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Nissan Slashing U.S. Production Output to Improve Profitability

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Nissan Slashing U.S. Production Output to Improve Profitability

30 May 2018, 10:32 UTC · by Mircea Panait
/ Home / News / Car Profile

As part of the Renault-Nissan-Mitsubishi alliance, Nissan is one of the most powerful and profitable automakers in the volume-oriented business. But on the other hand, Japan’s second-largest automaker struggles with profitability in the U.S. of A.
34 photosAutomotive News reports that Nissan “is slashing vehicle production by as much as 20 percent in North America” to cope with this state of affairs, citing the Nikkei business daily. One of the reasons the automaker is not doing so great in this part of the world is the aggressive ramp-up of sales, coming at the cost of overinflated discounts for retail and fleet customers. Alas, profitability takes a significant hit.
“Cuts are in progress at two assembly plants in the United States and three in Mexico,” although Nissan won’t let employees go and won’t stop the production lines. In other words, the company is slowing down the output and that’s about it.
Following a period of ballooning sales in 2016, the following year and the first three months of 2018 have seen Nissan struggling to keep the momentum going. Worse still, Automotive News says that “the popular Rogue crossover and high-volume Altima sedan fell 9.2 in the fiscal year ended in March” as per the company's own figures.
The first glimpse of things to come came in April at the 2018 NADA Show. There, U.S. sales chief Dan Mohnke told Nissan dealers that the automaker is considering to reduce production and lower inventories as of the fiscal year beginning April 1st.
It remains to be seen how much time Nissan needs to sell down built-up inventory. In the meantime, U.S. sales of the Japanese automaker slid 6.5 percent so far this year, with the high-volume Altima to blame for the biggest loss (28 percent in April compared to the fourth month of 2017). On the other hand, don’t forget that the 2019 model year Altima sedan is waiting to pounce, all new from the ground up.
Care to guess how much Nissan’s North American operating profit dropped in the fiscal year that just ended? 31 percent, and that’s a lot when your business relies on volume and the profitability that comes from selling as many vehicles as possible.

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Mercedes-Benz A-Class Production Kicks Off at Second Facility

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Mercedes-Benz A-Class Production Kicks Off at Second Facility

15 May 2018, 6:56 UTC · by Daniel Patrascu
/ Home / News / Car Profile

Not wasting any time with the newest A-Class, Mercedes-Benz is ramping up production for the 2019 model at another of its facilities.
20 photosA few weeks back, the carmaker started manufacturing the model at the plant Rastatt, Germany. This week, robots and humans began assembling the model at the facility in Kecskemét, Hungary.
This second production line for the new A-Class is just the beginning. In all, Mercedes-Benz plans to manufacture the model at five plants on three continents.
And more models in this class are planned for future years, as the company already stated. Currently, Mercedes’ compact cars segment is comprised of the A-, B-Class, CLA, CLA Shooting Brake and GLA. The new compact breed that debuts with the A-Class, code-named W177, will comprise a total of eight models, including electric ones.
“With the new A-Class, we start the production of our vehicles in an unrivaled ramp-up cascade – in top quality and within a very short time line,” said Markus Schäfer, the man in charge with the company’s production.

“After Rastatt, the Kecskemét plant has now also successfully managed the start of production. Our proven production strategy pays out.”
At the Hungarian facility, the new A-Class replaces on the assembly lines the outgoing B-Class. The plant will continue to assemble the CLA and CLA Shooting Brake alongside the new addition.
The model will sell in Europe for prices starting at 30,231 Euro ($37,400) for the entry-level A 200 with a 6-speed manual transmission. All the models in the lineup (A200, A180 d, and A250) will be offered for a limited time with an Edition 1 trim.
The A-Class is the first car to feature the Mercedes-Benz User Experience or MBUX. The most distinctive feature of the MBUX system are the two large displays, one showing the instrument cluster and the other working as infotainment features interface.

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FCA to Stop Making Small Cars in Italy, Lancia Could Be in Trouble

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FCA to Stop Making Small Cars in Italy, Lancia Could Be in Trouble

18 May 2018, 14:36 UTC · by Mircea Panait
/ Home / News / Industry

As you might know already, Fiat Chrysler has invited the media on June 1st in Balocco, Italy to announce the 2018 – 2022 business plan. On that fateful Friday, chief executive officer Sergio Marchionne is expected to confirm two new Alfa Romeo models, along with two hybridized drivetrains. But wait, there’s more!
11 photosBloomberg understands that Marchionne prepares “a sweeping transformation of production in Italy that will see the company abandon the manufacture of the budget Punto and Mito cars in favor of upscale models.”
Citing “people familiar with the plan,” the business publication suggests that the historic plants in Turin and Naples “will be retooled to produce new Maserati and Jeep SUVs.”
In case you were wondering, this isn’t a new concept for Fiat Chrysler Automobiles if you remember that the Dodge Dart and Chrysler 200 were phased out in the U.S. to make room for more SUVs and trucks. Ford is pulling off a similar stunt in the United States, aiming to cut down the passenger-car lineup to just two models.
Turning our attention back to Europe, the decision would translate in the relocation of Fiat Panda production to Poland. The Punto would stop production in Melfi towards the end of 2018, while the Mirafiori-made Alfa Romeo MiTo would stop rolling off the assembly line to make room for a new Maserati sport utility vehicle.
The Pomigliano plant, on the other hand, is understood to gear up for “a small Jeep SUV after production of the Panda is moved to Poland.” Bearing in mind this strategy paid off in the United States of America, there’s no denying Europe is next in line.
According to Bloomberg, the strategy “will also mark the end of diesel engines in the carmaker’s small European vehicles. These will be powered by electric hybrid motors going forward.” On the other hand, what will happen to Lancia?
Kept on life support for quite some time now, Lancia is a one-model (Ypsilon) and one-country (Italy) brand. Produced in Tychy, Poland at the same plant where the 500 is made, the Ypsilon will have reached the end of its product cycle in late 2018. The future looks bleak, to say the least.
A few years ago at the Geneva Motor Show, the sweater-over-shirt-wearing Marchionne told the media: “We have curtailed our ambitions for Lancia. The market has moved on and not every opportunity can be realized.”
In other words, there are two possible outcomes. FCA either sells the brand or Lancia will disappear altogether.

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McLaren’s Senna GTR Is Sold Out

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McLaren’s Senna GTR Is Sold Out

26 Mar 2018, 12:53 UTC · by Mircea Panait
/ Home / News / Car Profile

The Senna GTR is McLaren’s best track tool ever. More focused than the road-going Senna, the GTR totals 75 examples, that's all! And guess what? Demand is more than double that, with McLaren more or less confirming that the newcomer is sold out.
38 photos“We can say with some certainty that it’s sold out,” a company spokesperson told Autocar. What that means is, McLaren Automotive will cash in at least 90 million pounds sterling. That’s because the Senna GTR retails at £1.2 million as standard, and heaven only knows how much the MSO treatment adds to the price.
Adding to the intrigue, the Senna GTR presented at the 2018 Geneva Motor Show isn’t even the finished product. It’s a concept that previews the real deal, which will be hand-assembled in Woking by McLaren Special Operations starting from 2019.
The track-only version “will have more power, more grip and more downforce” than the Senna. Speaking of the road-going model, McLaren announced that production is limited to 500 vehicles, each costing £750,000 including taxes. Stop me if you’ve heard this one before, but the 800-horsepower Senna is sold out too.
Notice the go-faster bits and bobs adorning the body shell, including the XXL-sized rear wing and stupendous aerodynamic diffuser? Working as one, these pieces help the GTR produce 1,000 kilograms (approximately 2,205 pounds) of downforce. The air going around, through the vents, and the air pushing down on the vehicle enables the Senna GTR to post “the quickest McLaren circuit lap times outside Formula 1.”
Were you expecting anything else from the most extreme McLaren ever conceived? After all, Honda-powered McLaren was a nothing less than a running joke in Formula 1. The Renault hybrid power unit in the MCL33 isn’t up to the job either.
As a successor to the Le Mans-winning F1 GTR from the 1990s, the Senna GTR ticks all the right boxes, and then some. But the best is yet to come, with McLaren set to unveil the three-seat BP23 Hyper-GT by the end of 2018. The descendant of the road-going F1 will be capable of exceeding 243 mph (391 km/h) on full song.

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Chrysler 300, Dodge Charger, Challenger Production On Hold Amid Supplier Strike

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Chrysler 300, Dodge Charger, Challenger Production On Hold Amid Supplier Strike

4 May 2018, 7:00 UTC · by Mircea Panait
/ Home / News / Industry

Although they’re as old as dirt, the Chrysler 300, Dodge Charger, and Challenger continue to roll off the assembly line in Brampton, Ontario. Except they aren’t at the present moment because of Lear, which announced that it going to close its Ajax, Ontario-based facility following a strike over a labor dispute.
88 photosThe strike started last Saturday (April 28th), and as the headline suggests, it has disrupted the Fiat Chrysler plant in Brampton. That’s because all three rear-drive vehicles are equipped with seats produced by Lear in Ajax on a just-in-time basis.
The nature of the supply stream is what forced Fiat Chrysler to halt production for the time being, as there are no seats left to install in the LX platform-based 300, Charger, and Challenger. To make matters worse, the automotive supplier sent a letter to the chairperson of the Canadian plant that confirms the facility’s closure.
“The closure will take effect as soon as practical but not later than the conclusion of the current programs.” Unifor Local 222 didn’t receive the news well, of course, describing the state of affairs as a capitalist class war. Whichever of the two sides you choose to take, the closure will force Lear to lay off more than 300 workers.
If Fiat Chrysler can’t find another supplier in a timely fashion, the stoppage of production could prove an issue for the dealership network. Even though there’s plenty of inventory at U.S. dealers, customers who are waiting for a custom build could be in for a nasty surprise. Adding insult to injury, Dodge has just started to tease the 2019 Challenger, the final overhaul of the third-generation Challenger.
Lear’s factory in Ajax was shut down in 2009 as well, when General Motors closed the Oshawa pickup truck plant in Ontario, Canada. The facility reopened in October 2010 after Lear won the contract to supply the Brampton facility. On the other hand, the workers were forced to agree on a 40% cut of their hourly wages compared to what they were being paid when Oshawa Truck Assembly was still around.
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2020 BMW iX3 To Be Manufactured In China

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2020 BMW iX3 To Be Manufactured In China

26 Apr 2018, 19:13 UTC · by Mircea Panait
/ Home / News / Car Profile

Ahead of the 2018 Beijing Motor Show, BMW confirmed that the X3 would be made at the Dadong plant in Shenyang in addition to the Spartanburg plant in the United States, serving the People’s Republic and other markets in Asia.
13 photosWhat we didn’t know, however, was if the iX3 electric crossover based on the X3 would be manufactured in the Middle Kingdom as well. And as the headline implies, it will.
From Automotive News: “BMW plans to begin producing its first full-electric SUV, dubbed the iX3, in 2020 at its joint-venture plant in the northern city of Shenyang.” According to the report, the German automaker and Brilliance China Automotive Holdings Ltd. “will sell the model abroad.”
BMW offered potential customers an early taste of the car at Auto China 2018, with the iX3 looking extremely similar to the X3. The kidney grilles and design of the bumpers are the biggest changes, as is the charging port door on the driver’s side of the vehicle. The door will be shared with the X3 iPerformance plug-in hybrid as well.
Contrary to expectations, the concept features one electric motor instead of a dual-motor setup in the same vein as Tesla and Jaguar. Quoted to develop more than 270 horsepower, the iX3 will deliver “over 400 kilometers (249 miles)” of range in the WLTP test cycle.
The lithium-ion battery, on the other hand, has a net capacity of “over 70 kWh.” For reference, the Tesla Model S comes from the get-go with 75 kWh and the much, much smaller Chevrolet Bolt relies on the energy stored in a 60-kWh battery pack.
When all is said and done, the iX3 isn't a bad effort at all. In fact, it’s the building block towards “fifth-generation BMW eDrive technology.” By that, the automaker refers to an electric drivetrain that will launch in 2021. The party piece is the driving range, estimated at 700 kilometers (435 miles).

