Autoblog

After the announcement last month that BMW was increasing U.S. production while cutting jobs in Germany, the CFO of the German automaker, Michael Ganal, told WirtschaftsWoche magazine that the automaker intends to make other significant changes as the dollar continues to depreciate against the euro. As of today, the volume of cars produced in BMW's Spartanburg plant contributes to about 22 percent of the company's overall sales. However, these vehicles only account for about 10 percent of the materials purchased volume. Over the next four years, the Bavarian car company intends to increase its purchases of parts and components from domestic U.S. suppliers, and Ganal hinted that BMW may also increase production to even higher levels than the 240,000 vehicles annually manufactured on our shores. The influx of manufacturing, supply, and administrative jobs (and tax revenue) may be one of the only upsides to the continuing plunge of the dollar.

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

We've posted a number of articles in recent months about coachbuilders like Pininfarina and Bertone finding themselves in financially troubled waters. The difficulties these and other independent manufacturers around Europe are suffering now appear to be part of a larger trend that's forcing these companies to either adapt to the changing market or face extinction.

While major manufacturers once subcontracted the production of niche vehicles – sports cars and convertibles especially – to smaller companies, the larger carmakers have been adapting their assembly lines towards small runs of diverse automobiles, leaving the indie coachbuilders with declining business. As a result, Pininfarina, for example, has been dipping further and further into the red, while Bertone was forced to sell its business on the verge of bankruptcy hearings.

Industry experts now advise that the coachbuilders will have to change their focus in order to survive and return to profitability. Although some have been receiving patronage from wealthy customers seeking original automotive creations like Zagato's Maserati GS and Pininfarina's Ferrari P4/5, that business is sporadic at best. Magna Steyr continues to be awarded contracts from carmakers like BMW, and Karmann is gearing up for an anticipated contact from Kia, but these and other coachbuilders will need to begin looking elsewhere for continued viability. Pininfarina and Bertone can return to their erstwhile core business of automotive design while shutting down or severely downsizing their manufacturing divisions, while emerging markets like China could provide potential contracts in the future. But while there may be a light at the end of the proverbial tunnel, European coachbuilders will need to streamline to reach it.

[Source: Automotive News (subscription required) via Winding Road]

Hot on the heels of Nanjing Auto's merger with SAIC, Fiat has announced it has pulled out of the automotive joint venture it had embarked upon with Nanjing.

The Sino-Italian operation had been a money-losing enterprise for years. Fiat says that Nanjing failed to live up to its commitments to the joint venture after the Chinese auto group took over MG Rover, and that the divorce will enable the Italian automaker to re-strategize its business in China. Fiat is expected to partner instead with Chery Automobiles, which just announced another joint venture with Israel Corp. Fiat and Chery are in the process of setting up another joint venture to produce 175,000 cars annually starting in 2009, and leading to the introduction of Fiat Group division Alfa Romeo to the Chinese market.

The separation affects only the cooperation between Fiat and Nanjing on the production of passenger cars, and doesn't have any bearing on Fiat's truck-building division, Iveco, which cooperates with Nanjing to build vans and with Nanjing's new parent company SAIC on trucks, the two relationships will continue unhindered.

[Source: Automotive News - Sub. Req.]

With just days to go before its investors meeting later this week, it's back to the drawing board for Bertone. According to emerging reports, a proposed deal that would have seen Fiat come to the rescue for the struggling coachbuilder and design house with a manufacturing contract has fallen through.

The plan was for Bertone to build up to 15,000 units of a Lancia-badged hard-top convertible based on the Fiat Grande Punto, previewed by such Bertone concepts as the Suagna (unveiled in Paris) and the 95th anniversary barchetta (pictured, shown in Geneva). After extensive negotiations, Fiat CEO Sergio Marchionne announced the deal was simply "not a financially viable business case". The deal reportedly fell apart after the two parties came to a deadlock over the number of staff members required to execute the contract, with Fiat insisting that half of Bertone's 1500 person workforce be cut. A contract for Bertone to build camper vans based on the Iveco Daily commercial van will reportedly still go through, but that will only require 200 people to execute.

The convertible, it was decided, will instead be build in-house along the same assembly line as its Grande Punto sibling. Like its rivals, Bertone has been struggling to remain a viable enterprise. Watching such a stoic name like Bertone fold would be a shame, but if its continued operations are to be secured, the Italian design house is going to have to face staggering cutbacks.

[Source: Automotive News via Motor Authority]

Nissan North America has decided to cut production of the Nissan Titan, which is pushing a 100-day pileup and is down over 20,000 units and 1.7 percent as compared with last year. Nissan says it would like to lessen the supply to 75 days or less.

The problem is one often experienced by automakers these days -- General Motors and Ford are both cutting production in various areas, while DaimlerChrysler is giving dealers and consumers alike huge incentives to take some models in the DCX lineup.