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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

UAW warns automakers: Restarting U.S. plants is 'too soon and too risky'

WASHINGTON/WARREN, Mich. — The head of the United Auto Workers union on Thursday said it was "too soon and too risky" to reopen auto plants and Michigan's economy in early May, citing insufficient scientific data and coronavirus testing to assure workplaces are safe. The warning from UAW President Rory Gamble on Thursday afternoon came as General Motors Co , Ford Motor Co and Toyota Motor Corp took new steps toward reopening North American vehicle manufacturing operations in an environment where consumer demand is uncertain and worker safety paramount. The union has said that 24 of its members have died from Covid-19, though it was unclear whether they might have become infected in the workplace. Unionized Detroit automakers and non-union German and Asian automakers have been preparing to restart U.S. vehicle making operations by early May. Companies have shifted reopening dates amid uncertainty about government stay-at-home orders. Gamble's statement appeared to derail plans by the Detroit Three to start bringing UAW workers back to vehicle manufacturing jobs on May 4. The longer the automakers cannot produce profitable U.S.-made trucks and sport utility vehicles, the longer they burn cash. The UAW leader's statement was also aimed at Michigan Gov. Gretchen Whitmer, who has come under pressure from conservative groups and President Donald Trump to ease coronavirus stay-at-home restrictions. "At this point in time, the UAW does not believe the scientific data is conclusive that it is safe to have our members back in the workplace. We have not done enough testing to really understand the threat our members face," Gamble said. "We strongly suggest to our companies in all sectors that an early May date is too soon and too risky to our members, their families and their communities." Gamble said the union was "happy with the auto companiesÂ’ response and cooperation on working through the health and safety protocols we will need in the workplace when it is appropriate to restart." Earlier Thursday, GM began notifying front line managers to come back to work next week to get trained on new safety protocols designed to prevent the spread of the novel coronavirus as workers return to plants.

Lincoln recycling tree fibers into new MKX armrest

Want to hug a tree, or at least a really small part of one. Then set your arm down on one of those armrests in the 2014 Lincoln MKX crossover. The US automaker is working with Weyerhaeuser and Johnson Controls on a tree-based, cellulose-reinforced polypropylene material used in the component that connects the armrest to the floor console, Wards Auto says. With properties similar to plastic, the tree-based material replaces fiberglass and is about six percent lighter. No big deal for now, but if the material starts getting used for things like battery trays and interior storage covers, that loss in weight may eventually start adding up enough to boost fuel economy a bit, providing a green double bonus. Lincoln parent Ford, which isn't saying how much more (or less?) it costs to use the new material, established its Biomaterials and Plastics Research team in 2001. In 2007, the company began using soy-based foam in car seats used for models such as the Lincoln Navigator and Ford Mustang and has since broadened biomaterials use to components like floormats and cupholder inserts. Ford also used recycled plastic bottles from the 2012 North America International Auto Show for seats in the Focus Electric.