#Production

Fiat Chrysler CEO Sergio Marchionne plans to to retire soon, and he wants to revolutionize the company as one of his final acts. On June 1st, he intends to unveil a sweeping plan that abandons local production of the compact and super-mini cars the Fiat brand is known for so FCA can focus on larger, more upscale, models.

Fiat, the most Italian brand we can think of that isn’t Ferrari, is moving assembly out of Italy. After being emptied, those factories will be repopulated by Maserati and Jeep SUVs. If you think that’s rather bold of FCA, there’s more. There’s also a very good chance the Alfa Romeo Mito and Fiat Punto will be killed off entirely. Thanks to a decade of steadily declining sales, the Punto has transformed from an European staple to a financial liability. It’s hard to imagine the continent without it, but Axing the model admittedly makes good bit of sense.

However, if FCA keeps culling Fiat and Chrysler’s lineup out of existence, won’t it eventually have to change its name?

It was a drama “worthy of a James Bond script,” the Detroit Free Press‘ sensational headline announced. Ford spokesman Mike Levine provided a hashtag-heavy rundown of the operation’s timeline via Twitter. The automaker even felt it worthy of a lengthy media release.

Never has a supply chain disruption provided a car company so much positive PR.

Often found in its larger, older sibling’s shadow, Acura’s compact RDX crossover can at least boast of being the brand’s best-selling vehicle. Over the first four months of 2018, Americans picked up 15,326 of the little crossovers, versus the MDX’s 13,909.

But with popularity comes responsibility. As production begins in Ohio on the next-generation RDX, Acura’s smallest crossover must overcome its own falling sales in order to help reverse the brand’s flagging fortunes.

China’s recently announced plan to scrap its 50 percent foreign ownership rule for auto assembly plants could be just the doorway into the market Tesla CEO Elon Musk was looking for. It appears he’s already capitalized on it.

The electric automaker registered an electric car firm in Shanghai on May 10th, Reuters reports, in the hopes of building vehicles where they’re sold, rather than shipping them across the Pacific at great cost.

On Monday, Tesla CEO Elon Musk told employees the company intends to “flatten” its structure. That translates into fewer management executives as the automaker hires as many line workers as possible. Neither should come as a shock to those paying attention. Tesla Motors has bled high-ranking executives for a while now, and the autonomous assembly system that was supposed to revolutionize production hasn’t appeared yet.

Flattening the company’s management structure may be less about cutting costs and more about having no one to fill empty seats. That said, Musk’s announcement placed an emphasis on improving the company’s finances — echoing statements made during an earlier conference call that created some public relations hiccups. So the restructuring plan could be Tesla performing double duty.

“To ensure that Tesla is well prepared for the future, we have been undertaking a thorough reorganization of our company,” Musk said in his memo to staff.

After a fire that rocked Meridian Magnesium Products of America’s ability to effectively supply automakers, Ford and a handful of other automakers found themselves in trouble. The Blue Oval had arguably the most to lose with its cash cow F-Series trucks seeing production idled for the foreseeable future. Fortunately, there is a ray of hope shining through the fog.

Numerous sources are claiming assembly could resume on the F-150 by this Friday. Previous estimates had Ford’s truck production being stalled for weeks. However plants in Dearborn, Michigan, and Kansas City, Missouri, are believed to resume operations by May 18th. Unfortunately, Ford’s Super Duty pickups at its Louisville truck plant won’t be getting the same treatment. Production for that facility is to remain stalled indefinitely.

Replying to an over-enthusiastic superfan on Twitter, Tesla CEO Elon Musk said orders will start this month for the dual-motor and performance variants of the Model 3 sedan. Currently, Tesla’s Fremont, California factory only cranks out the rear-drive, long range model.

Production of the higher-end models begins in July, Musk claimed, but the CEO failed to give reservation holders waiting for a base $35,000 sedan anything new to go on.

As we told you yesterday, Ford announced it will temporarily halt production of the F-150 and Super Duty after a fire at Meridian Magnesium Products of America knocked out a key supplier. While the Blue Oval isn’t the only automaker affected by the supply shortage, as General Motors, Fiat Chrysler, BMW, and Mercedes-Benz also report the likelihood of production interruptions, Ford has the most to lose.

