Toyota Strengthens Subaru Ties, Shifts U.S. Plant Chiefs
Toyota last week tightened ties with a former U.S. manufacturing partner and said it is changing some of its U.S. manufacturing leadership, reports Automotive News. Toyota and Subaru said they will work on a second generation of their shared rear-wheel-drive sporty coupe and collaborate more closely on other projects under a new agreement that will raise Toyota's stake in the smaller Japanese automaker to 20 percent. Under the accord, Subaru will take a small stake in Toyota. Toyota already owns 17 percent of Subaru, while the smaller partner has no stake in Toyota. The companies said they would collaborate more closely on a range of next-generation technologies, including connectivity, autonomous driving and electrification systems. Read more here.
Honda Marysville: A Non-Union Auto Plant Prospers
While the United Auto Workers strike against General Motors Co. plants stretches on, it's been business as usual at Honda Motor Co.’s Marysville assembly, reports The Detroit News. Celebrating its 40th year of production this month, the non-union plant has never had a work stoppage as it has pumped out two of the most popular vehicles in America: the Honda Accord sedan and CR-V SUV. Honda Marysville is not alone. Dozens of so-called foreign "transplants” — from Asian mainstream manufacturers to European luxury makers — have followed Honda’s model across the United States in recent decades. The influx has transformed America’s auto landscape with a cheaper, more flexible, non-union workforce model upping competitive pressure on unionized Detroit. Read more here.
Coming Soon: 12 New Sedans, SUVs Priced Under $30K
Does anybody make affordable new cars today? In the realm of new cars between $15,000 and $30,000, there are more good choices coming than you might expect. Automakers have shifted their emphasis to SUVs because they can charge more for them, but the inexpensive sedan isn’t dead, as witnessed by the brand-new 2020 Nissan Versa, which just went on sale starting at $14,730. The vehicles and prices listed are based on reporting by Mark Phelan at The Detroit Free Press. Some of these vehicles, like the Nissan Sentra and Chevrolet Trailblazer, should start well below $30,000. Others, like the eagerly awaited Ford Bronco off-road SUV, will probably come within an optional floor mat of 30 large. Read more here.
Automakers Facing Antitrust Probe to Meet with DOJ Next Week
Automakers that are under U.S. antitrust scrutiny over an emissions agreement reached with California regulators are set to meet next week with the Justice Department, according to a person familiar with the matter, reports Bloomberg. Ford Motor Co., Honda Motor Co., BMW AG and Volkswagen AG agreed in July to voluntarily meet emissions targets offered by California regulators, defying a Trump administration proposal to freeze national standards at 2020 levels. The Justice Department’s antitrust division raised concerns in August that the automakers’ agreement may be in violation of antitrust laws and invited them to meet with the department to discuss the issue. Read more here.
UAW, GM Slogging Through Talks; Company Reinstates Health Insurance
General Motors Co. and the United Auto Workers continued to struggle with key issues with view visible signs of progress, reports The Detroit Bureau. GM did back away from an earlier decision to cancel the health insurance of the more than 48,000 striking union members but the union didn’t exactly take it as a goodwill gesture. Instead the UAW re-iterated GM had failed to notify the union of the cancellation and only shifted course after local news reports showed union members or the children and spouses being denied critical coverage. GM also said if employees have an insurance claim, they should submit it. GM will continue to provide them the coverage they rely on given the circumstances. GM’s decision brought a curt reply from Terry Dittes, the head of UAW’s GM Department, who is responsible for the negotiations with GM that indicated the union did not view the company’s action as conciliatory. Read more here.
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