Section: Plants/Manufacturing
Written By: Seyth Miersma
May 5th, 2008 9:00 AM
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Apparently the car-buying public is quite enamored with Volkswagen’s 1.4-liter TFSI engine, as the German automaker is reportedly struggling to keep production in-line with demand. British Autocar reports in the latest copy of its print edition that VW can’t supply enough examples of the powerplant to the wider VW group.
The factory that produces the 1.4 TFSI is just able to keep up with the needs of Volkswagen itself, meaning brands like Seat are being left in the cold. Seat’s supply of the engine is currently under restriction; bad news for fans of the Spanish VW variant, and for the company’s bottom line.
(One hot Seat in our gallery below.)
+ Autocar
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Written By: Seyth Miersma
April 28th, 2008 4:00 PM
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In the April 16th issue of its print magazine, Autocar is reporting that Toyota is looking keenly at India as a location for small car manufacturing.
Referring to “Toyota’s budget small car, which has been under development for at least two years,” quite possibly meaning the iQ shown in Geneva, Autocar envisions India as the likely building place. Toyota senior managing director, Akira Okabe, has reportedly been visiting Indian manufacturers that could serve as future suppliers for the car.
If the iQ (or another small car model?) is indeed chosen for Indian production, it would seem likely that the car would be launched on the subcontinent as well.
+ Autocar
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Written By: Seyth Miersma
April 24th, 2008 9:00 AM
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Volkswagen reported yesterday that it had narrowed its list of possiblel locatins for a potential manufacturing facility in the U.S. The German automaker said that a final descision on whether or not to build in the U.S., and where, will come sometime this summer.
VW group of America president Stefan Jacoby (pictured) said on Wednesday that the list of potential locations had been narrowed to Alabama, Michigan, and Tennessee. “We reviewed many excellent sites and the process to narrow down the locations was not an easy one,” said Jacoby.
Jacoby went on to say that the company was evaluating things like site readiness, logistics, and of course cost, as it continues to mull over the U.S. facility. VW has said that the strengthening price of the euro is what’s ultimately driving its move, with the currency’s strength against the U.S. dollar making America a logical target for production.
+ Automotive News Europe: VW NARROWS US PLANT SEARCH TO 3 STATES (subscription required)
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Written By: Seyth Miersma
April 23rd, 2008 8:00 AM
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Members within the Volkswagen group seem to be getting pretty excited about the possibilities for the rear-engined Up! city car, but none more than Czech subsidiary Skoda.
The VW faction is wrangling to get a brand new factory within the Czech Republic that would be able to pump out up to a quarter of a million cars per year. British weekly Autocar is also reporting in its April 9 issue that VW is considering a low-cost version of the Up!, seemingly tailor-made for markets like Eastern Europe, which could push production at the theoretical Skoda factory to 500,000 units per year.
Refresh your knowledge of the VW Space Up! concept in our gallery below.
+ Autocar
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Written By: Seyth Miersma
April 22nd, 2008 1:00 PM
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In the April 9 issue of its print magazine, Autocar reports that there’s a spot of trouble brewing for future owners of the sexy Aston Martin DBS.
Customers who’ve put orders in for the Bond car are going to have to wait about three months longer than Aston had originally intended, to take delivery of the super coupe. Shortages of some of the car’s one-off parts are the source of the hold- up, causing otherwise complete cars to remain unfinished.
Sources within Aston Martin say that the automaker is willing to make people wait, if it means getting the car right. The company isn’t willing to risk its reputation by using available parts that are slightly sub-standard. Bravo.
+ Autocar
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Written By: Seyth Miersma
April 17th, 2008 3:00 PM
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Members of the United Auto Workers union called a strike this morning at General Motors’ Lansing Delta Township plant. The Lansing plant is responsible for production of a trio of popular GM crossovers: the Saturn Outlook, Buick Enclave, and the GMC Acadia.
While both GM and UAW held back giving a specific cause for the work stoppage, its known that the group that staffs the plant, UAW Local 602, has been working without a local contract agreement with the automaker. The local agreement would cover work rules for the roughly 2,300 workers at the Delta Township facility.
(Click through the jump to read more.)
continued →
Written By: Seyth Miersma
April 17th, 2008 8:00 AM
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The nearly two month long strike between American Axle and the United Auto Workers may be coming a bit nearer to a resolution, as a source close to the negotiations has said that a tentative contract agreement could be reached by this weekend.
The unnamed source called the two sides “very close,” saying “both sides have finally come to their senses.” Confirming the progressive turn the talks have taken, Renee Rodgers of American Axle said, “Negotiations are continuing, progressing. The process is moving along.”
