08 Ford F250 Fx4 on 2040-cars

Auto blog

UPDATE: GM, Ford, FCA, Honda shutting down all North America plants

Following an earlier report that General Motors, Ford and FCA would take action to curtail the potential spread of the Coronavirus, news comes today that the three American automakers will instead close all North American plants for an unknown period of time. Ford said in a statement that it "is temporarily suspending production at its manufacturing sites in North America to March 30 to thoroughly clean its facilities to protect its workforce and boost containment efforts for the COVID-19 Coronavirus." General Motors followed with a statement confirming that its suspension "will last until at least March 30," and adding that the situation will be reevaluated from week to week after that. FCA has not yet issued an official statement. Rory Gamble, president of the United Auto Workers union, praised the news. "This will give us time to review best practices and to prevent the spread of this disease," Gamble said in a statement. According to the Associated Press, around 150,000 workers are "likely to receive supplemental pay in addition to unemployment benefits." The United Auto Workers had asked the automakers to reconsider their position on Wednesday, a day after the parties agreed to slow production at U.S. plants and limit the number of workers on the job at one time to prevent the spread of the virus, a source who asked not to be identified told Reuters. The UAW’s new request for the closure of the Detroit Three automakersÂ’ U.S. plants came after Honda said on Wednesday it was temporarily shutting its North American plants for six days because of the anticipated decline in consumer demand. Plants/Manufacturing UAW/Unions Chrysler Fiat Ford GM coronavirus

Ford Australia debuts Ranger-based Everest SUV concept

Ford has been in hot water in Australia ever since it announced plans to end local production of the Falcon and Territory SUV. Besides canceling a model that is to Oz what the Mustang is to America, the end of production means more than a few folks will be out of work.
Keen to prove that it has a plan for the market, Ford has unveiled the Aussie-penned Everest Concept, a rough-and-tumble, seven-seat SUV. While not a direct replacement for the aging Territory (that role will eventually be filled by either the Edge or Flex, according to Car Advice) it's an indication from Ford's brass that the Blue Oval is still committed to Australia.
To prove that fact, Alan Mullaly, Mark Fields, Jim Farley and regional execs descended on Sydney for the debut of the new concept. Ford's Australian president and CEO, Bob Graziano, said of the Everest, "Our customers, our employees and Australia can be assured that we're connected to the nation and committed to our customers through terrific products with class-leading technologies."

Why the Detroit Three should merge their engine operations

GM and FCA should consider a smaller merger that could still save them billions of dollars, and maybe lure Ford into the deal. Fiat-Chrysler CEO Sergio Marchionne would love to see his company merge with General Motors. But GM's board of directors essentially told him to go pound sand. So now what? The boardroom battle started when Mr. Marchionne published a study called Confessions of a Capital Junkie. In it, Sergio detailed the amount of capital the auto industry wastes every year with duplicate investments. And he documented how other industries provide superior returns. He's right, of course. Other industries earn much better returns on their invested capital. And there's a danger that one day the investors will turn their backs on the auto industry and look to other business sectors where they can make more money. But even with powerful arguments Marchionne couldn't convince GM to take over FCA. And while that fight may now be over, GM and FCA should consider a smaller merger that could still save them billions of dollars, and maybe lure Ford into the deal. No doubt this suggestion will send purists into convulsions, but so be it. The Detroit Three should seriously consider merging their powertrain operations, even though that's a sacrilege in an industry that still considers the engine the "heart" of the car. These automakers have built up considerable brand equity in some of their engines. But the vast majority of American car buyers could not tell you what kind of engine they have under the hood. More importantly, most car buyers really don't care what kind of engine or transmission they have as long as it's reliable, durable, and efficient. Combining that production would give the Detroit Three the kind of scale that no one else could match. There are exceptions, of course. Hardcore enthusiasts care deeply about the powertrains in their cars. So do most diesel, plug-in, and hybrid owners. But all of them account for maybe 15 percent of the car-buying public. So that means about 85 percent of car buyers don't care where their engine and transmission came from, just as they don't know or care who supplied the steel, who made the headlamps, or who delivered the seats on a just-in-time basis. It's immaterial to them. And that presents the automakers with an opportunity to achieve a staggering level of manufacturing scale. In the NAFTA market alone, GM, Ford, and FCA will build nearly nine million engines and nine million transmissions this year.