Report: Toyota Yaris plant to be shuttered for at least another month

Filed under: Plants/Manufacturing, Lexus, Toyota

2011 Toyota Yaris five-door liftback

Production issues in Japan continue three weeks after the 9.0 magnitude earthquake and tsunami devastated the island nation. Major Japanese automakers have consistently pushed back plant start-up times and Toyota is no different, with a current forecast of an April 11 or April 14 re-boot. And that’s best-case scenario. The automaker said in a statement Tuesday that it was looking into supply issues, adding “depending on vehicle type, there may be a significant impact on our production capabilities.”

Automotive News reports that the longest wait time could be for Toyota’s Miyagi assembly plant, which makes the Yaris subcompact. Sources tell AN that the plant will likely be down for at least a month, as ruptured gas lines in the facility link to a heavily damaged natural gas plant in the quake-devastated region of Sendai. The automaker is said to be looking at other options to power the otherwise repaired facility. The prolonged shutdown at the Miyagi plant could ultimately affect Toyota’s U.S. supply of Yaris models, which only come from that plant.

One factory that has been revitalized is the plant that makes the Prius, Lexus CT 200h and Lexus HS250h. But a source apparently informed AN that a Toyota purchasing executive admits that the facility is only running at half capacity.

Right now, the situation in Japan hasn’t had much affect on U.S. vehicle availability, but a prolonged shutdown of supplier plants could be devastating. IHS Global Insight estimates that 30 percent of the world’s global auto production could be lost if Japan plants remain closed for six weeks or more.

[Source: Automotive News – sub. req.]

Report: Toyota Yaris plant to be shuttered for at least another month originally appeared on Autoblog on Wed, 30 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.

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Seat gears up for Audi Q3 production at Spanish plant

Filed under: SUV, Europe, Hirings/Firings/Layoffs, Plants/Manufacturing, Crossover, Audi, SEAT

Seat plant in Martorell, Spain

Last week, Porsche announced production plans for its upcoming Cajun sport-ute at its Leipzig plant in Germany. Now, sister-company Seat is following suit with preparations to build the Audi Q3 at its facility (pictured above) in Martorell on the outskirts of Barcelona.

If you’re wondering what Audi has to do with Seat, allow us to fill in the blanks. Most essentially, the two are sister brands fall under the larger Volkswagen Group umbrella. Seat’s flagship Exeo is essentially a re-bodied version of the previous-generation Audi A4. And when Audi was looking for the right place to build its upcoming Q3 compact crossover, it turned to the Spanish subsidiary.

In preparation for Q3 prduction to start, Seat is hiring over 700 new employees. Overall the company has undertaken the training of 1,200 new personnel, and if production requirements demand, could hire some or all of the remaining 500. Hit the jump for the full details in the press release.

[Source: Seat]

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Seat gears up for Audi Q3 production at Spanish plant originally appeared on Autoblog on Thu, 24 Mar 2011 06:59:00 EST. Please see our terms for use of feeds.

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BMW pondering first Latin America plant?

Filed under: Plants/Manufacturing, BMW, South America

BMW Roundel logoBMW may be planning to set up a new manufacturing facility in Brazil. The automaker currently only sells around 10,000 units per year in the South American country, but BMW has seen sales leap by 50 percent annually in the market for the past few years. According to Reuters, standards of living in Brazil are increasing at a rapid pace as the country prepares to host both the World Cup in 2014 and the Olympics in 2016. Those increases have helped to fuel light vehicle sales, which ticked up by 11 percent in 2010 to 3.33 million units. That figure surpasses even Germany’s appetite for passenger cars.

If BMW does decide to set up camp in the southern hemisphere, odds are the company will simply outfit its Manaus motorcycle manufacturing facility to handle assembly of completely knocked-down vehicle kits, at least at first. Should sales increase by leaps and bounds, Reuters reports that BMW would consider a full-fledged manufacturing facility to help satiate demand. The company says that sales of as little as 50,000 units could make such a move worthwhile.

[Source: Reuters]

BMW pondering first Latin America plant? originally appeared on Autoblog on Thu, 17 Mar 2011 13:42:00 EST. Please see our terms for use of feeds.

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More Chrysler factory workers caught enjoying “the plant” at Jefferson North

Filed under: Government/Legal, Plants/Manufacturing, Chrysler

Chrysler's Jefferson North Assembly Plant

What is it about working at the Chrysler Jefferson North facility (pictured above) that drives employees to get high? Controversy has bubbled up again in the form of a new report of auto workers at the factory smoking pot during their lunch break.

