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GM plans to restart production in Mexico on May 20

MEXICO CITY — General Motors is tentatively planning to restart operations at its auto assembly plant in the Mexican city of Silao on May 20, according to a message to workers seen by Reuters on Sunday, as the car industry prepares to exit the coronavirus lockdown. Separately, the president of GM's Mexican unit advised suppliers to prepare to resume operations. “We are now beginning a new phase given the Mexican governmentÂ’s official announcement earlier this week to consider the transportation manufacturing industry as essential for the countryÂ’s economy,” Francisco Garza, president ofGeneral Motors de Mexico, wrote in an email to suppliers dated on Friday that was viewed by Reuters. The reopening of the plant  in Silao would be a positive signal for the auto sector in North America, whose supply lines are highly interconnected between the United States, Mexico and Canada. The plant in the central state of Guanajuato has been idled for weeks due to the coronavirus outbreak. Workers had previously been told to plan to return to their jobs on May 18. A GM spokeswoman said the company could not confirm when it would restart operations at any of its facilities in Mexico because it is awaiting more guidance from the government. The message to the plant's workers came after the government on Friday clarified when the industry could begin easing restrictions imposed because of the health emergency. On Wednesday, the government said automakers could start going back into production from May 18. It then withdrew that advice and suggested the new start date would be June 1. Finally it indicated the sector, which forms the backbone of Mexican manufacturing, could begin operating as soon as next week if companies had the required safety measures in place. U.S. officials and its auto industry have pressed Mexico's government to get its factories open again because American operations depend heavily on parts from south of the border. However, some politicians are wary of opening too fast. Mexico registered its first case of coronavirus weeks after the United States and Canada and the toll of daily infections and deaths in the country reached new peaks over the past few days. The Silao production facility, which makes highly profitable pickup trucks for GM, is one of the biggest automotive plants in Guanajuato, a major Mexican carmaking state. Related Video:

Suzuki recalls 2 million cars globally

Suzuki is recalling two million vehicles across the globe, including a number of Chevrolet Cruze sedans that it builds for General Motors, because the ignition switches may begin to smoke. None of the Cruzes being recalled were sold in the US, though. This recall is limited to the Japanese, European and Australian markets. In Suzuki's home market, 1,873,000 vehicles are being recalled, including the Cruze and a number kei cars built for Mazda (the Carol and AZ-Wagon), as well as the automaker's own Alto, Wagon R and Swift. Affected vehicles were built between 1998 and 2009. The remaining 133,000 vehicles include Cruzes and other Suzuki products sold in Europe and Australia. There have been no reports of injuries or accidents due to the 67 reported incidents, all of which come from the Japanese market, a Suzuki spokesperson told Automotive News. Related Video:

Even if GM does close all 5 of those plants, it'll still have too many

DETROIT — General Motors' monumental announcement on Monday that it will close three car assembly plants and two powertrain plants in North America and slash its workforce will only partially close the gap between capacity and demand for the automaker's sedans, according to a Reuters analysis of industry production and capacity data. Sales of traditional passenger cars in North America have been declining for the past six years and are still withering. After GM ends production next year at factories in Michigan, Ohio and Ontario, it will still have four U.S. passenger-car plants — all operating at less than 50 percent of rated capacity, according to figures supplied by LMC Automotive. In comparison, Detroit-based rivals Ford and Fiat Chrysler Automobiles will have one car plant each in North America after 2019. The Detroit Three are facing rapidly dwindling demand for traditional passenger cars from U.S. consumers, many of whom have shifted to crossovers and trucks. Passenger cars accounted for 48 percent of retail light-vehicle sales in the United States in 2014, according to market researchers at J.D. Power and Associates. This year, sedans will account for less than a third of light vehicle sales. That shift in turn has left most North American car plants operating far below their rated capacities, while many SUV and truck plants are running on overtime. The collapse in passenger-car demand is a challenge for nearly all automakers in the United States, including Japan's Toyota and Honda, which have the top-selling models in the compact and midsize car segments. Toyota executives said last month they are evaluating the company's U.S. model lineup. But Toyota also plans to build compact Corolla sedans at a new $1.6 billion factory it is building in Alabama with partner Mazda. The obstacles facing GM in its plans to close more auto factories became apparent on Tuesday as U.S. President Donald Trump threatened to block payment of government electric vehicle subsidies to GM. While it is not certain that Trump unilaterally has the power to do that, he made it clear he intends to use his office to pressure the company to keep open a small car plant in Ohio that GM says will stop building vehicles in March.