Tag: closures and consolidation

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Nissan to halt Oppama output and shift to Kyushu

The OEM will end vehicle production at its Oppama plant by FY 27 and transfer output to Kyushu as part of the Re:Nissan plan, cutting capacity from 3.5 m to 2.5 m units to restore efficiency and long‑term competitiveness

Ilkhan Ozsevim

UK automotive production hits lowest April level since 1952 as exports falter and policy uncertainty clouds EV transition

UK car and commercial vehicle production fell sharply in April, marking the worst start to a year since 2009. As exports decline and policy uncertainty looms, the industry calls for urgent action to restore competitiveness and support the EV transition.

Ilkhan Ozsevim

Will Volkswagen’s surplus German plants become Chinese production operations?

As European vehicle makers continue to face challenging global markets and increased costs, many are having to make difficult decisions around underutilised production operations. Ian Henry looks at how Chinese OEMs could potentially buy or utilise some of Volkswagen’s production sites.

Ian Henry

Nissan slashes jobs, closes 3 factories and scales back production in a bid to recover from sustained losses and a failed merger with Honda

Nissan is closing factories, slashing jobs and scaling back production as it fights to reverse sustained losses. CEO Makoto Uchida is under pressure after merger talks with Honda collapsed. But analysts warn the measures may not go far enough to secure the company’s future.

Ilkhan Ozsevim

Volkswagen to cut 35,000 jobs and shift Golf production to Mexico amid huge German manufacturing overhaul

Volkswagen announces a significant restructuring of its German manufacturing operations, including 35,000 job cuts by 2030 and the relocation of Golf production to Mexico. The plan aims to reduce production capacity by 734,000 units and save €15 billion ($15.45 billion) annually, addressing overcapacity and high labour costs to ‘enhance competitiveness’ in automotive production crisis.

Ilkhan Ozsevim

China: Fierce domestic competition sees international brands suffer lower sales and a contraction of output

As China’s domestic brands consolidate and grow both at home and internationally, the international brands, which have benefited from growth in the Chinese market over the years, now face serious headwinds.

Ian Henry

Stellantis struggles with managing multi-brand complexity and looks to regroup following Tavares resignation

Carlos Tavares’ tenure in charge of Stellantis has ended abruptly but was the job of developing, producing and selling such a diverse range of brands across different continents an impossible one? Ian Henry unpicks some of the complexity facing Tavares and his team.

Ian Henry

Nissan’s Sunderland plant: Electric Vehicle hub or cost-cutting casualty amid global restructuring?

Nissan’s Sunderland plant, pivotal to its EV ambitions, faces an uncertain future amid a sweeping cost-cutting drive. As CEO Makoto Uchida contends with falling sales and restructuring, the UK facility’s strategic importance may yet shield it from drastic cuts.

Ilkhan Ozsevim

Stellantis to shut Luton factory in EV transition as UK rules face scrutiny

Stellantis will close its Luton factory, consolidating EV production at Ellesmere port. The decision hihglights tensions over UK EV mandates, as manufacturers push for policy reforms to boost demand and avoid penalties.

Ilkhan Ozsevim

Volkswagen faces manufacturing challenges amid financial troubles

Volkswagen is grappling with mounting financial troubles, signalling a worsening situation in its global manufacturing operations. With two profit warnings in three months, the automotive giant faces falling EV sales, factory underutilisation, and tariff threats from China.

Ian Henry

EV transition slowdown and domestic politics challenge the US Big Three in new and unexpected ways

US automakers face a tangled web of tariffs, union issues, and a slowing EV market. The threat of Chinese competition looms large, while the IRA’s complex rules create new challenges. Ford, GM, and Stellantis are each fighting to navigate these obstacles.

Ian Henry

Volkswagen’s plan to close two German assembly plants is an existential crisis for legacy auto – but only part of the solution

VW’s announcement marks a pivotal moment for Europe’s legacy OEMs with huge repercussions for German production and broader European supply chains. Daniel Harrison, automotive analyst at Ultima Media assesses the causes, potential remedies, and opportunities.

Daniel Harrison

Volkswagen warns of German plant closures and the end of job security amid EV struggles

Volkswagen is considering closing key German plants and ending a long-standing job security scheme. This move comes as the automaker struggles with insufficient electric vehicle demand, reduced government subsidies, and the push for substantial cost savings. The decision could lead to significant job losses and marks a turning point in the company’s 87-year history.

Ilkhan Ozsevim

Stellantis reorganises production operations at Warren Truck Assembly Plant as it shifts production to EV vehicles

Stellantis will end of production of Ram 1500 classic at Warren Truck Assembly Plant, refocussing operations on Wagoneer SUV production

Nick Holt

Ilkhan Ozsevim

Stellantis and the UK government: sabre rattling or crying wolf?

Unhappy with the UK’s ZEV mandate Stellantis has suggested it might cease LCV production in the UK, but is there more to this than legislation?

