Autoblog

Hyundai says Elantra sales to slow because factory can't keep up with demand

Jeff Sabatini — Fri, 27 Jan 2012 13:01:00 EST

Filed under: Car Buying, Coupe, Budget, Sedan, Plants/Manufacturing, Hyundai

Hyundai's Elantra has been on fire, with sales up 41 percent last year. The compact sedan won North American Car of the Year in January, and the icing on the cake will be a new coupe bodystyle that will soon be landing at dealers. But all is not completely well, according to a report from Bloomberg.

Hyundai expects Elantra sales to run into a brick wall of limited production capacity, as the company's Montgomery, Alabama plant is already operating at 110 percent. The plant, which builds the Elantra and its big brother, the midsize Sonata, churned out 338,000 units in 2011. Hyundai sold over 186,000 Elantra models in the U.S. last year.

With Hyundai posting 20 percent overall sales growth in the U.S. in 2011, it clearly needs to address its capacity bottleneck. Speculation is building that the company will soon announce plans to build another North American assembly plant.

Hyundai says Elantra sales to slow because factory can't keep up with demand originally appeared on Autoblog on Fri, 27 Jan 2012 13:01:00 EST. Please see our terms for use of feeds.

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Porsche gears up for Cajun production with Leipzig expansion

Noah Joseph — Mon, 24 Oct 2011 08:31:00 EST

Filed under: Europe, Plants/Manufacturing, Porsche

Back in 1999, Porsche settled on the location for a new factory in Leipzig, Germany. It opened its doors in 2002 with production of the Cayenne, and further expanded in 2009 to gear up for the Panamera. As of November, 2011, the assembly plant has built some 420,000 vehicles, but that's just the start as Porsche further expands the facility to make way for the new Cajun.

With the laying of the corner stone, the expansion plan will create 1,000 new jobs, encompass 500 million euros (~$700m) in investment and take up another 17 hectares (42 acres) of real estate.

The expansion is earmarked to be finished by the end of 2013 when the tentatively-named Cajun - a baby brother for the Cayenne SUV - will begin production. Details in the press release after the jump.

Continue reading Porsche gears up for Cajun production with Leipzig expansion

Porsche gears up for Cajun production with Leipzig expansion originally appeared on Autoblog on Mon, 24 Oct 2011 08:31:00 EST. Please see our terms for use of feeds.

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Honda announces new Mexican plant to build small cars for North America

John Neff — Fri, 12 Aug 2011 17:32:00 EST

Filed under: Plants/Manufacturing, Honda

Honda has just announced it will build a new assembly plant in a suburb of Celaya, Guanajuato, Mexico. This will be Honda's eighth assembly plant in North America and third in Mexico, and is being built for the production of "fuel-efficient subcompact vehicles" for the Mexican and North American markets.

The new plant will cost Honda $800 million to build, be completed in 2014 and add 3,200 jobs to the region when its operational. While we don't yet know what it will build, the plant's estimated annual capacity will be 200,000 units, which raises Honda's North American production capacity to 1.83 million vehicles annually. According to the company, 87 percent of all Honda and Acura vehicles sold in the U.S. are made in North America.

The smallest vehicle Honda currently builds here is the Civic, which is made in both Indiana and Ontario, Canada. As for what this new Mexican plant will build, our best guess is the Fit, which is already a worldy car being built and sold as the Honda Jazz all over the globe. The only other small cars that Honda sells in the U.S. are its two hybrids, the Insight and CR-Z, and to date the company has kept production of its hybrid vehicles in Japan.

Continue reading Honda announces new Mexican plant to build small cars for North America

Honda announces new Mexican plant to build small cars for North America originally appeared on Autoblog on Fri, 12 Aug 2011 17:32:00 EST. Please see our terms for use of feeds.

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Audi Q3 production begins in Spain

Noah Joseph — Tue, 07 Jun 2011 10:30:00 EST

Filed under: SUV, Europe, Plants/Manufacturing, Crossover, Audi, SEAT, Luxury

2012 Audi Q3 - Click above for high-res image gallery

It wasn't that long ago that Audi had no SUVs in its lineup - aside from the A6 Allroad Quattro - despite being known for its all-wheel-drive vehicles. But that's all changed, just as it has for BMW and Porsche. The Q7 was followed by the Q5, and now the Q3 has started production as well.

