Chinese Auto Market Not As Hot As Everyone Thought

China might not be the kind of market everyone thought it was — one without a ceiling, boasting unlimited potential for growth. One by one, automakers find themselves having to confront economic reality.

Despite amassing a network of factories that could theoretically outproduce the rest of the world, the Asian country’s automotive sector only operates at about half its total capacity. That’s disconcerting. Even Europe, site of some serious industrial headwinds of its own, manages to operate around 70 percent capacity.

While the reasons for China’s woes are ludicrously complicated, one of the most pressing issues is that its economy is slowing much earlier than anticipated. Automakers, both foreign and domestic, almost universally believed that The People’s Republic would surpass the United States as the world’s largest automotive market — and they were right. But investments kept pouring in, factories were built, and the market started to cool prematurely. The situation only grew worse as incentives dried up and people began buying fewer cars; now, 2019 is shaping up to be a very bad year for the nation’s automotive sector.

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Extreme Vitriol: Unifor Squares Off With Ontario, Receives Support From Veteran Rockstar

The Ontario government isn’t pleased with Unifor’s handling of General Motors’ decision to close Oshawa Car Assembly. Like the UAW, Canada’s autoworker union has been extremely vocal in its opposition to GM’s restructuring plan. Over the last few months Unifor members have picketed, held multiple rallies, protested the automaker during the North American International Auto Show, called for a boycott, and aired commercials condemning the manufacturer during the Super Bowl.

Todd Smith, Ontario’s minister of economic development, job creation and trade, believes all of this has been detrimental to future business investment. “The Unifor message hasn’t been helpful, not just for General Motors but the auto industry in Ontario,” he said during the Automotive News Canada Congress in Toronto.

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Rocked by GM's Plant Cull, Ontario Seeks to Shore Up Its Auto Sector

General Motors’ decision to stop the flow of product to Ontario’s Oshawa Assembly plant by the end of 2019 has the province’s government promising cash and a slew of measures to keep the auto industry alive north of the border.

Ontario holds the bulk of Canada’s auto-related manufacturing jobs, with the sector adding up to nearly one-fifth of the province’s manufacturing GDP. Vehicles and parts made up 28 percent of its trade exports in 2015. On Thursday, the Ontario government rolled out the first phase of a 10-year plan to firm up the industry and make automakers reconsider Mexican investment.

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Despite Big North American Earnings, Barra Says GM Plants Have to Go

Despite a year-over-year sales drop in the fourth quarter of 2018, a higher average transaction price spurred by growth in high-margin vehicle sales in North America returned better than expected Q4 earnings for General Motors.

The company’s strong showing comes as its overseas ventures sank and headwinds gathered at home and abroad; mainly, predictions of a slower 2019. That’s GM’s outlook, too, which explains why CEO Mary Barra isn’t backpedaling on her plan to shutter five North American plants.

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GM Begins Axing 4,000 Salaried Workers

Last Friday’s whisperings of a “Black Monday” panned out, with General Motors announcing the elimination of roughly 4,000 salaried workers — part of a preexisting pledge to reduce its North American workforce by 15 percent.

Pink slips are in the process of being handed out, an unwanted delivery that should take two weeks to complete. In total, GM hopes to cull 8,000 salaried workers and reduce its executive ranks by 25 percent.

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Report: 'Black Monday' Looms for GM Employees

General Motors’ cost-cutting plan could hit home in a big way for salaried employees next week.

While the automaker has already begun cutting its salaried workforce, part of a broader streamlining push that includes plant closures and model discontinuations, sources claim Monday could bring widespread pink slip action.

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Waymo Promises New Auto Jobs in Michigan

Alphabet’s self-driving arm, Waymo, announced plans for a Michigan expansion on Tuesday. The company is currently seeking a location in the southeast section of the state and intends to hire up to 400 employees over the next five years.

According to a corporate blog post, the new new hires will be tasked with installing autonomous driving systems on vehicles built by Fiat Chrysler Automobiles and Jaguar Land Rover ahead of those vehicles entering the firm’s growing fleet.

“We’ll be looking for engineers, operations experts, and fleet coordinators to join our team and help assemble and deploy our self-driving cars,” the blog explains. “This will be the world’s first factory [100-percent] dedicated to the mass production of [Level 4] autonomous vehicles.”

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Tesla Slashes Workforce, Kills Referral Program in Ongoing Search for Cash

The automaker may have worked out production bugs and finally turned a profit late last year, but 2019 is off to a rocky start for Tesla. In an email to employees Friday, CEO Elon Musk said he’ll thin the company’s full-time ranks by 7 percent, warning of a “very difficult” road ahead.

The news comes hot on the heels of a slew of cost-cutting measures, including the elimination of various trim configurations and this month’s culling of 75D base models — a move that leaves only the top-flight 100D versions of the Model S and X in Tesla’s stable. Thursday brought word of the scrapping of company’s long-running customer referral program, prompting tears in the Tesla-boosting blogosphere.

