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| Archives
- Auto & Light Truck |
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Ford
pioneers China inland market (04/12/01)
Mazda boosts Ford (04/09/01)
Daimler boosts aluminum
(04/09/01)
Automakers "Warily Optimistic"(04/02/01)
Renault & Nissan Target Powertrains
SPX & UDI Get Pumped Up
TRW Trims Another 1,000(3/08/01)
Ford Tilts toward Spain
(3/06/01)
Delphi: More
Brake Biz
(3/06/01)
February: U.S.
Auto Sales Still Strong
(03/03/01)
Fiat in Turnaround
(2/27/01)
GM: $100 million
for Chevy's in Russia (2/27/01)
Mitsubishi Tightens
Belt (2/26/01)
Federal-Mogul
Layoffs (2/26/01)
Daimler
& Chrysler Share Parts (02/27/01)
Daimler
Unveils Restructuring Plan
(02/26/01)
Temporary Plant
Closings at GM (2/25/01)
Volkswagen: Humble Topline Disguises
Golden Bottom Line (2/21/01)
Reports Say Mercedes, Chrysler
May Share Engine (2/21/01)
Mitsubishi Recall (2/16/01.)
MAZDA Takes a Range of Measures
TOYOTA to Produce Lexus Parts in Virginia
(1/27/01)
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| Ford pioneers
China inland market -- China's
third-largest automaker, in the inland city of Chongqing, announced
that a $100 million joint venture deal with Ford is imminent.
A major auto production deal in Chongqing would represent the
first significant foreign auto investment beyond China's advanced
coastal economic areas, such as Shanghai. (04/12/01) |
| Mazda
boosts Ford -- Mazda announced that it will take
a one-time charge of $1 billion related to unfunded pension
obligations -- which will allow it to obtain substantial tax
benefits based on offsets for certain property-related gains.
This is a boost for Ford, which owns about one third of Mazda.
More at www.mazda.com.
(04/09/01) |
| Daimler
boosts aluminum -- DaimlerChrysler announced that
it will meet its competitors fuel efficiency targets -- and
then some. Previously, Ford announced that it would improve
fuel economy of its SUV fleet by 25% over five years. This should
continue the "lightweighting" push -- the move by
automakers toward lighter/stronger components, such as aluminum
and magnesium.(04/09/01) |
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Automakers
"Warily Optimistic" -- U.S. Auto sales
for March continued strong, just 4% below there level a year
ago. January, February, and March have all been strong sales
months.
Total U.S. car and light trucks for March,
2001, were 1.6 million units, compared to 1.67 million in
the comparable period a year ago. The total for the first
quarter is 4.13 million units, compared to 4.38 a year ago.
These levels are considered encouragingly strong.
Not all the news was good -- at least for
the Big Three U.S. automakers. Their market share fell from
67.8% in the first quarter of 2000 to 64.9% now. Japanese
and Korean makers picked up the difference, going from 23.9%
to 25.9% and 2.4% to 3.3% respectively.
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| Renault
& Nissan Target Powertrains --
Automaker Renault (France) said today that it will move
to implement a joint purchasing office with Nissan (Japan),
in which it holds a 36.8% stake. In the first stage, beginning
in April, the office will purchase about one-third of the two
companies' estimated combined $50 billion in annual parts requirements,
the company said, with powertrain components as a key focus.
(Full info at www.renault.com.)
(3/13/01) |
| SPX &
UDI Get Pumped Up -- SPX Corporation
(Muskegon, MI) announced the acquisition of United Dominion
Industries (Charlotte, NC), in a $1.8 billion transaction.
Both companies are suppliers of a range of industrial products
and services, including a significant auto OEM component at
SPX. The common thread is hydraulic systems: SPX supplies mixers,
valves, pumps and other products under the Lightnin, Dezurik,
Power Team, Hytec, and other nameplates. UDI has a large Flow
Technology group, supplying pumps, valves, filters, dryers,
heat exchangers, and complete systems to process or transport
fluids and for heat transfer. (Full info at www.uniteddominion.com
and www.spx.com.) (3/13/01)
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| TRW Trims
Another 1,000 -- The Wall Street
Journal reported today that TRW Inc. (Cleveland,
OH) will respond to slowing auto production by trimming 1,000
workers from its operations. This brings to 9,600, or 8.6% of
its workforce, that TRW has cut since the beginning of 2000.
TRW is one of the top ten U.S. OEM parts suppliers, making components
for steering, suspension, braking, engines, fasteners, occupant
restraint systems, and electronic safety & security. (Full company
information at www.trw.com.)
