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Found 4 results

  1. Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP). Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe. As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains. Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands. Source: Automotive News (Subscription Required)
  2. Ford has finally confirmed that it will be moving small car production in the U.S. to Mexico in the next two to three years. This information isn't new as we knew about it a year ago thanks to a new contract with the UAW. We learned that in 2018, the Ranger would be taking up residence at the Michigan Assembly plant, home currently home to the Focus and C-Max. Why is Ford moving small car production to Mexico? It comes down to costs. With low gas prices, consumers are buying up crossovers and trucks at a rapid rate. This means small cars are sitting on dealer lots, costing automakers money. “Every global manufacturer has to determine how it can best create revenue and limit expenses. Small vehicles are the most price-sensitive, so any cost-savings that can be gained offer competitive advantages. Thus moving production to a lower-labor-cost country makes particular economic sense for small cars,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book. It doesn't hurt that labor costs in Mexico are significantly less than those in the U.S. The Detroit News reports that workers earn the equivalent of $8 to $10 an hour, compared to the $29 an hour top-tier workers in the U.S earn. “I don’t think it’s all doom and gloom. It’s a reflection of the shrinking market share for compact cars,” said Dave Sullivan, manager of product analysis for research firm AutoPacific. But you have to wonder if Ford could have handled this better. Especially when Presidental candidate Donald Trump ripped into Ford for this decision, vowing to put a 35 percent tariff on Ford vehicles if elected. Source: The Detroit News
  3. Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP). Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe. As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains. Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands. Source: Automotive News (Subscription Required) View full article
  4. Ford has finally confirmed that it will be moving small car production in the U.S. to Mexico in the next two to three years. This information isn't new as we knew about it a year ago thanks to a new contract with the UAW. We learned that in 2018, the Ranger would be taking up residence at the Michigan Assembly plant, home currently home to the Focus and C-Max. Why is Ford moving small car production to Mexico? It comes down to costs. With low gas prices, consumers are buying up crossovers and trucks at a rapid rate. This means small cars are sitting on dealer lots, costing automakers money. “Every global manufacturer has to determine how it can best create revenue and limit expenses. Small vehicles are the most price-sensitive, so any cost-savings that can be gained offer competitive advantages. Thus moving production to a lower-labor-cost country makes particular economic sense for small cars,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book. It doesn't hurt that labor costs in Mexico are significantly less than those in the U.S. The Detroit News reports that workers earn the equivalent of $8 to $10 an hour, compared to the $29 an hour top-tier workers in the U.S earn. “I don’t think it’s all doom and gloom. It’s a reflection of the shrinking market share for compact cars,” said Dave Sullivan, manager of product analysis for research firm AutoPacific. But you have to wonder if Ford could have handled this better. Especially when Presidental candidate Donald Trump ripped into Ford for this decision, vowing to put a 35 percent tariff on Ford vehicles if elected. Source: The Detroit News View full article
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