All of this throws Musk’s promise of a true “people’s car” by this summer into doubt.

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Unifor Planning to Protest General Motors at Detroit Auto Show, UAW Boycotts Blazer

Things are starting to get truly ugly between Canada’s Unifor and General Motors. On Friday, the union held a rally in Windsor, Ontario, with that automaker’s headquarters just a river away. During the event, Unifor President Jerry Dias expressed his annoyance with the automaker’s restructuring plan and promised to bring the noise to GM’s front door during the North American International Auto Show this week.

Friday’s gathering, which Unifor and the Windsor and District Labour Council claimed drew around 2,000 people despite its brevity, focused primarily on the company’s decision to shift more of its North American production to Mexico and the shuttering of Oshawa Assembly and the end of this year. Dias said he wants the union to work with the automaker to keep Canadian jobs and avoid a potential boycott. Though that might be just around the corner, as the UAW has already issued a boycott of its own within the United States.

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Blame China: Jaguar Land Rover Layoffs Won't Be Exclusive to Europe

On Thursday, Jaguar Land Rover was reported to be in the midst of a plan that would eventually lay off roughly 10 percent of its UK workforce — roughly 4,500 employees. Considering the company has been forced to endure waning demand for sedans and just about everything with a diesel engine, a bit of restructuring was inevitable. Especially since everyone else is doing it at the moment.

However, JLR’s layoffs won’t be exclusive to Europe, as initially presumed. Despite the vast majority of its workforce residing in the United Kingdom, a small portion of its American staff will likely feel the impact, too.

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Here Come Ford's Layoffs: Automaker Outlines Its Euro Restructuring Plan

On Thursday, Ford announced preliminary details of a plan that will ultimately erase thousands of European jobs in an attempt to return the business to profitability. The decision comes after several reports indicated the automaker’s restructuring program will be particularly hard on the region.

The plan now officially includes a slimmer product lineup, which is likely to result in the shuttering of several facilities. The manufacturer also announced a “leveraging” of existing relationships — specifically referencing a potential alliance with Volkswagen Group that would help support Ford in that market.

“We are taking decisive action to transform the Ford business in Europe,” explained Steven Armstrong, group vice president and president of Europe, Middle East and Africa. “We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers.”

What does Ford think it needs to do to achieve a 6 percent operating margin in Europe? Read on.

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Under Fire From Multiple Foes, Jaguar Land Rover to Cut 4,500 UK Workers

For now, Tata-owned Jaguar Land Rover isn’t saying whether any of its British plants will close as a result of the automaker’s cost- and job-cutting spree, nor whether we’ll see a shedding of models from its portfolio. Many would argue there’s some Jags in need of cutting.

With global sales falling 4.6 percent in 2018, the automaker claims the next phase of its “Charge and Accelerate” transformation plan will leave 4,500 UK workers out of a job.

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End of the Line: Bid to Save Oshawa Assembly Fails, Workers Walk Out

The faint hope that existed at the end of 2018 in regards to General Motors’ Oshawa, Ontario assembly plant no longer exists, except maybe in the minds of the most optimistic of union brass. On Tuesday, the automaker told Unifor, the union representing Detroit Three autoworkers in Canada, that its proposals to save the country’s oldest auto plant weren’t feasible.

GM laid out its reasoning in a letter to Unifor President Jerry Dias. As before, it all came down to cost … and the public’s dislike of cars.

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UAW Sues General Motors Over Temporary Workforce

Last week a lawsuit was filed with the U.S. District Court in Youngstown claiming that General Motors is in violation of a “memorandum of understanding” with the United Automobile Workers by allowing temporary employees to support the launch of some new product from Fort Wayne Assembly Plant. The facility, which is responsible for manufacturing the Chevrolet Silverado and GMC Sierra pickups, is alleged to have brought on temporary workers from May to August of 2018 instead of using its laid-off full-time workers. The UAW claims this is decision represents a breach of contract.

The union says there are nearly 700 workers laid off from the “nearby” Lordstown, Ohio Assembly Plant — many of whom have applied to transfer to the Fort Wayne as is their right under the current contract with GM.

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General Motors Now Mexico's Top Automaker, UAW/Unifor Decidedly Annoyed

As General Motors takes aim at its own foot in the United States, it’s managed to become Mexico’s top automaker by volume. The company saw a nearly 3 percent U.S. decline in the fourth quarter of 2018, during which it announced the shuttering of several U.S. and Canadian facilities as part of a widespread restructuring program aimed at freeing capital for autonomous and electric vehicle development.

Meanwhile, large investments in its Mexican plants over the last few years — coming at the same time as rival Nissan’s scaling back of sedan production — has left GM as the top dog in the region. General Motors and Nissan have spent decades jousting for the top spot south of the border, alternating positions “depending on what has happened in their production levels,” according to Stephanie Brinley, principal analyst at IHS Markit.

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  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.