AD #2484 – General Motors Closes Oshawa Plant in Canada, Top OEMs by Production, More Kia Soul Details
November 26th, 2018 at 11:35am
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Runtime: 6:12
0:30 Mitsubishi Ousts Ghosn
1:14 GM Closes Oshawa Plant in Canada
2:32 Ford’s “Sleep Suit” Mimics Drowsy Driving
3:30 More Kia Soul Details
4:38 Hamilton Wins Last F1 Race In 2018
4:47 Top OEMs by Production
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On today’s show…GM is closing another manufacturing plant, this time in Canada…Ford creates a suit to demonstrate the dangers of drowsy driving…and we’ll take a look at the top automakers in terms of production. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
MITSUBISHI OUSTS GHOSN
In an unsurprising move, Mitsubishi’s board voted to remove Carlos Ghosn as chairman, just days after he was fired by alliance partner Nissan. However, he still remains Chairman and CEO of Renault. Reuters reports that executives from the alliance will meet this week to discuss their operations. Ghosn wanted to strengthen the alliance but Nissan wants more control of its operations. Renault owns a 43% stake in Nissan, while Nissan only has a 15% non-voting stake in Renault. But Nissan is much bigger and outsells Renault by 60%. So, it seems like it will be a struggle to keep the alliance together.
GM CLOSES OSHAWA PLANT IN CANADA
Over the past year or so, General Motors has been shuttering operations around the world. It stopped selling vehicles in India, it sold off all of its operations in Europe. And it’s no longer manufacturing cars in Russia, Indonesia, Australia and South Africa. And now it’s being reported that GM will close its Oshawa plant in Ontario, Canada. The company is expected to make the announcement later today, which will lead to around 2,500 layoffs. The company makes the Chevy Impala, Cadillac XTS, Chevy Silverado and GMC Sierra at the facility. The closure comes at the same time GM is trying to reduce its salaried workforce in North America. It was hoping that 7,000 employees would accept voluntary buyouts but it could layoff workers if not enough accept them. GM is expected to address that today as well.
Kia reveals more details about the new Soul. And we’ll share those with you, right after this.
FORD’S “SLEEP SUIT” MIMICS DROWSY DRIVING
I think all people, when sober, know that drinking and driving is a bad idea. But did you know staying awake for more than 18 hours and getting behind the wheel can be comparable to drunk driving? And in the U.S., most drowsy driving crashes are caused by people under 25. So, in an effort to help those drivers, Ford has created a “Sleep Suit” that mimics the effects of being really tired. Special goggles replicate “microsleeps,” which are uncontrollable, brief episodes of sleep that can last anywhere from a fraction of a second up to 10 seconds. And a weighted hat, vest, arm and ankle bands simulate being run down. Ford says it will integrate the “Sleep Suit” into its young driver training program for 17- to 24-year-olds. But, just to note, a caffeinated drink and a 20-min “power nap” could be all that’s needed to get you home safely.
MORE KIA SOUL DETAILS
We’ve teased it already, but here’s the best look yet at the new Kia Soul. The headlights appear to be more aggressive than the outgoing model and Kia announced there’s a new ruggedly styled X-Line that will join the model range. The naturally aspirated 1.6L engine is gone, but the naturally aspirated 2.0L and turbo 1.6L remain. As does the EV version. The new Soul will debut in LA this week and then go on sale in the U.S. in the first half of 2019 with global markets to follow.
Speaking of LA, we’ll be at the show. So look for our coverage later in the week on our website, Autoline.tv.
Can you guess, which automakers make the most vehicles? We’ll show you the answer, right after this.
HAMILTON WINS LAST F1 RACE IN 2018
In racing news over the weekend, there was a bit of a scare on the first lap in Formula 1 as Nico Hulkenberg barrel rolled into the barriers, but he was ok and Lewis Hamilton settled in his Mercedes to cap off his championship season with another win at the final race in Abu Dhabi.
