Nice 1982 Cj7 on 2040-cars

Auto blog

FCA to idle Belvidere Jeep plant again for a week in February

Bloomberg reports that Fiat Chrysler will shut down the Belvidere, Ill., plant that assembles the Jeep Cherokee for a week this month, starting February 17. FCA has been tweaking the plant's headcount and production schedule for a while now, usually downward. The automaker laid off 1,371 workers last February and fired 32 more in May, the same month it eliminated the third production shift. In August, the automaker shut down the plant for one week, then did so again for two weeks last month. As in August and January, FCA explained this month's idling by saying it needs to get production in alignment with demand. Cherokee sales declined 20% in the U.S. last year, helping to account for Jeep's overall 5% domestic drop in 2019. On top of the shutdown, FCA is offering buyouts to certain plant workers among the 3,600 hourly and 300 salaried personnel. The choices are either taking a "separation package" that comes with a $60,000 lump sum payment, or accepting voluntary termination that pays a lump sum based on seniority. Employees that choose a buyout can't return to Chrysler, becoming no longer "eligible for recall, rehire or reemployment." Belvidere personnel have until March 11 to make their decisions. Bloomberg says the aim is to reduce the number of workers with more seniority and higher pay grades; a company spokesperson said the move would "create opportunities for those employees still on layoff," who were lesser-paid. Around 900 of those laid-off workers remain on standby for reassignment to another plant. Analysts predict a soft year for car sales, so FCA might not be the only automaker pruning the rolls. Early estimates have come in below 17 million, and if that comes true, 2020 will be the slowest year since 2014, when 16,531,070 units left lots. The new contract between FCA and the UAW made provisions for Belvidere, which has tempered talk of a total shutdown.The automaker will invest $55 million for "fresh models/features off of the current (KL) platform" that underpins the Cherokee as well as the Chinese-market Jeep Grand Commander (it was previously used for the Dodge Dart and Chrysler 200). Outside of that, some observers think the carmaker could be planning a three-row Chrysler crossover based on the KL platform, akin to the Grand Commander, for the United States. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Mahindra fights FCA's Jeep infringement claims

The Indian manufacturer Mahindra is fighting tooth and nail to keep building its Roxor off-road vehicle to sell in the United States. In early August, Jeep mother company FCA filed a complaint with the U.S. International Trade Commission to stop Roxor sales in the U.S. FCA claims the Roxor design is an intellectual property infringement on Jeep design, meant to undercut FCA's own Jeep products on the market. Now Mahindra has released a statement to the commission saying that FCA's complaint is without merit. While FCA stated in its claim that the Roxor is "an imported low-quality knock-off kit car," Mahindra points out that the vehicle took several years to develop and is manufactured in Michigan. Mahindra intends the Roxor to be an off-road vehicle only, and says it does not compete with Jeeps. The Roxor isn't road legal, only comes with a diesel engine and reaches a top speed of only 45 mph. However, it has to be said that the uncomplicated Roxor is far closer to the original ethos of WWII-era Jeeps than the Jeeps FCA currently manufactures. Mahindra also states that FCA agreed in 2009 not to bring about infringement claims as long as Mahindra used a grille design that FCA approved — going with a grille design that clearly differs from the classic Jeep trademark grille. The matter might partially muddled by the fact that the grille agreement was made with 2009's Chrysler instead of today's FCA. Looking back several decades, the entire Mahindra Roxor appearance is at its core based on a 1940s license agreement made with Willys, the original Jeep manufacturer. Mahindra's statement addresses FCA as "Fiat," and it should not be forgotten that Fiat itself manufactured a Jeep lookalike, the Campagnola, from 1951 to 1973 — also with a different grille. Fiat Industrial subsidiary Iveco's history page says the 1951 Campagnola was constructed "according to the Willys mould". Mahindra claims that FCA is using the complaint to create negative publicity to damage Mahindra's reputation. The Indian manufacturer reminds us that it is the first automotive OEM to set up a new manufacturing operation in southeast Michigan in over 25 years — in Auburn Hills, not far from FCA's U.S. headquarters. Related Video: Featured Gallery Mahindra Roxor Image Credit: Mahindra Design/Style Government/Legal Fiat Jeep Automotive History SUV Diesel Vehicles Off-Road Vehicles FCA mahindra

VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.