Good morning! It’s Thursday, November 21, and that is The Morning Shift, your day by day roundup of the highest automotive headlines from all over the world, in a single place. Listed here are the vital tales it is advisable to know.
1st Gear: Trump’s Tariffs Would Be Unhealthy For America, Warns Mexico
In simply 60 days, president elect Donald Trump will likely be sworn in as chief of the US for a second time period. When that occurs, the convicted felon should begin delivering on all of the ridiculous guarantees he made on the marketing campaign path, just like the finish of an EV mandate that doesn’t exist, strict guidelines on imported vehicles from China and sky-high tariffs on virtually all the things that crosses the border from Mexico.
Within the days main as much as the election, Trump promised that he would strap a 200 % tax on imports from Mexico. Now, groups from south of the border have warned that this wouldn’t simply harm Mexican {industry}, it will be dangerous for American enterprise as properly, as Reuters reviews:
Economists have warned that such tariffs would quantity to a severe blow to Mexico’s export-dependent economic system and have warned of a lesser hit to the U.S. economic system.
“Mexico’s negotiation energy is related,” Mexico’s economic system minister, Marcelo Ebrard, stated at a press convention on Tuesday, pointing to the variety of multinational corporations which have arrange store in his nation.
“Any motion that you simply take to place in danger (the U.S.-Mexico commerce relationship) means 1000’s of firms” will likely be impacted, Ebrard stated. “There’s hardly an vital U.S. firm that doesn’t have cash right here.”
Ebrard recommended final week that Mexico may roll out retaliatory measures of its personal.
What these retaliatory measures may seem like stays to be seen, however the rapid problem going through automotive followers is the impression import tariffs could have on a few of America’s hottest fashions. Automobiles just like the Honda CR-V and Toyota Tacoma are all in-built Mexico and shipped north, a 200 % tariff on these would merely be handed onto customers that means larger costs throughout the board.
Then there’s the long-promised Mexican Tesla plant, which was imagined to massively enhance manufacturing capability for the electrical automotive maker. Tesla boss Elon Musk has remained fairly quiet on this one after his greatest bud was voted into energy, however lengthy delays, missed deadlines and damaged guarantees are all a part of the Musk playbook, so possibly that is simply enterprise as common.
2nd Gear: Ford Cuts 4,000 Jobs, Blames Weak EV Demand
Ford is about to grow to be the most recent in a protracted line of world automakers to backtrack on electrical car manufacturing and slash jobs after demand for its fashions was “weaker than anticipated.” The Blue Oval will observe the lead of Stellantis and Toyota in altering its outlook on EVs after it was revealed that it’s going to slash 4,000 jobs and lower manufacturing of fashions just like the Capri and Explorer.
Ford will lower jobs throughout its workforce because of financial challenges, stiff competitors within the EV area and weaker than anticipated gross sales of electrical vehicles, reviews the Related Press. The cuts will likely be carried out on the automaker’s services throughout Europe by the top of 2027:
Ford stated Wednesday many of the job cuts would are available in Germany and can be carried out in session with worker representatives.
Of the entire, 2,900 jobs can be misplaced in Germany, 800 in Britain and 300 in different European Union international locations. Ford has 28,000 staff in Europe, and 174,000 worldwide.
“The worldwide auto {industry} continues to be in a interval of serious disruption because it shifts to electrified mobility,” the corporate stated in an announcement. “The transformation is especially intense in Europe the place automakers face important aggressive and financial headwinds whereas additionally tackling a misalignment between CO2 laws and shopper demand for electrified autos,” the assertion stated.
In addition to chopping its workforce, Ford can even scale back its give attention to new electrical fashions destined for Europe. Working hours at a Ford plant in Cologne will likely be lower, which is able to impression manufacturing of the European Explorer SUV in addition to the revived Capri, which is because of hit the street in early 2025. Ford hasn’t confirmed what this may imply for Capri deliveries by way of targets, but it surely’s by no means good to listen to about manufacturing cuts of a much-hyped mannequin that hasn’t even gone on sale but.