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2019 Volvo S60 Sedan Debut Set For This Summer In South Carolina

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2019 Volvo S60 Sedan Debut Set For This Summer In South Carolina

22 Feb 2018, 10:17 UTC · by Mircea Panait
/ Home / News / Car Profile

Following the reveal of the all-new V60 prior to the live debut at the 2018 Geneva Motor Show, Volvo is on course to finish the refreshing of the 60 Series. After the XC60 crossover and V60 station wagon, the S60 sedan is next, and it’s coming this summer.
91 photosSpeaking to Roadshow, Volvo senior vice president Lex Kerssemakers confirmed that the premiere will take place in South Carolina, most likely at the assembly plant in Ridgeville. Now in the process of tooling, the 2.3-million square-foot plant is anticipated to produce anything between 60,000 and 100,000 SPA-underpinned vehicles per year, for both the U.S. market and export.
An estimated 2,000 people will work at the Ridgeville factory in the first instance, with more to be employed as production ramps up. “This investment shows Volvo’s commitment to build cars where we sell them and source where we build,” said Kerssemakers, who’s also the head of Volvo in North America.
Most interesting of all is the decision to build the sedan in this part of the world, where crossovers and SUVs reign supreme. The XC60 would’ve been a better fit, but all things considered, Volvo knows a lot better than us why it the new S60 should be built here.
Based on the Scalable Product Architecture that serves as the backbone of the 90 Series, the 2019 Volvo S60 will arrive on the scene more than eight years after the second-generation model went into production in Ghent, Belgium. The predecessor is built on the P3 platform, itself based on the Ford’s EUCD platform for front- and all-wheel-drive, transverse-engined vehicles.
Like the V60, the S60 will benefit from the Cross Country treatment at some point in the future, as well as two plug-in hybrid drivetrains in the form of the T6 Twin Engine and T8 Twin Engine. Displacement won’t go past 2.0 liters, with the range-topping means of internal combustion being the twin-charged T6.
In the United States of America, engine choices will start with the front-wheel-drive T5 (250 horsepower). Over in the Old Continent, the 2019 Volvo S60 will kick off with the 150-horsepower D3 turbo diesel.

Editor's note:

V60 pictured in the gallery.

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2019 Volkswagen T-Cross To Be Manufactured In Brazil

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2019 Volkswagen T-Cross To Be Manufactured In Brazil

8 Apr 2018, 9:33 UTC · by Mircea Panait
/ Home / News / Car Profile

As you know from the “Preview 2018” video uploaded by Volkswagen on YouTube in January, the German automaker will expand its sport utility vehicle lineup with the T-Cross by the end of the year. Slotted below the T-Roc, the subcompact T-Cross will be made in Brazil starting from late 2018 for MY 2019.
111 photosBased on the MQB A0, the platform brother of the SEAT Arona and Skoda Vision X will go on sale “in the first half of 2019” according to Automotive News Europe. The newcomer is part of a planned investment that includes $595 million for the modernization of the Sao Jose dos Pinhais manufacturing plant in southern Brazil.
It’s not certain if Volkswagen plans to follow up on the T-Cross Breeze Concept with a production version of the soft-top crossover. But on the other hand, the automaker confirmed that the T-Roc Cabriolet is scheduled to go official in 2020. Production of the soft-top model, which has been announced by chief executive officer Dr. Herbert Diess, will take place at the Osnabruck plant in Lower Saxony.
The T-Cross, which is a high-riding Polo with chunkier exterior styling, will be offered with a selection of three- and four-cylinder engines, manual and dual-clutch transmissions, as well as front- and 4Motion all-wheel-drive. Taking the sixth-generation Polo as an example, customers can also expect the 1.6 TDI turbo diesel and a full-fledged GTI with the 2.0-liter TSI, developing 200 metric horsepower.
Just like the Polo, the T-Cross will be available with the Active Info Digital Display Cockpit and lots of customization options for both the exterior and cabin design. On the flip side, you’ll be hard-pressed to fit six-foot adults in the back seats. And in addition to that particular inconvenience, cargo capacity will be limited as well.
The T-Cross will be marketed as an aspirational vehicle to customers who are willing to spend that little bit more than they would on the Polo. You could say that Volkswagen is trying to get in with the In Crowd, though it’s best to bear in mind that the automaker is late to the subcompact crossover party. Alternatives include the Hyundai Kona, Mazda CX-3, and Jeep Renegade.

