Autoblog

REPORT: Ford aims to halve number of suppliers

Chris Shunk — Thu, 25 Jun 2009 18:03:00 EST

Filed under: Ford

If you think GM and Chrysler are going through financial struggles, it's just a flash in the pan compared to the trial and tribulations of the automotive supply base. Experts say supplier jobs account for nearly three-quarters of all automotive employment, with estimates of 600,000 workers in the US alone. The slipping auto sales in North America have exasperated the situation for the already struggling suppliers, and the bankruptcies of GM and Chrysler haven't helped, either. Parts suppliers did receive $5 billion in loans from the federal government, but some say that figure isn't enough to keep some from going under.

Reuters reports that Ford will add to supplier's woes by halving its supply base down to 850 companies by the end of 2009, making 750 suppliers ineligible for future dealings with the Blue Oval. By shrinking its supply base by nearly half, Ford can cut down the risk of production interruptions caused by the bankruptcy or dissolution of one or more of its suppliers. The healthier 850 suppliers pick up the production (and in some cases, employees) left on the table by the departure of the 750 less financially sound companies.

While this sounds like a big heap of bad news for the supply base, it's more like good news/bad news. It's great if you're among the 850 companies that will remain with Ford, and if you're among the 750 who aren't, the chances of survival are pretty slim, but more work could be right around the bend.

[Source: Reuters | Image Source: Bill Pugliano/Getty]

REPORT: Ford aims to halve number of suppliers originally appeared on Autoblog on Thu, 25 Jun 2009 18:03:00 EST. Please see our terms for use of feeds.

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Karmann Go: Legendary coachbuilder shuts down as last car comes off the line

Chris Paukert — Tue, 23 Jun 2009 16:56:00 EST

Filed under: Convertible, Europe, Government/Legal, Plants/Manufacturing, Specialty

Karmann throughout the years - Click above for high-res image gallery

Troubled coachbuilder and specialty car manufacturer Karmann has gone dark. The firm's final vehicle - a Mercedes-Benz CLK came off the lines on Monday as the legendary company has been shuttered because of insolvency.

Perhaps best known for its Volkswagen-based Karmann Ghia coupe and convertible (shown above), Karmann has actually produced in excess of 3.3 million automobiles for various automakers - mostly convertibles. In recent times, it's been responsible for assembling cars like the Spyker C8, Audi A4 Cabriolet, Chrysler Sebring Convertible, Volkswagen New Beetle Convertible, and the Pontiac G6 Convertible.

According to German's The Local, Karmann actually "went bust last week," though it still hopes to change its focus to parts production if officials are able to successfully reorganize the firm and stay in business. Unfortunately, finger-pointing between the Osnabrück company's management and its unions is preventing any sort of restructuring, let alone a quick turnaround.

The company's 2,240 workers have all apparently been given notice, and their benefits plans will likely be eliminated. Check out more details at the link below and peruse a high-res gallery of Karmann's vehicles (including some of its concept cars) by clicking on the thumbnails below. Thanks for the tip, Gregg.

Gallery: Karmann throughout the years

[Sources: The Local; StraitsTimes]

Karmann Go: Legendary coachbuilder shuts down as last car comes off the line originally appeared on Autoblog on Tue, 23 Jun 2009 16:56:00 EST. Please see our terms for use of feeds.

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Analyst: Detroit 3 to be outproduced by foreign transplants on U.S. soil by 2012

Jeremy Korzeniewski — Tue, 23 Jun 2009 08:57:00 EST

If you think life can't get any worse for the bloodied and battered Detroit three automakers and their suppliers, you're wrong - at least according to a new study from Grant Thornton LLP's Corporate Advisory and Restructuring Service. The accounting and management consulting firm used data from CSM worldwide that forecasts U.S. automakers will produce fewer vehicles on U.S. soil than Asian and European automakers by the year 2012 despite an expected return to profitability.

Included in these projections are a 35% reduction in U.S. manufacturing by domestic automakers and a 20% increase from import automakers like Volkswagen, BMW, Toyota, Honda, Nissan and Hyundai. The end result would be a total of 7.5 million units from Chrysler, Ford and General Motors and eight million from all other automakers combined.

