The industry is having to stall more plants to contend with the semiconductor shortage that’s currently making it more difficult for you to get everything from a smartphone on up to your next vehicle. Ford Motor Co. recently informed employees that its Dearborn truck plant (easily one of its most profitable facilities) would need to be idled through the weekend to create a buffer for semiconductor chips. Worse yet, it’s not the first time the automaker has had to stall output of the F-150 this year. Ford has also started manufacturing trucks without all the necessary components, stating it would hold vehicles for a few weeks to account for supply chain delays.

Meanwhile, Chrysler has made a similar announcement about its minivan output as Windsor Assembly faces another chip deficit. Unifor Local 444 recently stated that the facility would be staring down the barrel of a four-week shutdown starting next week. Considering Chrysler’s minivans literally just dealt with a three-week stall over the chip shortage, union workers are understandably upset. Days earlier, General Motors Canada also announced that its CAMI plant in Ingersoll, Ontario, will likely remain idle until the middle of April.  (Read More…)

Volkswagen’s strategy chief since 2015, Michael Jost (59), has announced that he will be departing after more than a decade with the company. While the cynics among us will undoubtedly jump to conclusions about the botched launches of VW Group’s new EVs and the all-important Mk8 Golf, the man himself claimed that his primary reason for leaving is to ensure the wellbeing of his family.

Jost confessed via his website that he’s only been spending weekends with his kindred since 1996 and would ideally like to make that a full-time position. A year under COVID restrictions apparently made the man reassess his life, resulting in his decision to abandon his demanding role at VW.

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Jeep is laying off 150 workers that would have otherwise been employed at its Belvidere Assembly Plant, which actually produces the Jeep Cherokee instead of the long defunct, full-size Plymouth. Based on the timing, this decision appears to have something to do with the FCA-PSA Group merger that formed Stellantis.

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Ferrari CEO Louis Camilleri has abruptly resigned from the company with the official announcement providing few details to build upon. Despite numerous news outlets fixating on his testing positive for COVID-19 and subsequent hospitalization, Ferrari failed to mention it in the release. But Reuters had reported that an inside source had claimed Camilleri, 65, had suffered health complications that required him to be hospitalized for weeks, adding that he was also stepping down as executive chairman of Philip Morris International.

However, he’s now said to be recovering at home and the coronavirus diagnosis apparently had nothing to do with his decision to retire. Ferrari only cited “personal reasons” and stated it had already begun considering his replacement, noting that it had no intention of rushing the process.

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With so many individuals still working remotely to combat The Dreaded Coronavirus™ from spreading, there have to be thousands of pools on when employees will finally be allowed to return to their cobweb-filled offices. But they have to be getting pretty boring because its hard to imagine anybody confidently putting their money down on late 2021 when this whole thing started in February and the press still thought it wouldn’t be a big deal. The narrative has definitely changed since then and continued social distancing has become a popular solution among businesses, even as state-sanctioned lockdown protocols decline after a few were ruled to be unconstitutional.

On Thursday, Ford decided to keep most of its salaried employees at home until at least June of 2021. That’s eight more months of not going into the office and matches the timetable General Motors issued a few weeks ago.

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Tesla Inc. has reportedly disbanded its U.S. media relations team in the United States, fitting since the only journalists that seem to have any direct contact with the company suffer from a condition where they unquestionably praise its products and business model. While access journalism appears to be on the rise in all industries, the automotive realm was relatively free of the phenomenon until fairly recently. Now its getting to a point where just finding someone in the PR department to respond to you within 48 hours is a minor miracle — and it makes little difference whether you’re one of the big boys or a smaller outfit, like ours.

While Tesla used to be wildly proactive in reaching out to authors, sometimes just to complain about articles, it’s been enacting radio silence for quite some time. Other automakers will at least provide you with a boilerplate corporate response — assuming they haven’t issued one already. But it has been complete static from Tesla for what feels like years, leaving the firm little reason to continue paying people whose sole responsibility was to totally ignore the media.

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Barely a full day after news broke that Ford was on the cusp of announcing layoffs, Ford announced those layoffs. On Wednesday, the automaker informed employees that it needs to eliminate 1,400 salaried jobs as part of its $11-billion restructuring program. The good news is that these cuts will be handled through retirement buyouts that won’t leave the departing workforce empty handed. The automaker’s internal memo also stated that the buyouts would be voluntary.

