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Mitsubishi struggling to sell doomed plant due to union workers
Sat, Oct 3 2015Mitsubishi is about to end vehicle production in the US, but the company is having serious problems finding a buyer for its Normal, IL, factory that currently assembles the Outlander Sport. A major sticking point, according to a report by The Wall Street Journal, is the plant's workforce of over 900 United Auto Workers members. The automaker has been trying to find another company to take over the site for months and has set November as the point to stop manufacturing there. The Normal, IL, factory is unique because it's the only plant in the country that's run by a Japanese automaker with a UAW-represented workforce, after starting as a joint venture with Chrysler. That makes Ford, General Motors, and FCA the preferred buyers because they could conceivably take over the union contract. However, the Blue Oval and the General likely aren't interested. According to plant officials speaking to The Wall Street Journal, FCA and some unnamed car companies are potential buyers, but there's absolutely nothing final, yet. Proponents argue that buying the location is cheaper than building a new one. Making matters harder is that the UAW and Mitsubishi are currently negotiating a new union contract, and the factory's next owner might have to take over the deal, according to the WSJ. The workers were ready to vote whether to strike recently, but that was averted when an announcement on the local's webpage said a tentative agreement was expected Sunday. Of course, the Big Three have been experiencing their own, similar issues with crafting deals, too. Related Video:
Even Ferrari swept up in latest Takata recall expansion
Fri, May 27 2016The scope of Takata's deadly airbag problems continues to widen. Eight manufacturers announced recalls Friday that affect more than 12 million vehicles, according to documents filed with federal regulators. The automakers include Honda, which is recalling 4.5 million units, Fiat Chrysler with 4.3 million, Toyota with 1.65 million, and Subaru, which is recalling almost 400,000. Some of these cars include the Saab 9-2x and Pontiac Vibe that Toyota and Subaru made for General Motors. Mazda will recall 730,000 vehicles and Nissan has 400,000 affected units. The smallest numbers were posted by Mitsubishi, with 38,000 Lancers manufactured from 2006 to 2007, and as a noteworthy high-end manufacturer, Ferrari is calling back 2,800 vehicles. These are all US-market cars. Beyond America, the Japanese Transport Ministry has announced seven million additional vehicles will be recalled, which means 19.6 million vehicles across the globe are affected by recalls announced. The defects have been traced to an insufficiently manufactured airbag inflator, which lacks a drying agent that would prevent the inflators from deteriorating over time. Thirteen deaths have been linked to the faulty airbags, which have become unstable and are prone to exploding and showering vehicle occupants with lethal amounts of metal shrapnel. A private equity firm, KKR & Co., has been named in a possible buyout of the struggling Takata. Related Video: News Source: ReutersImage Credit: Shutterstock Government/Legal Recalls Ferrari Honda Mazda Automakers Mitsubishi Nissan Pontiac Subaru Toyota Saab Safety
10 automakers shack up in Detroit hotel to talk Takata airbags
Sun, Dec 14 2014Since Takata has decided not to take the lead concerning potential issues with its airbag inflators, the automakers have. Perhaps that's unsurprising, since it's the automakers, not Takata, that will take a beating on the dealership floor if consumers decide its models are a health hazards. The Detroit News reports that Toyota, Honda, General Motors, Ford, Chrysler, Mazda, BMW, Nissan, Mitsubishi and Subaru met in a hotel conference room near the Detroit Metropolitan Airport last week to sort out a way to understand the technical issues involved. So far, faulty airbag inflators have been ruled the cause of five deaths and 50 injuries around the world, but neither Takata nor investigators understands exactly why the inflators are malfunctioning. The National Highway Traffic Safety Administration recently asked Takata to issue a national recall, Takata declined, citing a minuscule failure rate and the fact that it's still investigating the issue. Toyota and Honda then made an industry-wide appeal for "a coordinated, comprehensive testing program" that would pinpoint the problem inflators and get them replaced, and that's what the Detroit meeting was about. Numerous issues, however, will make this a long row to hoe: simply getting the parts to replace the nearly 20 million inflators in cars recalled around the world so far - even working with other suppliers - will take a years, but more importantly, no one knows if the replacement inflators currently being installed will suffer the same issue. Answers will hopefully come quickly with Takata, the ten automakers and NHTSA all independently investigating the problem.