Autoblog

North America's automakers ran at 97% of their production capacity last year

Jonathon Ramsey — Sat, 16 Feb 2013 13:01:00 EST

Wards Auto began tracking North American light-vehicle production capacity utilization in 2005, and last year produced the highest amount on record: 97.8 percent of available production was utilized, an improvement of 9.3 percent versus the year before. The number represents straight-time capacity plus things like the addition of a third shift or a third crew and worker overtime due to less vacations. Production with straight-time capacity utilizing two shifts still came out to 97.1 percent in 2012, an improvement of 13.7 percent versus 2011.

In the US, capacity use was 91 percent, a rise of 12.2 percent year-on-year; the only plants to show a decline were the Ford/Mazda facility in Flat Rock that ceased production of the Mazda6 last year and where the Ford Fusion is now built, and the Subaru plant in Indiana that produces the Toyota Camry alongside Subaru vehicles. In Canada, the capacity-use numbers jumped 19.4 percent to 99.6 percent, and in Mexico overutilization was the theme, their plants running at 124 percent. The Mexican situation isn't new, that country exceeding 100 percent of capacity utilization in 2010 and 2011 as well. In total, 15.6 million vehicles were produced last year in North America, 842,000 more than in 2011.

North America's automakers ran at 97% of their production capacity last year originally appeared on Autoblog on Sat, 16 Feb 2013 13:01:00 EST. Please see our terms for use of feeds.

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Full Boat: Dormant ships being used as lots for unsold vehicles

Michael Harley — Fri, 06 Feb 2009 17:40:00 EST

Filed under: Etc., Plants/Manufacturing

Looking for a place to stash tens of thousands of unsold new vehicles, automakers are turning unused car carrier ships into floating parking holds. It's an unusual development, especially in a shipping industry that is used to having boats filled to capacity and running full steam across the seas. As shippers face sharp declines in traffic, the world's fleet of 640 floating car carriers have been forced to make serious adjustments to cut costs and determine ways to absorb extra capacity. With distribution ports filled with excess inventory and dealers unwilling to accept additional stock, automakers are running out of places to stash cars and parking space is at a premium. All of which has helped to make unused cargo holds look mighty attractive.

Toyota has reportedly signed a deal with Wallenius Wilhelmsen, a large Scandinavian joint venture car-carrier fleet operator, to store up to 2,500 new vehicles in a port in southern Sweden. According to Oslo-based Höegh Autoliners, several other auto manufacturers are negotiating similar deals right now.

[Source: Financial Times, free sub. req'd]

Full Boat: Dormant ships being used as lots for unsold vehicles originally appeared on Autoblog on Fri, 06 Feb 2009 17:40:00 EST. Please see our terms for use of feeds.

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BMW running at 100% capacity, simultaneously irritating suppliers

Dan Roth — Tue, 18 Dec 2007 08:33:00 EST

Filed under: Plants/Manufacturing, BMW, Earnings/Financials

BMW's running full-bore as it strains to double its profit margin within the next five years. Across all 23 of the company's manufacturing locations, capacity is maxed out at 100-percent, and there's nary an extra Roundel badge to be had. As BMW pushes for a 10-percent profit margin, they're also putting the squeeze on suppliers. To the OEMs, it seems that BMW has shifted its focus from quality and innovative technology to the bottom line. Not helping matters was a public statement by Manfred Scoch, deputy chairman of BMW's supervisory board, criticizing their suppliers for having better profits than the automaker. With their focus on building the Ultimate Driving Machine, BMW has enjoyed a reputation as a favorite customer of automotive suppliers. Scoch's lead balloon didn't go over well with the companies that make parts for BMW, and has stirred further rumblings that there's growing dissatisfaction with BMW's apparent focus shift. Suppliers shot back at BMW, expressing alarm at Scoch's statement and stating that their ability to generate a profit is tied to their innovation and hard work, rather than overcharging BMW. Understandably, suppliers are loath to concede any price breaks on agreements that are already in place.

For its part, BMW's decided that it's more cost effective to increase their ability to make some components in-house. With that in mind, the Leipzig and Regensburg stamping plants are undergoing expansion, and there will be a new Leipzig stamping facility in 2009. At least 200m euros will be invested in Leipzig and Regensburg, but BMW believes it's a better idea to invest its capabilities, rather than pay a supplier to sort it all out. By the time it's all said and done, further integration may happen to keep the slices on the pie chart looking healthy. If they keep ticking off the companies that make the pieces that they bolt together into automobiles, BMW may end up doing it all themselves.

[Source: Automotive News - Sub. Req.]

BMW running at 100% capacity, simultaneously irritating suppliers originally appeared on Autoblog on Tue, 18 Dec 2007 08:33:00 EST. Please see our terms for use of feeds.

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Lamborghini wants to sell 20% more cars without creating a third model

Dan Roth — Tue, 04 Dec 2007 09:33:00 EST

Filed under: Europe, Supercars, Lamborghini

Lamborghini's pushing to ring up 3,000 sales per year, about 500 more than they currently move. Were they to drop a new Miura, revived LM002, or some other new model, they'd likely reach that target without any problem. Lambo Capo Rupert Stadler isn't in favor of spending the considerable development dollars it would take to bring a new model to market. Before coming out with a new car, it's more prudent for Lamborghini to sell its capacity of Murcielagos and Gallardos first.

So, if you're not coming out with a new car, but you want to move more units, what's an automaker to do? We somehow doubt that LP640s and Reventons will be showing up in rental fleets, and there's no such thing as incentives when it comes to supercars, so that strategy's out, too. Extra-special editions of the already special Italian cars, like the Murcielago SV and Superleggera versions of both vehicles should entice more buyers to pony up. If that doesn't work, they could always have a "push, pull or tow" event.

Follow the read link for a Google-translated version of the original story.

[Source: Caradisiac]

Lamborghini wants to sell 20% more cars without creating a third model originally appeared on Autoblog on Tue, 04 Dec 2007 09:33:00 EST. Please see our terms for use of feeds.

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Care to dance? - Geely looking for partners

Dan Roth — Fri, 26 Oct 2007 16:02:00 EST

Filed under: China, Plants/Manufacturing, Tokyo Motor Show

"We started off building and selling cheap cars, but now we are changing," says Geely Automobile Holdings Chairman Li Shufu at at Tokyo press conference. Geely is the purveyor of some of the most inexpensive cars in China, and now it's looking to sell in other markets. Citing Geely's great respect for Japanese manufacturers, Li expressed a desire to collaborate with them as Geely follows the trail they blazed over a generation ago. Competition in the Chinese auto market is cutthroat, and Geely has plans to double its capacity and add assembly plants in North America and Europe, too. Their goal is to sell 1 million cars per year by 2010, quite an increase from the 175,635 units they moved last year.

[Source: Auto News - sub. req'd]

Care to dance? - Geely looking for partners originally appeared on Autoblog on Fri, 26 Oct 2007 16:02:00 EST. Please see our terms for use of feeds.

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Volvo says it won't be building in North America

Dan Roth — Wed, 27 Jun 2007 17:34:00 EST

Filed under: Etc., Plants/Manufacturing, Volvo

There have been periodic rumors of a United States assembly plant for Volvo cars since at least the early 1980s. There was a North American construction arm of the Swedish carmaker, situated in Nova Scotia, but that plant has been shuttered for several years now. Volvo CEO Fredrik Arp has told Automotive News that an American plant would take an unacceptably long time to pay for itself, according to the automaker's studies. A weak dollar doesn't help the economic argument for a plant in the States, either. Volvo can currently handle its goal of 600,000 units worldwide, which they have yet to meet. Current plant capacity is good for 590,000 vehicles, so it goes building any new plants, Volvo would be wise to fully utilize its current capacity. The automaker is looking to markets other than North America to drive growth in the coming years -- China, India and Russia all look to be emerging soon as major Volvo buyers.

Arp would not be pressed regarding rumors of Volvo being put up for sale by parent Ford, but he did comment that the historically green-minded automaker has its finger on the pulse of viable alternative powertrains for the US market. Diesels and alternative fuels are big in Europe, but Volvo's not going to just forge ahead in the US with those technologies. Rather, what they intend to do is watch and see what green platform takes off here, and follow on quickly with their own version of whatever that turns out to be. Volvo is too much of a niche player in the US market to risk developing something that may be met with a yawn by the US consumer. Up for sale or not, it looks like Gothenburg's Rollers have their eyes on the brass ring.

[Source: Automotive News - sub req]

http://www.autonews.com/apps/pbcs.dll/article?AID=/20070626/ANE01/70626009/1116/rss03&rssfeed=rss03

Volvo says it won't be building in North America originally appeared on Autoblog on Wed, 27 Jun 2007 17:34:00 EST. Please see our terms for use of feeds.

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Cars making a comeback, Camry leading the way

John Neff — Mon, 28 Aug 2006 11:28:00 EST

Filed under: Car Buying, Sedan, Plants/Manufacturing, Recalls, Toyota

Automotive News is reporting that the 2007 Toyota Camry could be the first car to break 450,000 sales in one year since the Chevy Impala did it back in 1978. That is, if Toyota's production capacity can meet the challenge. Currently there are reports of people following car carriers with Camrys right to the dealership and Toyota is dealing with a short 10-day supply of cars for those dealers. Not only is the Camry selling well (41,892 sales in July, more than the Nissan Altima and Pontiac G6 combined), but it's selling at an even higher price than its predecessor with no incentives or rebates luring in customers. They're coming of their own free will, apparently with wallets splayed and at the ready. The average transaction price of a Camry is now $22,558, up from $22,378 in April, and dealers are making money on them, sometimes getting within $500 of the vehicle's sticker.

Toyota's challenge in ramping up production, however, is to ensure that quality doesn't suffer. Automotive News reports that some Camry owners have already begun complaining about the same hesitation experienced under low-speed acceleration that dogged owners of the just-launched all-new Toyota Avalon last year. Several Technical Service Bulletins have already been issued by Toyota, which is not uncommon for any vehicle on the market, that address such problems as an issue with the snap ring on the car's 6-speed automatic, a shift flare issue for a small number of cars and some reports of harsh downshifting by owners of the four-cylinder automatic Camry. Toyota, for its part, has begun reassuring Camry owners on message boards and forums that any and all issues are being addressed.

[Source: Automotive News via Autoweek]

Cars making a comeback, Camry leading the way originally appeared on Autoblog on Mon, 28 Aug 2006 11:28:00 EST. Please see our terms for use of feeds.

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Japanese surpass GM in North American vehicle production

Chris Paukert — Wed, 05 Apr 2006 08:02:00 EST

Filed under: Trends, Plants/Manufacturing, GM, Honda, Toyota

It's official: Japanese automakers build more cars and trucks in North America than General Motors. The milestone has been expected for some time now, with manufacturers like Toyota and Honda churning out some 4.8 million vehicles in the region in 2005, and GM whittling away its totals to 4.6 million. The gulf is expected to accelerate as GM continues to 'right size' its manufacturing both within and beyond America's borders over the coming years.

The report by Scotia Economics indicates that Asian companies will increase their share of global capacity to 37-percent by decade's end (it was 34-percent in 2004). Further, it estimates that if GM and Ford can make good on their cutback plans, by the end of 2008 North American capacity will represent under 20-percent of global automaking capacity-- a number that stood at 30-percent as recently as 1999.

[Sources: AFP via Servihoo, Boston.com]

(Appreciate the tip, Carpenter!)

Japanese surpass GM in North American vehicle production originally appeared on Autoblog on Wed, 05 Apr 2006 08:02:00 EST. Please see our terms for use of feeds.

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