TOP OEMs BY PRODUCTION
While automakers say it doesn’t matter, they love to have bragging rights over their competitors. And it terms of production, the Volkswagen Group is the clear leader in the auto industry. It will make over 11.1 million vehicles this year according to AutoForecast Solutions. It’s followed by Toyota at nearly 10.5 million units. Then there’s a big drop off to the Hyundai Group, which will build 7.7 million vehicles. And rounding out the top 5 is General Motors and Ford. And by 2025, there won’t be too much change to the list, except for Ford and General Motors swapping spots.
| TOP 5 OEMs BY PRODUCTION | |||
|---|---|---|---|
| 2018 | 2025 | ||
| Volkswagen | 11,130,957 | Volkswagen | 11,203,097 |
| Toyota | 10,490,932 | Toyota | 10,874,069 |
| Hyundai | 7,752,002 | Hyundai | 8,471,777 |
| General Motors | 6,565,089 | Ford | 6,801,854 |
| Ford | 5,995,372 | General Motors | 6,308,968 |
| Source: AutoForecast Solutions | |||
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Comments (35)
November 26th, 2018 at 11:54 am
John/Sean, what’s going on at GM? Here’s a link to Bloomberg stating 10,000 reduction in force: https://www.bloomberg.com/news/articles/2018-11-26/gm-to-cut-10-000-jobs-targets-5-factories-for-closing-next-year
This leaves Cadillac with ATS/CTS already going by the wayside, dropping CT6, and with Lacrosse and Impala going away surely leading Cadillac losing XTS as well. And the reason stated is to prop themselves for ‘electrics’; what electrics. I know they want to be ready but I think they’re a little too premature. Any insight on this development?
November 26th, 2018 at 11:57 am
I am waiting for your report from the LA Auto Show on the New 2019 Honda Passport.
November 26th, 2018 at 12:15 pm
1 Isn’t a single car going to be replacing the ATS and CTS? Is the Sonic going away, or will it stay? The Cruze is generally better than the Sonic, but maybe it’s too close to the Malibu for it to make sense to keep both.
LaCrosse and Impala are good cars, but they aren’t selling well, so I suppose it makes sense to drop them. The XTS has been the best selling Cadillac sedan, even though it is a more expensive, generally less good Impala/LaCrosse. Go figure.
November 26th, 2018 at 12:24 pm
A bit more auto racing news. Penske picked up another Championship. This one is for the Australian V8 Supercars. Handing Ford the Championship for the retiring Falcon. So both of Ford’s retiring sedans the Fusion in NASCAR and the Falcon in V8s go out on top and both will be replaced by the Mustang.
November 26th, 2018 at 12:28 pm
4 Will GM continue in the Australian series? If so, I assume it will be with Camaro.
November 26th, 2018 at 12:31 pm
Even with segments I could care less about, such as the Kia and the F1 races and the Ford Drowsy suit, there is WAY too much to comment on today.
First of, Going, Going, Ghosn Gone! Kicked out of Nissan and Mitsu and one to go (Renault). Anybody wanna bet? Even if he did not steal from the companies and use the $ to buy real estate, just the fact that here was a CEO of a Japanese Auto co (two of them in fact) getting paid US Auto CEO undeserved wages, which are 10 times what Mr Toyota makes in HUGELY SUCCESSFUL Toyota, the company his ancestors founded! CEO Pay Envy!
Second, Mary Barra goes NUTS. Instead of seriously cutting costs, she is throwing the baby out with the bathwater.
her offers where she hoped to get 7,000, attracted a still significant 4,000. She can fire 3,000 to meet her goals, but I suspect if the offers were made a little juicier, more than 7,000 would leave this sinking ship!
Chuck’s link says she will not only cancel the Buick Lacrosse few will miss, but also the excellent Caddy CT6 (pity!) and even the OK selling Chevy Cruze in the US. She will even cut the VOLT after losing countless billions all these years. Good Job, Mary! I bet you will keep getting more and more “employee of the month” awards in the Future as the countless ones you have been getting, sure not any of them for your performance!
Mary is flying the white flag of surrender high up in the Ren Center… and at the same time squanders billions on the AV and Mobility NONSENSE that the Almighty Consumer never asked for!
