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FCA's Upcoming Small Cars To Switch To PSA Group Architecture
William Maley posted an article in Fiat
Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP). Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe. As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains. Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands. Source: Automotive News (Subscription Required) -
Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP). Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe. As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains. Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands. Source: Automotive News (Subscription Required) View full article
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Ford Finally Confirms That Small Car Production Is Heading To Mexico
William Maley posted an article in Ford
Ford has finally confirmed that it will be moving small car production in the U.S. to Mexico in the next two to three years. This information isn't new as we knew about it a year ago thanks to a new contract with the UAW. We learned that in 2018, the Ranger would be taking up residence at the Michigan Assembly plant, home currently home to the Focus and C-Max. Why is Ford moving small car production to Mexico? It comes down to costs. With low gas prices, consumers are buying up crossovers and trucks at a rapid rate. This means small cars are sitting on dealer lots, costing automakers money. “Every global manufacturer has to determine how it can best create revenue and limit expenses. Small vehicles are the most price-sensitive, so any cost-savings that can be gained offer competitive advantages. Thus moving production to a lower-labor-cost country makes particular economic sense for small cars,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book. It doesn't hurt that labor costs in Mexico are significantly less than those in the U.S. The Detroit News reports that workers earn the equivalent of $8 to $10 an hour, compared to the $29 an hour top-tier workers in the U.S earn. “I don’t think it’s all doom and gloom. It’s a reflection of the shrinking market share for compact cars,” said Dave Sullivan, manager of product analysis for research firm AutoPacific. But you have to wonder if Ford could have handled this better. Especially when Presidental candidate Donald Trump ripped into Ford for this decision, vowing to put a 35 percent tariff on Ford vehicles if elected. Source: The Detroit News -
Ford has finally confirmed that it will be moving small car production in the U.S. to Mexico in the next two to three years. This information isn't new as we knew about it a year ago thanks to a new contract with the UAW. We learned that in 2018, the Ranger would be taking up residence at the Michigan Assembly plant, home currently home to the Focus and C-Max. Why is Ford moving small car production to Mexico? It comes down to costs. With low gas prices, consumers are buying up crossovers and trucks at a rapid rate. This means small cars are sitting on dealer lots, costing automakers money. “Every global manufacturer has to determine how it can best create revenue and limit expenses. Small vehicles are the most price-sensitive, so any cost-savings that can be gained offer competitive advantages. Thus moving production to a lower-labor-cost country makes particular economic sense for small cars,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book. It doesn't hurt that labor costs in Mexico are significantly less than those in the U.S. The Detroit News reports that workers earn the equivalent of $8 to $10 an hour, compared to the $29 an hour top-tier workers in the U.S earn. “I don’t think it’s all doom and gloom. It’s a reflection of the shrinking market share for compact cars,” said Dave Sullivan, manager of product analysis for research firm AutoPacific. But you have to wonder if Ford could have handled this better. Especially when Presidental candidate Donald Trump ripped into Ford for this decision, vowing to put a 35 percent tariff on Ford vehicles if elected. Source: The Detroit News View full article
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Transaction Prices Go Up On SUVs, Slow Sales Hit Small Cars
William Maley posted an article in Automotive Industry
With gas prices making a downward trend, sales of SUVs are making an upward climb. In fact, SUVs, pickups, and crossovers when added together make up half of total volume of sales in April. Now with the increase in SUV sales, prices also went up. Edmunds reports that average transaction prices on SUVs have climbed nine percent when compared to last year. Now when something goes up, something must come down. In this case, it happens to be small cars. Edmunds says that the average timeframe to sell a small car has risen from two and half months to three. The increase in the time to sell has also caused the average transaction price to remain flat. Source: Edmunds -
With gas prices making a downward trend, sales of SUVs are making an upward climb. In fact, SUVs, pickups, and crossovers when added together make up half of total volume of sales in April. Now with the increase in SUV sales, prices also went up. Edmunds reports that average transaction prices on SUVs have climbed nine percent when compared to last year. Now when something goes up, something must come down. In this case, it happens to be small cars. Edmunds says that the average timeframe to sell a small car has risen from two and half months to three. The increase in the time to sell has also caused the average transaction price to remain flat. Source: Edmunds View full article
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Ford Cuts A Shift At Wayne Assembly Due To Slow Compact Sales
William Maley posted an article in Ford
Ford announced this week that it will be cutting a shift at its Michigan Assembly Plant in Wayne, MI - where the Focus and C-Max are built - due to slumping sales. Ford says the cut will affect a total of 700 workers - 673 hourly workers and 27 salaried employees. "Ford will be working to redeploy affected hourly employees and they will be considered first for southeast Michigan opportunities as they become available," Ford said in statement to The Detroit News. Salaried employees will be moved to other Ford facilities. Sales of the Ford Focus dropped 14.5 percent last month, despite a refreshed model and a price cut on the electric model. The C-Max was hit worse with a sales drop of 22.9 percent. Automotive News reports there had been rumors flying around for weeks about Ford cutting the third shift. When asked last week about this, Ford said they had now changes in store for the plant. Coincidentally, this announcement comes a few days after Ford announced a $2.5 billion investment in new transmission and engine plants in Mexico. Source: Automotive News (Subscription Required), The Detroit News -
Ford announced this week that it will be cutting a shift at its Michigan Assembly Plant in Wayne, MI - where the Focus and C-Max are built - due to slumping sales. Ford says the cut will affect a total of 700 workers - 673 hourly workers and 27 salaried employees. "Ford will be working to redeploy affected hourly employees and they will be considered first for southeast Michigan opportunities as they become available," Ford said in statement to The Detroit News. Salaried employees will be moved to other Ford facilities. Sales of the Ford Focus dropped 14.5 percent last month, despite a refreshed model and a price cut on the electric model. The C-Max was hit worse with a sales drop of 22.9 percent. Automotive News reports there had been rumors flying around for weeks about Ford cutting the third shift. When asked last week about this, Ford said they had now changes in store for the plant. Coincidentally, this announcement comes a few days after Ford announced a $2.5 billion investment in new transmission and engine plants in Mexico. Source: Automotive News (Subscription Required), The Detroit News View full article
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William Maley Staff Writer - CheersandGears.com October 11, 2012 Small cars are on track to to capture the largest share of the U.S. auto market since 1993 according to Bloomberg. Sales of compact and sub-compact vehicles jumped 50% to 240,288 units last month, giving the segment a 19.3% of market share through September. That's only 1.2% off the highest market share that small vehicles ever got back in 1993. “Traditionally small cars were purchased by people who couldn’t afford anything else. Right now, that’s not the case. We see people choosing them because they find them more appealing,” said Jesse Toprak, an industry analyst for TrueCar.com. Why are small cars more appealing? Its due to high gas prices.Average gas prices are about $3.80 across the country, which is about 10% higher around this same time last year. Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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William Maley Staff Writer - CheersandGears.com October 11, 2012 Small cars are on track to to capture the largest share of the U.S. auto market since 1993 according to Bloomberg. Sales of compact and sub-compact vehicles jumped 50% to 240,288 units last month, giving the segment a 19.3% of market share through September. That's only 1.2% off the highest market share that small vehicles ever got back in 1993. “Traditionally small cars were purchased by people who couldn’t afford anything else. Right now, that’s not the case. We see people choosing them because they find them more appealing,” said Jesse Toprak, an industry analyst for TrueCar.com. Why are small cars more appealing? Its due to high gas prices.Average gas prices are about $3.80 across the country, which is about 10% higher around this same time last year. Source: Bloomberg William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.
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