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Illinois’ pro-union stance kills bid for Toyota-Mazda plant, report says

Mazda and Toyota are fielding bids from states eager to land its new prize: an all-new $1.6 billion U.S. plant where the Japanese automakers would jointly build electric vehicles and employ around 4,000 workers. Now we can apparently scratch Illinois off the list of contenders. According to Automotive News, the Land of Lincoln has been disqualified due to a lack of shovel-ready sites and the state's lack of a right-to-work law curtailing union membership. Mark Peterson, the president and CEO of economic development agency Intersect Illinois, told the publication he's been informed Illinois is not among the three or four finalists for the facility. It's believed those finalists are all in the South. Peterson said that "many national site consultants charged with making recommendations for corporate relocations and expansions will not even consider a state that is not a right-to-work state. In this case, the three states I am told are still in the running are all right-to-work states." The Midwest may be the ancestral home of U.S. automotive manufacturing, but the South has made major inroads in recent decades, with the likes of Honda, Mercedes-Benz, Nissan and Toyota all opening plants there, among others, thanks to lucrative tax incentives and the absence of labor unions. Recent years have also seen so-called right-to-work laws, which prohibit union dues and membership as a condition of employment in organized workplaces, spread to traditional labor strongholds such as Michigan and Wisconsin. The new joint venture plant, which would start operating in 2021, would be capable of producing 300,000 vehicles a year, with production divided between the two automakers. Mazda and Toyota would also take small stakes in one another as part of the deal. It's expected that at least 15 states have submitted proposals to attract the plant. Expect the Illinois news to trigger a new round of debate over the role of organized labor in the modern economy.Related Video: Image Credit: Reuters Green Plants/Manufacturing Mazda Toyota

Honda may recall up to 1M vehicles for airbag issue, following Toyota's lead

It seems Toyota won't be the only one recalling the faulty Takata airbag inflators for long. Honda insiders in Japan claim that the company is getting close to announcing its own worldwide campaign that would begin before the end of June.
Unnamed sources close to Honda in Japan tell Automotive News that the company is pursuing an internal investigation into possibly affected models and is working with Takata to gather more information. They claim that it could involve even more than the 1.14 million cars worldwide that the automaker covered under the first recall for the problem in April 2013, including 561,000 vehicles in the US.
Toyota jumpstarted this process last week when it recalled over 2 million cars worldwide, including 844,277 in the US. Soon after, the National Highway Traffic Safety Administration began a preliminary evaluation into the issue following six reported incidents, and started assembling data about potentially affected models from Toyota, Honda, Mazda, Nissan, Chrysler. NHTSA also began investigating Takata itself.

Mazda still really wants to bring diesels to America

Mazda's Skyactiv program has delivered much of what it promised for the brand's latest crop of products, namely great fuel economy and excellent driving dynamics. However, the Skyactiv diesel engine has yet to reach our shores. It's been promised ever since the new Mazda6 showed up here for the 2014 model year. According to a new report from Automotive News, Mazda's CEO Masamichi Kogai said that the Mazda Skyactiv D diesel powertrain is still set to make an American appearance. He told Automotive News that there is an internal timeline to get it to the States, and while he didn't reveal the timeline, he said he wants it to come here before he steps down as CEO. The powertrain is offered elsewhere, so it fits in the company's current vehicles, but the US has specific regulatory hurdles, and the engine's extra cost has to make sense from a sales and volume perspective. We doubt VW's diesel scandal helped the engine's sales pitch, either. Automotive News also reports that the next generation of Skyactiv designs and engines are also on their way and will advance and improve on the current generation's strengths. Engineers revealed to Automotive News that they expect a 30 percent improvement in efficiency and are developing an engine with the sky-high compression ratio of 18:1. This impressive ratio could be a further indication of Mazda's pursuit of homogenous charge compression ignition (HCCI) engines. Mazda has had plenty of success with its strategy of making very efficient internal-combustion engines, but there are some concerns that the company can only improve so much. The main worry comes from the company's lack of investment in hybrid and electric powertrains. Even Mazda's North American CEO Masahiro Moro expressed concern about meeting a 54.5 mpg mandate for 2025. That mandate will no longer take effect, but increasing fuel economy requirements will always be an issue. Related Video: