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Found 10 results

  1. NAFTA Renegotiation Thread

    NAFTA The latest rounds of the renegotiation talks have started, and they have an emphasis on U.S. demanding new content rules. Just to summarize, the U.S. wants more domestic content, which means NAFTA region countries, and 50% mandatory U.S. content, just to name a few of the changes. This hopefully isn't too political of an issue, it's more to do with how you feel about the rules should be for automakers and their suppliers doing business in America, Canada and Mexico. I think the U.S. demands - on paper, atleast are fair. U.S. is the largest market for autos in NAFTA region. I want to hear more of just how you feel about this issue. Feel free to source links where more of your opinions can be expanded and read more about.
  2. While the primary focus at PSA Group for the past few months has been purchase of Opel and Vauxhall from General Motors, there has been another project that has been going in the shadows, the return of the French automaker to the U.S. Speaking at the CAR Management Briefing Seminars this week in Traverse City, MI, the CEO of the recently established PSA North America Larry Dominique gave a status update. Back in April, PSA made their first foray into North America with the launch of car-sharing service TravelCar in Los Angeles and San Francisco. The next step is the launch of the Free2Move application into North America. Already launched in Europe, the application allows users to book and pay for a variety of transportation services such as public transit or ride hailing. For Europe, the application has eight different services on offer. Dominique said the app allows PSA Group to "interact with consumers more often than engaging solely in car sales." “We’re going to be starting to engage with millions of Americans. By the time we’re ready to sell cars, selling cars will just be the exclamation point at the end of the sentence,” Dominique told Automotive News on the sidelines. Also in the works is figuring out a dealership with the various services such as financing, servicing, and parts. Building out a dealer network will cost a fair chunk of cash and trying to something different with selling their vehicles is a no go for the time being. “We are looking for progressive, innovative and digital-minded partners,” said Dominique in an effort to reduce costs. “I’m not prepared to talk about how we are going to come to market (in North America) but it will be practical, traditional and use technology.” Dominique is aware of how big of a challenge that he is taking on and they only get one chance to get it right. “We’ve got to be able to do things in a new, innovative way. I don’t have the infrastructure and the legacy in place. We have a chance to do this right once.” Source: Automotive News (Subscription Required), Wards Auto
  3. While the primary focus at PSA Group for the past few months has been purchase of Opel and Vauxhall from General Motors, there has been another project that has been going in the shadows, the return of the French automaker to the U.S. Speaking at the CAR Management Briefing Seminars this week in Traverse City, MI, the CEO of the recently established PSA North America Larry Dominique gave a status update. Back in April, PSA made their first foray into North America with the launch of car-sharing service TravelCar in Los Angeles and San Francisco. The next step is the launch of the Free2Move application into North America. Already launched in Europe, the application allows users to book and pay for a variety of transportation services such as public transit or ride hailing. For Europe, the application has eight different services on offer. Dominique said the app allows PSA Group to "interact with consumers more often than engaging solely in car sales." “We’re going to be starting to engage with millions of Americans. By the time we’re ready to sell cars, selling cars will just be the exclamation point at the end of the sentence,” Dominique told Automotive News on the sidelines. Also in the works is figuring out a dealership with the various services such as financing, servicing, and parts. Building out a dealer network will cost a fair chunk of cash and trying to something different with selling their vehicles is a no go for the time being. “We are looking for progressive, innovative and digital-minded partners,” said Dominique in an effort to reduce costs. “I’m not prepared to talk about how we are going to come to market (in North America) but it will be practical, traditional and use technology.” Dominique is aware of how big of a challenge that he is taking on and they only get one chance to get it right. “We’ve got to be able to do things in a new, innovative way. I don’t have the infrastructure and the legacy in place. We have a chance to do this right once.” Source: Automotive News (Subscription Required), Wards Auto 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
  5. 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
  6. BMW 7-Series To Not Offer A Diesel For U.S.

    BMW offered the last-generation 7-Series with a diesel option in the U.S. and there was talk of offering it again with this current model. But these plans have been taken off the table. German magazine Focus reported last Friday that plans for 7-Series diesel in the U.S. were shelved. This information came from engineers at Bosch. This week, BMW Blog got the official word from BMW. “Currently there are no plans to bring the 7 Series diesel to the US market,” said Hector Arellano-Belloc, BMW NA spokesperson. No official reason was given, but BMW Blog speculates the decision likely comes from the Volkswagen diesel emission scandal. At the present moment, BMW offers four diesel models; 328d, 535d, X3 xDrive28d, X5 xDrive35d. There are questions as to whether BMW will continue to offer a diesel option with the next-generation versions of the models listed. Source: Focus, BMW Blog
  7. If there is one thing that we can pull from this latest round of contract negotiations between the Detroit three and the UAW is that amount of car production that will be heading to Mexico. According to a report from Automotive News, Ford and Fiat Chrysler Automobile will have moved production of most of their mass-market vehicles from the U.S. to Mexico. General Motors will be the only Detroit automaker who is keeping some sort of production of their compact and midsize cars. Why the shift to Mexico? It comes down to what vehicles make money for the three automakers. Currently, pickups and SUVs carry a much higher profit margin than cars. "You can afford to pay a little more when you're making trucks, but the structural change in the industry has been so huge that I was kind of surprised by that -- trucks here and cars in Mexico," said Dave Cole, chairman emeritus of the Center for Automotive Research. But some point out this change in production could put the Detroit three in a situation they found themselves back in the early 2000's with sales of SUVs dropping due to the increase in gas prices. Models that will be moving to Mexico include the Chrysler 200, Dodge Dart, and Ford Fusion. Source: Automotive News (Subscription Required)
  8. Ever since Ford ended production of the Ranger in the U.S. in 2011, many have been clamoring for the blue oval to bring the Ranger sold elsewhere to the U.S. But Ford has said no since the current Ranger since the new model is close in size to the F-150, and would be very close in terms of pricing. But the blue oval could be changing that. The Detroit News has learned from sources that Ford wants to resurrect the Ranger pickup and build it at the Michigan Assembly Plant. Sources explained that Ford and the UAW are currently in contract talks, with one of the items being bringing the Ranger to the U.S. for the production. Now this will need to be agreed by the UAW and then Ford’s board of directors. Now bringing the Ranger over to the U.S. would allow Ford to take advantage of a marketplace that seems interested in mid-size trucks again - thank the Chevrolet Colorado and GMC Colorado. “There’s a real hunger for midsize trucks right now. Once upon a time, there were a lot of midsize trucks in this market. The ones that are available are cashing in on the demand,” said Karl Brauer, senior analyst for Kelley Blue Book. Bringing the Ranger to the U.S. would also solve the problem of what would be built at the Michigan Assembly plant. As we reported last month, Ford will be moving Focus and C-Max production from Michigan Assembly to a new plant, most likely Mexico. Source: The Detroit News
  9. With the Chevrolet Colorado and GMC Canyon heading into showrooms in a few months, we've haven't heard anything from Nissan or Toyota about what they have in store for their next-generation midsize trucks. But that has changed for one automaker. The Truth About Cars has heard some information about what's in store for the next-generation Frontier. A supplier source has told them that Nissan will be using the new Navara truck as the base for the next-generation truck. Previously, Nissan was going to use bones of the first-generation Frontier (D22 platform) for their next-generation truck. The reason for this is that the company saw a possible chance for the affordable, fuel-efficient compact truck to make a return. However, Nissan's engineers weren't able to bring the truck to modern safety standards and the costs to make it modern were too much. Using the Navara as a base will give Nissan a truck that can meet modern safety standards and be able to come with a range of different engines, including a diesel of some sort. The downside of using the Navara platform is that it's too expensive for what Nissan is looking for, so a number of features and content will be removed for the U.S. market. Nissan Mexico will be in charge of working on this new truck and will go on sale in 2018. Source: The Truth About Cars, 2 William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.
  10. If you happen to plan on seeing Transformers 4 at the theater, you should pay close attention to the scenes in China as some of those vehicles could be making their way to the U.S. Guangzhou Automobile Group Co Ltd. (GAC) which has some of their Trumpchi vehicles in the film is planning on sending them to the U.S. as early as next year. "Our sponsorship of Transformers 4 will help more overseas dealers and consumers know about our cars and over the long run it will greatly contribute to our branding. We want to start exporting to the U.S. as quickly as possible and I am confident that they will find our Trumpchi cars competitive," said Wu Song, chief of the Trumpchi brand. The first model destined for the U.S. is the Trumpchi GS5 SUV. In China, the model is offered with a 2.0L four-cylinder with 145 horsepower and 138 pound-feet of torque or a 1.8L turbocharged four with 174 horsepower and 175 pound-feet. Either engine can be paired with a five-speed manual or automatic, and either front- or all-wheel drive. Source: Automotive News China (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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