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Monsoon rains disrupt production for Ford, BMW in India

Even modern production techniques can be stymied by Mother Nature. This was demonstrated most recently in India, as torrential, monsoon rains caused a deluge that forced multiple automakers to suspend production. Ford, Renault, and BMW all halted work at their Indian facilities around the southern city of Chennai, also known as Madras. The annual rains disrupted public transport around the city, preventing employees from making the trek into city's factories. According to Automotive News, Chennai saw 48 inches of precipitation last month alone, which is more than Seattle, WA saw in all of 2014. While Ford and BMW closed things down for all of December 1, Renault just cancelled a pair of shifts at its Chennai factory. This is the second time in the past month that automakers in southeast India have been forced to stop production due to severe flooding, and things aren't likely to improve. According to The Weather Channel, forecasts call for thunderstorms over five of the next seven days, while the chance of rain won't fall below 80 percent until December 8. Ford, Renault, and BMW are far from the only automakers that could stand to be impacted by the rains. The city has been nicknamed "The Detroit of India" for its extreme automotive presence. Daimler, Hindustan, Hyundai, Mitsubishi, and Nissan all own factories in the region. News Source: Automotive News - sub. req.Image Credit: STR / AFP / Getty Images Plants/Manufacturing BMW Ford Renault

Senior VP Hildegard Wortmann says BMW's electric journey is just beginning

Anyone who questions BMW's effort or sincerity on electrified vehicles should have a chat with Hildegard Wortmann, the German automaker's senior vice president over product management for automobiles and aftersales. I was fortunate to do just that at the Detroit North American International Auto Show earlier this year. ABG: Where might BMW go with electrified vehicles beyond your i3 urban EV and i8 high-performance hybrid sports car? "That [regulatory] train has left the station" - Hildegard Wortmann HW: I think a big advantage is that we now have two bookends: BMW i [green] and BMW M [high performance]. We can use those bookends to foster the BMW brand in total. Are electrified vehicles the answer to CAFE and European regulations? Is that the future? We don't know, but that [regulatory] train has left the station. To achieve all of these regulations worldwide, there is no way to do it without electrification. That is why the activities of BMW i are not just to launch new products. They are our build-up in competence for learning and gaining experience in electrification. We will use those learnings for the total BMW brand. Technology-wise, we now have a really good understanding of what to do, what not to do, how to work with this and how to get a lot of learnings from the infrastructure and everything that goes with it. And depending on how quickly the market takes off, we can scale it and use it across the range. We will use the competence we will have in vehicle electrification for more than just BMW i. There will be other derivatives and electrification of other products. ABG: Do you see BMW offering pure EVs with larger batteries for greater range? HW: That's a big feature of the Tesla. The question is to find the best balance [of range vs. battery size, weight and cost]. On the i3, we tried to have the right balance between how much range customers need for daily driving and how much battery we put in there. The market will show us. We have over a million kilometers driven by consumers in the Mini E and ActiveE and a fairly good understanding that those people are not driving that much. Putting a really big battery with all that weight into a car that is meant for urban mobility does not make sense. ABG: What about extended-range EVs beyond the i3's optional small range extender engine? "This whole EV movement is in its very early stages." HW: This whole EV movement is in its very early stages.

British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.