The first Q3 rolled off the assembly line today at the plant in Martorell, Spain. The facility belongs principally to Audi's sister-company Seat, but has gone through a considerable expansion - funded by both Audi and Seat - to prepare for the Q3's production.

Now that production has gotten under way, the Martorell plant is expected to churn out as many as 100,000 examples of the Q3 every year. For more details on the program and the expansion that made it possible, follow the jump for the full press release.

Continue reading Audi Q3 production begins in Spain

Audi Q3 production begins in Spain originally appeared on Autoblog on Tue, 07 Jun 2011 10:30:00 EST. Please see our terms for use of feeds.

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REPORT: GM to depart with form and run certain plants around-the-clock

Michael Harley — Wed, 23 Dec 2009 10:59:00 EST

Filed under: Plants/Manufacturing, Buick, Chevrolet, GM, Earnings/Financials, UAW/Unions

Two weeks from now, General Motors will start running its Fairfax assembly plant continuously on a permanent basis. The unprecedented around-the-clock operation, following on the heels of the temporary third shifts a few months ago, is intended to boost the plant's production from its current 4,500 vehicles per week to 6,300 units over the same period.

Operating around-the-clock is no simple feat. Experts point out that automotive assembly lines require a lot of scheduled maintenance, cleaning, and restocking - tasks that are usually accomplished during the down periods between shifts. Typically, car makers add second shifts on a temporary basis when the market demands more vehicles. Third shifts are common for part suppliers, but not for automakers (even Toyota Motor Corp., often cited as a benchmark in efficiency, rarely operates more than two shifts). To allow time for maintenance, GM and union officials have figured out how to "overspeed" parts of the assembly line so they can be slowed temporarily later. The three-shift assembly line will run about 21.6 hours per day (up from 14.5 hours with two shifts).

GM is moving cautiously. The Fairfax assembly plant is the automaker's best candidate for a permanent third shift. Located in Kansas City, it consistently ranks among the most efficient automotive factories in America. In addition, the facility is tasked with manufacturing the Chevrolet Malibu and Buick Lacrosse - both vehicles are selling well, so a third shift will help satisfy demand rather than oversaturate the market. Hat tip to Sea Urchin for the tip!

[Source: Wall Street Journal - Subs. Req'd]

REPORT: GM to depart with form and run certain plants around-the-clock originally appeared on Autoblog on Wed, 23 Dec 2009 10:59:00 EST. Please see our terms for use of feeds.

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GM investing $336 million in Detroit plant to build Chevrolet Volt

Sam Abuelsamid — Mon, 07 Dec 2009 10:30:00 EST

Filed under: Plants/Manufacturing, Chevrolet, GM, Electric

2011 Chevrolet Volt - Click above for high-res image gallery

Production of the 2011 Chevrolet Volt marks an important transition for General Motors. It's the first plug-in electric drive vehicle that the automaker is building for sale to anyone that wants one. No more of the limited lease-only deals that were done with the EV1 a decade ago. To demonstrate its commitment to transforming transportation, GM decided to build the Volt on its home ground right in Detroit.

Today, GM is announcing it's spending $336 million to re-tool the Detroit-Hamtramck assembly plant to build the Volt. The factory, which had been building the Cadillac DTS and Buick Lucerne, is being refurbished for the Volt. GM will start building pre-pilot Volts on its assembly iine around March of 2010 to verify the production processes. The Hamtramck plant will also build the Opel/Vauxhall Ampera beginning later in 2011 for European consumption.

The Hamtramck investment is part of $700 million being invested in Michigan facilities to produce the Volt and its components. That includes a new engine line at the Flint South engine plant and the battery pack assembly plant in Brownstown Township south of Detroit.

Gallery: Quick Spin: 2011 Chevrolet Volt

Photos Copyright (C)2009 Sam Abuelsamid / Weblogs, Inc.

[Source: General Motors]

Continue reading GM investing $336 million in Detroit plant to build Chevrolet Volt

GM investing $336 million in Detroit plant to build Chevrolet Volt originally appeared on Autoblog on Mon, 07 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

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REPORT: Workers with union desk jobs being sent back to factory floor

Michael Harley — Sat, 18 Jul 2009 09:07:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, GM, GMC, UAW/Unions

In an action that is symbolic of the changes America's auto industry is undergoing, the cushy "union desk job" is reportedly about to disappear for many. According to The Detroit Free Press, UAW bosses at post-bankrupt Chrysler and General Motors plants are informing hundreds of elected and appointed colleagues that their desk jobs are being sent back to the factory floor.

The Detroit 3 have always paid for union workers at each plant to support labor-management initiatives, conduct union elections, and handle grievances. Most of these "desk jobs" were not at the plant, and they were reportedly enved by those required to do labor-intensive work in the factories. As such, the news is welcomed by those on the assembly line. "These people had cushy jobs," said Zeigler Johnson, a worker at Chrysler's Warren Truck plant. "Some of them could use a taste of life on the floor to remind them we still make trucks around here."

All told, the UAW is eliminating about 300 positions at Chrysler, while GM expects the change to impact less than 500 workers. The new positions are expected to take effect within the next 60 days.

[Source: The Detroit Free Press | Image: Bill Pugliano/Getty]

REPORT: Workers with union desk jobs being sent back to factory floor originally appeared on Autoblog on Sat, 18 Jul 2009 09:07:00 EST. Please see our terms for use of feeds.

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REPORT: Two plants saved from closing under new GM/UAW agreement

Jonathon Ramsey — Sat, 30 May 2009 14:05:00 EST

Filed under: China, Plants/Manufacturing, GM, UAW/Unions, Canada

According to the Detroit Free Press, the 14 plants that General Motors is expected to announce for closure on Monday was going to be 16 plants until the UAW got its way on Capitol Hill. The union charged GM with closing factories, but instead of a commensurate reduction in production, GM was moving some of the manufacturing elsewhere, specifically China and Mexico.

GM said it will produce 1.83 million cars in the U.S. 2014 as opposed to 2 million today, and it would get one-third of its production that year from overseas. That one-third would notably be small cars, so much in play lately for every reason. The UAW suggested it would be amenable to "innovative labor agreement provisions" in order to make small car production work for GM domestically.

In that case it isn't Mexico or China that will suffer, but Canada. Our northern neighbor is expected to lose 23% of its GM export production (has anyone told CAW head Ken Lewenza yet?) while Asian importation climbs 98%.

For now, an assembly plant and a stamping plant have been spared from the initial list of U.S. closures. Another four plants have been designated "stand-by locations" that will come on line in case of a steep rebound in auto sales.

[Source: Detroit Free Press]

REPORT: Two plants saved from closing under new GM/UAW agreement originally appeared on Autoblog on Sat, 30 May 2009 14:05:00 EST. Please see our terms for use of feeds.

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Ford will shut down 10 N.A. plants in early January

Chris Paukert — Thu, 18 Dec 2008 15:29:00 EST

Filed under: Trends, Plants/Manufacturing, Ford, Lincoln, Mercury

A bitingly cold wind is sweeping through the Motor City this day, but the bigger chill continues to be the rapidly increasing number of idle plants from Detroit's automakers. As part of a previously-announced bid to trim first-quarter output by nearly 38%, Ford now says it will shut down ten North American factories the week of January 5. Unlike Chrysler's planned one month downtime (where they eerily won't commit to start dates), the Blue Oval has confirmed plans to re-light the fires in eight of those plants beginning the week of January 12.

That means that during the week of January 5, Ford's only active North American plants will be in Dearborn (F-150), and Kansas City (F-150, Escape/Mercury Mariner). The week of January 12 will see all facilities up save Hermosillo, Mexico (Fusion, Milan, Lincoln MKZ) and Oakville, Ontario, where the Flex, Edge, and MKX are built.

Ford is angling to cut down its quarterly output to just 430,000 vehicles, and shutdowns at staggered intervals are expected to continue throughout early next year.

[Source: Automotive News - Sub. Req. | Photo: Bill Pugliano/Getty]

Ford will shut down 10 N.A. plants in early January originally appeared on Autoblog on Thu, 18 Dec 2008 15:29:00 EST. Please see our terms for use of feeds.

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GM cuts shifts, output at three plants

Michael Harley — Fri, 05 Dec 2008 17:31:00 EST

Filed under: Plants/Manufacturing

It's hardly unexpected given recent gloomy sales numbers, but General Motors announced today that they will be cutting shifts at several North American plants. Unfortunately, nearly 2,000 workers will lose their jobs in the process as GM eliminates its third shift to slow production and ease the backlog of vehicles sitting on dealer lots. The affected plants are Orion, Michigan; Oshawa, Ontario; and Lordstown, Ohio (these plants manufacture the Chevrolet Malibu, Pontiac G6, Chevrolet Impala, Chevrolet Cobalt, and Pontiac G5). The news comes on top of the previously announced idling of the Fairfax assembly plant in Kansas City mid-January. That plant makes the Saturn Aura and also the Chevrolet Malibu.

[Source: Reuters]

GM cuts shifts, output at three plants originally appeared on Autoblog on Fri, 05 Dec 2008 17:31:00 EST. Please see our terms for use of feeds.

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Alfa Romeo exec in talks with Chrysler

Michael Harley — Tue, 27 May 2008 08:28:00 EST

Filed under: Plants/Manufacturing, Chrysler, Alfa Romeo, Fiat

It was only in December that we mention Alfa Romeo was planning to open a factory in the United States. We followed that story with another in March when Fiat also mentioned a possibility of Iveco truck production coming to the States. It was in that same month that Fiat Chief Executive Sergio Marchionne told the Financial Times that his company was in talks with major U.S. automakers about sharing production. On Saturday, Alfa Romeo brand chief Luca de Meo told a German magazine that talks were under way with Chrysler. With Chrysler cutting domestic production, a move like this by Fiat would help both companies. The Italian carmaker, withdrawn from the U.S. market since 1995, would avoid the effects of the strong Euro on exports, and Chrysler would be able to ramp production back up on an idled plant.

[Source: Reuters]

Alfa Romeo exec in talks with Chrysler originally appeared on Autoblog on Tue, 27 May 2008 08:28:00 EST. Please see our terms for use of feeds.

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Explosion and fire at Chrysler's Windsor assembly plant

Damon Lavrinc — Mon, 10 Mar 2008 14:53:00 EST

Filed under: Minivan/Van, Plants/Manufacturing, Chrysler

Around 12:30PM EST today, Chrysler's Windsor assembly plant in Canada, which produces an assortment of the automaker's minivans, caught fire after a reported explosion. Eyewitness reports claim that the explosion was followed by large plumes of black smoke emanating from the northwest corner of the center. Fire crews have cordoned off part of the plant around Drouillard Road and all of the employees have been evacuated. We'll update this post with more information as it becomes available, so stay tuned. Thanks for the tip, Alan.

UPDATE 4:40 PM EST: Workers were allowed back into the plant after the fire was extinguished. Apparently a vehicle on the repair line caught fire, but workers were able to control the blaze. No injuries reported at this time. [Source: MLive]

[Source: Canada.com, Photo by Bill Pugliano/Getty]

Explosion and fire at Chrysler's Windsor assembly plant originally appeared on Autoblog on Mon, 10 Mar 2008 14:53:00 EST. Please see our terms for use of feeds.

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Chrysler spending $1.78bil on new Michigan plants

Frank Filipponio — Wed, 18 Apr 2007 14:26:00 EST

Filed under: Plants/Manufacturing, Chrysler

Looks like fears of a possible sale aren't scaring the product planners at Chrysler. Recognizing that the show must go on, the group announced a plan to build $1.78 billion worth of capacity over the next few years. According to this Automotive News piece, a new $730 million engine plant is a big part of that plan. The plant will be built in Trenton, Mich. and will concentrate on the production of the automaker's new range of fuel-efficient V-6 "Phoenix" engines. Also in the works are a new $700 million axle plant in Marysville, Mich., and a $300 million investment in the paint shop at their Sterling Heights, Mich. assembly plant.

Chrysler had actually announced many of these upgrades in February, when they pledged about $3 billion to build and revamp plants for the new engines, and the new investments don't change the fact that Chrysler is still planning to cut 13,000 jobs in their overall plan to return to profitability by 2008. New fuel-efficient engines and a renewed focus on cars is hoped to be the solution for record losses due to lower demand for the company's trucks and SUVs. Everybody loves the Hemi, but it ain't exactly a gas-sipper. As part of the new announcement, The Michigan Economic Development Corp. (a state agency) said Chrysler would be getting $11.2 million in tax concessions over the next eight years.

[Source: Automotive News, sub. req'd]

Chrysler spending $1.78bil on new Michigan plants originally appeared on Autoblog on Wed, 18 Apr 2007 14:26:00 EST. Please see our terms for use of feeds.