With that in mind, Grand Thornton has some advice for North American suppliers that manage to make it through the next few years but still find themselves tied too closely to domestic automakers: diversify now or face the consequences. Hit the jump for the press release.

[Source: Grand Thornton]

Continue reading Analyst: Detroit 3 to be outproduced by foreign transplants on U.S. soil by 2012

Analyst: Detroit 3 to be outproduced by foreign transplants on U.S. soil by 2012 originally appeared on Autoblog on Tue, 23 Jun 2009 08:57:00 EST. Please see our terms for use of feeds.

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WSJ: Obama nixes auto suppliers' request for aid

Chris Paukert — Tue, 16 Jun 2009 15:30:00 EST

Filed under: Government/Legal, Earnings/Financials

According to The Wall Street Journal, President Obama has taken a pass on granting auto parts suppliers' request for $10 billion in aid, leaving the financially-strapped companies to seek succor from Congress instead.

While the president's administration says it will keep a wary eye on the state of the industry, no more federal aid appears to be in the cards. As quoted in the WSJ, Neil De Koker, president and CEO of the Original Equipment Suppliers Association says that he thinks the government won't financially intervene further "unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this situation..."

While the industry's highest-profile bankruptcy have undoubtedly been that of General Motors and Chrysler, major suppliers like Karmann, Visteon and Metaldyne have also filed in recent months, and industry watchdogs see the potential for many more red ink stained white flags to be erected before the industry's economy recovers.

[Source: The Wall Street Journal | Image: Saul Loeb/AFP/Getty]

WSJ: Obama nixes auto suppliers' request for aid originally appeared on Autoblog on Tue, 16 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

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Tier-1 supplier Metaldyne files for Chapter 11 bankruptcy too

Jonathon Ramsey — Sun, 31 May 2009 16:05:00 EST

Filed under: Plants/Manufacturing, Earnings/Financials

To the roll call of auto industry titans that have gone or are going bankrupt -- Visteon, Chrysler, GM, Saab, Karmann, ASC, Source Interlink -- we can now add Tier 1 supplier Metaldyne, which filed for bankruptcy for its American operations. Metaldyne makes metal bits for car and truck chassis and NVH components.

The company has been restructuring its costs over the past year and a half, shedding $100 million in expenditures and reducing its debt. Still, as of the filing it had debt of $600 million on $2008 sales of $1.57 billion. Metaldyne's parent company, Asahi Tech Corp in Japan, helped the company lower its debt by about $400 million but has now walked away from further financial support.

There are two private equity firms interested in the company: Carlyle Group, which is looking to buy some of Metaldyne's chassis business, and RHJI, which is already a majority shareholder in Metaldyne's parent, Asahi. RHJI would throw about $100 million at the company and inject additional cash to run the business short term, as well as take on additional liabilities. Until (and if ever) a buyer is decided, Metaldyne is running on $18.5 million in debtor-in-possession financing from Deutsche Bank and customer funding.

[Source: Forbes]

Tier-1 supplier Metaldyne files for Chapter 11 bankruptcy too originally appeared on Autoblog on Sun, 31 May 2009 16:05:00 EST. Please see our terms for use of feeds.

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BREAKING: BBC says Magna has agreed to take majority stake in Opel from GM

Chris Paukert — Fri, 29 May 2009 13:27:00 EST

Filed under: Trends, Europe, Government/Legal, GM, Earnings/Financials, Opel

According to the BBC News, supplier Magna International has come to terms with General Motors to purchase a majority stake in its European Opel division. While an agreement has been reached between the two parties, the German government - which has agreed to provide financial assistance for Opel - needs to sign off on the matter. Magna and GM have signed a memorandum of understanding that will reportedly help Opel secure some 1.5 billion euros ($2.1B USD) in bridge loans, as well as shore up protections against creditors in the event of a GM bankruptcy.

For its part, Magna will reportedly pour somewhere between 500-700 million euros into Opel, and it plans to cut 10% of the marque's workforce in Germany - about 2,500 employees.

Interestingly, GM will reportedly hold on to a 35% stake in the brand, while Opel workers themselves will end up with 10% of the company. No word yet on what will happen to Vauxhall, Opel's UK twin. Thanks to everyone for the tips!