Taking the company’s most profitable vehicle out of the mix for a few weeks is a big deal. During a bad month, Ford might sell around 50,000 F-Series trucks in the United States. But a good month can see around 90,000 deliveries, so an unplanned idle probably has the automaker tugging at its collar a little. Fortunately, Ford currently has a 84-day supply of F-series pickups. That doesn’t mean it won’t feel the pinch if the wait on parts takes longer than expected.

The factory shutdown affects F-150 production at the Ford Kansas City Assembly Plant, which Ford said will last until at least May 14th. Super Duty lines at Kentucky Truck and Ohio Assembly have also shut down. Ford’s Dearborn Plant is expected to go down temporarily in the near future.

So, how far have the ripples spread?

Yesterday, we brought you the latest evidence that Cadillac’s ATS sedan will disappear from the market a year before its coupe sibling bites the dust. While a message sent to General Motors initially proved fruitless, dawn brings confirmation that Cadillac’s smallest offering will ditch the four-door format at the end of the current model year.

Don’t worry, entry-level Caddy buyers, there will be a replacement.

Last December, Cadillac’s smallest four-door staged a disappearing act on a VIN decoder document sent to the National Highway Traffic Safety Administration from General Motors for 2019 model year vehicles. While the ATS coupe lived on in all of its variations, the sedan seemingly ceased to exist. Naturally, GM was loathe to discuss it.

As Cadillac adjusts to an abrupt change in leadership, there’s additional evidence that the brand’s entry-level sedan won’t make it to the 2019 model year.

It would be unfair to criticize Tesla Motors’ CEO without also illustrating just how important he is to the company. Were it not for Elon Musk, Tesla would have never made it this far. He was not only integral in its foundation but also the driving factor as it picked up investors. While the company was building innovative products, he has kept shareholders looking toward the horizon and keeping the faith.

Unfortunately, 2018 hasn’t been a great year for Musk. While the brand has managed to keep its exceptionally loyal fan base, bad publicity has shaken investor confidence. No automaker is free from ugly stories but Tesla has been deemed semi-miraculous for some time — making any failures that much more glaring. The bar has been set unreasonably high and unkept promises have caused issues. Tesla has itself a PR problem and, like most things, it looks like it’ll be up to Elon to fix it. But it’s going to be a monumental task, Musk is already putting out fires everywhere and the pressure is only expected to build over the next 24 months.

Ford has paused production of the F-150 at its Kansas City Assembly Plant after a fire at one of the facilities belonging a Michigan-based supplier created a parts shortage. Meridian Lightweight Technologies makes instrument panel components for the pickup.

Roughly 3,600 unionized plant workers at the Kansas City facility have been told to cool their heels at home from May 7th to 14th, according to an Automotive News report.

Car building will soon fire up again at Fiat Chrysler’s Brampton, Ontario assembly plant after employees at a just-in-time seat supplier called of their week-long strike. Late Friday, workers at Lear Ajax ratified a four-year wage contract with their employer.

Brampton Assembly, which builds the Chrysler 300, Dodge Charger, and Dodge Challenger, cancelled both shifts on Thursday after exhausting its limited seat supply. The new agreement between Lear and its Ajax workforce not only keeps seats flowing to FCA, it also keeps Lear from closing its doors for good.

Toyota Motor Corp. is upgrading plants in Ontario to ready them for the next generation of the RAV4. The investment goes toward the retooling of two separate assembly lines at an estimated cost of one billion Canadian dollars (or roughly $780 million USD). While Toyota Motor Manufacturing Canada Woodstock will continue building the standard version of the crossover, TMMC Cambridge will handle the hybridized variant.

As a result, assembly of the Toyota Corolla will be moved out of Ontario and into Alabama, where the automaker is building a new facility via it’s recent partnership with Mazda. A portion of the funds going toward the project will also be reserved for research and development within the province.

Fiat Chrysler Automobiles cancelled both shifts at its Brampton, Ontario assembly plant Thursday, stemming the flow of Chrysler 300, Dodge Charger, and Dodge Challenger models.

Blame the work stoppage on a lack of seats. Brampton’s just-in-time supplier, Lear, saw its workforce go on strike last weekend after failing to reach a collective-bargaining agreement. However, a new wrinkle in this relatively commonplace labor action is that Lear plans to close its plant.