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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.

Hot-selling Ford Expedition, Lincoln Navigator get production boost

Ford is investing an additional $25 million in its Kentucky Truck Plant in Louisville to increase by 25 percent production of the hot-selling and all-new Lincoln Navigator and Ford Expedition SUVs. The investment adds to $900 million in previously announced spending at the plant, which also builds F-Series Super-Duty pickups and employs 8,400 workers. Assembly-line workers are putting in overtime and working voluntary weekend shifts to keep up with demand. The new investment will cover upgrades to the assembly line but does not involve further hiring, Ford spokeswoman Kelli Felker says. The popularity of the Ford Expedition and Lincoln Navigator is a bright spot as Ford stock has been battered by Wall Street amid concerns concerns about the automaker's future vision and slowness to detect trends. Ford says the investment is an example of its bid to improve "operational fitness," one of CEO Jim Hackett's common refrains. Ford says Navigator retail sales more than doubled in January, and Navigators are spending an average of just seven days on Lincoln dealership lots as customers trade in vehicles including Land Rovers and Mercedes-Benz. Nearly 85 percent of buyers are opting for high-end Black Label and Reserve trim packages, contributing to an average transaction price increase of more than $21,000 in January compared to a year ago. The 2018 Navigator won the North American Truck of the Year award and also topped a Detroit News poll of public favorites at last month's Detroit Auto Show. Sales of the Expedition, meanwhile, were up almost 57 percent last month as the full-size SUVs also spent an average of just a week on dealer lots. Platinum trim models represented 29 percent of sales, pushing transaction price increases up $7,800. Ford gave the 2018 Expedition an all-aluminum body to save mass in its first significant redesign since 2007. The plant last year got nearly 400 new robots, mainly in the body shop, to help increase line speed, and Ford added a robot lab where employees can test software tweaks or troubleshoot issues away from the factory floor. The Louisville plant also benefits from extensive new data analytics, with seven big-screen monitors providing minute-by-minute updates showing progress against hourly targets or alerting workers to pending parts shortages. A huge spare-parts "vending machine" lets workers more quickly locate needed parts and keep inventory at necessary levels.

The future's electric — but the present is peak gasoline. Burn some rubber! Do donuts!

I vividly remember the year 1993 as a teenager looking forward to getting my driver’s license, longingly staring into Pontiac dealerships at every opportunity for a chance to see the brand-new fourth-generation Firebird and Trans Am. Back then, 275 horsepower, courtesy of GMÂ’s LT1 5.7-liter V8 engine, was breathtaking. A few years later, when Ram Air induction systems freed up enough fresh air to boost power over 300 ponies, I figured we were right back where my fatherÂ’s generation left off when the seminal muscle car era ended around the year 1974. It couldn't get any better than that. I was wrong. Horsepower continued climbing, prices remained within reach of the average new-car buyer looking for cheap performance, and a whole new level of muscular magnitude continued widening eyes of automotive enthusiasts all across the United States. It was all ushered in by cheap gasoline prices. And as much as petrolheads bemoan the coming wave of electric vehicles, perhaps instead now would be a good time for critics to sit back and enjoy the current and likely final wave of internal combustion. Today, itÂ’s easier than ever to park an overpowered rear-wheel-drive super coupe or sedan in your driveway. Your nearest Chevy dealership will happily sell you a Camaro with as much as 650 horsepower. Not enough? Take a gander at the Ford showroom and youÂ’ll find a herd of Mustangs up to 760 ponies. Or if nothing but the most powerful will do, waltz on over to the truly combustion-obsessed sales team of a Dodge dealer and relish in the glory of a 797-hp Charger or 807-hp Challenger. Want some more luxury to go with your overgrown stable of horses? Try Cadillac, where you'll find a 668-horsepower CT5-V Blackwing. You could instead choose to wrap that huffin' and chuggin' V8 in an SUV. Or go really off the rails and buy a Ram TRX or Jeep Wrangler Rubicon 392 and hit the dunes after a quick stop at the drag strip. Go pump some gas. Burn a little rubber. Do donuts! There is nothing but your pocketbook keeping you from buying the V8-powered car of your dreams. Yes, just about every major automaker in the world has halted development of future internal combustion engines in favor of gaining expertise in batteries and electric motors. No, that doesnÂ’t mean that gasoline is going extinct. There are going to be gas stations dotting American cities and highways for the rest of our lifetimes.