[Source: BBC]

BREAKING: BBC says Magna has agreed to take majority stake in Opel from GM originally appeared on Autoblog on Fri, 29 May 2009 13:27:00 EST. Please see our terms for use of feeds.

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BREAKING: Visteon reportedly files for Chapter 11 bankruptcy

Chris Paukert — Thu, 28 May 2009 09:28:00 EST

Filed under: Trends, Government/Legal, Plants/Manufacturing, Ford, Earnings/Financials

According to Automotive News, Visteon Corp. has filed for Chapter 11 bankruptcy protection. The Michigan-based tier-1 supplier was spun off from the Ford Motor Company back in 2000, and it has struggled ever since. The filing took place in a Delaware courtroom, where the company has listed total assets of $4.58 billion and total debt of $5.3 million.

Visteon's struggles have been well documented, with its ballooning debt, falling sales (down by more than 50% in the first quarter of 2009 alone) resulting in a $681 million dollar loss last year. In fact, back in 2005, Visteon had to ask Ford to step in as part of an agreement that saw the Blue Oval agree to take ownership of all of the supplier's hourly employees who were United Auto Workers members, as well as most of the company's North American facilities.

Despite no longer technically being part of Ford, the Blue Oval is still Visteon's largest customer (accounting for around 31% of its sales last quarter), and according to AN, Visteon says that Ford is still committed to help the company with debtor-in-possession financing and future parts orders while the supplier undergoes restructuring.

[Source: Automotive News (subs. req.)| Image: Jonathan Ferrey/Getty]

BREAKING: Visteon reportedly files for Chapter 11 bankruptcy originally appeared on Autoblog on Thu, 28 May 2009 09:28:00 EST. Please see our terms for use of feeds.

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STUDY: Toyota and Honda supplier relations suffer while Ford, GM improve

Jonathon Ramsey — Tue, 26 May 2009 17:27:00 EST

Filed under: Chrysler, Ford, GM, Honda, Nissan, Toyota

In the latest installment of an annual supplier relations survey put together by Planning Perspectives, Honda and Toyota have upheld their top positions in spite of suppliers describing downgrading them to merely "adequate." Still above average in supplier relations rankings (along with Nissan), previously Japan's two largest automakers were ranked "good to very good." Honda is still gets top marks for involving suppliers in product development and for helping suppliers lower costs and increase quality, while Toyota's decline was attributed to "less experienced staff in Toyota's purchasing group for whom the 'Toyota Way' is not yet the way of doing things."

Domestically, the big winner was Ford. All three domestic makers still rank below average in supplier relations, but six years ago, Ford was dead last among the top six carmakers. This year, Ford takes the U.S. crown, with just 19% of surveyed suppliers saying they'd rather not do business with the company (or that they are ambivalent about it). For its part, General Motors has also improved, but Chrysler has, not surprisingly, remained on the bottom: Fully 54% of surveyed suppliers said they would rather not do business with the Pentastar. Thank you for the tip, Leonard!

[Source: Auto News, sub req'd]

STUDY: Toyota and Honda supplier relations suffer while Ford, GM improve originally appeared on Autoblog on Tue, 26 May 2009 17:27:00 EST. Please see our terms for use of feeds.

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REPORT: Visteon books $2M profit. Delphi makes $556M. Wait... wha?!

Dan Roth — Tue, 12 May 2009 18:20:00 EST

Filed under: Etc., Plants/Manufacturing, Earnings/Financials

When is a profit not a profit? When it's the result of bankruptcy prevention measures, like Visteon's report of a $2 million profit during the first quarter of 2009. The auto supplier is reporting that each share earned two cents during the period, compared to a $105 million loss last year. The company's books saw a gain after sending its British operations into Chapter 11, an occurrence that will not be repeated. The one-time nature of the accounting measures doesn't bode well for the next three months, but Visteon also points out that its sales force has been able to secure $240 million of new work between January and March. Despite the new business, Visteon's full-year outlook isn't so rosy, and will likely be down again for 2009.

