Category: Production

By on October 18, 2021

Automakers Toyota and Stellantis separately announced plans to construct lithium-ion battery plants in North America on Monday. With regulatory pressures mounting, the industry has been shifting its eggs between baskets to avoid trouble. But the ultimate goal for most brands is to transition toward selling EVs, requiring meaningful action and financial expenditures on the part of manufacturers.

We’ve already seen General Motors and Ford Motor Co. squabbling over who will nestle the biggest battery facilities between America’s Frost and Sun Belts. It’s only fitting that the remnants of the Chrysler Corporation contained in Stellantis walk the path of electrification, especially now that it’s absolutely riddled with European influence. Meanwhile, Toyota is predictably exercising a bit of caution as it similarly navigates how to modernize itself via upcoming lithium-ion plants.  Read More >

By on October 12, 2021

While nobody needs to tell you that the economy isn’t in good health, we should at least hip you to the latest automotive trends relating to the financial purgatory we’re currently living through. Ford sent a memo to dealers last week indicating that it would be removing the minimum FICO requirement for 84-month financing, indicating that the industry may soon normalize auto loans that are even longer than the 72-month whoppers that have grown in popularity over the last several years.

Meanwhile, those needing a vehicle intermittently will find that rental rates have not been declining as hoped. Despite analysts previously suggesting that auto pricing may stabilize through the fall, we now look to be going into the holidays facing familiar high-priced troubles — and there’s really no reason to think that’s going to change after 2022 gets here.  Read More >

By on October 5, 2021

Despite manufacturers still managing to turn a profit, the automotive sector hasn’t been in the best of health these last few years. Growth appears to have plateaued in most Western nations, encouraging companies to cater this business toward other markets, supply chains have also been negatively impacted by the pandemic — with semiconductor shortages hindering production schedules on a scale we’ve not seen since the Great Recession.

It’s a bad situation and rumored to get worse if the warning cries of economists are to be believed. But there’s also mounting evidence to support their claims. The Society of Motor Manufacturers and Traders (SMMT) recently reported that vehicle registrations in the United Kingdom fell by roughly 35 percent in September vs the same timeframe in 2020. This is relevant because the month typically represents the second-busiest period for the country and numbers were already low due to production stops created by coronavirus lockdowns.  Read More >

By on October 4, 2021

GM/ChevroletNinety years. That’s the amount of time that General Motors has led the sales charts in the U.S.

That may change this year, according to industry bible Automotive News, because of the ongoing microchip shortage.

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By on September 29, 2021

Production of the 2022 Lucid Air started this week, adding another automaker to the North American roster. The manufacturer held an event on September 28th, inviting Arizona Governor Doug Ducey, relevant executives, big-time investors, select media outlets, and customers who dropped $170,000 to purchase the limited Dream Edition of the electric vehicle.

While often framed as a Tesla ripoff, Lucid Motors has been setting its sights so high that it hardly feels like a fair assessment. Because the Air is offering one of the most impressive all-electric spec sheets in the industry right now and should probably worry the competition.

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By on September 13, 2021

With supply chain hiccups crippling the automotive industry’s ability to conduct business as normal, resulting in rolling production stalls and skyrocketing vehicle prices, manufacturers looked to be in serious trouble throughout the pandemic. But we learned that wasn’t to be the case by the summer. Automakers were posting “surprise profits” because people still needed cars. We also found out there’s been a growing appetite for expensive (see: highly profitable) models and the industry saved itself a bundle by not needing to pay for office space or line workers, as COVID restrictions kept everyone at home.

Having considered the above, most automakers are seriously considering how they can further leverage this new modality. German manufacturers have even said they’re not that interested in going back to the normal way of doing things — instead electing to intentionally limit volumes and focus on high-end models that will yield the greatest return on investment. But it’s not quite the curveball it seems, as some companies were already ditching the volume approach.  Read More >

By on August 13, 2021

Tesla Gigafactory has been hit with more red tape than a last-minute Christmas present and is reportedly nearing completion. Elon Musk even suggested the facility could be producing vehicles by the end of October. However, some of the language emanating from his recent 0n-site engagement has us wondering what the odds are on that becoming a reality. The facility has already been delayed on more than one occasion by environmental activists and bureaucratic hang-ups. Though it now appears to be within a few weeks of commencing operations, Tesla’s CEO didn’t sound overly optimistic about the target.

