Tag Archive
The Portuguese Plant is Closing
GM is closing another major factory. The factory is in Portugal and it will close Oct. 31 of 2006. GM is constantly searching for ways to increase the profitability of the plant, but it seems that that’s not going to happen. Gerald Johnson, GM’s Europe director, announced the closing in a newspaper report on Friday.
Gerald Johnson said in the letter, reportedly sent to union representatives, that GM had delayed its decision to close the factory because the Portuguese government had asked for time to find a solution for making the Combo production unit more profitable, the newspaper said.
Though Johnson has already stated the plant will close, the Portuguese government is doing everything they can to ensure it doesn’t close because it is a big source of revenue for them.
Workers in Portugal and Germany walked out of plants earlier this month in protest after reports that the troubled company might cut jobs in Western Europe.
America is not the only country that’s hurting because of mismanagement in a few big companies. Germany and Portugal’s families have been hurt from layoffs and other things that sprung from our economy difficulties
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Hybrid technology makes a big impact in New York
New York City is expanding their hybrid-electric cabs this year. Soon NYC will have more hybrid cabs than regular cabs, which will save them a magnificent amount of money.
The all new hybrid taxis can achieve more than double gas mileage of the original taxis. The brand of hybrids range from a small Toyota Prius or a nice Lexus Rx 400h.
The Taxi and Limousine Commission wasn’t sure if cab drivers would embrace the new technology, so it opened the bidding at discounted prices as an incentive.
For the Taxi and Limousine commission to afford to be able to afford hybrids, they actually auction off the rights for people to operate them, and this year’s auction was the highest auctions ever. One person paid $554,147 to operate a cab.
So, with NYC converting to hybrids, how long will it be until other cities change to hybrid too?
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VW is laying off 6,000 workers
Everyone’s favorite German engineered car, VW, is going to be cutting jobs at their Brazilian plant. VW will be cutting 6,000 jobs to increase profitability; the workers that will be cut will be from the Metal Workers Union.
Volkswagan announced last May that there would be a restructuring plan that would take place. The restructuring would also reduce production for the exporting market. So far, the negotiations between VW and their workers have been on the rocks; however, VW is offering volunteer retiring program for their employees, which if I guess correctly, is probably better than what most American auto companies offered to their employees during restructuring.
So, it looks like even foreign car manufacturers are susceptible to loss too. While Toyota is adding workers and plants by the month, everyone else seems to be stagnant or in decline.
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Ford stresses that they’re really going to make their goal
Just yesterday I talked about how analysts did not believe Ford was going to make their 2008 goal of being a profitable company. Well, I think analysts still believe Ford will not make it, but Mark Fields, Ford’s president of Americas, believes they’re right on track.
He admits that they’re behind in some areas, but in other areas, he claims, Ford is way ahead of the game. So, that, in his mind, puts Ford in an “ok” position.
Like I said before, analysts still don’t believe Ford will make that goal. They say this because a weak inventory of new vehicles and a weary product strategy.
Ford has a lot of work to do. They’re supposed to be “innovation” driven, but it seems they’re still relying on large SUVs and trucks to keep them afloat. The buoyancy of their business is dependant upon a style of car that is becoming too expensive to drive and frowned on because of environmental issues.
Maybe Ford will stop trying to be “innovative” in their eyes and really become innovative. They’ve become innovative to their own definition, but I think their definition could be a tad off.
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The auto industry struggles some more
Back when Ford Motor Co. stated that they would cut 30 thousand jobs, William Clay Ford Jr., chief CEO and great 
grandson to Bill Ford, announced that, in 2008, Ford would be back on their feet (maybe you can guess where I’m going with this article).
It seems, however, that Mr. Ford Jr. might be eating his own words about having the company back on track by 2008. The reason, or at least part of it, is the declining sales of SUVS. The explorer SUV dove 27 percent, and the expedition fell 30 percent, while gas prices rose 34 percent. Not many people are buying SUVs because of economical concerns and high gas prices. And, since Ford’s flagship car was the explorer, there are major problems.
Restructuring a company is a difficult task; however, it seems that the company is doing a good job at cutting jobs. While Ford announced they would cut 30,000 jobs in x amount of years, they’re actually ahead with that statistic.
Ford’s rival, GM, is looking better. GM’s restructuring plan is actually showing progress; because, their money-making-cars were not SUVs. Toyota, on the other hand, is thriving. Toyota can’t stop 10 min from building new factories and producing cars in the US.