In unrelated but similar news, fellow Tier-1 supplier Delphi logged a $556-million profit in the first quarter, a number reportedly generated largely by a maneuver that saw them shave $1.2 billion in health care benefits for retired salaried workers. The bankrupt company posted profits of 98 cents per share, but it simultaneously reported that business to General Motors (by far its biggest client) fell by half, and the company posted a 52% quarterly sales drop (to $2.5 billion) as a result.

[Sources: Detroit Free Press]

REPORT: Visteon books $2M profit. Delphi makes $556M. Wait... wha?! originally appeared on Autoblog on Tue, 12 May 2009 18:20:00 EST. Please see our terms for use of feeds.

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French unions try a new negotiating tactic: kidnapping

Jonathon Ramsey — Wed, 15 Apr 2009 07:31:00 EST

Filed under: Europe, PSA, UAW/Unions

Parts suppliers are experiencing just as much trouble as the automakers they supply. Employees at one company, though, have taken a tip from Somali pirates and upped the anger stakes. When Faurecia felt it had been wronged by Chrysler, it took Chrysler to court. When Faurecia's employees in France felt they had been wronged by the company they work for, they kidnapped three managers for five hours.

Faurecia announced plant shutdowns and restructuring in December, and some militant union members didn't appreciate the cut employees were getting, so they locked up the execs. In the immediate aftermath the union didn't receive anything additional. But last week Faurecia received €1.63 billion from banks and majority owner Peugeot, and union negotiations are scheduled to begin again later this month.

Faurecia isn't the only victim of the new tactic -- French execs at Sony, 3M, Caterpillar, and Scapa have also been "sequestered" for varying lengths of time. And they probably won't be last: surveys show that 45% of the French population find the tactic acceptable.

[Source: Edmunds]

French unions try a new negotiating tactic: kidnapping originally appeared on Autoblog on Wed, 15 Apr 2009 07:31:00 EST. Please see our terms for use of feeds.

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Toyota exec says automaker ready for GM bankruptcy

Jonathon Ramsey — Thu, 09 Apr 2009 08:03:00 EST

Filed under: Plants/Manufacturing, GM, Toyota, Earnings/Financials

The world's largest automakers are intertwined in a myriad of ways and they need to watch their competitors in both good times and bad. When talk of a GM bankruptcy was first floated, the discussion of the effects naturally led to GM's suppliers. That discussion then led to what the effects would be on other car companies if a swath of suppliers was suddenly pulled under, and both Ford and Toyota indicated they would be adversely affected by a GM's fall.

Now the president of Toyota Motor Sales USA, Jim Lentz, has said that the automaker can handle a GM bankruptcy. Although GM and Toyota share roughly 330 suppliers, Lentz says "only a small number... are critically short on cash," without giving any indication of how many shared suppliers are included in that assessment. Even for those that might be in trouble, the $5 billion Supplier Support Program should further minimize the number of losses among them.

[Source: Detroit News | Image: Bill Pugliano/Getty]

Toyota exec says automaker ready for GM bankruptcy originally appeared on Autoblog on Thu, 09 Apr 2009 08:03:00 EST. Please see our terms for use of feeds.

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Canadian Idle: Two Chrysler plants shut down over supplier dispute

Chris Shunk — Fri, 03 Apr 2009 10:29:00 EST

Filed under: Government/Legal, Chrysler

Chrysler has been playing hardball with the Canadian government in an effort to secure up to $3 billion in loans, as company Vice Chairman Tom Lasorda recently threatened to leave Canada if it didn't receive the necessary loons. One supplier with only 60 employees is giving the Pentastar a sneak peak of what life will be like without its Canadian plants.

Chrysler was forced to shut down two Ontario plants as the facilities ran out of diecast aluminum engine and transmission mounts. The Brampton plant, which produces the Chrysler 300, Dodge Challenger and Charger closed on Thursday and the Windsor minivan facility closed on Wednesday. The facilities will remain idle until the Pentastar can get the parts flowing again. Chrysler released a statement saying that if the parts shortage continues, other North American facilities may be affected.

The supplier in question, Trans Cast, recently purchased the engine and transmission mounts facility and demanded more money for the parts. Bloomberg is reporting that Chrysler has gotten a court order to get the tooling equipment from the supplier so they could produce the parts themselves. Once Chrysler receives the tooling, it intends to produce the mounts at a plant in Etobicoke, Ontario.