On Friday, Musk met with Armin Laschet — Germany’s leading Conservative candidate to succeed Angela Merkel as chancellor — to tour the grounds of Gigafactory Berlin (technically Gruenheide). Though the main event was Elon’s preceding meeting with local Brandenburg officials that have not yet given final approval on the facility, citing ecological concerns.  Read More >

By on August 12, 2021

FordIf today’s news regarding production delays at Ford was a game of Clue, the first victim would be Bronco, caused by hardtops. Now it’s Mach-E, with lack of chips being the weapon.

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By on August 12, 2021

Ford Bronco

Ford is continuing to have hard-top issues with the Bronco. So much so, that according to Bronco6G via Autoblog, the company will replace all the molded-in-color hardtops it has built up to now.

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By on August 10, 2021

Tesla’s Cybertruck has been delayed. The automaker updated its online vehicle configurations to reflect that the model will no longer be arriving in 2021. The pickup’s new launch date is set for sometime in 2022, with no hints on what part of the year the company plans on getting the assembly lines humming.

Though there’s little reason to get bent out of shape. Tesla has always been notorious for delaying vehicles and the automotive sector is currently in a state where you’d probably be more shocked to learn that Cybertruck was arriving on time. Besides, Tesla now has more time to dangle the model in front of consumers as a way to keep itself relevant.  Read More >

By on July 27, 2021

Tesla

Comments made by Tesla boss Elon Musk and other company execs on an earnings call seem to suggest that Tesla Cybertruck production may be delayed.

That doesn’t necessarily mean the truck will be a flop, as I’ve predicted, but it’s not great news for Tesla, either.

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By on July 22, 2021

GM

Have you heard the one about the dead cars? No, not the ones we find in junkyards, but the ones that haven’t had life yet, thanks to the chip shortage.

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By on July 14, 2021

Despite achieving a miraculous global expansion in a period where established industrial conglomerates and regulatory hurdles make it nearly impossible for new automakers to persist, Tesla’s German facility is running behind schedule. Production at the Gruenheide plant (aka Giga Berlin or Gigafactory 4) was originally planned to commence this month, with deliveries kicking off shortly thereafter. But those targets have been shifted closer to the end of this year or the more likely scenario of early 2022.

As Tesla would still like to supply the market, its facility in Shanghai will begin shipping vehicles to Europe in August until local production can be achieved. Model Y crossovers will be imported from China until its German site has its assembly lines humming, which has turned out to be a harder task than the automaker anticipated.  Read More >

By on June 24, 2021

Stellantis plans to extend the typical summer downtime at a couple assembly plants while relaunching production at Windsor Assembly next month. The Canadian van factory will be see two shifts returning on July 5th, while its Belvidere Assembly Plant in Illinois and Toluca Assembly Plant in Mexico will be idled due to the ongoing semiconductor shortage. This has become a common tactic within the automotive industry, with our doubting it’ll be the last occasion we’ll be reporting on extended summer vacations.

Meanwhile, Ford Motor Co. appears to have lost its technology chief to Amazon. Ken Washington was hired into Blue Oval after a stint with Lockeed Martin in 2014 and will be leaving the automaker next month to become vice president of software engineering for the tech giant.  Read More >

By on June 21, 2021

Subaru Legacy 2018 Logo Emblem Grille

The global semiconductor shortage has been particularly hard on Western automakers, though it’s not been peaches and cream for Asian brands. Following news that Nissan had run into issues resulting in additional downtime this summer, we’ve learned that Subaru is currently operating with a scant, nine-day supply of product and will be required to conduct more plant closures due to a lack of chips.

Having already stalled its Yajima plant on multiple occasions, as well enacting work stoppages at Subaru of Indiana Automotive (its U.S. facility), this is hardly where the brand wanted to find itself going into the warmer months. On Friday, Subaru announced it would be idling two plants in Japan’s Gunma prefecture this July.  Read More >

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