Ian Henry

Audi may close Brussels plant amid low demand for its Q8 e-tron EV

Audi is contemplating the early closure of its Brussels plant as demand for its Q8 e-tron drops sharply. This move could impact up to 3,000 employees, marking a significant shift in response to declining electric vehicle sales and high production costs at the facility.

Ilkhan Ozsevim

Stellantis could export UK production over strict EV regulations

Stellantis signals potential UK production halt due to tough EV mandates. Maria Grazia Davino, Stellantis’s head, voices concerns over the 2035 petrol and diesel ban, hinting a decision on plants in Luton and Ellesmere Port could come within a year. Stellantis is the parent company of Vauxhall, Citroën, Peugeot, Fiat, Jeep, Alfa Romeo and Maserati.

Ilkhan Ozsevim

ACC halts construction of two European gigafactories

Automotive Cells Company (ACC), with its shareholders Stellantis, Mercedes-Benz and TotalEnergies subsidiary Saft, has halted the construction of two of its three planned European gigafactories.

Megan Kelly

The changing shape of Europe’s automotive production operations

European vehicle manufacturing is having to adapt to weakening EV demand and increasing competition. This means revising production volumes and rethinking the ICE-EV balance in the short term.

Ian Henry

Reshaping the future: Innovations and developments in automotive production engineering: propulsion by Electrification and Digitalisation

Manufacturing engineering both powers and underpins production ecosystems across the industry. From BMW’s Munich plant to Porsche’s Zuffenhausen facility and Toyota’s expansions in Kentucky, we take a look at transformative initiatives shaping the industry.

Ilkhan Ozsevim

Tata Steel to close two blast furnaces in Port Talbot causing major setback to regional automotive production

The closures are to have a significant impact on the automotive production environment and supply chains across the region. Is the transition to green steel upsetting traditional ecosystems?

Ilkhan Ozsevim

GM pauses production of trucks due to parts shortage

GM has paused the production of its Chevrolet and GMC pickup trucks at three of its North American plants due to parts shortages.

Megan Kelly

Honda announces next steps in US EV production

The Marysville Auto Plant will be Honda’s first auto plant in the US to transition to making EVs

Rebecca Morley

Europe’s carmakers dim lights, turn back to coal, oil, on approach to bleak winter

Automakers crimp consumption and reluctantly turn to coal and oil but options may be more limited for component and material suppliers upstream.

Peter Murphy

How the European automotive industry aims to build back semiconductor and chip supply

OEMs, suppliers and EU officials are considering how best to develop Europe’s semiconductor manufacturing to mitigate current and future shortages, but the broad gaps at many levels – including for older, larger chips – mean there will be no magic bullet

Namrita Chow

Carmakers pledge to switch to all-electric vehicles

The wave of electrification is slowly turning into a tsunami, in Europe at least. Illya Verpraet takes a look at some of the big manufacturing plans in 2021

Illya Verpraet

Ford Europe invests $1 billion in Cologne for EV production

After JLR, Ford has also announced that all its vehicles for sale in Europe will be pure-electric by 2030. It is investing $1 billion in its Cologne (Köln) plant to make that a reality. This move will be supported by the sharing of the VW Group’s MEB electric vehicle platform.

Illya Verpraet

Renault assembly network future under review as management announce cost-saving programme

Renault has launched a business transformation plan which includes a 18% cut in production capacity

Gareth Price

Watch: Livestream Hour Episode 6 – Aftermarket and Service Parts: Keeping the wheels moving

In this episode of the Livestream Hour, we discuss the pandemic’s potential impact on aftersales supply and the aftermarket, including the long-term effects on supply chains and what this means for managing inventory. With special guests from Toyota North America, LKQ Europe and CLEPA. Hosted by editor-in-chief Christopher Ludwig.

Christopher Ludwig

Watch: Livestream Hour Episode 3 – India Automotive Supply Chain in Focus

In Episode 3, in collaboration with The Automotive Component Manufacturers Association of India (ACMA), we explore the global export, supply chain and logistics challenges and opportunities in India with a special guest panel that include Meritor, Sona Comstar, TCI and others. The Livestream Hour features intelligence and updates on important automotive value chain developments, Covid-19-related topics and best practice featuring special guests and experts, as well as behind-the-headlines INSIGHT from our editors and analysts.

Christopher Ludwig

Coronavirus live blog: OEMs set resumption timelines and health protection regimes

Gareth Price

Italy’s OEMs and suppliers stay resolute through national coronavirus measures

FCA, Lamborghini, Ferrari, Maserati, Alfa Romeo Brembo and Pirelli – the famous names of the Italian automotive industry are battling on through the Covid-19 crisis

By Marcus Williams

The coronavirus impact on vehicle production reaches beyond China shutdowns

Such is the nature of the global automotive supply chain, it is inevitable that the knock-on effects of idle assembly lines in China soon reach Japan, Korea and beyond

Ian Henry

Stumbling blocks on the Korea path

Outside of the Hyundai-Kia story, Korea’s other automotive players continue to struggle and in global production terms the country is slipping down the rankings

Ian Henry