What isn't clear so far is whether Chrysler was behind on payments with Trans Cast. But since Trans Cast purchased the plant out of foreclosure very recently, it's unlikely that Chrysler would be in the hole with the new owners. What isn't in question is Chrysler's prodigious cash crunch. Chrysler has just recently received a $250 million Canadian dollar loan from the Canadian government just to keep plants open. The Auburn Hills, MI automaker has also asked for $6 billion in financial aid from the U.S. government, in addition to the $2-3 billion requested from the Canadians.

[Sources: New York Times; Bloomberg]

Canadian Idle: Two Chrysler plants shut down over supplier dispute originally appeared on Autoblog on Fri, 03 Apr 2009 10:29:00 EST. Please see our terms for use of feeds.

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U.S. Treasury unveils $5B Supplier Support Program

John Neff — Thu, 19 Mar 2009 14:58:00 EST

Filed under: Government/Legal, Plants/Manufacturing

As difficult as it was for General Motors and Chrysler to secure emergency loans from the government, the supplier community that supports the auto industry has found it even more so. Until today. This morning, the Obama administration announced its Supplier Support Program, which creates a $5 billion fund to help keep payments flowing through automakers to the suppliers they work with.

The details of the Supplier Support Program are particularly interesting, so pay attention. According to the Detroit Free Press, GM and Chrysler have already agreed to take part in the program, but Ford, which has been the only U.S. automaker not to accept federal assistance, has yet to decide. It appears that the $5 billion fund will be paid for mostly by the government, but GM and Chrysler have reportedly contributed undisclosed amounts to it already, which is fair, we suppose, considering the fund goes towards paying their bills.

The money will be flowing through automakers to their suppliers, so the automakers ultimately decide which suppliers will continue to get paid and which won't. As such, the program won't benefit all suppliers. Those who do finally get that check in the mail should find credit easier to secure, as lenders will know a steady stream of payments to the company are guaranteed. Lastly, the program's guarantee of payment only applies to parts produced after today and only "U.S.-based" suppliers and automakers can participate.

The entire U.S. automotive supplier community has been operating on the brink along with General Motors and Chrysler, but until today was paid little attention by the U.S. Treasury. The Supplier Support Program will at least ensure that the complex process by which automotive components are produced, delivered and paid for continues without interruption, even if that means not every supplier survives.

[Source: The Detroit Free Press]

U.S. Treasury unveils $5B Supplier Support Program originally appeared on Autoblog on Thu, 19 Mar 2009 14:58:00 EST. Please see our terms for use of feeds.

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Camaro supplier sues GM right back

Jonathon Ramsey — Wed, 18 Feb 2009 07:58:00 EST

Filed under: Convertible, Coupe, Performance, Plants/Manufacturing, GM

The Cadence-and-Camaro saga continues. Cadence, which makes interior parts for the Camaro, declared bankruptcy last August. GM sued the supplier to recover the specialized tooling machines it could need in order to continue Camaro production - or will it need to have the machines made again. GM also refrained from paying Cadence $4.9 million that Cadence says it is owed for "parts, labor, and equipment."

Cadence has now countersued The General, not just to get the money, but because that money is an integral part of Cadence's liquidation plans. Without it, Cadence maintains there will be "substantial harm to Cadence's bankruptcy estate." The pre-production Camaros are already in the works, and we have no idea how this development will affect the production version of the car. This battle can't be good for either company, but it's especially bad news for all of the Camaro faithful who are patiently awaiting the return of their king. Thanks for the tip, Scot!

[Source: Reuters]

Camaro supplier sues GM right back originally appeared on Autoblog on Wed, 18 Feb 2009 07:58:00 EST. Please see our terms for use of feeds.

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Officially Official: Bridgestone signs exclusive deal with F1

Noah Joseph — Wed, 26 Dec 2007 09:26:00 EST

Filed under: Motorsports, Marketing/Advertising, Earnings/Financials

Japanese tire-maker Bridgestone has been supplying every team on the Formula One grid since rival rubber company Michelin pulled out of the sport at the end of the 2006 season. But whereas Bridgestone had gone through 2007 as the exclusive tire supplier by default, the ink has now dried on the contract that makes them the exclusive tire supplier by design.