The last report came in September 2010 when a local Fox News affiliate caught video footage of a group of off-duty Chrysler employees apparently downing a few beers and smoking a joint or two in the company parking lot. This time, Chrysler reportedly busted another three workers – who were evidently not deterred by (or fully cognizant of) the publicity surrounding the previous incident – for partaking in the controlled substance during their downtime.

The automaker reportedly tipped off the man local police to the act on January 24, leading to the workers’ arrests. Formal charges have reportedly not yet been filed, however. Two possible outcomes as a result of the arrests? 1. Workers actually wait until they’re home to light up next time. 2. Afternoon vending machine revenue at Jefferson North plummets.

[Source: The Detroit News]

More Chrysler factory workers caught enjoying “the plant” at Jefferson North originally appeared on Autoblog on Sun, 06 Feb 2011 17:05:00 EST. Please see our terms for use of feeds.

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Ford investing $400M in Kansas City plant for unnamed new car

Filed under: Plants/Manufacturing, Ford

2009 Ford F-150 at Kansas City Assembly Plant

Ford has announced plans to invest $400 million in its Kansas City Assembly plant in Missouri. The company is shifting production of the Escape from that facility to its Louisville, Kentucky plant, which will open up a line for an unnamed model. There’s some indication that the FoMoCo crew is planning to build the Transit Connect alongside the F-150 at the Kansas City facility. Regardless of what model Ford plans to build there, the company’s investment will go toward new tooling, a new body shop and other improvements, while managing to save 3,750 jobs in the process.

Ford will receive around $150 million in tax breaks over 10 years for keeping the Kansas City plant up and kicking as part of the 2010 Missouri Manufacturing Jobs Act. The legislation provides tax incentives for automakers who retain jobs through new investments.

The Blue Oval is now in the process of retooling a total of four plants for upcoming products. The company just recently announced that it is investing $600 million in the Louisville, Kentucky plant to produced the next-generation Escape. Hit the jump for the press release.

[Sources: Ford, Automotive News – Sub. Req.]

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Ford investing $400M in Kansas City plant for unnamed new car originally appeared on Autoblog on Wed, 19 Jan 2011 16:00:00 EST. Please see our terms for use of feeds.

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Hyundai reportedly considering second U.S. plant to meet rising demand

Filed under: Plants/Manufacturing, Hyundai

The millionth vehicle built at Hyundai Motor Manufacturing Alabama

The millionth vehicle built at Hyundai Motor Manufacturing Alabama rolls off the line in 2009

Every automaker wishes it had this problem: not enough supply to meet demand. The solution? Expand production, of course. That’s the situation Hyundai is reportedly facing, and the automaker says that if it’s going to build another plant, it should be right here in the United States.

Hyundai currently builds the Sonata and Elantra at its solitary American plant in Montgomery, Alabama. (The Santa Fe, meanwhile, is built at the Kia subsidiary facility in West Point, Georgia.) And with demand for its compelling lineup rapidly increasing in the United States – up nearly 25 percent in 2010 versus 2009 – the Korean automaker is seriously considering expanding its production capacity with another plant to meet growing demand.

Executives will reportedly evaluate the possibility next year after they observe whether the upward trend in demand will continue enough to warrant such an expansion.

[Source: Automotive News – sub. req.]

Hyundai reportedly considering second U.S. plant to meet rising demand originally appeared on Autoblog on Mon, 17 Jan 2011 11:00:00 EST. Please see our terms for use of feeds.

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Mitsubishi, UAW reach Illinois plant pact – but what will they build there?

Filed under: Plants/Manufacturing, Mitsubishi, UAW/Unions

Mitsubishi emblem

The good ol’ Diamond Star Motors plant in Normal, Illinois – where such well-regarded vehicles as the original Mitsubishi Eclipse, Eagle Talon and Plymouth Laser were built, among others – is apparently getting a new lease on life now that Mitsubishi, the United Auto Workers and laborers at the plant have all approved of a new contract.

At this point, it’s unclear what Mitsubishi plans to build in its only North American plant, and the present output of Eclipse, Endeavor and Galant are likely not long for this world. Would it be too much to ask for an Eclipse that hearkens back to the good old days of turbocharged engines and all-wheel drive? Probably, but we’ll settle for a new nameplate or two that escapes the automaker’s current mire of drab, dated and slow-selling sedans and coupes.

