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Posts Tagged ‘U.S. auto sales’

Ford to Cut 1,400 Jobs as Part of Major Cost-Cutting Push

by on May.17, 2017

The new job cuts won't directly impact Ford's hourly workers - but they have been facing a series of temporary plant closures in recent months.

Ford Motor Co. has revealed plans to cut about 1,400 salaried jobs in North America and Asia as part of a cost-cutting plan, but the move is significantly smaller than had been suggested by some news reports earlier in the week.

The move comes as Ford struggles to boost sales and earnings after a sharp slump in recent months. The second-largest automaker has also been trying to boost its stock price, which has tumbled about 40% since Mark Fields became CEO nearly three years ago. But the initial response by investors is proving lackluster.

In the News!

“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” Ford said in a statement early Wednesday, updating comments the maker had released earlier in the week.

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Ford May Cut 10% of Global Workforce

Detroit maker responding to weak profits, stockholder pressure.

by on May.16, 2017

Ford CEO Mark Fields has come under increasing pressure to boost sales and earnings.

Under increasing pressure from stockholders as sales and profits decline, Ford Motor Co. is reportedly looking at cost cuts that could include the elimination of as much as 10% of its global workforce, sources tell TheDetroitBureau.com, confirming news reports that have been emerging overnight.

With a current workforce of around 200,000 employees worldwide, that means Ford could trim as many as 20,000 jobs, a large share of those apparently in the U.S. and Asia, though the final figure could be smaller. Other measures are designed to rein in spending and reverse the sharp, 35% drop in earnings Ford suffered during the first quarter of this year – triggering widespread criticism of the carmaker’s management by analysts and investors.

Breaking News!

In a statement, Ford declined to directly address the reported job cuts, but noted, “We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities.”

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Toyota’s Earnings Take 21% Tumble

But CEO says company’s cars are no longer “boring.”

by on May.10, 2017

Toyota's earnings are down again, but at least its cars are less "boring," said CEO Toyoda.

For a second year in a row, Toyota saw its profits tumble, this time by nearly 21%, largely driven by the high cost of propping up demand in a slowing U.S. market.

Earnings were also hammered by unfavorable exchange rates, company officials noted during a media briefing on Wednesday, though at $16.1 billion, or 1.83 trillion yen, Toyota still managed to out-earn its biggest rivals, including General Motors and Volkswagen.

Global News!

But that wasn’t enough to satisfy CEO Akio Toyoda, especially in light of the decline Toyota experienced in the previous fiscal year ending March 31, 2016. “In the sporting world, two years of falling profit would be considered a losing streak, and I hate losing,” he told reporters and analysts.

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Automakers Accelerate Plant Closures, Production Cuts

Ford idling Kansas City, GM dropping shift in Detroit.

by on Dec.21, 2016

GM will drop a shift at the Detroit plant producing its Chevrolet Volt plug-in hybrid.

The year is ending on a tenuous note for the U.S. auto industry. Even as sales records are set to fall for the third year in a row, bulging inventories are leading manufacturers to schedule production cuts, some short-term, others indefinite.

Thousands of workers are being impacted by the cuts at a time when the incoming Trump Administration has promised to boost U.S. manufacturing. The question for the near-term is whether further cuts are coming, something likely to depend on just how much the country’s car market slips in the months ahead.

Industry News!

The latest cuts come in Kansas City, where Ford Motor Co. will idle its pickup and van plant for a week early next month, and in Detroit, where General Motors says it will cut the second shift at a plant producing three sedans, as well as the plug-in hybrid Chevrolet Volt.

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GM Idling Five Plants to Curb Inventory Build-up

Detroit giant follows moves by rival Ford.

by on Dec.19, 2016

The Chevy Cruze is one of many sedans and coupes that will be impacted by the plant closures.

Faced with a growing surprise of inventory, General Motors will temporarily idle five of its U.S. assembly plants next month.

The move focuses on slow-selling sedans, such as the Chevrolet Cruze, which have been losing momentum in a market increasingly dominated by sport- and crossover-utility vehicles. GM’s moves follows recent production cuts by Ford, and the decision by Fiat Chrysler to end U.S. production of that maker’s passenger car models.

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GM’s decision also comes at a time when industry insiders and analysts are forecasting that the U.S. new vehicle market has reached its peak for the current economic cycle. The only real debate is how far and how fast sales will drop over the next several years, after three years of all-time industry records.