And finally the apples and oranges and worse segment with the “AutoForecastSolutions” guesses. There is so much wrong with this nonsense, if this company was a student in Forecasting 101 they would get an “F” if I had anything to do with it. here is why:
First of, Comparing “Units” produced is nonsense. It is not that it does not matter, it is just wrong to equate a lousy, cheap KIA to a mercedes S 65 AMG that costs 10 times as much! It is equally easy to compare sales REVENUE or, much better, PROFITS.
Second, 2018 is not over yet, so even their ’2018′ data are guesses, (or do they mean some ‘model year’ 2018 starting Oct 2017 and ending Sept 18?
but not as bad as their “2025″, with which I have a HUGE beef.
First of all, the 2025 numbers are NOT data or facts, they are Forecasts, obtained by who knows what crazy assumptions, if Ford, instead of going BANKRUPT, is projected to… pass GM!
Second, where the numbers betray the serious economic illiteracy of this “AFS” outfit, is in the number of SIGNIFICANT DIGITS their 2015 guesses have. AMAZING!!!
They do not say, we project Hyundai to sell 8.4 million vehicles in 2025. Noooo! They say, 8, 471,777. Even if you are the best forecaster of the world’s 7 Billion and counting people, you will NEVER be able to defend even the “4″ in “8.4″ million. You will be lucky if the actual number starts with an “8″! (and if Hyundai’s DISMAL sales in the US are any indication, they sure will not go above 8 in 2025!)
This is the worst part of these nonsense numbers. I would be far less offended if they presented them as “11.2, 10.9, 8.5 million etc”
November 26th, 2018 at 12:35 pm
Hey Ford could have saved you tons of money on the sleep suit. Take a couple Benadryl and you’ll get the same affect. Are we just a point in society that we have to experience everything before understanding it to be true?
November 26th, 2018 at 12:42 pm
With Lordstown closing in 4 months, does that mean all of the production of the Americanized Cruze will be out of the Mexico plant? Great job on the new USMCA.
November 26th, 2018 at 12:58 pm
#1 I understand the traditional sedan evolving into these sport utes. So fine cars are being replaced by CUVs/SUVs and now cross-overs. What I dont understand is why Ford and GM are making labor cuts and closing plants. It cant be about EVs. Even if EV sales take off tomorrow (which I doubt) they still need a chassis a body suspension and interior. Whole car development is not just powertrain. In fact replacing a large portion of their product with a new powertrain would require new vehicle designs or major modifications to the existing so laying off people doesnt make sense. Must be something else thats driving these cuts.
November 26th, 2018 at 1:00 pm
Ottowa also saw BYD cancel their factory plans. The new government has been exceptionally skillful in chasing off outside investors and business.
As for GM, they are following the Jack Welch style of growing their business by making it smaller.
Bob Wilson
November 26th, 2018 at 1:18 pm
Lordstown is closing. S**t just got real!
November 26th, 2018 at 1:22 pm
10) I was thinking the same thing. I was hoping Mary Barra would somehow be different than her predecessors….But it is more of the same old tired GM tripe.
Their products right now are just sub par compared to the competition. It is across the board sub-par too. There isn’t one GM vehicle where you can’t name a competitor that does it better. Even the mighty Corvette ZR1 has a superior competitor for the same money. Their trucks deserve to be in 3rd place and should be knocking on 4th place with the lackluster refresh they just did. What a world it is when Dodge can outpace GM in the truck game.
I think Mary Barra is looking at profits only and forgetting that she is attempting to sell a product. Good products sell at higher prices and thus higher profits. Maybe she skipped that class when she got her MBA. And why does GM constantly think FORD is their only competitor? That backwards thinking is just dragging them down this rabbit hole that they are in. Mary Barra needs to be replaced.
November 26th, 2018 at 1:39 pm
What is happening to these auto companies that are closing plants and laying off engineers? is this the impact of “electrification”?
November 26th, 2018 at 1:51 pm
9 The plants being closed have been running at well below capacity, a recipe for losing money. Cruze sold about 185K in 2017, but are on track for lower sales for 2018. Still, it would seem to make sense to keep selling them in the U.S., brought it from Mexico or China, but with possible trade wars, “new NAFTA,” etc., that might not work well.