The deal secures Bridgestone's monopoly in the pinnacle motorsport series from 2008 through 2010. Although the deal was reportedly secured in 2006, but it just became official.

While many other racing series around the world have similar arrangements with various tire suppliers, Formula One has traditionally been a bastion of pure competition. The tire deal, however, prevents companies like Goodyear, Pirelli and Michelin from returning to F1, joining the institution of a common engine control module, the recent freeze on engine development and drastic restrictions on testing in "leveling the playing field" and thereby reducing the degree of competition in F1.

Full press release after the jump.

[Source: Bridgestone via Autosport]

Continue reading Officially Official: Bridgestone signs exclusive deal with F1

Officially Official: Bridgestone signs exclusive deal with F1 originally appeared on Autoblog on Wed, 26 Dec 2007 09:26:00 EST. Please see our terms for use of feeds.

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Magna may get financial aid from Russian firm to buy Chrysler

Chris Shunk — Fri, 11 May 2007 06:50:00 EST

Filed under: Chrysler, Daimler

Magna International, along with fellow Canadian company Onyx Corp., has a bid in for a stake in Chrysler, and now additional funds may be coming from Russia. Edmunds' Auto Observer is reporting that Russian billionaire Oleg Deripaska is ponying up $1.54 billion to expand Magna into Eastern Europe, where Deripaska controls Russian Automaker GAZ. Magna is already working with GAZ on several projects, including a new plant in Nizhny Novgorod.

The $1.54 billion could be used to help Magna put together the necessary funds to buy Chrysler, and it represents yet another reason many consider Magna to be a front-runner to own the automaker. The UAW prefers the Union-friendly supplier wins out over private equity groups like Cerberus and Blackstone, and Magna is also profitable, with record revenues in the first quarter of this year.

It seems like just yesterday when the words "Supplier" and "Bankruptcy" went hand in hand, and here we are half-way through 2007, and Magna International seems to be on the precipice of owning the automaker for which it supplies parts. Oh, how the tables have turned.

[Source: AutoObserver]

Magna may get financial aid from Russian firm to buy Chrysler originally appeared on Autoblog on Fri, 11 May 2007 06:50:00 EST. Please see our terms for use of feeds.

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BMW intros new technology with 2008 5 series door panel

Dan Roth — Thu, 10 May 2007 12:34:00 EST

Filed under: Plants/Manufacturing, Technology, BMW

It isn't just the outside of the 5-series that's been breathed upon for '08. Inside, new ground was broken by BMW and OEM Johnson Controls to create two color door panels using a single sheet of material. Typically, door panels that have multiple colors have multiple pieces. That adds weight and expense to the final assembly, not to mention all the eventual squeaks and rattles. The new 5 series door panels use a single backing panel, and a two color film is applied. It's not a trifle to get everything to line up - as the film is applied, it stretches. Tolerances where the two colors converge are tightly monitored and adjusted on the fly by trick new machinery developed by BMW and Johnson Controls in the automated process. We're sure it won't lead to cheaper 5 series Bimmers, but anything that can help keep weight and complexity down is welcome - especially for us poor saps who buy these things used and find out exactly what gets loose.

[Source: The Auto Channel]

BMW intros new technology with 2008 5 series door panel originally appeared on Autoblog on Thu, 10 May 2007 12:34:00 EST. Please see our terms for use of feeds.

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Darn, we're outta that! Ford of Australia halts work due to supply problem

Dan Roth — Thu, 19 Apr 2007 12:47:00 EST

Filed under: Plants/Manufacturing, Ford, GM

Ford's Broadmeadows facility has run out of at least one key component for V8 engines, and will have to shut down until its supplier resolves labor issues. The supplier, Coghlan and Russell Engineering, owes employees a boatload of money - in the order of 1.5 million-plus Austrailian dollars. Because of the outstanding payments, workers are holding out until they get the funds they're due, including pension and unemployment stipends. Ford and Delphi had offered to float Coghlan and Russell for a couple of months, but the workers rejected that proposal because the two companies would not cover pensions and unemployment obligations, citing the precedent it would set. The two-month loan would have given C&R time to examine a plan for getting out of trouble, as well as giving the automakers time to explore alternate suppliers.

