Autoblog

One door closes, another one opens. Just as Chrysler is working to extricate itself from its deal with Getrag, the Pentastar people are about to announce a deal with ZF Friedrichshafen AG. Chrysler is erecting a plant in Marysville, Michigan that will build axles and employ 900 workers, but word is that the deal will involve ZF signing a long-term commitment to operate the plant.

As far back as September, the UAW said that Chrysler and ZF were getting together. The Detroit News reported on the talks at the time, but they were described as a "non-binding discussion" and "a possibility." The Marysville factory, planned to open in 2010, would replace the Detroit Axle plant that currently employs 1,430 workers. Letting ZF run the Marysville location would allow Chrysler to put more focus on getting its survival in order. The announcement will be made at 9 AM EST tomorrow.

[Source: Automotive News, sub req'd]

A master mechanic and two clerks, among others, are being investigated for intentionally sabotaging Mercedes cars being built at the Sindelfingen factory. Allegedly, repair shops in the area that weren't part of the Daimler corporation were bribing workers with gifts, trips, and cash to alter the cars so that the repair shops could get the contracts to fix them.

The sabotage included scratching the cars, loosening clamps and bolts, as well as -- incredibly -- putting foreign liquids into brake lines. According to Suddeutsche Zeitung, the cars affected were C-, E-, and S-Class. The Stuttgart prosecutor's office estimates the costs to Mercedes in the many of millions, but the greatest irony is this: the workers under investigation were part of the quality control department.

[Source: Suddeutsche Zeitung via Benz Insider]

The roundabout that was the Chrysler, LLC-Getrag partnership recently came to an end with Chrysler pulling out the deal, citing untenable financing terms. Now Getrag Transmission Manufacturing, the U.S. company that was going to build the dual-clutch transmissions for Chrysler, has filed for Chapter 11. Getrag has done so in order to streamline its handling of claims and creditors.

Of course, it's not over: Getrag is suing Chrysler for pulling out, Chrysler is suing Getrag for not getting the $300 million financing that Getrag was supposed to bring to the table. Other than the lawsuits and bad blood, all that's left are the partial remains of the factory that was to build the transmissions, and Chrysler's need to find a source of dual-clutch transmissions. Just another monument to the turmoil the auto industry is currently mired in.

[Source: Automotive News, sub req'd]

Nearly 4,000 employees of the Mercedes-Benz assembly plant in Vance, Alabama, are being offered buyouts in advance of another expected round of production cuts at the facility in January. The Vance plant produces the M-Class sport utility, R-Class crossover and GL-Class full-sized sport utility for the Mercedes-Benz lineup. In July, Mercedes slowed production for the first time in more than a decade of U.S. production as rising gas prices in June drastically cut sales. Although the buyout packages are being offered to all employees, Mercedes spokespersons are quick to point out that these are not to be considered layoffs. In fact, the automaker will only hand out an undisclosed limited number of buyout packages as it makes changes to the plant to bring production back in line with demand.

Alabama has been hard hit this year by the global auto industry slump. The state's automotive industry is 134,000 workers strong, and the sobering news from Mercedes-Benz only adds to earlier production cuts from Honda and slowdowns from Hyundai, two other automakers with assembly plants in the Heart of Dixie.

[Source: AL.com]

A 15-percent drop in Sonata sales since the beginning of 2008 is one reason Hyundai will idle its Alabama plant for 11 days between now and the end of the year (the near-2-percent drop in Santa Fe sales didn't help either). According to Hyundai Motor Company officials, the current sales slump and future sales projections of both models warrant the assembly slowdown. To limit the financial impact on the plant's workers, Hyundai will schedule the days on Fridays, and around the Thanksgiving and Christmas holidays. Hyundai also added, "We will continue to monitor the situation closely and hope that the economic conditions affecting our industry will soon normalize and allow us to return to a full production schedule as soon as possible." You and everybody else.

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

Chrysler has managed to stay out of the doom and gloom news for a few weeks now, which goes to show that going private can have its benefits. But things couldn't stay quiet forever, and as if the company needed something else to deal with, it's now in row with German transmission supplier Getrag over a potentially failed joint venture.

Chrysler uses Getrag double-clutch transmissions (DCT) in the Euro-version Dodge Journey (seen above), and is planning on adding the Euro Avenger and Sebring to the DCT lineup. Getrag signed an agreement with Chrysler to build a factory in the U.S. that would also supply Chrylser's American products with DCTs, and in return for Chrylser agreeing to get such transmissions only from Getrag, Getrag would get $300 million to finance and tool the factory.

According to Getrag, it only intended to borrow the funds if said funds were guaranteed by the German government. According to the German government, it would only guarantee the $300 million loan if Chrysler put that same amount in an escrow account to guarantee repayment. According to Chrysler, it had no idea of such an arrangement, and Getrag never should have signed the agreement if it meant Chrysler needed to back Getrag's loan with its own cash. And that's how court cases are made. While the factory remains in limbo, Chrysler needs to find another supplier for DCTs for its American cars, and do it in a hurry.

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

Sensing the ripe market opportunity, Nissan will start producing various light-commercial and medium-duty trucks in 2010. The targeted segment is currently dominated by Ford and GM, where the miscellaneous cabs and frames are used to produce such vehicles as dump trucks, tow trucks, and school buses. Now, Nissan wants a piece of the pie. Larry Dominique, Nissan's VP of product planning, wouldn't disclose details right now, but he did say that a handful of new products will be needed to satisfy the new commercial truck dealers – and Nissan is more than willing to oblige. Joe Castelli, the former director of Ford's commercial trucks (and now a VP of commercial trucks at Nissan), said the Japanese automaker will be pulling from their global stable of commercial components (branded Atlas and Atleon in other markets) to quickly adapt them for the U.S. market. Nissan's official commercial truck plans will be announced in January at the Detroit Auto Show, and we'll be there to judge reactions.

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

Click above for a high-res gallery of the Tata Nano

Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.

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

Click above for high-res gallery of the Fiesta beginning production

Ford has finally begun production of the all-new 2009 Ford Fiesta in Cologne, Germany, today. After an investment of 455 million Euros (about $674 million) to restructure and modernize the plant, Ford is expecting its 4,000 employees will be able to roll out 148,000 Fiestas by the end of the year, which is an impressive 1,900 cars each day). In January 2009, the Valencia plant in Spain will also begin building the Fiesta. There are also production plants in China, Thailand, and Mexico that are tooling up for the newest small Ford in order to meet worldwide demand, which finally includes the U.S. where it will also be sold in both sedan and hatchback configurations around 2010. Based on the Verve concept, the new compact is exactly what the automaker needs in today's efficiency-conscious marketplace, and its stylish enough not to be considered a cheapskate or eco-geek while driving.

[Source: Ford]

Click above for a high-res gallery of the 2009 Audi Q5.

Taking a lesson from BMW, who have been successfully manufacturing cars and SUVs in Spartanburg, South Carolina for more than a decade, Audi may seek manufacturing capabilities for their A4 sedan and Q5 SUV in the States. The new Volkswagen factory in Chattanooga, Tennessee, just announced last week, may be tasked with building upwards of 200,000 vehicles per year -- including the two Audis. Estimated to cost $973.5 million, the 1,359 acre plant is large enough to handle the domestic production for VW, Audi, and even shareholder Porsche... although the proud automaker from Stuttgart vehemently denies even considering it.




[Source: Automotive News - Sub. Req.]