While we were hanging outside the Staples Center begging passersby for photos, information and leftover shrimp from the Los Angeles Auto Show to share with you all (well, maybe not the shrimp), there was still news happening that we didn’t get the chance to cover.
So, here it is in condensed form.
Detroit automakers may be betting high-profit SUVs and trucks are a better fit for their domestic plants as those automakers shift production away from cars to make room for larger, high-margin vehicles.
Ford and Fiat Chrysler Automobiles will largely shift production of their cars to Mexico and bring more trucks and SUVs to North American facilities, according to their contracts with the United Auto Workers, Automotive News reported.
The report consolidates production planning schedules included in UAW contracts with domestic automakers, which shows automakers’ plans to move some of their cars to Mexico or overseas. Of the Big Three, General Motors will sell the most domestically produced cars in North America, including the Malibu, Impala, Sonic, Bolt and Volt, although the small-car plant recently announced a slowing production schedule. Ford will still produce the Mustang and Fusion at its Flat Rock plant in Michigan. (Read More…)
Twelve countries, including the United States, reached an agreement Monday on an historic trade agreement that could economically tie together more than 400 million people in Asian Pacific and American countries. The pact would cover trade for wide ranging products, from rice to pharmaceutical drugs to cars.
The Trans-Pacific Partnership, which negotiators have been working on for eight years, would thaw trade relations among countries included in the regional zone, including Japan and the United States. For automakers in both countries, the tentative deal includes provisions for Japanese automakers to (eventually) bring light-duty trucks to the U.S. For American automakers, part of the proposed agreement included a side deal between America and Japan to allow access for U.S. automakers to traditionally closed Japanese markets.
The agreement faces an uphill battle to get congressional approval; House Republicans and presidential candidates already have roundly dismissed the deal.
Ram production will be coming back to the United States and car production moving to FCA’s Mexican operations, Automotive News is reporting citing anonymous sources.
The news comes just days after FCA and the UAW tentatively agreed to a new national contract while locals continue to hammer out the finer details at the plant level. According to the report, there will also be some movement of products within U.S. borders between FCA plants.
General Motors will invest $5 billion to build a global line of cars with Shanghai-based SAIC Motors that will be sold in Brazil, China and other emerging markets, the automaker announced Tuesday.
The cars won’t be sold in the United States, according to the statement.
The global vehicles will go on sale starting in 2019 and the automaker expects the line to eventually produce roughly 2 million cars annually.
Republican presidential hopeful and billionaire Donald Trump wants to bring the pain via punitive tariffs to Ford for manufacturing vehicles in Mexico.
Despite being unified on the trading front, Mexico and the Southeastern United States are besting Canada and Detroit in the automotive industry game.
Kia officially announced Wednesday it is launching the brand in Mexico, with sales to begin July 1 of this year.
Hyundai is planning on building a factory in Mexico, but only after annual domestic sales in the country rise to appropriate levels.
This Friday, Ford will announce a $2.5-billion investment plan for two of its factories in Mexico.