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Ford extends shutdown, Stellantis confirms layoffs due to chip shortage

Ford and Stellantis this week announced new production cuts due to the global semiconductor shortage, with popular models including the Ford F-150 and Jeep Grand Cherokee facing cuts. Stellantis plans to temporarily lay off workers at one facility as production is curtailed.  According to Automotive News, Ford is extending shutdowns at some of its North American facilities into May. The Blue Oval has been forced to reduce or idle production of both its redesigned F-150 pickup and the popular Explorer due to the chip shortage. The Mustang, Transit, Edge, Lincoln Nautilus and Aviator will also continue to be affected. Stellantis is planning to temporarily lay off workers at a Jeep plant in Detroit during April and May due to a shortage of semiconductor chips. The company will cut two work crews at its Jefferson North plant in Detroit for three weeks starting April 26, then call them back and lay off a third crew from May 17 through the week of May 31, according to a schedule obtained by Bloomberg News. The plant on Detroit’s east side normally operates two shifts with three work crews six days a week to keep it running 20 hours a day. “Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry,” company spokeswoman Jodi Tinson said in a statement. “Due to the unprecedented global microchip shortage, Jefferson North will adjust its production schedule through the end of May.” Jefferson North employs about 4,800 hourly workers and makes the Jeep Grand Cherokee, the top-selling Jeep model last year, and the Dodge Durango SUV. A redesigned version of the Grand Cherokee is scheduled to start production in August, according to researcher AutoForecast Solutions. This article contains reporting from Bloomberg. Plants/Manufacturing Ford Jeep Lincoln Technology chip shortage

2017 Lincoln Model Year Preview and Updates

For those wondering if there's more to Lincoln than a reflective Matthew McConaughey, the debut of Lincoln's all-new Continental - pictured above - should emphatically answer the question. But aside from a refresh here and there, the Continental is effectively 'it' for the 2017 model year. LINCOLN CONTINENTAL: Although the new Continental may not represent the design stretch Lincoln enthusiasts might have hoped, it's a significant step when compared to the Fusion-based MKZ or displaced MKS. With available all-wheel drive and up to 400 horsepower and 400 pound-feet of torque, the Continental is described by Lincoln as targeting 'culturally progressive clients who define luxury on their own terms.' In short, this isn't a me-too interpretation of German or Asian luxury; it's the Lincoln Motor Company's interpretation of American luxury, on sale in the spring of '17. MKZ: A freshened design with all-new, Continental-esque front fascia offers an upgraded interior, new technology and available Revel Audio. MKC: It is a year of minor tweaks for Lincoln's compact crossover. A power liftgate is now standard, while Auto Start-Stop is available on MKCs equipped with the 2.0-liter and all-wheel drive, standard on 2.0-liter front-wheel drive. And the MKC receives Sync 3 plus Apple CarPlay and Android Audio. MKT: Aside from color revisions, Lincoln's livery car/crossover is unchanged. MKX: Lincoln's midsize, Edge-based crossover receives little more than color changes for 2017. NAVIGATOR: Lincoln's biggest SUV navigates the model year with few changes except for color. However, with the announcement of an all-new Ford Expedition – on which the Navigator is based – in showrooms this fall, an all-new Navigator can't be far behind it. Lincoln Car Buying whats new 2017

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.