outside consultants be shown the door.

(Read More…)

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