Cost of Ambassador Bridge shutdown is growing for automakers, workers
Many people might not know they use the “just-in-time” production method these days, which means they have to stop building when the parts run out. That method is what’s happening, and the Anderson Economic Group is estimating $51 million in lost wages so far this week because of the blockade.
Electric Vehicles Are Here. What Does That Mean for Conventional Cars and Existing Auto Industry?
The movement toward electric vehicles (EVs) has picked up steam. Over the last few years, the auto industry has made significant steps toward electrification through innovation, investment and various policy changes. Listen: The auto industry is going electric. As far as access, according to Krebs, EVs are still cost-prohibitive. Buyers of EVs have the highest income demographic of auto buyers,” says Krebs.wdet.org
GM hourly workers expected to get up to $9K profit sharing check
The year 2020 was hard, but GM left the year with impressive earnings, beating Wall Street expectations. GM made nearly $4 billion in the last quarter of 2020 and $10 billion for the entire year. Ad“It’s been absolutely remarkable how the auto industry has rebounded and how well GM has done through this,” Krebs said. READ: GM 2020 profit drops, but it makes $6.43B despite pandemicThough things looked bleak in Spring 2020, in looking at the numbers, Krebs said GM couldn’t have timed its product roll outs any better. “Everybody’s buying SUV’s and trucks and guess what, GM introduced a whole family of full size SUV’s,” Krebs said.
Despite COVID pandemic, GM bounces back with strong 4Q profit
DETROIT – GM’s strong-fourth quarter profit could mean good news for the automaker’s employees. 2020 was a hard year, but GM left the year with impressive earnings, beating Wall Street expectations. READ: GM 2020 profit drops, but it makes $6.43B despite pandemicThe automaker made $9.7 billion for the year -- $3.7 in the fourth quarter. AdIn 2018, UAW members received $10,750. The coronavirus pandemic shut down GM production for a few months, which is why Autotrader analyst and Cox Automotive automotive relations director Michelle Krebs is so impresses with what the company has accomplished.
GM, Honda partners to develop electric vehicles, automotive technology
Auto analyst David Cole called the agreement coopetition, which auto companies work together to save money. Thats needed now more than ever, and with the Honda Motor Company getting involved, that should tell how important coopetition is. The agreement wasnt completely out of the blue as the two companies agreed to work on next-generation electric vehicles in April. RELATED: May Mobility expanding in Ann Arbor; highlights leadership in autonomous vehicle technologyThe companies will share common vehicle platforms -- electrified and internal combustion propulsion -- meaning some vehicles will be GM underneath Honda exteriors. All of the automakers know eventually electrification, autonomous vehicles and connectivity will be the way of life, but thats far off in the future, Krebs said.
GM posts $806m loss in 2020 second quarter
READ: Plant closings send GM to 2Q loss, but signs of improvementIn the second quarter of the year -- during the depths of the pandemic -- GM reported it lost $806 million and spun through billions of dollars in cash. GM looked at it as a glass half-full proposition -- When you have the unprecedented problem of a month in the second quarter with no production or sales around the globe, there is only one way to go: up. But its not going to be totally smooth sailing.There remains uncertainty with COVID-19, particularly in states where GM has assembly plants. GM has plants in Fort Wayne, Indiana where they build trucks and the Corvette plant in Kentucky, Krebs said. GM announced another positive step toward normalcy theyre going to end the 20% salary deferrals many employees took and pay it back at 6% interest.
A look at why used car sales are up despite COVID-19
DETROIT The coronavirus (COVID-19) pandemic and the financial difficulties it created has made for some unusual trends. Heres why now may be the perfect timeThere has been a scramble for used cars all across Metro Detroit. He said his used dealership sales are 40 percent over their record year, each in the past two months. Szott said the second a leased car gets turned in, its already sought after by multiple buyers. Autotrader data shows right now used car sales are ahead of last year at this time.