(3/08/01) |
| Ford
Tilts toward Spain --
The New York Times reported that Ford Motor Company (Detroit,
MI) will manufacture a portion of the next generation of its
Fiesta passenger car in Valencia, Spain, starting early next
year. The company said primary production for the model will
be at its Cologne, Germany, factory. Mazda Motor Corporation
will begin producing cars at the same Valencia factory in 2003.
(3/06/01) (Read related report: World
Auto Production at a Glance.) |
| Delphi Grasps More Brake Biz
-- Delphi Automotive Systems (Flint, MI)
announced that it has acquired a new brake technology from Federal-Mogul
Corporation (Southfield, MI). According to the company, Advanced
Disc System (ADS) brake technology features a simplified design
that provides reliable performance through an assembly that
uses fewer components and opens the possibility of downsizing,
or completely eliminating, booster components. "This unique
technology has proven it can reduce the mass of a brake corner
assembly by 25% and reduce system operating pressure by 50%,"
the company said. (More at www.delphiauto.com.)
(3/06/01) |
| U.S.
Auto Sales Still Strong --
U.S. sales of cars and light trucks
continued strong in February, following a surprisingly strong
showing in January. Seasonally adjusted sales reflected a 17.5
million units annually market. This is slightly below the Feburary,
2000, figure, but remains substantially above the bellweather
16 million annual units figure. (03/03/01) |
| Fiat
in Turnaround -- Fiat Group (Turin,
Italy) announced that its car division turned a profit last
year, reversing two consecutive years of losses. Fiat Auto is
the 6th largest automaker in the world, and makes up about half
of the Fiat Group. Twenty percent of Fiat Auto is owned by General
Motors. (More at www.fiatgroup.com.)
(2/27/01) |
| GM:
$100 million for Chevy's in Russia --
General Motors Corp. (Detroit, MI) announced they will invest
close to one-third of $332 million needed to adapt an existing
AvtoVAZ plant in Russia to build SUVs, for marketing in Russia
under the Chevrolet nameplate. A significant portion of the
investment will come from the European Bank for Reconstruction
and Development (EBRD), which will hold a 10% stake in the venture.
(More at www.gm.com.) (2/27/01) |
| Mitsubishi
Tightens Belt -- The New York Times
reported that Mitsubishi Motors Corporation (Japan) announced
plans to eliminate 9,500 jobs, close one of its four car plants
in Japan, and find ways to reduce spending on parts and supplies
by 15 percent. Many of the company's inputs come from sister
companies in which it has cross-holdings (Mitsubishi Heavy Industries
and Mitsubishi Electric), raising questions about how far it
will be able to squeeze them on price. (2/26/01) |
| Federal-Mogul
Layoffs -- One of the top 30 U.S.
automotive components suppliers, Federal-Mogul (Southfield,
MI) announced it would lay off about 1,100, or 8.6%, of its
salaried employees to reduce costs. The company supplies full
systems in the areas of power cylinders, sealing, valvetrain,
transmission, brake, and chassis. Individual products include
engine bearings, pistons, piston rings, piston pins, gaskets,
engine and transmission seals, transmission bushings and washers,
valve guides and seats, ignition products, brake friction materials,
lighting products, wiper products. (More at www.federal-mogul.com.)
(2/26/01) |
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DaimlerChrysler
Details Parts Sharing; Engine
"Kein Thema" (Not on the Table) --
Reporting on the Stuttgart news conference at which DaimlerChrysler
unveiled restructuring plans Monday morning, The New York
Times said today the company outlined plans for broad
parts sharing among Mercedes, Chrysler, and Mitsubishi models.
Dieter Zetsche, newly installed as President and CEO of Chrysler,
said electronic controls (for everything from seat warmers
to monitoring systems), rear axles, transmission, and steering
systems would all be candidates for greater sharing.
A major topic of speculation had been the
sharing of engines between Mercedes and Chrysler. According
to The New York Times, Daimler said it will put Mercedes
diesel engines in a few Chrysler vehicles (e.g. the PT Cruiser),
but only those sold in Europe. Asked about use of the Mercedes
platform in American Chryslers, Mercedes head Jurgen Hubbert
replied "kein thema" ("not a topic of discussion").
Other sharing strategies include a new version
of the compact Neon with heavy Chrysler-Mitsubishi sharing,
and a new version of the subcompact Smart by Mercedes and
Mitsubishi. (02/27/01)
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| OUCH!
DaimlerChrysler to Write Off $ 4 Billion; Suppliers
to Pick up the Tab -- After
weeks of preparatory spin, this morning DaimlerChrysler lowered
the boom and said it will have to take a $3.9 billion restructuring
charge in 2001 in order to cope with losses at Chrysler that
are expected to reach $2.25 billion this year.
