#Production
Tesla: A Surprise Profit, a Stock Bounce, and a Factory Site Secured
Everything was moving in Tesla’s favor Wednesday night, with the electric automaker reporting an unexpected quarterly profit — its fourth in a row — for Q2 2020. This positive financial news, made possible by other automakers’ hunger for regulatory credits, sent the company’s already elevated (overvalued?) stock closer to the face of God.
At the same time, CEO Elon Musk announced something long suspected: That Tesla’s next domestic assembly plant will set up shop in Austin, Texas.
On Again, Off Again: Volvo Aims to Get South Carolina Plant Back in Gear, but Something's Missing
Is there a U.S. assembly plant that’s not currently producing a utility vehicle that doesn’t need one? Perhaps, but that doesn’t describe Volvo Cars’ Ridgeville, South Carolina facility, which builds the new-for-2019 S60 sedan.
A still-shiny plant situated near Charleston’s busy harbor that only opened a year prior to the S60’s launch, the facility shuttered itself in late March as the coronavirus swept into North America, reopening in early May before going idle again a month later. Volvo Cars’ boss aims to get production underway again soon, but there’s a problem.
Honda Swings Axe, Ends Life of One Model, Two Fun Variants
Honda, perhaps taking a cue from domestic manufacturers, has decided to diminish its passenger car ranks.
Reported today by Automotive News, the automaker has decided to discontinue the Honda Fit in the U.S., while also killing off the Honda Civic coupe and ending manual transmission availability in the Accord.
Amid Losses, Daimler Rethinks North American-made Sedans
Domestic automakers have largely rid their North American facilities of sedans, so why shouldn’t foreign manufacturers? That’s what Mercedes-Benz parent Daimler plans to do after announcing a second-quarter loss of $1.9 billion.
While the quarterly loss was less than analysts expected, financial and sales pressures brought on by the coronavirus pandemic has led the automaker to cull car production on this side of the pond.
Read My Lips: Michigan's Governor Issues a Warning
Auto plants across the U.S. are a beehive of activity as workers (and their bosses) seek to make up for lost time. The two-month coronavirus shutdown drained inventories, yet the virus that sparked the unprecedented closure of workplaces across the nation hasn’t gone away.
As you read yesterday, the ongoing pressures reportedly forced one Detroit-based automaker to take desperate measures just to keep the taps running. So Detroit Three automakers probably reacted with trepidation after hearing the U.S.’s most car-heavy state isn’t afraid to pump the brakes once again.
The Call Up: GM's Truck Plants Are 'All Hands on Deck'
According to a report in the Detroit Free Press, General Motors’ truck plants now resemble Tesla plants on the eve of the end of a fiscal quarter.
The need to crank out as many pickups as possible — essential for replenishing a depleted inventory while boosting flagging sales figures — has apparently brought both management and laid-off workers to the assembly line.
Tight Inventory Stands to Hamper July Sales, At Least for Some
Fall holiday discounts aside, the height of summer is typically a good time to head out and buy a car. The weather’s good, new models are rolling into dealers, and markdowns are appearing on older stock taking up precious space. Yet 2020 is anything but a normal year.
As the industry struggles to regain the volume it once enjoyed, threadbare inventories continue to plague automakers, though not everyone’s equal in this exercise.
IPO? Who Needs That? Rivian Lands Another $2.5 Billion
As you read earlier this morning, Rivian founder and CEO R.J. Scaringe isn’t all that impressed with the ability of some EV startups to wow Wall Street with lofty talk and exciting, but perhaps empty, promises. He’s more concerned with getting product out the door.
It’s perhaps because of Rivian’s conventional approach to car building that big-name firms seem more than willing to put their cash behind it. On Friday, the EV startup landed another bundle, and it’s a big one.
Ford's Mexican Engine Pipeline Running at Half Speed; Automaker Warns of Plant Shutdowns
Ford cautioned that some of its American assembly plants could be put on ice as early as next week, as shortages persist at a Mexican plant still not running at full capacity.
The potential engine shortages stemming from coronavirus fears at Ford’s Chihuahua Engine Plant and in the surrounding countryside would stymie production of key Ford products, including the new-for-2020 Super Duty line.
So Long, Sonic: Another GM Car Bites the Dust
This was a long time coming. In fact, Wednesday’s announcement of the discontinuation of the Chevrolet Sonic subcompact was expected to arrive by the end of last year, not halfway through the present one.
Regardless, the small hatchback and sedan that greeted buyers near the outset of the 2010s will not last more than a year into the 2020s. It’s dead come October.
Sad?
Good News: The Fiat 500L Is Back in Production
Fiat Chrysler’s Serbian assembly plant was the first European auto factory to shut down as a result of the growing coronavirus pandemic — a grim harbinger of things to come, and not just for Europe.
That temporary February shutdown stemmed from a parts shortage arising from the hard-hit Chinese manufacturing sector. A far more prolonged shutdown came in mid-March, for obvious reasons. Well, that’s all over, as a crucially important product is now back in production, ready to satiate the hunger of the American buying public.
Fiat Chrysler to Workers: We'll Decide When Our Plants Shut Down, Thank You
Despite new health measures incorporating physical distancing, barriers, and personal protective equipment, working on a factory floor is undoubtedly a tense experience for many these days. That certainly seems to be the case at Fiat Chrysler, which issued a warning to its hourly workers over the weekend.
As reported by Bloomberg, the warning comes after production stopped at two U.S. assembly plants amid workers’ fear of a lurking virus. Do that again, and expect a smaller paycheck, FCA replied.
End of the Line, Again, for the Lincoln Continental
For the third and perhaps last time, Lincoln will cease production of the Continental.
The discontinuation of the slow-selling sedan at the end of 2020 was confirmed late Wednesday by Automotive News and quickly backed up by a statement from Lincoln, though the news was something we’ve expected for quite some time. It was foretold by unconfirmed past reports and a growing mountain of evidence.
Alas, this year’s destruction of things from the past did not spare a nameplate that first appeared in 1939.
SUV Plant to Remain Open After GM Rebuffs UAW Request
If you’ve visited an airport recently, you probably heard on CNN that cases of COVID-19 are on the rise in jurisdictions that largely escaped the earlier wave. Against this backdrop, General Motors came under pressure this week to cease operations at its Arlington, Texas assembly plant.
Home to four full-size SUV models currently undergoing a generational metamorphosis, the plant lies in a state experiencing an upswing in infections. It’s also a key player in GM’s post-lockdown recovery. The automaker says it’ll stay open.
Musk to Toiling Masses: Greater Yields Mean Victory!
Tesla CEO Elon Musk is reportedly cracking the whip again, spurring his company’s workforce into a frenzy of car-building as the end of the second quarter looms.
After posting a surprising first-quarter profit in early April, Tesla warned that the full weight of the coronavirus pandemic — and related lockdowns and sales implosion — would land on its balance sheet in Q2. To keep investor enthusiasm alive, the push is on to make those numbers as rosy as possible.
Recent Comments