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Auto Market Likely to Maintain Near-Record Momentum

But shift to utes could accelerate, forecasts Toyota autos chief.

by on Dec.02, 2016

The Toyota RAV4 may soon be Toyota's best-seller.

After several tenuous months, U.S. new car sales slipped back on their record track in November, and while it’s likely the industry has hit the peak of the current economic cycle, demand is likely to remain strong for several more years, forecast the U.S. head of automotive operations for Toyota.

What consumers will be buying is another matter, according to Senior Vice President Bob Carter, who stressed that the shift from conventional passenger cars to utility vehicles and other light trucks “is going to continue to accelerate in the future.”

Barring a sudden slowdown of the American market, sales should just nip past last year’s all-time record of around 17.5 million, said Carter, during a meeting with journalists in Detroit. “By anyone’s estimation,” he said, “that’s fantastic.”

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Despite Solid July Sales, Ford CFO Sees US Auto Recovery at an End

Sedan, coupes already signal a slowdown, but trucks holding momentum.

by on Jul.29, 2016

Ford may see a weakening of the U.S. market but its F-Series is still delivering solid numbers.

U.S. auto sales have been taking some uncertain detours in recent months, May numbers tumbling before the industry showed signs of rebounding in June. Preliminary estimates, meanwhile, suggest the market will look good for July, the industry back on track for another record year.

But senior Ford officials say that we may be at the end of the line for the current recovery, with sales likely to begin another cyclical slide in the near-term.

The Last Word!

“The growth is over,” Ford Chief Financial Officer Robert Shanks told the Reuters news service. The executive separately told analysts and reporters that, “We see the second half being softer than the first half. Looking into 2017, we think we will see further softness.”

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US Auto Sales Set to Hit Yet Another Record in 2017

The current, torrid pace of sales "cannot be sustained."

by on Nov.18, 2015

In some cases, dealers have been struggling with supply shortages as sales hit records.

The torrid pace of sales that should see the U.S. auto industry set a record this year is likely to continue into 2016, but next year could see the end of an unprecedented recovery after the worst downturn the industry has experienced since the Great Depression.

Sales are likely to begin “gently” leveling off next year after hitting an all-time peak of 17.7 million cars, trucks and crossovers, forecasts Steven Szakaly, the chief economist at the National Automobile Dealers Association.

Sales News!

“The industry remains healthy and continues to grow,” said Szakaly, during a media conference call ahead of the start of the 2015 L.A. Auto Show. But he went on to warn that, “We’re also seeing the beginning of the end of what has been a tremendous amount of pent-up demand for light vehicles.”

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Automakers Regain Momentum in April – Market Looking at Best in Decade

Power forecast sees industry making up ground after cold winter.

by on Apr.24, 2015

Trucks, like this Ford F-150 shown with CEO Mark Fields, continue to gain momentum in the US market.

Consumer demand for new vehicles during April is the best it’s been in 10 years, according to a new analysis by J.D. Power and LMC Automotive.

With the warmer, spring weather finally settling in across the U.S., total light-vehicle sales are projected to reach 1,463,700, a 5% increase compared with April 2014 and the highest level for the month since April 2005.  The total seasonally adjusted annual rate of sales, or SAAR, is expected to hit 16.6 million units.

The Last Word!

“The industry continues to outperform prior-year levels with respect to retail sales and transaction prices,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power. “The average new-vehicle transaction price so far in April is $30,680, on pace to achieve a new record for the month.” The current record was set in April 2014 when transaction prices averaged $29,948,” he said.

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Global Auto Sales Expected to Near 90 Mil in 2015

“Slower, not lower,” IHS Automotive forecasts.

by on Feb.03, 2015

Ford has become one of the fastest-growing brands in China. But the market overall is slowing.

With the U.S. market continuing its rebound and Europe finally showing signs of recovery after a long economic slump, global auto sales are expected to reach a new record of nearly 89 million vehicles this year.

But with the Russian market slumping and China showing signs of a slowdown, IHS Automotive cautions, the pace of growth will be a “slower, not lower” 2.4% in 2015. All told, only two of the critical BRIC markets are expected to report sales gains.

Your Global Auto News Source!

Already the world’s largest automotive market, China will continue to lead the way in 2015, IHS anticipates. But don’t expect the high double-digit growth that market had been experiencing earlier in the new millennium. The forecast is for something closer to 7%, which would still drive the Chinese market to sales of 25.2 million vehicles.

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