The company will eliminate 12,000 jobs at
Chrysler in the first half of this year, with 7,000 more before
the end of the year. It expects 6,000 additional jobs to be
eliminated in 2002 and 2003.
The other major area for cost reductions is
"material management." The company's stated goal is reduction
in material costs by more than five percent in 2001, and a
full 15% reduction in material costs by the end of 2003.
Measures to streamline the company's own manufacturing
operations will include the closure of the Toluca Transmission
Plant.
The company expressed hopes that new product
introductions -- the Jeep Liberty and a new Dodge Ram this
year, a new Dodge Viper and Dodge Durango in 2002/3 -- will
help turn the division around. However, the press release
avoided any hint that a single silver bullet will solve all
of Chrysler's problems.
Overall, DaimlerChrysler still expects to
turn a profit of over $1 billion this year, but this is substantially
lower than the $5 - $10 billion annual range that it believes
it can reach if the restructuring is successful. (02/26/01)
Read the full press release at www.daimlerchrysler.com/news/top/2001/t10226a_cg_e.htm
For perspective on the DaimlerChrysler story
read Book Review:
Taken for a Ride: How Daimler-Benz Drove Off With Chrysler.
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| Temporary
Plant Closings at GM -- The New
York Times reported last week that General Motors Corp.
(Detroit, MI) will have temporary closings at 14 plants between
now and June. The company identified North American plants that
will be down in the coming week: Bowling Green, KY, Lordstown,
OH, Fairfax, KS, Lansing C&M, MI, Landing Craft Centre, MI,
Orion Twp, MI, Oshawa 1&2, ON, Shreveport, LA, and Ste.Therese,
QU. (More at www.gm.com.) (2/25/01) |
| Volkswagen:
Humble Topline Disguises Golden Bottom Line
-- Volkswagen
AG announced preliminary year end results for 2,000, with unit
sales up 4% . . . and income before taxes up 38%, with equal
strong improvement in cash flow. The company attributed its
strong results to performance of the Volkswagen Passat and Audi
A4 models, and expressed determination to achieve additional
improvement in 2001, despite difficult market conditions. "Benefits
from the implementation of the module strategy will have a positive
medium-term effect." (More at www.volkswagen-ir.de.)
(2/21/01) |
| Reports
Say Mercedes, Chrysler May Share Engine --
According to reports in The Wall Street Journal, DaimlerChrysler
is near a decision to share engines between Mercedes and Chrysler
brand cars. Such sharing promises huge efficiencies of precisely
the kind that were promised at the time of the merger between
Daimler-Benz and Chrysler. (Similar sharing is already under
way with transmissions.) But critics say sharing engines will
erode the value of the premium Mercedes brand. More detail is
expected next Tuesday, when the company is scheduled to discuss
reorganization plans for Chrysler. (To comment on this story,
go to World Foundry Forum.) (2/21/01) |
| Mitsubishi
Recall -- Mitsubishi Motors
announced last week that it would recall 1.4 million vehicles
to correct a potentially defective ball joint in the front suspension.
The defect could caus moisture to seep into the joint, causing
it to fail. Affected vehicles could lose steering control. Almost
all of the cars were made at Mitsubishi's Normal, IL, plant.
(Reported in The Wall Street Journal 2/16/01.) |
| MAZDA
Takes a Range of Measures -- This
week, automaker Mazda Motor Corporation (Hiroshima, Japan)
announced three separate measures aimed at spurring greater
competitiveness. In the procurement area, Mazda announced plans
to equip its European built cars with engines and transmissions
made by the Ford Motor Company. (Ford owns 33.4% of Mazda.)
Meanwhile, 25 directors of the company will take 10 percent
pay cuts, in an act of responsibility-sharing and in sympathy
with workers who are being affected by workforce reduction measures.
The workforce reduction measures result in an 8% reduction in
an overall workforce of 22,000 through voluntary early retirement
of white collar workers. (More information at www.mazda.com.)
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TOYOTA
to Produce Lexus Parts in Virginia --
Toyota Motor Corporation said it would
shift production of V-6 engines and transmissions for its
Lexus RX 300 sport-utility vehicle to West Virginia from Japan
to cut costs. Toyota plans to expand production of four-cylinder
engines at the factory, which is in Buffalo, WV, for the company's
new Matrix small car and the GM Pontiac Vibe. Toyota will
invest $50 million in the plant to accommodate the V-6 engine,
transmissions and expand four-cylinder-engine capacity. The
move will be the first time the company will make Lexus engines
outside its home country, Japan. (Bloomberg - 1/27/01)
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