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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.

Ford C-Max, Fusion hybrids subject of MPG lawsuit in California

A California lawsuit over the fuel economy claims for the 2013 Ford C-Max was first reported back in December. Based on the numerous reports we've heard of disgruntled owners failing to get their car's EPA fuel economy ratings on the C-Max and 2013 Fusion Hybrid, we suspected there would be more to this story. The Detroit News is reporting that two California law firms are combining their lawsuits against Ford on this matter for "false and misleading" claims.
The article states that there are hundreds of C-Max and Fusion Hybrid owners who have joined the lawsuit, but the issue isn't limited to customers. In December, Consumer Reports extensively tested both the Fusion Hybrid and C-Max and found that both hybrids performed significantly worse than their EPA claims. This all comes just a few months after Hyundai and Kia took the unprecedented step of lowering the fuel economy ratings for all of their 2012 and 2013 model-year vehicles.

Ford will put solid axles under the Bronco as the off-roading gods intended

We've been wondering what sort of creature the Bronco would be since we first heard of the thing last October, when a union chairman spilled the beans on the SUV and the Ranger pickup. Ford confirmed a 2020 arrival date for the Bronco at the 2017 Detroit Auto Show, but at that point pretty much all we were sure of was that the Ranger and Bronco would be returning. The open question would be how hungry Ford was to spoil the Jeep Wrangler's solo party as a compact(ish) off-roader with dual solid axles, since the easiest thing would be to carry over the suspension design of the presumably related international Ford Ranger and its Everest SUV version: independent front suspension with either a leaf- (Ranger) or coil-suspended (Everest) solid rear axle. Enter Dana, the long-time supplier of Jeep stick axles, to confirm that the 2020 Bronco is getting a pair of them. That means solid axles front and rear, just like under a Wrangler. So reports Automotive News, citing an investor presentation from Dana. All signs so far, such as the report that the Bronco would be engineered by the same team in Australia that created the Ranger pickup, indicated that the Bronco would share a platform with the Ranger and thus be body-on-frame. The solid axle confirmation essentially confirms that theory. Some off-road-capable vehicles have paired solid axles with unibody frames, like the Jeep Cherokee (XJ generation) and Grand Cherokee (ZJ and WJ generations), but they are outliers. Generally, if you've got solid axles at both ends, they're going in a vehicle with a ladder frame. It also lends credence to the notion that our Bronco won't simply be an imported Everest, which might be too understated to stand out from lesser crossovers anyways. This is good news if you have Blue Oval in your blood and pine for a modern SUV that'll show up the Jeep guys on the trail. Less directly, it could mean a wholesale assault on the formula that makes Jeeps successful in the first place: the massive aftermarket of off-roading equipment and dress-up bits that appeal to Jeep buyers almost as much as a Trail Rated badge. At a minimum, Bronco enthusiasts can breathe easy that the reborn SUV won't merely be a light-duty crossover with styling "inspired" by true off-roaders. There's still a lot left to learn about the Bronco. Keep up to date with our running summary of everything we know about the returning off-roader.