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Mercedes-AMG SL 65 Expected To Go Out Of Production In June 2018

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Mercedes-AMG SL 65 Expected To Go Out Of Production In June 2018

2 Apr 2018, 13:35 UTC · by Mircea Panait
/ Home / News / Car Profile

Even though the Mercedes-AMG GT R has a lot of suck-squeeze-bang-blow to offer from its dry-sump, twin-turbo V8, the SL 65 calls dibs with more cylinders, more displacement, and more might. The range-topping model of the SL-Class is rated at 630 PS (621 horsepower) and a blacktop-trembling 1,000 Nm (738 pound-feet) of torque, coming courtesy of the 6.0-liter twin-turbo V12 known as M279.
16 photosUsed in all Mercedes-AMG and Mercedes-Maybach models badged 65 and 650, the M279 is based on the M277 of 2012, with the latter tracing its roots back to the M275 and M285 from 2003. As you can tell, the engine in the SL 65 is a dinosaur, more so if you bear in mind that it features three valves per cylinder instead of four.
In the case of the G-Class, the G65 was discontinued with the Final Edition, leaving the W464 Gelandewagen with two eight-cylinder mills (G 500 and G 63), made possible by the wet-sump version of the AMG-developed 4.0-liter twin-turbo V8. If it wasn’t obvious, the SL-Class also prepared to bid farewell to the M279 engine.
Mercedes-Benz Passion heard through the grapevine the SL 65 will be discontinued in June 2018, though nobody in Affalterbach could confirm or deny the information. With Mercedes-AMG now focused on eight-, six-, and four-cylinder plants, Maybach and the S-Class will serve as the final applications for the M279.
It’s also worth mentioning that the SL-Class is under pressure from the S-Class Cabriolet and GT Cabriolet, with some people taking the E-Class Cabriolet into consideration as well. If you’re still skeptical about what will happen to the SL 65, don’t forget the SL 600 went the way of the dodo in 2011 with the R230 generation.
On that note, it’s not known if Mercedes-Benz and the AMG division are working on an all-new V12. Hearsay suggests the three-pointed star might be tempted to combine two units of the M256 3.0-liter inline-six to create the rumored V12, but according to AMG chief Tobias Moers, wishful thinking can be considered as the most naive thing to do.

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Elon Musk Blames Model 3 Production Delays on Crazy Conveyor Belts

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Elon Musk Blames Model 3 Production Delays on Crazy Conveyor Belts

16 Apr 2018, 9:22 UTC · by Daniel Patrascu
/ Home / News / Industry

The entire world knows that Elon Musk has a thing against artificial intelligence. That hasn’t stopped him however from using incipient such technologies both in his vehicles, in the shape of the Autopilot, and in his factory, in the form of assembly robots, conveyor systems and other machines.
16 photosEver since the launch of the Model 3, the high number of orders sent Musk’s Tesla gasping for air. Only recently, after a rollercoaster ride for both investors and the customers did Tesla manage to get a bit on track when it comes to production levels.
Having slept several times in recent weeks on the factory floor, in an attempt to oversee production, Musk has also managed to identify the problem that has plagued the assembly lines: conveyor belts.
In an interview with CBS’ Gayle King, Musk said part of the delay was caused by a “crazy, complex network of conveyor belts” that kept acting up and messing the CEO’s plans. He later added on Twitter that excessive automation at Tesla was his mistake.
As for those still waiting for their order for a Model 3 to get through and getting increasingly anxious, Musk told King they should not worry.
“There shouldn’t be a question mark as to whether somebody’s gonna get their car, it’s just, yes, you’ll definitely get your car. It’s gonna be six to nine months longer than expected.”
There have been order cancellations, Musk admitted, but he stopped short of saying how many people decided to spend their money on an electric model from some other manufacturer.
With all the production issues dangling over its head, the Model 3 is America’s best selling electrified car this year. Tesla reported for the first quarter 8,180 Model 3 cars were delivered, more than plug-in hybrid Toyota Prius Prime (6,468 cars) or the electric Chevrolet Bolt (4,375 units).

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