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GM, Ford, Chrysler halt some Michigan operations over natural gas shortage

WASHINGTON - General Motors said late on Wednesday it will temporarily suspend operations at 11 Michigan plants and its Warren Tech Center after a utility made an emergency appeal to users to conserve natural gas during extreme winter cold. Fiat Chrysler Automobiles also said it had canceled a shift on Thursday at both its Warren Truck and Sterling Heights Assembly plants and was considering whether it would need to cancel additional shifts. GM said it had been asked by Consumers Energy, a unit of CMS Energy Corp, to suspend operations to allow the utility to manage supply issues after extreme cold temperatures and a fire at a compressor station. It said workers were told not to report for the shifts at its Orion Assembly, Flint Assembly, Lansing Delta Township Assembly and Lansing Grand River Assembly plants, as well as other stamping and transmission plants on Wednesday evening and early Thursday. GM said it was still assessing when employees could return to work. Workers at its Warren Tech Center were also told to stay home on Thursday. In a video message posted on Facebook, CMS Energy Chief Executive Patricia Poppe said large companies, including Fiat Chrysler, Ford Motor Co and GM, had agreed to "interrupt" production schedules through Friday to tackle the issue prompted by a fire at a Michigan facility and the record-breaking cold. Poppe said the usage cuts by large businesses were not enough, and urged 1.8 million Michigan customers to turn down thermostats as much as they could to cut natural gas use in order to protect critical facilities like hospitals and nursing homes. "I need you to take action right now," she said. Ford said it had also taken steps to reduce energy use at its four Michigan plants supplied by Consumers Energy, but added the situation remained fluid. A spokeswoman said it had reduced heating levels at Livonia Transmission and Van Dyke Transmission, stopped heat treatment processes at Sterling Axle and shut down the paint process at Michigan Assembly. Consumers Energy sent an alert to mobile phones in Michigan asking residents to reduce natural gas use.

Ford and GM link bonus checks to quality scores

The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
GM announced that 25 percent of bonuses (up from 10 percent) for all salaried workers would be tied to its vehicle quality standards. The automaker revealed in its financial report that it spent $1.3 billion on recall-related repairs in the first quarter, and net income was down 86 percent.
Ford also increased the quality proportion of bonuses for about 26,000 salaried workers all the way up to CEO Alan Mulally from 10 percent to 20 percent. The company announced in its report that the amount paid out in warranty and recall claims was about $400 million higher than expected in the first quarter. Its net income fell 39 percent from the previous year. "The change reflects how critical quality is to our overall business," said spokesperson Todd Nissen speaking to Autoblog.

Ford ending Focus, C-Max production in Michigan after 2018

Ford will no longer produce the Focus and C-Max at its Michigan Assembly Plant in Wayne, MI, beyond 2018. United Auto Workers vice president Jimmy Settles confirmed this in a letter Thursday, which was posted on Twitter. According to the UAW Ford Department's tweet, production of the Focus and C-Max will shift to Mexico. Ford isn't confirming this, though – a spokesperson tells Autoblog, "We didn't say that." Instead, Ford issued the following statement about the matter: We will move production of the next-generation Ford Focus and C-Max, which currently are built at Michigan Assembly Plant, beginning in 2018. We actively are pursuing future vehicle alternatives to produce at Michigan Assembly and will discuss this issue with UAW leadership as part of the upcoming negotiations. Earlier this year, Ford announced layoffs of 700 employees at the Michigan Assembly Plant, citing slow sales of both the Focus and C-Max. The MAP was once heralded as a flexible, futuristic facility when it was retooled for C-segment car production in 2009. Prior to that, the Ford Expedition and Lincoln Navigator SUVs were built at the Wayne facility. It also produced the iconic Ford Bronco. The future of the MAP is uncertain, but the UAW remains hopeful. In Settles' letter, he writes, "We are extremely confident that a new product commitment will be secured during the upcoming 2015 negotiations and that the Michigan Assembly Plant will maintain a full production schedule." Related Video: