Honda Stops Ohio Shift to Prepare for Electrified Autos
Honda Motor Co. will stop second-shift production on one assembly line at its flagship Marysville, Ohio, complex in August so the factory can be refurbished and retooled to make electrified vehicles, reports Automotive News. The Japanese automaker will reassign employees who aren't assigned to work on the retooling to other roles so there won't be any layoffs. The company declined to identify electrified vehicles that will be made in Ohio. Even as car sales fall and Detroit automakers pare their sedan lineups, the suspension of the shift shouldn't be seen as any kind of retreat from the sedan business, said Henio Arcangeli, senior vice president at American Honda Motor Co., noting that its cars are off to a good start this year. "It's not really the same thing, because our car business still remains very, very strong," he said in an interview at the New York auto show. "It's just the situation, looking at near term as well as looking at long term, we felt the right idea was to take a break on second shift so we can do some retooling and prepare for the future." Read more here.
Report: New NAFTA Would Hurt Car Sales, Hike Prices
The Detroit News reports that automakers would sell 140,000 fewer cars per year under President Trump’s proposed replacement for the North American Free Trade Agreement, according to a report released Thursday by the U.S. International Trade Commission. Additionally, prices for small cars would increase by 1.61 percent and pickup prices would go up 0.37 percent, according to the report. Changes to the percentage of a car's parts that have to come from one of the three countries to qualify for duty-free treatment, known as rules of origin, "would lead to an increase in U.S. automotive parts production, partly offset by a small decline in U.S. vehicle production," the report said. "These developments are estimated to result in a net employment increase of more than 28,000 full-time equivalent employees in the automotive sector," the report continues. The findings come at a time when congressional approval of the proposed trade pact looks uncertain. Read more here.
Once-Dead Compact Pickup is Poised for a Comeback
Pickups have gotten so big, that it might be time for something small, reports USA Today. With sales booming and prices rising for full-size and midsize trucks, automakers are now poised to revive the compact pickup in a test of how far they can go before buyers say no more. At the New York Auto Show on Wednesday, the Toyota Yaris Adventure zoomed onto the screen during a press conference, showcasing an unusual blend of body styles. "A subcompact car and a pickup truck coming together as one?" Toyota general manager Jack Hollis said. "Honestly, with the amazing reaction to it, maybe we should make it for real!" He was joking. But like many good wisecracks, there's a little bit of truth in there. In this case, the truth is that multiple automakers are bringing back the long-lost small pickup, which perished earlier this century as pickups grew bigger and full-size trucks tightened their grip on the hearts of American drivers. Read more here.
Hyundai Hires Ex-Nissan Exec to Lead North American Operations
The Wall Street Journal reports that Hyundai Motor Co. has hired Jose Muñoz, formerly one of Carlos Ghosn’s top lieutenants at Nissan Motor Co. and a potential CEO candidate at the Japanese carmaker before his abrupt departure earlier this year. Mr. Muñoz, who left within months of Mr. Ghosn’s arrest in November, will lead the Korean automaker’s North America business as the company works to reverse a market-share slide in one of its most profitable regions. He also will serve as chief operating officer for the Seoul-based parent company, Hyundai said Thursday. Mr. Muñoz, 53, spent 15 years at Nissan, most recently leading business strategy across the Japanese auto maker’s global regions, including having direct oversight of its China operations. In an interview, Mr. Muñoz said he wants to raise the level of customer service at Hyundai’s 840 U.S. dealerships to improve the brand’s cachet in the U.S. “There is an opportunity, by working with the dealers, to elevate the Hyundai brand,” Mr. Muñoz said on the sidelines of the New York Auto Show. Read more here.
Car-Sharing Fights Grip State Legislatures
The bill that turned Illinois into the focal point of a bitter debate over car-sharing last year started as a proposal about what happens when a rental car is stolen. According to Automotive News, the legislation, which would allow rental companies to punish customers if they don’t return a stolen vehicle’s keys and file a police report, had passed the state Senate unanimously and was expected to be similarly uncontroversial in the House. Then an amendment in mid-May scrubbed all the language from the bill and replaced it with a plan to regulate websites that allow people to rent their cars to strangers. The gist of the Illinois law — and of numerous other bills the rental industry has supported over the last year — is that rules and taxes that apply to traditional car rentals should also be imposed on car-sharing platforms. These proposed regulations pose an existential threat to Turo Inc., one of the most popular car-sharing startups, said Michelle Peacock, its head of government regulations. She said tactics like those employed in Illinois should be seen as evidence of bad faith. Read more here.
Around the Web
MotorTrend's Best Cars of the 2019 NY Auto Show [MotorTrend]
The 30 Coolest Cars of the 1970s [Road and Track]
