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For thousands of US auto workers, the downturn is already here

LORDSTOWN, Ohio - Wall Street is fretting that the auto industry is heading for a downturn, but for thousands of workers at General Motors factories in the United States, the hard times are already here. Matt Streb, 36, was one of 1,200 workers laid off on Jan. 20 - inauguration day for President Donald Trump - when GM canceled the third shift at its Lordstown small-car factory here. Sales of the Chevrolet Cruze sedan, the only vehicle the plant makes, have nosedived as consumers switch to SUVs and pickup trucks. Streb is looking for another job, but employers are wary because they assume he will quit whenever GM calls him back. "I get it," said Streb, who has a degree in communications, "but it's frustrating." Layoffs at Lordstown and other auto plants point to a broader challenge for the economy in Midwestern manufacturing states and for the Trump administration. "This is about economics, not what Trump says. Even if Trump went out and bought 10,000 Cruzes a month, he wouldn't get the third shift back here." The auto industry's boom from 2010 through last year was a major driver for manufacturing job creation. The fading of that boom threatens prospects for US industrial output and job creation that were central to Trump's victory in Ohio and other manufacturing states. "This is about economics, not what Trump says," said Robert Morales, president of United Auto Workers (UAW) union Local 1714, which represents workers at GM's stamping plant at Lordstown. "Even if Trump went out and bought 10,000 Cruzes a month, he wouldn't get the third shift back here." Last week the Federal Reserve said factory output fell 0.4 percent in May, the second decline in three months, due partly to a 2 percent drop in motor vehicles and parts production. Mark Muro, a senior fellow at the Brookings Institution, has compiled data from government sources that show the auto industry punching higher than its weight in job creation in recent years - accounting for between 60 percent and 80 percent of all US manufacturing jobs added in 2015 and 2016. In the first quarter of this year, the auto industry accounted for less than 2 percent of the 45,000 manufacturing jobs created. "There's no argument with the idea that auto has been pulling the manufacturing sled up the mountain for the last three or four years," Muro said.

Recharge Wrap-up: Tesla considers Model III SUV and wagon, Ford tears Tesla apart

Worries over Brazil's electric grid mean EVs are excluded from green car incentives. As part of a new efficiency program, non-plug-in hybrids will be eligible for a reduction in import duties, while EVs and plug-in hybrids will not. Brazil's government is concerned that the country's grid lacks the capacity to handle the increased load from an influx of EVs. Brazil plans to create a new incentive program - perhaps a more inclusive one - when the current one expires at the end of 2015. Read more at Green Car Reports. Tesla could make SUV and wagon derivatives of the upcoming Model III sedan. Tesla's VP of engineering, Chris Porritt, told Auto Express that to reach as many customers as possible, Tesla would consider all its options. "SUVs, estates - who knows?" says Porritt. He also says that while the company is currently focused on products with a broader appeal, another Roadster or other sports car aren't out of the question in the future. Read more at Auto Express. Ford admits to a Tesla Model S teardown. Ford CEO Mark Fields says that after disassembling, reassembling and driving the model S, his company is "very familiar with that product." He also says the Ford has the capability to build a similarly high-tech, long-range electric car. The questions still remains if Ford has plans for such a vehicle, but Fields says that it fits within Ford's "product philosophy." Read more at Business Insider and at USA Today.

NHTSA advances investigation of Ford Crown Victoria headlights

The National Highway Traffic Safety Administration is opening a preliminary evaluation into reports of suddenly failing headlights on 517,945 examples of the 2003-2005 Ford Crown Victoria and Mercury Grand Marquis. The government started looking into this problem in April when the North Carolina Consumers Council filed a defect petition with the agency. Now, the inquiry has moved to the next step. According to NHTSA's documentation (as a PDF), it examined its own database and worked with Ford to come up with a total of 3,609 complaints of the front lighting control module suddenly failing. When this happens, drivers lose the low-beam headlights, but the high-beams can be used by holding the stalk. Sometimes turning the switch off and on fixes the issue. Additionally, there are 15 allegations of crashes, and one reported shoulder injury. NHTSA's preliminary evaluations "evaluate the scope, frequency, and consequence of the alleged defect" and don't necessarily lead to a recall. NHTSA looked into this problem once before in 2008 and 2009 and decided that a recall wasn't necessary. Ford also extended the warranty on the front lighting control module for these vehicles. INVESTIGATION Subject : Loss of headlights Date Investigation Opened: AUG 10, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15028 Component(s): EXTERIOR LIGHTING All Products Associated with this Investigation Vehicle Make Model Model Year(s) FORD CROWN VICTORIA 2003-2005 MERCURY GRAND MARQUIS 2003-2005 Details Manufacturer: Ford Motor Company SUMMARY: After receiving a defect petition (DP15002) concerning the loss of headlights and other exterior lighting in model year (MY) 2003-2005 Ford Crown Victoria and Mercury Grand Marquis vehicles, the Office of Defects Investigation (ODI) analyzed Vehicle Owner Questionnaire (VOQ) complaints received from consumers and identified a total of 605 reports (for all submission dates) alleging headlight failure. The complaints indicate failures of both low beam headlights typically while driving, a defect condition that was evaluated under a prior ODI investigation (PE08066). Most consumer VOQs indicate that the headlights failed suddenly and without warning leaving the driver with no forward lighting, however some report the headlights flickered or dimmed prior to turning off. In some cases drivers were able to turn the headlights back on after a period of time while others reported the headlights would not come back on at all.