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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.

We drive the 2016 Ford F-750 Tonka dump truck

The Ford F-750 dump truck stands nearly 10 feet tall and is painted bright yellow. It idles patiently yards away from Ford's test track in Dearborn, MI. "Tonka" is emblazoned on the sides. We pose the obvious question to Ford marketing manager Mark Lowrey: Why do this? "We built this truck to get attention," he replies. And indeed it does. Ford revealed the 2016 F-750 Tonka dump truck in March at an industry show, underscoring that the Blue Oval is back in the business of big trucks after years of teaming with Navistar in a joint venture. The new F-650s and F-750s start rolling off the line at a factory near Cleveland this summer, and the order bank is open now. The trucks come in regular, super, and crew cabs and offer three states of tune for the 6.7-liter Power Stroke V8 turbo diesel, plus a gasoline-fed 6.8-liter V10. Naturally, the Tonka has most powerful diesel mill, with 330 horsepower and 725 pound-feet of torque. The Tonka edition is a paint-and-sticker one-off that Ford is using as a promotional tool. You can't buy one, and it will be touring shows and events throughout the year. Lowrey notes that it calls attention to work trucks in a positive way. The general public usually only sees them when the trucks are blocking the road or making too much noise at a construction site. Tonka trucks, on the other hand, conjure up happy childhood memories. "We're going to do something where someone's going to see this truck and smile," he says. It's hard not to grin as we climb into the cabin of this monster truck. It has a 33,000-pound gross vehicle weight rating and can carry five yards worth of dirt. We're not doing anything like that today – just puttering around Ford's handling circuit inside its product enclave. The course is closed, so even though this track is better suited to calibrating Mustangs, F-150s, and well, almost anything but a dump truck, we're totally relaxed. We depress the button to release the parking brake and are off. The truck is surprisingly easy to drive. The vision ahead is excellent – makes sense, we're nearly one story off the ground, after all. The cabin is simple and cleanly laid out. It looks like a Ford truck, regardless of the size. The diesel engine has a lot of grunt. We can feel the torque. The steering is light, and we have to stomp on the air brakes to slow this thing down. We go 'hot' into a tight corner just for fun. It's not really that fast, but it raises the eyebrows of our film crew, which is set up nearby.

Detroit Three to lose dominance of North American auto output in 2017

DETROIT — North American vehicle production by the unionized Detroit Three automakers will fall behind the combined North American output of Tesla and automakers from Europe and Asia for the first time this year, IHS Markit forecast on Wednesday. In 2017, the Detroit Three could build 8.6 million vehicles in North America, while Tesla and foreign automakers build 8.7 million, IHS Markit analyst Joe Langley said. By 2024, the gap will widen, with Asian and European automakers and Tesla combining to build about 9.8 million vehicles in North America. General Motors, Ford and the North American operations of Fiat Chrysler Automobiles NV will combine to build 8.1 million vehicles, down 6 percent from this year. Mexico is on track to increase its share of North American vehicle production, Langley said, moving to 4.5 million vehicles a year by 2024 from about 4 million vehicles currently. The milestone for the growth of Tesla and foreign automakers in North America comes as the Trump administration is pushing to limit imports of vehicles from Mexico in negotiations to overhaul the North American Free Trade Agreement. The declining share of North American vehicle production for the Detroit automakers also challenges U.S. and Canadian unions that represent their workers. Canadian workers are on strike at a GM factory in Ontario to protest the automaker's decision to cut jobs and move to Mexico some production of sport utility models built there. Foreign automakers over the past year have announced plans for a wave of new or expanded plants in North America, while Tesla is ramping up to build as many as 500,000 cars a year at its plant in Fremont, Calif. Often referred to as "transplants," the foreign-owned factories are poised to become the mainstream of the North American auto industry. Automakers are increasingly using factories in China or Mexico to build vehicles that used to be assembled solely in the United States, Langley said. He cited as an example Ford's decision to shift production of the Focus small car for North America to a Chinese assembly plant. Reporting by Joseph WhiteRelated Video: Image Credit: Reuters Plants/Manufacturing Chrysler Ford GM