U.S. Factory Output Climbs More Than Expected as Autos Advance
U.S. factory output rose by more than expected in June on a solid gain in motor-vehicle production, suggesting American manufacturing is regaining a foothold despite fluctuating trade policies and a global slowdown, reports Bloomberg. Manufacturing output climbed 0.4% from the prior month after an unrevised 0.2% increase in May, Federal Reserve data showed Tuesday. Total industrial production, which also includes mines and utilities, was unchanged – missing economist estimates for a 0.1% gain – as milder-than-usual weather reduced demand for air conditioning, according to the report. Production of motor vehicles and parts increased 2.9%; excluding cars, manufacturing production rose 0.2% after no change the prior month. Other sectors that saw gains include petroleum and coal products, and computer and electronic products. Read more here.
Kia Hires Ex-Mazda Exec Russell Wager to Lead U.S. Marketing
Kia Motors America has hired Russell Wager, Mazda's former North American marketing vice president, as the Korean brand's director of marketing operations, reports Automotive News. Wager, who joins Kia after the recent departure of marketing vice president Saad Chehab, will be in charge of advertising, media, partnerships and other marketing activities, reports Automotive News. He reports to Kia Motors America COO Michael Cole. His appointment is effective immediately. "I am thrilled to join the Kia team and bring my 25-plus years of passion and knowledge of the automotive business to this new position," said Wager in a statement on Thursday. "I look forward to working with the creative and dedicated people at KMA and with the highly professional Kia dealer network nationwide to continue building brand momentum as we prepare for the next decade of growth." Read more here.
Some Subaru Owners Could Get New Cars After Recall
According to Consumer Reports, Subaru is recalling more than 2,000 cars and wagons that may not hold up in a crash because of a faulty weld at the factory, according to the National Highway Traffic Safety Administration. The issue affects 2019 Legacy sedans and Outback wagons, and is caused by poor welds on a key body component. That means the vehicles’ overall body structures aren’t as strong as they should be, NHTSA says, and they may not perform as designed in a crash. According to the automaker, the poor welds were made by a robotic welder that hadn’t been cleaned properly. Although a total of 2,107 vehicles are affected, a Subaru spokesperson told CR via email that the majority of affected vehicles have not yet been delivered to dealerships from the factory, and that fewer than 20 of the affected vehicles are in customer hands. Read more here.
Ford Secretly Tells Dealers: Fix Faulty Transmission Until July 19
Ford Motor Co. quietly notified dealers to expand warranty coverage of its 2011-17 Fiesta and Focus vehicles within 24 hours of publication of a Free Press investigation into defective transmissions, including model year 2017 for the first time, reports The Detroit Free Press. According to a memo to dealers dated July 12 that was obtained by the Free Press, Ford instructed dealerships not to solicit owners for the free repair offers. One dealer referred to the directive as a "carte blanche" repair order set to expire July 19. “If a customer calls or arrives at our dealership indicating they are having transmission symptoms that need to be addressed, we are to arrange to diagnose the vehicle and fix as necessary," Mike Rabbitts, parts and service director for Friendship Ford in Bristol, Tennessee, told the Free Press on Thursday. Read more here.
Oliver Zipse is BMW's Next CEO
BMW named 55-year-old Zipse as its new chief executive, continuing the tradition of promoting a manufacturing leader to the company’s top job, reports The Detroit Bureau. “The Supervisory Board of BMW AG appointed at today’s meeting Oliver Zipse as the new Chairman of the Board of Management with effect from 16 August 2019,” the company said in a statement on Thursday. Zipse takes over for Harald Krueger, who declined a second term as CEO, ending talks about renewing his contract before they began. Krueger’s contract renewal was not a slam dunk, given some of the low points of his tenure, in particular, ceding the luxury car sales crown back to Mercedes-Benz in 2016. “Zipse will certainly be tasked with increasing BMW’s share in the EV market, and another area of focus may be finding the right balance with the number of models within the portfolio,” said Jeff Schuster, president of global forecasting with LMC Automotive. “BMW has taken a fragmentation approach in the past, with some models overlapping others within the showroom.” Read more here.
Around the Web
Tesla Drops Standard Range Model S and X [Autoblog]
A Shared Birthday Party for 2 Sporty Foreign Cars [NY Times]
Jerry Seinfeld Lands 'Dream Guest' for New Season of 'Comedians in Cars Getting Coffee' [Fox News]
America's Sports Car Almost Didn't Survive the Great Recession [CNBC]