The Blue Oval previously said it expects a full-year loss in 2020 thanks to the pandemic, with a pre-tax profit of anywhere between $500 million and $1.5 billion in the third quarter. (Read More…)

With a large number of automakers pinching pennies these days, it’s easy for the details of various restructuring plans to fall down the memory hole. For example, Ford has been engaged in an ambitious cost-cutting program since 2018. The $11-billion plan was said to take anywhere from three to five years to complete, requiring legitimate sacrifices at the company — including the discontinuation of all sedans in the United States, ending operations in Russia, closing facilities in Europe, and rolling layoffs around the globe.

Ford has actually accelerated its timeline to see how much it can get done before 2021, resulting in the elimination of 7,000 salaried positions globally last year. The company has decided to end another 1,000 salaried positions in the United States. (Read More…)

Keen to sweep as much attention away from the 2020 Democratic National Convention as possible, President Donald Trump campaigned in Old Forge, PA while Joe Biden accepted the Democratic nomination at a largely virtual event. You’ll be forgiven for not having watched either, as both amounted to little more than bashing the opposing side with nary a hint of actual policy. But Trump came the closest to offering something truly substantive, reiterating threats to companies to bring factory jobs back to the U.S. or suffer the consequences.

The president insisted that manufacturers would soon find themselves in a situation that benefits America whether they complied or not. “We will give tax credits to companies to bring jobs back to America, and if they don’t do it, we will put tariffs on those companies, and they will have to pay us a lot of money,” Trump said during the event. (Read More…)

Mercedes-Benz parent company Daimler reported its second-quarter earnings Thursday, revealing a net loss of nearly 2 billion euros and a revenue drop of more than 12 billion euros. Thanks, coronavirus.

While the red ink spilling from Daimler’s balance sheet is cause for concern, the automaker put on a happy face, regarding this year’s financial blows as mere setbacks. The company expects pre-tax earnings to return to the positive side of the scale by the end of the year. To help grow future profits, the Mercedes-Benz brand plans to turn its focus to the toniest of products. (Read More…)

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. (Read More…)

Daimler plans to turn up the volume on cost-cutting measures due to operating losses in the second quarter that haven’t officially manifested. CEO Ola Källenius believes the damage caused by the pandemic response will be too severe to proceed with business as usual for the rest of 2020. At the company’s annual meeting, held Wednesday, the CEO told shareholders to anticipate additional measures to protect profits.

“Our previous efficiency goals covered the upcoming transformation, but not a global recession. That’s why we are further sharpening our course,” Källenius said, noting that the company is currently in talks with labor representatives. Considering the automaker enacted a plan bent on reducing its workforce by at least 10,000 to save an estimated €1.4 billion ($1.6 billion) by 2022, we doubt those discussions are super cordial.  (Read More…)

Having already pulverized the dead horse of waning auto sales into a fine paste, we’ll now turn our focus on how it’s impacting employment among automotive retailers — squashing another pony.

Much of the information up until this point has been anecdotal and conditional to the North American response to COVID-19. Furloughs were rampant as the pandemic progressed and new safety rules seemed poised to cripple sales moving forward. There was an obvious general plight confronting automotive retailers, but we couldn’t nail down what that meant in terms of job losses.

We still don’t, frankly. But it is starting to become obvious that there isn’t much reason to be exceptionally optimistic. AutoNation recently announced that around half of the 7,000 workers it furloughed in April won’t be coming back. Despite some retailers claiming not to need such drastic cuts, plenty are following AutoNation’s model. With fewer customers and sweeping restrictions on how showrooms can be operated, there’s little reason for there to be all hands on deck. But just how many will be forced to abandon ship this year?  (Read More…)

Following reports that Rivian might decide to move a large portion of its operations out of Michigan, news has reached us that it’s all but abandoning the Mitten State for sunny California.

Starting its life as Avera Motors in Florida back in 2009, the EV startup moved to Plymouth, Michigan in 2015 to poach talent from the Big Three and lay down some roots. However, the company doesn’t appear to have wormed its way into the soil all that deeply. It now plans to move a sizable portion of its operations to Irvine, California, with some employees heading to its plant in Normal, Illinois, to prepare for production.

This has got to be a slap in the face for some Michigan residents, since many were instrumental in the development of Rivian’s first models. The business fired a gaggle of people at its engineering and design center near Detroit at the start of June, only to slot in a couple of high-paid executives. Now it’s starting to look like it may pull up stakes and skip town. (Read More…)

To Travis County, Texas, wherein lies the city of Austin, it probably sounds great.

Tesla, which has been on the hunt for a second U.S. production site for months, plans to pitch just such an offer to county officials on Tuesday, Bloomberg reports. In it, the automaker calls the jobs “middle-skill,” which has assembly plant worker written all over it. (Read More…)