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All eyes on Detroit as automakers prepare for slow, careful reopening of plants

DETROIT — The U.S. factories that make Fords, Chevys and Jeeps are coming back to life this week as workers install new safety equipment and wake up machines ahead of the high-stakes restart the Detroit automakers plan to launch on Monday. Ford, General Motors and Fiat Chrysler Automobiles all plan to reopen North American factories on May 18. The reopening of the U.S. auto sector will be a closely watched test of whether workers across a range of industries can return to factories in large numbers without a resurgence of COVID-19 infections. How well the automakers do will be significant for the U.S. economy, as nearly 1 million workers are employed in the sector. Executives at Ford and GM said separately this week the companies have not recorded any cases of COVID-19 transmission in plants outside the United States since adopting new safety protocols. Those procedures include mandatory face masks, separation of workers on assembly lines, frequent cleaning of work areas and requirements that workers pass through temperature monitors and report any symptoms before entering a plant. The Detroit Three have taken unprecedented steps to share information about coronavirus safety practices and develop a common set of workplace standards for their restarts, working with the United Auto Workers union, executives said. "We thought it was critical that we did it together," Ford manufacturing and labor chief Gary Johnson told Reuters. "We've never done this as an industry." The Detroit automakers will restart U.S. plants without regular testing of workers, because they do not have access to sufficient testing capacity, executives and UAW officials said. They will test workers who report COVID-19 symptoms or have fevers discovered by temperature scanners installed at factory entrances. "We have to continue to push for this testing," United Auto Workers union Vice President Cindy Estrada told Reuters on Wednesday. "Unless we have testing weekly to keep sick people out of the plant there is always a risk." Adopting new safety practices is just part of the work the companies must do to reopen after an extraordinary shutdown that has lasted two months.   Wave zero At Ford, workers going in to ready factories are part of what Chief Operating Officer Jim Farley calls "wave zero." The work of wave zero employees "is really important for success of the startup," he said in an interview.

Ford considering bringing Ranger pickup back to the US

When Ford announced last month that it was moving Focus and C-Max production out of the Michigan Assembly Plant after 2018, it said that it was looking for other products to build at the facility and such proposals would be part of discussions with the UAW on a new contract. According to a report in The Detroit News, one of those vehicles could be a new Ford Ranger midsize pickup. We're a long way out from a decision being made, and both the UAW and Ford's board of directors would have to sign on, but the report says it's in the air. The last Ranger was built in the now-shuttered Twin Cities Assembly Plant in St. Paul, MN, in December 2011. After 29 years on the market, slow sales for the truck itself and the midsize truck segment doomed it, annual Ranger sales numbers having dropped from a peak of roughly 350,000 in 1999 to just 70,832 in 2011. The midsized truck market is still coming out of its own doldrums, with 211,797 sold through July 2015, the Toyota Tacoma accounting for 50.1 percent of that, followed by the Chevrolet Colorado, Nissan Frontier, and GMC Canyon. Even with analyst predictions that the market will grow to 300,000 in the near future, compare that to the fullsize truck market that has already sold 1.2 million units this year. The Wayne plant has built trucks before over its 57-year history, but it would likely need more than just the Ranger to keep it afloat; it builds five vehicles now, pumping out 265,000 units last year. According to Bloomberg, this could also mean the possible return of the Bronco. If we do get a new Ranger, it probably won't be anything like the old Ranger. Ford still makes it for 180 global markets, but if you've seen one you know it's a different animal. The wheelbase on the 2015 Ranger sold in Australia is fifteen inches longer than our 2012 Regular Cab model, about an inch longer than the 2012 Supercab. It has a bulkier design, weighs 700 pounds more, and can be had in numerous configurations we didn't get like a five-seat Dual Cab. A new version for us would also need updating for US regulations, and Ford would want to make sure it could be built with price and size separation from the fullsize F-Series.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.