The future of Ford is based on the dependence that Ford will “innovate” with cars that actually make money and people want. Times have changed, hence, companies, including Ford need to change. The auto industry is going through major changes, I sure hope the company Ford is build Ford Tough
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Side Impact Airbags
The all new Chevrolet Impala and Toyota Avalon have
received some of the highest side impact crash ratings. The secret to their success is the new side impact airbags that were installed. The Impala and the Avalon both endured side impacts from an SUV size car.
With these new tests coming out positive, it looks as though side impact air bags may become standardized in more vehicles.
Impala and Avalon are star performers: The side structures of these two cars performed reasonably well in resisting intrusion from the striking barrier during the crash test. Both cars are equipped with standard curtain-style side airbags designed to protect the heads of people in both front and rear seats.
The Impala and Avalon designs were also tested without the air bags and scored very poor in the tests. When an SUV hits a small to mid-sized car in the side, sometimes the SUV actually breaks the barrier and the drivers head hit by the oncoming car, thus causing extensive head injuries.
Hopefully we’ll see these side airbags being put in more and more cars.
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Toyota Is Minority Conscious
The auto industry is one of the biggest industries in the world, and it makes sense that they would strive to be culturally diverse. It seems today that Toyota has snatched the top spot for being minority conscious. Black Enterprise, an ethnic magazine, announced Toyota as being one of the top 40 minority conscious companies.
Toyota was also recognized for making an effort to become culturally diverse. Toyota offers advertising promotions, community outreach, and scholarships for minorities.
"Toyota has always considered diversity and inclusion to be a top priority across the company," said Pat Pineda, group vice president of Toyota Motor North America Inc.,
I really like Toyota’s attitude about this award. Even though they have received many awards like this, they still realize there is still much work to do. Toyota seems committed to taking the American auto industry where it needs to go.
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What do you want in a car?
What is an ideal vehicle ?
An “ideal” is defined as an excellent or perfect example. In the first Ideal Vehicle Awards, announced today by automotive research and consulting firm AutoPacific, owners rate their new 2006 model year cars and trucks by how closely they come to their ideal. The cars or trucks that owners would change the least are the most ideal.
Those carmakers that best understand their customers and create the vehicle their core buyer group desires have come closest to the ideal.
And it looks like Ford and Hyundai know their customers best. Hyundai received the top overall spot for most ideal brand, while Ford captured a few high spots themselves. Rating the idealness of a car is somewhat intriguing, but these people apparently know how to do it. I guess a car is the most ideal when the owner has the least things he or she would change about the vehicle.
But, here’s a look at the rest of the ideal awards for 2006.
PASSENGER CARS
Premium Luxury Car: Lexus LS
Entry Luxury Car: BMW 3-Series
Large Car/Luxury Car: Mercury Montego
Premium Mid-Size Car: Hyundai Sonata
Mid-Size Car: Mercury Milan
Image Compact Car: Toyota Prius
Compact Car: Ford Focus
Sports Car: Porsche 911
Sporty Car: Acura RSX
SUT, SUV, and MINIVAN
Sport Utility Truck: Honda Ridgeline
Luxury Sport Utility: BMW X-5
Large Sport Utility: GMC Yukon
Premium Mid-Size Sport Utility: Nissan Murano
Mid-Size Sport Utility: Hyundai Santa Fe
Compact Sport Utility: Subaru Forester
Minivan: Honda Odyssey
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Get peace of mind from the auto advantage
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Longevity
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Affordable
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Whether you are across town or across the country when an unforeseen repair is required, your extended warranty from AUTO ADVANTAGE will provide you with peace of mind.
If you want to be protected from unforeseen repairs, we’d like to help.
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GM and Suzuki working together for hybrids
Odd news comes out of the auto world all the time, and today is no different. After selling their shares of Suzuki, GM plans to develop hybrid vehicles with Suzuki in North America. Suzuki and GM both are lacking in thy hybrid department.
GM and Suzuki plan to develop a hybrid SUV in order to break into the American hybrid market. These two companies see the American Market heading into this direction. It is reported that their sport utility vehicles will have engine displacements around 3 liters.
Maybe this is a sign that GM is finally catching on, but why did they choose Suzuki? I’m not sure, but I hope that everything goes well and they’re able to break into the American auto market and combat Toyota.
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