Tata Motors: Seriously, We're Totally Not Interested in Dropping Jaguar Land Rover
It apparently needed to be said. As forces conspire against it, Indian auto conglomerate Tata Motors decided to pour cold water on rumors that it’s mulling a sell-off of Jaguar Land Rover, or perhaps some part of it.
Sure, there’s many troubles facing its British subsidiary, not least of which is the hazy future promised under Brexit. Then there’s cooling sales in the West and trouble in China — oh, and regulatory pressure in Europe and the continued decline of the traditional sedan. JLR lost a lot of money this year. Rumors abound of a big job cull in the New Year, too. Still, Tata says it has a plan, and that the plan will work.
Barra Sends Renovators Packing As Cost-cutting Drive Continues
General Motors won’t move ahead with a planned expansion of its Warren, Michigan design center, nor will its Pontiac propulsion center get the makeover GM once favored. While a shiny new parking garage became a reality before CEO Mary Barra’s aggressive cost-cutting program could kibosh it, the automaker’s planned workforce reduction might render many of those parking spaces redundant.
War Footing: Toyota CEO Unleashes 'Seven Samurai' in Bid for Survival
You need cash if you’re going to make it in this industry, and Toyota CEO Akio Toyoda wants more of it. The automaker’s top executive, who characterizes the dangers facing his company in the same manner of a military general defending the Japanese mainland, has launched an all-out assault on what he fears is Toyota’s biggest threat: unnecessary expense.
“With our rivals and the rules of competition also changing, a life-or-death battle has begun in a world of unknowns,” Toyoda said during a fiscal update last week. “Cost reduction is crucial. It is a fight to restore our original strength.”
To shore up his business’s finances in preparation for new investments, Toyoda has seven warriors ready to slash costs wherever savings can be found.
BMW Drops Manual Transmission From Best Model to Help Pay for R&D
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.
GM to Pull Out of World's Second Most Populous Country, Sell Off Other Operations in Quest for Cash
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.
Ford Plans Salaried Position Cull in North America, Asia
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.
After Opel, Where Will GM's Chainsaw Swing Next?
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.
Cancel the Room Service: Hyundai Pulls Out All the Stops to Right a Leaky Ship
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.
Volkswagen Figures It Can Keep Its Favorite Platform Around Basically Forever
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.
Volkswagen Finds a Way to Dump Huge Numbers of Employees and Keep the Union Happy
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.
Volkswagen to Slash Office Jobs by Next Year, Says Report
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.
Gales: Lotus Will Show Profit By End Of FY 2016
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.
VW Works Council Forces Out Consultants Amid Headcount Reduction Fears
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.