Tag: automakers

By on May 16, 2022

General Motors, Stellantis, and Ford Motor Co. collectively decided to reinstate masking mandates in Michigan over the weekend — stating that the impacted factories were in areas with high levels of COVID-19.

The automakers had lifted mask requirements for employees after the backlash against government-backed restrictions and mandates hit a fever pitch in March. While protests had begun swelling by the fall of last year, the Canadian Freedom Convoy that was forcibility disbanded in February drew national attention to the issue. Despite Detroit manufacturers suggesting they would walk back restrictions (if the Centers for Disease Control and Prevention said it was okay) for months, ditching masks initially involved a series of stipulations about vaccinations and job titles. It wasn’t until public outrage spilled over into the real world that sweeping changes began to occur.  (Read More…)

By on April 7, 2022

The Biden administration held another meeting with automotive executives about how to ensure electric vehicles go mainstream. But this time it included Elon Musk, who runs the most successful EV brand in the entire world.

After taking criticism for shunning the Tesla CEO in earlier meetings, senior officials held an event on Wednesday where he and other industry leaders could contribute as to how the United States should handle a national charging infrastructure and spur adoption rates. Despite Musk having often expressed a dissenting opinion in regard to President Biden’s strategy, the White House said that the meeting was productive and resulted in a “broad consensus that charging stations and vehicles need to be interoperable and provide a seamless user experience, no matter what car you drive or where you charge your EV.”  (Read More…)

By on March 15, 2022

Readers may recall yesterday’s news about the retirement of Jerry Dias, head honcho for Unifor, which is the union outfit that represents many autoworkers in Canada. At the time, it was stated the man retired ahead of schedule due to health issues.

Now, less than 24 hours later, industry outlets are reporting that Dias has been under investigation by the union since January for “an alleged breach” of the organization’s constitution.

(Read More…)

By on December 6, 2021

When the pandemic convinced practically every industry to press pause in 2020, supply chains became so crippled that just getting sectors of commerce rebooted became a challenge in itself. It was the business equivalent of a twenty-car pileup, with the automotive industry being hit particularly hard due to the complexity of its own supply lines. While the following year represented an improvement, production failed to stabilize to pre-pandemic levels.

The solution for automakers and dealerships was to begin demanding more money for cars. With vehicles in short supply, the value of new and used models blew through the roof. This move kept automakers largely in the black for 2021, despite a general inability (or unwillingness) to manufacture products at the normal pace. However, it didn’t help suppliers, who are haven’t been able to tack on the same premiums to individual components while still having to cope with rising economic hurdles. (Read More…)

By on September 10, 2021

With the Biden administration having announced that it would start requiring companies to vaccinate employees, automakers and UAW are finding themselves in a sticky situation. Unions had previously said they wanted to hold off on endorsing or opposing mandatory vaccinations until after they discussed things with the industry and their own members. Considering Joe Biden said he wouldn’t make vaccines mandatory less than 10 months ago, employers are getting caught with their pants around the proverbial ankles.

Automakers had previously been surveying white-collar workers to see what they wanted to do while upping on-site COVID restrictions, but operating under the impression that any hard decisions were likely a long way off and left entirely to their discretion. Now the Department of Labor’s Occupational Safety and Health Administration is planning a new standard that requires all employers with 100 (or more) employees to guarantee their workforce is fully vaccinated or require any unvaccinated workers to produce a negative test result on a minimum weekly basis.  (Read More…)

By on July 20, 2021

Despite American carmakers and the United Auto Workers abandoning mask mandates at the end of June, there’s been an about-face in Wentzville, Missouri. The state witnessed an uptick of cases, encouraging both the UAW and General Motors to reintroduce masks and social distancing protocols.

The facility is responsible for the GMC Canyon and Colorado, as well as Chevrolet’s Savana and Express. It’s also likely to be the first facility of many we’re assuming will be told it’s time to go back to the old masking rules. But why is this happening so soon after everyone was given the green light to return to normal operations?  (Read More…)

By on June 30, 2021

The COVID-19 Joint Task Force comprised of Detroit automakers and the United Auto Workers (UAW) has announced that it will be removing mask mandates for vaccinated employees. After meeting on Monday to discuss changes within state and federal health policies, the group decided masks should be made voluntary items for staffers. They could not get the rule change to coincide with the date the decision was made, however.

Lineworkers will instead be waiting until July 12th to pitch their masks in the trash bin so they can be deposited upon beaches and sea beds around the world. Of course, if a government agency (city, state, or county) wants to uphold old mandates or introduce new ones, the COVID-19 Joint Task Force said it would automatically comply. But that might not matter if employees have already decided to stop observing pandemic protocols.  (Read More…)

By on March 10, 2020

Colorado has been considering allowing automakers to sell electric vehicles directly to consumers, but pushback from dealerships complicated things. Senate Bill 167 was intended to level the playing field against Tesla, which already engaged in direct sales, by opening up the door for rival electric vehicle manufacturers to similarly bypass the dealership model.

However, dealer groups noticed the language in the bill effectively permitted any automaker producing EVs to engage in direct sales, Naturally, they cried foul. The bill had its final legislative hearing on Monday, and its new language identifies a difference between a legacy automaker with existing storefronts and EV firms without them.  (Read More…)

By on October 9, 2019

While not the core focus of this website, we’ve often chronicled Harley-Davidson’s missteps as a way of predicting issues that might crop up for manufacturers specializing in four-wheeled transportation.

