#production

Months ago, I was supposed to board a plane to Old Blighty to drive the new Land Rover Defender.

Given the vehicle’s heritage and importance to the brand, I was excited to see if it was a worthy successor to the famous series of SUVs that came before. I was also excited to go to England for the first time. My Austin Powers impression would be so much cooler if performed in the Old Empire (narrator voice: It would not).

Before I could even finish the paperwork for an international excursion, my flight — and everyone else’s — was canceled. As you know, the pandemic killed off new-car launches for the foreseeable future, although JLR merely “postponed” this one.

There’s a production backlog to be made up for, and industry giants Ford and General Motors don’t want to ease up on the throttle.

Rather than schedule a normal amount of summer downtime for plants and their employees, both automakers plan to pare back their normal idle period for select plants, ensuring a healthy flow of product that’s only just now ramping up after two months offline.

Mexico is attempting to accelerate parts production to ensure North American automakers have enough components on hand to stay operational. The response to the pandemic saw manufacturing stalled worldwide as governments assessed whether or not we’d soon be living through a plague of biblical proportions. While fate decreed a repeat of the Black Death would not be necessary, untold damage resulted in numerous business sectors.

The automotive industry hardly went unscathed. Lockdowns stopped sales in many markets for months and plunged supply chains into turmoil as OEMs shut down to ensure staff were helping to “flatten the curve.” With the public’s interest shifting rapidly away from coronavirus mandates toward demonstrations about police brutality and racial justice, or simply devolving into riots because people are pretty angry about how poorly 2020 is playing out, suppliers and automakers are gradually moving back to more normal production schedules.

This has been easier said than done. But it is being done, and that’s the important thing.

There’s inventories to be filled with trucks and crossovers, and time’s wasting. After staging a cautious, production-limited restart of its North American assembly plants on May 18th, General Motors is prepared to put its foot down, boosting output at numerous locations.

Hungry dealers can’t wait.

Nissan has dutifully released its long-awaited 4-year plan, a document fresh-faced CEO Makoto Uchida must make a reality in order to ensure the survival of the automaker in These Uncertain Times, to say nothing of his job title.

Leaked up and down over the past few weeks, the plan calls for a return to modest sustainability, rather than the expansionist, market share-chasing efforts of the Ghosn era. Thrift and efficiency will be the name of the game.

Nissan and Renault opted against a full merger on Wednesday, but neither side seemed to feel now was the time to disband the alliance and see how they might fare as a solo act. Every member of the Renault–Nissan–Mitsubishi Alliance took time to address financial concerns last year, encouraging further product integration as a cost-mitigation strategy. Despite Nissan shareholders and staff clearly losing interest in the French-led confederation, the brand seems to understand that leaning upon its allies might be the only way to get through a period of increasing economic uncertainty.

Mitsubishi slashed its 2020 financial forecasts ahead of the coronavirus pandemic by over $500 million while the other two issued numerous profit warnings in the latter half of 2019. Now the world is exiting lockdowns and assessing the economic damage they caused. Obviously, this is not the time to be burning bridges, even if some alliance partners aren’t enthralled with what’s probably waiting on the other side.

A fledgling electric vehicle company with a sprawling former General Motors plant in its possession will reveal its first model in late June.

That’s according to Lordstown Motors CEO Steve Burns, who said the debut of the Endurance, originally slated for the Detroit auto show, will take place online instead. A full-size pickup that shuns internal combustion, the Endurance will face still competition from the Likes of Ford, Rivian, and GM in the emerging segment, though Lordstown doesn’t plan to stop there.

While General Motors earned the right to resume production in Mexico on Thursday, parts procurement in the gradually reopening North American economy remains a serious roadblock.

U.S. plants came online May 18th following two months of pandemic-prompted downtime. Of topmost importance to all members of the Detroit Three are their hot-selling pickup lines, though UAW- and state-approved health protocol calls for a slow ramp-up, with all plants operating on reduced shifts. Parts supply will dictate those ramp-ups; in GM’s case, boosted pickup production in the Midwest will have to wait.

General Motors received good news on Thursday, earning approval from the Mexican government to fire up its extensive manufacturing presence in that country after weeks of coronavirus downtime.

The green light to resume production will help the automaker restock its all-important pickup shelves, though assembly won’t turn on a dime.

Move over, people of Joplin — Tulsa, Oklahoma wants to host Tesla’s proposed second U.S. assembly plant, and it’s prepared to embarrass itself to see it happen.

On Wednesday, Tesla aficionados assembled their vehicles around the city’s famous, 75-foot-tall Golden Driller statue, which they deftly decked out to look like Tesla co-founder and CEO Elon Musk. To Tulsa, Musk is the golden boy. Rumors abound that the sometimes unhinged executive has decided on either Austin, Texas or Tulsa for the new assembly plant site.

Some hope he’ll even move his company’s headquarters out of California.

Here at TTAC World Headquarters, talk of sedans is never far away. While automakers have decided the three-box bodystyle is an afterthought, and while consumers aren’t helping by choosing cargo capacity over tradition, we still lust after a nice trunk.

Over at the Blue Oval, this summer’s shaping up to be a grim one for workers whose hearts bleed at the thought of such a noble bodystyle fading from the company’s lineup. July in particular will be painful for longstanding Ford employees who harbor fond memories of the Maverick, Granada, and Contour. Also: the Fairlane, Custom, LTD, Galaxie, Crown Victoria, Escort, Taurus, Fiesta, Focus, Falcon, Fairmont, Tempo, and Five Hundred.

Mexico spent plenty of time discussing the phased reopening of automotive plants last week. The presumption was that the nation would have to establish guidelines for industrial work zones that would allow some to resume production after May 18th, with timing coinciding with U.S. facilities that will be in desperate need of parts and vehicles. However, last minute changes left everyone wildly confused.

On Thursday, the Mexican government said the industrial sector wouldn’t be eligible for reopening until June 1st. The following day, it explained that the date didn’t actually mean much for automotive outfits, adding that companies could reopen at any time if they verified an adherence to new safety protocols. Thanks to another announcement over the weekend, most of the residual confusion has subsidized. Mexican facilities can reopen, provided they have the correct paperwork on file.

The first sneak peak at Ford’s next-generation F-150 was expected to occur at the newly temperate Detroit auto show in June; alas, the coronavirus pandemic put the kibosh on those plans (for both Ford and the show’s organizers).

With the show scuttled and production idled for a period of two months — Detroit Three automakers resume limited production on Monday — rumors naturally arose of a product timeline thrown into disarray. This week brought unofficial word that production of the 14th-generation pickup has been pushed back for a second time. Reacting quickly, Ford insists we’ll see new F-150s rolling into dealers before the end of the year.

Production at General Motors’ Mexican assembly plants could start up next week, following a go-ahead from the country’s leadership to resume factory activity. The faster GM’s able to come back online south of the Rio Grande, the better.

In an earnings briefing last week, GM, like its rival Fiat Chrysler, pointed to a declining inventory of lucrative pickups — a segment that proved extremely resilient over the past two months, even during the depths of the coronavirus lockdown. With U.S. plants resuming work on Monday, a concurrent Mexican restart is what the company needs.

A joint Toyota-Mazda assembly plant in Huntsville, Alabama could see its opening delayed, all thanks to the economic turmoil and construction delays borne of the coronavirus pandemic.

Akira Koga, Mazda’s senior managing executive officer, said in an earnings briefing Thursday that construction on the $1.6 billion joint facility, first announced in early 2018, is being hampered by virus fallout. That throws into doubt the timing of two new crossover vehicles — one of which is crucial to Mazda’s future.