The CT6 is a very good car, but it’s not selling well, so I understand it being dropped. LaCrosse et. al. are decent, but not selling well either, except maybe in China.
The problem with these buyouts, for GM, is that, for the most part, the wrong people will be leaving.
The “electrification” excuse for the plant closings makes little sense.
November 26th, 2018 at 2:14 pm
Kit @ # 5 GM Holde4n is currently running the new Commodore based on the Opel PSA model. I know they are looking at the Camaro in the future as the Camaro is more a Holden than the Commodore is. It isn’t based on a GM owned model anymore since Opel was sold . So if they at least want to run a GM product that maybe what happens . My guess is they will if not already start doing a feasibility study. There is a company that is converting Camaros to right hook in Oz . So the next few months will tell the tale.
November 26th, 2018 at 2:22 pm
Low (car) sales is the obvious reason for dropping car production. Electrification is the marketing reason (though it will be true in 10+ years).
You should mention the new (EV) Rivian truck, it looks serious and very interesting. Plus their SUV will be announced in a day or so.
November 26th, 2018 at 2:40 pm
2 I’m a little surprised that Honda is reviving the Passport name. The previous rebadged Isuzu called Passport wasn’t that great. It’s been a while, though. The new one should be pretty good.
November 26th, 2018 at 2:45 pm
All these cuts to North American Production and the AutoForecast Solutions forecasts do not take into consideration the arrival of the Chinese Automotive OEM’s to North American Market. The next decade will see a battle royal over sales supremacy! I agree with Larry D # 6 comments. Many consumers do not want autonomous vehicles. If you want autonomous vehicles, then invest in Public Mass Transit. I see that GM is downsizing to become more competitive, while Ford is just poorly run.
VW knowns it can no longer pull the wool over everyone’s eyes and is converting current vehicle architecture and converting them into electrics. This is what GM and Ford should have done long ago! I have said it countless times that if GM had built a CUV like the Equinox and Terrain as a PHEV they would have sold especially when gas was $4.00 per gallon. However now that Oil / Gasoline prices have been trending downward consumers will revert to their larger and roomier SUV’s. The Government must make it very attractive for consumers to buy EV’s with an even larger $10K rebate with not ceiling on production figures. These would be second or even third vehicle in a family fleet.
What the OEM’s have not realized that there are countless millions and even billions of dollars to be made with Plug and Play automotive technology. I remember seeing a 60 Minutes episode about GM and it’s “Skateboard” drive unit which could accept multiple “Top Hats” which would simplify manufacturing and allow for easy upgrades to an existing vehicle. This would allow consumers for roughly about half the cost of a new vehicle upgrade into a new “Top Hat” replacing the current “Top Hat” since everything would be “Drive by Wire”. Whatever happen to those engineers at GM? Did they retire and everyone forgot about these innovative ideas? I guess the “Dot Com” Era happened and all forward think left the room.
You would have to be crazy to buy a new vehicle these days. You are mostly likely better off leasing with an appropriate amount of miles over the life of the lease. I could see why most OEM’s now offer 24 month leases. They have learned that many consumers want newer and better technology in their vehicles and are willing to pay for it like the contact’s consumers have on their smartphones IMHO.
November 26th, 2018 at 2:47 pm
14 Thanks for the info. I guess the Aussie racing series is a little like Nascar, using front drivers “converted” to rear drive V8 race cars.
That would be a big job to convert a Camaro to RHD, and do it properly. I suspect those are quite expensive Camaros.
November 26th, 2018 at 2:52 pm
I am just hoping that the New Honda Passport is like I had commented about in the past. Meaning to say, it will be the front end of the Ridgeline and the rear end of the the Pilot fused together into a smaller CUV/SUV with a 3.5 Litre V6 and AWD. This vehicle could be the twin of the Ridgeline and built in the same plant.
November 26th, 2018 at 4:04 pm
#3 Kit,
Yeah, ATS and CTS scheduled for replacement by a CT4 (or maybe called a CT5) but with the cancelation of the others, I wonder if the replacement will be introduced (at all). Also agree that the CT6 is a very good vehicle and was slated to have a “V” model for ’19 or ’20 so wondering what befalls those plans. Caddy had the twin-turbo V-8 also in line for introduction so that’s also a wonder if it makes it. Maybe more announcements forthcoming but I’d hate to see GM (also) abandon cars; the segment just isn’t dead (yet).