Since an agreement could not be achieved, Ford and possibly GM production will be impacted. Both Holden and Ford have not been having an easy time of it in Australia lately. As hot as we are for their cars -- the boot-stomping Falcon and hotly anticipated Zeta platform -- both Holden and Ford have had to lay off workers. Coghlan and Russell is not the only supplier in dire straits, either. A fastener supplier threatened to shut Holden and Ford production down back in August by going bankrupt. Brake supplier PBR stepped in at the last minute and has been propping up that company, keeping production lines moving. If there's not enough parts now, we can only imagine the clamor that would ensue should supply fail just as US sales of the Oz-developed platforms gets underway.

Thanks for the tip, Simon

[Source: GoAuto]

Darn, we're outta that! Ford of Australia halts work due to supply problem originally appeared on Autoblog on Thu, 19 Apr 2007 12:47:00 EST. Please see our terms for use of feeds.

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WAKE UP! - New seats can monitor sleepy drivers

Dan Roth — Sun, 11 Mar 2007 11:34:00 EST

Filed under: Etc., Safety, Technology

We've all been there, you're pressing on, but you know you're dangerously close to falling asleep while behind the wheel. Rolling down the window, blaring the radio, and frequent shakes of the head just aren't doing it. Those jumping jacks you did at the rest stop a few miles back helped for a little while, but you can feel sleep creeping up on you quickly. Driving while drowsy is a big danger, and researchers from the University of Tokyo, Oita University, the Shimane Institute of Health Science have teamed up with Delta Tooling, to develop a seat that can detect a tired driver. Hiroshima-based Delta supplies dies for industrial presses and equipment to industry for the manufacture of products, mainly automotive seats.

The team first had to target what they were going to detect with the seat, so they set out to study the signs of sleep onset, paying particular attention to pulse and respiration. Once they determined what they were looking for, a sensing system was designed for integration into an automotive seat. In the seatback, sensors monitor the driver's pulse, while the bottom cushion has sensors that keep track of breathing. Testing in a variety of conditions was carried out, and the system is reportedly effective even through layers of thick clothing, such as winter coats. There have been drowsiness detection systems in the past, but this system requires no action from the driver, which is a new development. As long as there's a posterior in the seat, it's keeping vigil against the Sandman.

Now that the detection system has been dialed in, work can progress on just what to do with that information. There's currently no alarm tied to the sensors, but that's the obvious next step. Many safety ideas come and go, but we think this one, like ESC before it, has legs.

[Source: Pink Tentacle]

WAKE UP! - New seats can monitor sleepy drivers originally appeared on Autoblog on Sun, 11 Mar 2007 11:34:00 EST. Please see our terms for use of feeds.

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Honda plant confirmed in Alabama

Dan Roth — Fri, 09 Feb 2007 09:05:00 EST

Filed under: Plants/Manufacturing, Honda

Honda subsidiary Yutaka Technologies began construction on a transmission component factory in Cullman, Alabama in January. The plant will employ about 200 people and is part of a larger strategy to build several component-supplier factories to feed Honda's US manufacturing plants. There's new facilities going up in Georgia and Ohio in addition to the Alabama plant. The Cullman plant will start supplying torque converters and exhaust components to Honda's Lincoln, Alabama assembly plant in November. The Lincoln plant builds the Odyssey minivan and Pilot SUV, and Honda is shifting more Pilot production to the Alabama plant from its Ontario facility.

While many think of Honda as a foreign brand, their cars are often no more foreign than the domestics. Building US-market cars in this country has been a winning proposition for Honda and the other foreign marques that have opened facilities here. Keeping US workers employed takes some of the teeth out of the "Buy American" argument. Also, astronomical shipping costs (we wouldn't want to get the bill to insure one of those shipments, let alone the actual freight cost) and import tariffs are also dodged by building cars here with parts sourced domestically. Honda has been building automobiles in the US for 25 years and the company employs over 30,000 people at their 12 manufacturing US facilities, which build everything from cars to ATVs and watercraft.

[Source: Honda]

Honda plant confirmed in Alabama originally appeared on Autoblog on Fri, 09 Feb 2007 09:05:00 EST. Please see our terms for use of feeds.

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