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Ford and Chrysler reducing summer plant shutdowns

Most domestic automaker assembly plants traditionally take a couple of weeks off during the summer. The shutdowns give each plant time for much needed repairs and maintenance, and in some cases, help better align production with demand. Not this year, though, as demand for many models is outstripping what Ford, Chrysler and General Motors plants can produce.
Ford has announced that it will shorten its annual summer shutdown for most North American plants from two weeks to one. The shorter shutdown will increase the carmaker's annual North American production by 40,000 units on top of the 200,000 extra units that it was already planning to produce this year versus last. Automotive News reports that Ford produced 2.8 million vehicles on this continent in 2012, and that output this year has already increased 13 percent through April.
Chrysler, meanwhile, is also operating at full tilt and plans to run some plants through the summer with no shutdown at all. Those not getting a break include Jefferson North where the Jeep Grand Cherokee and Dodge Durango are assembled, Toledo North that will assemble the new Cherokee, and Conner Avenue, home of SRT Viper production. Other assembly plants will be down for a single week, while all of Chrysler's engine and transmission plants except one in Indiana will continue operating with no shutdown this summer.

China takes lead as GM's No. 1 market

It's happened. General Motors' biggest vehicle market - at least in terms of new model sales - is China. According to TheDetroitBureau.com, GM and its various Chinese joint venture operations enjoyed a 10.6-percent sales increase in the first half of 2013, selling almost 1.6 million units in the market. That puts GM China about 200,000 units ahead of its US sales totals over the same period - this, despite indicators that the communist nation's economy is losing momentum.
TDB notes that like GM, rival Ford has also enjoyed a robust 2013 in China thus far, with its sales up a whopping 47 percent to 407,721 units sold - 75,254 of them in June alone. Between the two US automakers, passenger car sales for the first half of 2013 are up around 14 percent, well ahead of the rest of the industry's 10-percent growth estimates for the market. Some of the sales growth may come as a result of an overall anti-Japan sentiment in China, though the American brands have long outsold their Japanese counterparts in the country.
By The General's own predictions, China will only continue to grow in sales importance. The company has designs on selling over five million cars a year in the market before the end of the decade, a total that figures to dramatically widen the gap versus its US totals - even if America's auto market makes a full recovery to the the salad days of over 17-million units a year.

UAW strike decision day comes as bargaining heats up

DETROIT — United Auto Workers President Shawn Fain is scheduled to say later on Friday whether recent intensified bargaining with the Detroit Three automakers has produced enough progress to forestall more walkouts. A video address by Fain is scheduled for 2 p.m. EDT and will cover substantive bargaining updates, people familiar with the UAW's plans said. That timing is a departure from the previous two Fridays in which Fain addressed union members at about 10 a.m. Detroit time, and ordered walkouts at additional Detroit Three factories to start at noon. Fain kept automakers guessing with a social media post on Thursday afternoon that showed an image of three men in suits, their faces obscured by the logos of the Detroit automakers, standing in front of a table with roses on it. "Tune into @UAW's Facebook page at 2pm on Friday, October 6th to see who gets the rose!" Fain tweeted, a reference to the television reality show "The Bachelorette," in which the week's winners get a rose. In the UAW version, the winner offers richer contract terms, and gets a week without a new strike. People familiar with the bargaining among the UAW and Detroit automakers General Motors, Ford Motor and Chrysler parent Stellantis said talks have heated up this week after days of little movement. Ford, GM and Stellantis have made new proposals in an effort to end the escalating cycle of walkouts that threaten to undercut profits and cripple smaller suppliers already strained from months of production cuts forced by semiconductor shortages. The pressure is rising on the three automakers as EV market leader Tesla cut U.S. prices of its Model 3 sedan and Model Y SUV, ratcheting up its price war and further pressuring profits on all EV models that are forced to match CEO Elon Musk's aggressiveness. Ford said its latest wage offer would provide raises in excess of 20% over the life of a contract. Combined with proposed cost-of-living-adjustments, workers could see close to 30% increases in pay, people familiar with the proposal said. Fain's Friday video addresses have become must-see events since he launched coordinated strikes at GM, Ford and Stellantis plants shortly after midnight on Sept. 15. Each Friday since, Fain has kept the automakers in suspense as to whether he would order additional plants shut down, or give an automaker a pass because they had offered new concessions.