You see, the iconically American motorcycle brand has painted itself into a corner. By leveraging its established fan base, sales swelled through the 1990s. Unfortunately, the United States’ interest in motorcycles plummeted once the Great Recession hit. H-D was not exempt, enduring the worst of it as its stock price declined 42 percent over the last five years.

As the recessional dust cleared, rival manufactures panicked and shifted away from larger bikes aimed at experienced riders with more money to spend. Japanese companies began furnishing smaller, inexpensive models they hoped would encourage new riders. Harley Davidson waited longer to do this, launching two competitively priced, entry-level models that were still larger than seemed prudent.

Despite the industry seeing slightly improved volumes in the years following 2010, the last two have seen negative growth and annual sales totalling less than half of their pre-recession peak. Hoping to find new riders somewhere, H-D again shifted tactics by building child-sized scooters and the all-electric LiveWire.  (Read More…)

By on January 16, 2019

british-leyland-mini

With Britain’s parliament rejecting Prime Minister Theresa May’s latest Brexit deal, European automakers stand to face some strong headwinds in the near future. As of now, no clear path lies ahead. Many believe the European Union will continue playing hardball, punishing Britain for leaving. But, even if it doesn’t, loads of regulatory and trade issues must be resolved in short order to avoid problems.

There’s also no shortage of hyperbole surrounding the issue. Just this morning I heard cable news call it “the largest crisis in Britain’s history,” as if World War II never happened. A channel away, another outlet proclaimed how splendid it would be for trade between the United Kingdom and United States.

Regardless of which side of the fence you fall, there’s more at stake here than Theresa May’s job. Automakers, who like consistency above all else, worry a no deal plan for “British independence” could be tantamount to flipping the industry table. They don’t like being caught up in the uncertainty surrounding Brexit, and there appears to be an endless list of issues to contend with.  (Read More…)

By on July 16, 2018

Subaru is a once-tiny manufacturer that grew in leaps and bounds thanks to high demand from the United States. The automaker is the eighth best-selling brand in the region, despite being a scrappy upstart, and has managed multiply its volume many since the 1990s. But, like any business loaded into a cannon with the word “success” emblazoned on the side, it can’t continue streaming through the clouds indefinitely without encountering some turbulence.

Subaru may be in for troubled times. (Read More…)

By on July 3, 2018

2018 Toyota Camry Georgetown Kentucky assembly plant - Image: Toyota

It’s no secret that the automotive industry has come out universally against the Trump administration’s proposal to increase import tariffs. Numerous manufacturers weighed in independently on the issue as trade groups rise in opposition to the U.S. Commerce Department’s national security investigation.

The industry’s claim that imported vehicles don’t pose a risk to the wellbeing of the United States seems to have fallen on deaf ears. Threats that the prospective import duties on parts could result in fewer, more-expensive automobiles being produced domestically have been heard — and rebuked — by President Trump.

“What’s really going to happen is there’s going to be no tax,” he told Fox News in a weekend broadcast. “You know why? They’re going to build their cars in America. They’re going to make them here.”

However, automakers, parts suppliers, and even local governments have submitted comments to the Commerce Department ahead of the hearings scheduled for July 19th — and they’re all incredibly negative.  (Read More…)

By on June 26, 2018

Last week, we discussed how the motorcycle industry’s total failure to entice new riders for over a decade has come back to bite it in the ass. Two-wheeled ownership declined drastically in the United States after the Great Recession and never really bounced back. Blame a disinterested population of youngsters with less discretionary funds and few entry-level options to consider.

I speculated that automakers could be on a similar path, despite the passenger car segment being more of a necessity for average commuters and less apt to collapse outright. But that isn’t to presume they might not be subject to similar pitfalls, and we’ve a new one to consider. Harley-Davidson, which serves as the poster child for the motorcycle industry’s current crisis, recently announced it will end all U.S. production of motorcycles sold in Europe.

Those bikes will now be manufactured overseas. The company said in a regulatory filing with the U.S. Securities and Exchange Commission that retaliatory tariffs levied by the European Union on motorcycles exported from the U.S. jumped from 6 percent to 31 percent. Harley-Davidson’s already expensive products come at an additional premium in Europe, and the the company estimates the new fines will add another $2,200 per motorcycle, on average. (Read More…)

By on June 20, 2018

If you think car enthusiasts are a dying breed, you should take a look at motorcyclists. The two-wheeled industry is in serious trouble. A total failure in marketing occurred over the past decade. New riders aren’t coming in fast enough to replace the glut of Baby Boomers rapidly aging out of the market, and there’s a looming paranoia that self-driving vehicles could push bikes off the road entirely.

In 2017, U.S. motorcycle sales were down 11 percent, and no company was hit harder than Harley-Davidson. The brand has the oldest consumer base and has repeatedly failed at recruiting younger riders. While it builds a fine product, it’s not one that appeals to millennials. This generational cohort proved hesitant to engage in motorcycling as a pastime — a situation not helped by having less disposable income than Generation X or the Boomers did at the same stage in their lives. Young women are also poised to start out-earning young men, and few brands have successfully tapped into the female demographic.  (Read More…)

By on April 17, 2018

The automotive industry wants to make 95 octane gasoline the new normal for the United States and it has taken its case to Washington. On Friday, Dan Nicholson, General Motors’ vice president of global propulsion systems, told the House Energy and Commerce Committee’s environment subcommittee that switching to 95 octane would align the U.S. with Europe and is one of the most affordable ways to boost fuel economy and lower greenhouse emissions.

Affordable for automakers, that is. Because there is no reason to think your local gas station will suddenly do you a solid and price 95 octane lower just because 87 is gone.  (Read More…)

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