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Nissan offering buyouts to 775 Tennessee workers

John Neff — Fri, 23 Mar 2007 16:58:00 EST

Filed under: Hirings/Firings/Layoffs, Nissan, Earnings/Financials

Seems like few automakers are immune to downsizing these days, and Nissan is no exception. Today the automaker announced it's reducing its workforce in Tennessee by 12.5%, which equates to 775 heads. The reduction come via way of voluntary buyouts that include a $45,000 cash payment and additional $500 for every year worked. All the workers come from Nissan's two assembly plants in Tennessee, one in Smyrna where the Altima and Maxima, Pathfinder and Xterra are built, and the other in Decherd, which builds the engines to supply the Smyrna plant, as well as Nissan's assembly plant in Canton, Miss. Fortunately, 303 workers were reportedly eligible for retirment anyway and happy to take the buyout.

[Source: Automotive News]

Nissan offering buyouts to 775 Tennessee workers originally appeared on Autoblog on Fri, 23 Mar 2007 16:58:00 EST. Please see our terms for use of feeds.

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Nation's oldest auto assembly plant to close doors

Eric Bryant — Tue, 27 Jun 2006 10:24:00 EST

Filed under: Classics, Trends, SUV, Plants/Manufacturing, Daimler, Jeep

A piece of automotive history will soon fade into the record books as the longest-running vehicle assembly plant in American history, the Jeep Parkway in Toledo, OH, prepares to close up shop this week.

What started as the Willys-Overland factory in 1910 helped Willys become the second-largest car company in the US through World War I, and for a stretch in the 1920s the company was led by Walter P. Chrysler. The factory helped the US flex its industrial might and built vehicles and ordinance for the military in World War II, and in 1945, the first civilian Jeep CJ rolled off the line. Presumably, no one expected the sport-utility vehicle craze that would follow nearly five decades later. Throughout the post-war years, the company went through the hands of Kaiser, AMC, and Renault, with history coming full circle when the Chrysler Corporation acquired it in 1987.

The Cherokee SUV was added in the mid-80s and helped keep the plant alive (not to mention its role in popularizing mid-size SUVs), but the replacement of that model by the Liberty - produced at the nearby and significantly more modern Toledo North factory - made the demise of the plant somewhat unavoidable.

Once occupying over 4 million square feet, somewhere in the neighborhood of 11 million vehicles have rolled out of the factory over the years. GM's Jansville, WI facility will need to run another decade to match the Toledo facility's 96 years of existence.

[Source: Toledo Blade]

Nation's oldest auto assembly plant to close doors originally appeared on Autoblog on Tue, 27 Jun 2006 10:24:00 EST. Please see our terms for use of feeds.

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Honda: new hybrid, new diesel engine and 2 new plants in N.A.

John Neff — Wed, 17 May 2006 01:21:00 EST

Filed under: Hybrid, Green, Japan, Plants/Manufacturing, Honda

Big news from the Honda camp today. In its push to fulfill its "2010 Vision" established in 1998 Honda will be introducing a new low-cost hybrid in North America in 2009 that's expected to sell 200,000 units annually worldwide. It will be produced at the company's Suzuka plant in Japan and be a "dedicated" hybrid model, meaning that this is not the Fit Hybrid that's been floating around the web the past few weeks.

In anticipation of the upcoming diesel boom in the U.S. after the E.P.A. switches us over to Ultra Low Sulfur Fuel in October of this year, Honda will also be introducing a new four-cylinder direct-injection diesel engine in North America that's based on its offerings in Europe.

Finally, Honda will invest $400 million in a new U.S. assembly plant that will be operational by 2008, as well as put another $140 million in a new engine plant in Canada. Another $125 million is being pledged to expand the company's engine, transmission and powertrain component facilities in Georgia and Ohio, as well. All told these facilities will generate an additional 1,920 jobs in North America and boost Honda's production on the continent from 1.4 million to 1.6 million units by 2008.

For further details check out the full press release from Honda after the jump...

[Source: Honda]

Continue reading Honda: new hybrid, new diesel engine and 2 new plants in N.A.

Honda: new hybrid, new diesel engine and 2 new plants in N.A. originally appeared on Autoblog on Wed, 17 May 2006 01:21:00 EST. Please see our terms for use of feeds.

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