In any case, we’re told to expect a detailed product plan from Mitsubishi that will lay out the steps it will take to become relevant in the United States once again. And, incidentally, the Japanese automaker apparently has no intentions whatsoever of leaving the U.S. market… which means whatever it’s cooking up at the moment had better be rather impressive.

[Source: Automotive News – sub. req.]

Mitsubishi, UAW reach Illinois plant pact – but what will they build there? originally appeared on Autoblog on Mon, 20 Dec 2010 16:28:00 EST. Please see our terms for use of feeds.

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Ford investing $600M in Louisville plant for next-gen Escape

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Ford

Louisville Assembly

Ford’s Louisville plant is old and out-of-date, but that’s about to change with a $600 million cash infusion. Ford says that the forthcoming overhaul will make the facility the automaker’s most flexible plant in the world, while adding an additional 1,800 union jobs to handle increased production.

Construction at the facility will commence later this month, with new tooling and equipment pouring in. Ford will re-open the Louisville plant in late 2011, in time to produce the next-generation Escape while “providing future manufacturing flexibility.” In other words, Ford will be able to add other models to the facility as demand shifts.

News of Ford’s Louisville plant upgrade is likely good for those who live and work in the region, and the state of Kentucky is showing its appreciation with tax incentives. Ford will receive up to $240 million in tax breaks over the next 10 years. Hit the jump to read over Ford’s press release.

[Source: Ford]

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Ford investing $600M in Louisville plant for next-gen Escape originally appeared on Autoblog on Sat, 11 Dec 2010 17:34:00 EST. Please see our terms for use of feeds.

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Toyota suing Old GM over shutdown of NUMMI plant?

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

Toyota logo tells GM logo to pay up

Toyota is still upset about how its joint NUMMI venture with General Motors was handled, and according to Automotive News, the Japanese automaker has now filed a lawsuit to the tune of $73 million. The suit is against Motors Liquidation Co., the company created to pick through the discarded ashes of “Old GM.”

Toyota states that when General Motors pulled away from the NUMMI facility in 2009, it breached the contract between the two automakers. The $73 million covers research and development costs that were poured into the Fremont, California facility before it was shuttered last year.

The plant now belongs to Tesla, who purchased it from Toyota in May of 2010, for $42 million.

[Source: Automotive News – sub. req.]

Toyota suing Old GM over shutdown of NUMMI plant? originally appeared on Autoblog on Wed, 01 Dec 2010 15:30:00 EST. Please see our terms for use of feeds.

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TN Senator Corker argues UAW would be “highly detrimental” to stateside VW plant

Filed under: Government/Legal, Volkswagen, UAW/Unions

Senator Bob Corker at podium

Unions and southern auto plants go together like ice cream socials and diabetes, but the mere thought of an organized Volkswagen plant in Chattanooga must give Tennessee Senator Bob Corker bad dreams. The Chattanooga Times Free Press reports that Corker was asked by VW to give input as to whether or not the facility should take a pro-United Auto Workers stance. The senator reportedly told representatives at the German autoworker that the presence of organized labor would be “highly detrimental.”

So why the negative stance on unions? Corker claims that his dealings with the UAW during the bailout of Chrysler and General Motors is the reason he’s so sour on the idea in his home state. The senator claims that the UAW put the success of the automakers “way, way, way way” behind the needs of union, adding “I just can’t imagine any company of their own accord of being desirous of entering into a relationship with UAW.”

Volkswagen currently has a reported “neutral position” concerning unionization in Chattanooga, but according to a study by the Grand Rapids Press in Michigan and other Booth newspapers, the UAW could lead to higher labor costs for the German automaker. The paper says that overall labor costs, which include pension funding and health care, adds up to about $74,000 per year per employee. Non-union automakers reportedly average a much lower $53,000 per year.

But while Corker’s feelings about the UAW may or may not give VW pause, neither the senator or the automaker will have the final say in the matter. VW Communication Manager Guenther Scherelis says “the employees will decide for themselves about their representation.”

[Source: Chattanooga Times Free Press | Image: Chip Somodevilla/Getty]

TN Senator Corker argues UAW would be “highly detrimental” to stateside VW plant originally appeared on Autoblog on Wed, 01 Dec 2010 14:31:00 EST. Please see our terms for use of feeds.

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