Why the startling drop in auto sales may not be as bad as it looks
DETROIT Two thirds of the Big Three have released their second quarter sales numbers and they are not good. GMs year-over-year-sales were down 34%, selling nearly 500,00 vehicles; and it was even worse for FCA with its second quarter sales falling 39%, selling 367,000 vehicles. Analysts expected numbers to drop amid COVID-19, but not this much. GM sold 17 million vehicles in 2019 and is excepted to be closer to 13 million in 2020. Autotrader analyst Michelle Krebs said fleet sales should pick up to make for a good year.
Ford to resume full production Monday -- two weeks earlier than planned
WEST BLOOMFIELD, Mich. Ford Motor Company announced it will return to full production Monday, which is two weeks earlier than planned. Its been more than three months since Ford has operated at full capacity. That process appears to be moving along as Ford brings back laid off third-shift employees at several plants. Dealers are screaming for vehicles, especially trucks and sport utility vehicles, Krebs said. Earlier this week, General Motors CEO Mary Barra said she expected GM to be at full manufacturing capacity by the end of the month.
Checking in with Metro Detroit auto plants 3 weeks after reopening
WARREN, Mich. Three weeks ago, the Big Three automakers in Metro Detroit -- Ford, General Motors and Fiat Chrysler -- reopened their parts and assembly plants. Auto workers are trying to tread carefully and avoid spreading COVID-19. The Warren Truck Plant continues working two shifts per day, and the new protocols have caused many changes. While everyone is trying to get their feet under them, the industry as a whole appears to be ready for a comeback. Meanwhile, for car and truck buyers, the shutdown caused inventory shortages, so dealers are doing what they can to deal with that issues.
Recalls and corruption probes reshaped the auto industry heading into 2020s
But the recognition quickly turned to criticism over the automaker's deadly ignition switch recall scandal. GM's ignition switch scandal is one of many examples of how the global auto industry was held under a regulatory microscope in the 2010s for incidents its critics say failed the public as well as shareholders. Executives from Toyota, Volkswagen and Japanese auto supplier Takata were among the auto industry leaders to be called to Washington to answer for alleged corruption, misdeeds or safety issues in the 2010s. "I just don't recall there was a decade like this one in terms of corruption," said Michelle Krebs, executive analyst at Cox Automotive. said Jason Levine, executive director of the Center for Auto Safety, a Washington-based nonprofit watchdog organization.cnbc.com
Ford unveils new electric SUV: The Mustang Mach-E
DETROIT For put on an hour-long show over the weekend to unveil its newest vehicle: an electric SUV called the Mustang Mach-E. The Mustang has to have soul, and this thing has great driving dynamics, and its really fun to drive, Ford said. Autotrader analyst Michelle Krebs said Ford wants to change the way people view electric vehicles. This is sending a very strong signal of where Ford is headed, Ford said. So far, electric vehicles are only a couple of percentage points of all new vehicles, and everybodys coming at the market with them, Krebs said.
GM strike highlights how shift to electric cars puts future auto jobs at risk
Harrison McClary | ReutersOne of the greatest unknowns with ongoing labor negotiations between the United Auto Workers union and General Motors isn't about pay or benefits. Electric vehicles are upending the industry, saving some jobs as factories are retooled to build zero-emission vehicles but costing many times more in the long run. Some 48,000 GM workers are currently on strike as the UAW negotiates a new labor contract that could save some of those factories from closing down. Not only is the industry grappling with falling consumer demand for cars, its shift to EVs will also cost even more jobs. Less parts mean less assembly jobs for workers.cnbc.com
Chevy redefines an American icon with the $60,000 2020 C8 Corvette Stingray
Mark Reuss, president of General Motors Co. (GM), speaks during an unveiling event for the GM 2020 Chevrolet Corvette Stingray sports car in Tustin, California, U.S., on Thursday, July 18, 2019. "For GM to offer the new Corvette for under $60,000 is incredibly impressive given the advanced nature of the new car." Chevrolet unveils its new 2020 C8 Corvette Stingray in red, white and blue in Tustin, California, on Thursday July 18, 2019. But, as has also been true with past Corvettes, comparable performance doesn't guarantee conversion of Ferrari or Porsche buyers into the Chevy camp." Corvette enthusiasts line up to see the new 2020 Chevrolet C8 Corvette Stingray unveiled in Tustin, California, on Thursday July 18, 2019.cnbc.com