November 26th, 2018 at 4:10 pm
Most of what I’ve read is that the new Passport will, basically, be a Pilot with some length removed from the middle, shorter wheelbase and overall length. It will be available FWD and AWD. I guess we’ll know exactly what it will look like tomorrow, as it’s revealed at the LA show.
November 26th, 2018 at 4:23 pm
#17 I’m not sure why all the automakers are so close minded into thinking a vehicle has to be an EV or ICE. Same reason they think an EV has to be an ugly small commuter car. They could design a vehicle from the ground up to accept a ICE or EV powertrain. Bring it to the dealerships with the ability to order it either drive system. I know I mentioned this before but it could be done and then you’re not forced into buying a particular vehicle to get Electrification. Think about being able to get almost any vehicle on the road today but with the drive system that works best for you.
November 26th, 2018 at 4:49 pm
20 I really hope Cadillac goes through with the CTx. It was bad enough when they stopped making Cadillac convertibles, and it would be really sad if Cadillac sold only trucks.
22 I suspect there is a lot of difference between packaging a 20 gallon gas tank, and a battery that will give an EV 300 miles of range. It seems that the existing EVs that share platforms with non-EVs are compromised in range, packaging, and maybe other ways.
November 26th, 2018 at 5:03 pm
22, 23 I just checked a review of one of the better “affordable” shared with ICE EVs, the e-Golf. It drives well, but has barely over half the range of a Bolt. It accelerates a little less quickly than the Bolt, but that wouldn’t be related to the platform.
November 26th, 2018 at 5:12 pm
#23 yea because they took an existing platform and packaged what would fit. To make it work they would need to start with the constraints of the the space needed to package the battery and then get creative on how to use that space in the ICE and vise a versa. Not saying it would be easy but it could be done and I think a minivan or suv would be the ideal candidate. They can use the space under the floor for a battery and offer a 40 gallon gas tank..lol
November 26th, 2018 at 5:22 pm
25 Yep, a minivan would be an ideal candidate, if you forego “stow and go” seating. My ’89 van with the removable, non-folding back seat has lots of space under its flat floor where seats would fold into with newer vans.
November 26th, 2018 at 7:28 pm
Tariffs are part of this.
November 26th, 2018 at 8:27 pm
They all should emulate Nissan’s approach–48 volt batt , small ICE gen. I just don’t dig a 1/2 ton floor pan
November 27th, 2018 at 8:22 am
I think GM is just preparing for the next down cycle (it is inevitable). Rather than wait until it has to panic to cut costs when it is losing tons of money, it is being pro-active to cut its headcount and expenses towards the end of a profitable period so even during the next downturn, it can make a profit or at least break even and survive. Perhaps a big bet, but better than the boom and bust of the past. Other OEMs will not fare as well.
November 27th, 2018 at 8:31 am
My 1974 Plymouth Duster was built at the Hamtramck plant that is closing. Well, that location. GM probably put up newer buildings at the location.
November 27th, 2018 at 10:30 am
What seems startling is Gm’s move is like a fire sale; what was such a rush especially at a nice profitability year, at the end of the year (just before the hoidays) and just a vague direction for the future. Seems it could have been announced in a much better way.
November 27th, 2018 at 11:29 am
32 When cars make a come back, which they will, GM will be in a bad position, like Ford. GM seems to be keeping some of their cars, for now, but the Asians are almost being handed the mainstream car business on a silver platter.
November 27th, 2018 at 1:07 pm
#31 – Your Duster was probably assembled at Dodge Main which was flattened along with a large portion of “Poletown” when the Hamtramck Assembly Plant came to be in the early 1980′s. Using eminent domain for private industry was a fairly controversial item at the time.
https://en.wikipedia.org/wiki/Detroit/Hamtramck_Assembly
November 28th, 2018 at 6:59 am
34 Thanks for info. I knew the GM plant was on the site of Dodge Main, but didn’t realize a bunch of the town was razed to build the factory.