Category Archives: Automobile Industry

Ford Moving Small Car Assembly Off-Shore

Automobile Industry, , , ,

Underscoring the difficulty US automakers have making fuel-efficient cars stateside, Ford Motor Co, announced it will be moving its Focus compact cars and C-Max hybrids out of its Michigan Assembly Plant near Detroit. The move is scheduled for 2018.

The announcement has placed worry about the long-term viability of what is one of Ford’s largest US manufacturing plants. It also casts a pall over a meeting, scheduled for just a few days from now, between Ford executives and heads of the United Auto Workers Union to forge a new labor agreement. It is expected that the UAW will ask for higher wages and keeping the status quo on healthcare. Ford has proposed cuts in healthcare benefits to trim expenses.

The company did not announce where production of the Focus and C-Max will move to. Mexico is a possibility since less than three months ago Ford said it was planning to spend $2.5 billion on transmission and engine plants in Mexico. The company also has assembly plants in Mexico which build midsize Fusion sedans and small Fiestas.

Kristina Adamski, spokeswoman for Ford, said that all decisions Ford makes is based on the necessity to keep the company competitive.

“We actively are pursuing future vehicle alternatives to produce at Michigan Assembly and will discuss this issue with United Auto Workers leadership as part of the upcoming negotiations,” she said.

Sonnenfeld of EMBraer Paper Goods: Inspiration from Elio Motors and Others

Automobile Industry, ,

Vice President of Sales at EMBraer Paper Goods, Beth Sonnenfeld, would like to see her paper goods company become more visionary, trying to achieve great things, like those envisioned by Elio Motors.

Thinking big is one of the qualities Paul Elio is known for, and which inspires Sonnenfeld. Elio has said that: “After five years of sales, we can reduce total US gas consumption by nearly half a percent.” He knows that in order to achieve this kind of gas savings he will need to produce a quarter of a million cars each year, and admits that this is “a big number.” Yet he is not deterred.

Sonnenfeld is thinking big as well, for the sake of EMBraer Paper Goods and the environment too. She is striving to bring her company to the cutting edge of recycling and reuse of paper goods in her industry. She stresses that already a large percentage of the products they sell are made from recycled materials, and every year they are adding to that number. EMBraer Paper Goods, according to Sonnenfeld, is also looking to encourage the after-use product to return to their factory. They are anticipating the launching of a plan to offer reimbursements for the return of the used paper goods after. EMBraer Paper Goods hopes to one day supply large bags to place the used paper goods to be returned to the company for a deposit refund. Sonnenfeld hopes this will encourage recycling, and attract customers who care about the environment but still want to benefit from the convenience of paper goods.

Elio Motors, Paul Elio, and Beth Sonnenfeld, EMBraer Paper Goods, are changing the world by thinking big.

 

China Car Company Opening Head Office in Texas

Automobile Industry, , , ,

 

All-Terrain Vehicle Maker Hisun Moving Headquarters to Texas
All-Terrain Vehicle Maker Hisun Moving Headquarters to Texas

Hisun Motors Corporation, China-based manufacturer of utility-terrain and all-terrain vehicles, announced it will be opening a new North American headquarters in McKinney, Texas. It is expected that eventually 80 corporate workers will be employed there.

Hisun plans to move into the building recently acquired by the McKinney Economic Development Corporation from Emerson Process Management Regulator Technologies.  Emerson moved its regional headquarters in September to a $25 million facility also in McKinney.

Mayor of McKinney, Brian Loughmiller said that the city has had several economic wins which is a result of the city’s efforts to recruit international business.

Jim Wehmeier, president and CEO of the McKinney Economic Development Corporation, said that Hisun will fit perfectly into the McKinney business culture.

“They are a rapidly growing international company that is well respected both in the United States and abroad and we look forward to a long and successful business relationship with them,” Wehmeier said, in a written statement. “McKinney will continue to look for more opportunities to grow and support Hisun as economic development is a central component to our city’s strategic plan.”

Mexico Moving Into First Place as Top Exporter of Cars

Automobile Industry, Trade, , , ,
Hondas on the assembly line in Mexico
Hondas on the assembly line in Mexico

Over the past twenty years, and especially the last ten, Mexico has been making major progress as a major exporter of cars and trucks to the United States. Although Japan and Canada still control the market share, Mexico has been making inroads that point to them surpassing and overtaking these wealthy first world countries as a major automobile supplier.

A new Honda plant is due to open later this week in Celaya, Mexico, in the central state of Guanajuato. At a cost of about $800 million, the factory will produce about 200,000 Fit hatchbacks per year. That will bring the total number of cars exported to the US from Mexico up to 1.7 million in 2014. That is about 200,000 more cars than the US will buy from Japan in 2014. And when another new plant begins production a week later, Mexico will take over Canada’s number spot as the largest seller of cars to the US in the world by 2015.

“It’s a safe bet,” said Eduardo Solis, president of the Mexican Automotive Industry Association. “Mexico is now one of the major global players in car manufacturing.”

The progress Mexico has been making can be traced back to the passage of the North American Trade Agreement, (NAFTA) which went into force on January 1, 1994.  Back then Mexico made only 6 percent of all the cars manufactured in all of North America. Today they produce 19 percent. Since 2007 total Mexican car production rose 39 percent, to almost 3 million cars a year. The value of those exports to the US has soared from $40 billion per year in 2007 to $70.6 billion today.

The Mexican car industry is now the country’s major source of foreign currency, passing oil exports and cash Mexican migrants to the US send back home.

GMC Going Head to Head with Toyoto with New Midsize Truck

Automobile Industry, , , , ,

Offering consumers similar towing power to their competitors’ large-size trucks, GMC released their latest midsize truck as an attractive alternative.

Truck buyers will see the 2015 Canyon go on sale in the third quarter of 2014 together with

GMC's New Midsize Truck, the Canyon 2015
GMC’s New Midsize Truck, the Canyon 2015

a Chevrolet variety called the Colorado. Both models will have a maximum towing power of 6,700 pounds (3,039 kilograms), the highest in its class. General Motors is unveiling their new trucks one day before the North American International Auto Show which is opening on Monday, January 13, in Detroit.

The Canyon enlarges the number of GM truck choices to be the largest number of pickups by any other US-based company. GM already has a heavy-duty truck on their line-up; the new models are meant to compete with Toyota’s Tacoma, a large truck. GM has not yet released the price of their new models, but in general full-size trucks are priced about 46% higher than their midsize counterparts.

“Not everyone needs full-size capability, but they also deserve strength and true truck attributes that come in larger models,” Tony DiSalle, vice president of GMC marketing, said. “The Canyon will offer all the capability with confidence and GMC’s signature refinement that complements active lifestyles.”