The two sides are said to be making progress on three previously sticky fronts: Realigning wages, legacy health care costs, and new job classifications. American Axle has been pushing for fewer job classifications to add flexibility to his plant structure, along with lowered wages. The two sides have reportedly been discussing a round of buyouts and buydowns to make such cuts easier to swallow for the UAW members.
+ Automotive News: Source: UAW and Axle could have a deal by weekend (subscription required)
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Written By: Seyth Miersma
April 16th, 2008 11:00 AM
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Chrysler has been front and center in the news this week, announcing a product-sharing deal with Nissan, as well as looking at expanding its partnership with Chery Automotive in China.
Now reports from Germany’s Handelsblatt newspaper are claiming that Chrysler is in an advanced state of talks with Fiat, with an eye to teaming with the Italian automaker for possible production in the U.S. Fiat has been looking for idle capacity at auto plants as it plans Alfa Romeo’s American return, and has discussed cooperation with BMW or Detroit Three companies.
Meanwhile, Fiat chief technology officer Harald J. Wester revealed to Handelsblatt that the much-celebrated Fiat 500 minicar will be offered for sale in the U.S., though no time frame was given. Wester said that the American market 500s would be built either in the U.S. or at one of Fiat’s existing facilities in South America.
+ Motor Authority: Fiat in talks with Chrysler, confirms 500 for U.S.
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Written By: Seyth Miersma
April 16th, 2008 9:00 AM
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Despite recent reports from United Auto Workers officials and industry pundits, General Motors said yesterday that it would not soon run out of axles for its Chevrolet Malibu and Pontiac G6 sedans.
GM’s group vice president for purchasing and supply chain, Bo Andersson (pictured), indicated that the automaker was in solid shape for continued production, responding to a question of when the axle supply would run out by saying, “Based on the way I see it now, never.” Andersson declined to provide the specifics but said that GM has, “a good plan for handling the potential shortage.”
The automaker had been thought to be running low on a key component for the rear suspensions of the Chevy and Pontiac sedans, and shutdowns were predicted for the GM plants in Orion, Michigan and Fairfax, Kansas. With dealer inventories of the sedans running to about 40-days, the prevailing thinking had been that GM would need to step in and broker a deal between American Axle and the UAW.
+ Automotive News: GM doesn’t expect axle shortage for sedans (subscription required)
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Written By: David Yang
April 15th, 2008 3:00 PM
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Chrysler LLC penned a deal last July with Chery, the largest independent automaker in China, in a production venture that will see Chrysler sell Chery cars to the U.S. Under the contract, Chery will export its A1 model under Chrysler Group’s Dodge brand.
During a recent interview, Chery’s chief executive and chairman, Yin Tongyao, said that the Chery A1, a 1.3-liter compact hatch, has almost completed its road and crash testing overseas. The compact A3 sedan will then follow into the American market.
(Click through the jump to read more or on the thumbnails below to check out the Chery A1.)
continued →
Written By: Seyth Miersma
April 15th, 2008 9:00 AM
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Chrysler and Nissan have announced a product-sharing deal that would ostensibly help to bolster each automaker where it is weakest in its North American product range.
Chrysler will be getting a Nissan Versa-based small car, built to Chrysler’s design in Nissan’s Japanese factory, and aimed at competing in North America, Europe, and other global markets. In return Chrysler will begin to build pickup trucks for the Japanese partner, allowing Nissan to discontinue its Titan full-size truck. The Chrysler compact cars will likely be available around 2010, while the Nissan-badged trucks will start to arrive in 2011.
The deal follows an announcement last January that Chrysler would get a Versa-based car to sell in South America. Chrysler co-President Tom LaSorda called the product-sharing arrangement, “critical to the long-term success of Chrysler.” Both companies said in a statement that a dialogue will be kept open for future product-sharing opportunities as well.
+ Automotive News: Nissan, Chrysler strike deal for truck, car (subscription required)
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Written By: Seyth Miersma
April 14th, 2008 9:00 AM
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The weak U.S. dollar continues to make America an attractive place for European manufactures to do an ever larger share of their business, with German carmaker BMW being no exception.
BMW’s Chief Financial Officer Michael Ganal told WirtschaftsWoche magazine that the company has plans to increase its purchase of car parts and components in the U.S. because of the dollar’s slack performance versus the euro. Ganal pointed out that while BMW’s Spartanburg, South Carolina plant contributes about 22 percent to total group sales; BMW’s purchasing volume is currently only about 10 percent from U.S. sources.
That purchasing volume is set to rise over the next four years and BMW is considering increasing the number of vehicles produced in America as well. The company currently builds 240,000 vehicles annually in the U.S.
+ Automotive News: CFO: BMW to source more from U.S. (subscription required)
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