Ford isn’t the one automaker struggling to make EVs work in Europe, although, as Volkswagen just lately introduced that it could need to shut factories in an try to scale back its value amid the pivot to battery-powered vehicles. Stellantis has additionally confronted issues of its personal, repeatedly chopping manufacturing at a website in Italy that builds the Fiat 500 EV amid struggling gross sales.
If all the things from cutesy metropolis vehicles to household SUVs is struggling to promote in battery-powered type, do the issues with EVs run deeper than we first thought?
third Gear: VW U.S. Head Out, Changed By Porsche Boss
If potential manufacturing facility closures and warnings that it solely has just a few years left to run weren’t dangerous sufficient for Volkswagen, the German automaker has simply misplaced its U.S. boss after simply two years within the job.
Pablo Di Si, the pinnacle of Volkswagen within the U.S. has stepped down to get replaced by former Rivian and Porsche govt Kjell Gruner, reviews the Monetary Instances. The change in management comes as VW battles “lackluster outcomes” within the firm’s mission to win over new patrons in America:
“In Kjell Gruner, we have now introduced on board an skilled skilled who is aware of the market and prospects very properly,” stated group chief monetary officer Arno Antlitz.
Gruner, a former head of Porsche Automobiles North America, was most just lately chief industrial officer of Rivian, which has a software program three way partnership with Volkswagen.
Since taking up the helm of Volkswagen two years in the past, chief govt Oliver Blume has changed a number of division heads with folks he is aware of properly from Porsche, which he additionally heads. Gernot Döllner, who final yr took over premium model Audi, and Peter Bosch, chief govt of software program arm Cariad, each used to work on the sports activities automotive model.
The administration shake-up for the US, Mexican and Canadian markets comes as Volkswagen makes a renewed push to increase gross sales in North America to offset a pointy decline in gross sales in China.
The change in management comes as VW involves phrases with stagnating gross sales of its electrical fashions. The ID4 has bought simply 17,000 items to this point this yr, which is far decrease than the 100,000 capability of the Tennessee manufacturing facility the place it’s made. The ID Buzz has simply launched and it’s hoped the retro bus will reinvigorate curiosity in VW, but it surely takes greater than a brightly coloured bus to create a world-beating automotive model and VW is aware of that.
4th Gear: Stellantis Halts Italy Manufacturing But Once more
Stellantis has been struggling to take care of slowing gross sales, a CEO that’s on the way in which out and an inventory of disgruntled sellers that goes on, and on, and on. Now, the Fiat and Jeep proprietor has a bunch of indignant Italians to cope with too, because it’s simply introduced two new stoppages at crops it runs in Italy.
Stellantis will pause manufacturing at its Termoli engine plant and the Cassino auto manufacturing facility, reviews Automotive Information. Throughout the shutdowns, employees on the two services will likely be furloughed, as the positioning explains:
In two separate statements Nov. 20, Stellantis stated it knowledgeable unions a few pause in manufacturing on the Termoli engine plant on Dec. 16-22 and on the Cassino auto manufacturing facility on the day of Nov. 29. Throughout the stoppages, employees will likely be furloughed.
The automaker, whose Italian manufacturers embrace Fiat and Alfa Romeo, stated it was decided to “make sure the continuity” of its Italian operations, however famous it was going through “a difficult path requiring troublesome selections and providing no simple options.”
Stellantis is going through industry-wide challenges resembling low demand for dearer electrical vehicles and competitors from China. Additionally it is grappling with bloated inventories which have led it to chop revenue and cash-flow forecasts.
In Italy, it has repeatedly paused manufacturing this yr, together with at its historic Mirafiori plant in Turin, however in talks final week with the federal government and unions, it pledged to not shut factories within the nation or make mass redundancies.
Stelantis has already paused manufacturing at its Mirafiori plant twice this yr. The power in northern Italy produces the Fiat 500 EV in addition to two fashions for Maserati.
These actions have irked lawmakers in Italy, who’ve repeatedly known as on Strelltis to do extra to revive Italy’s manufacturing industries. Now, the Italian authorities has tasked Stellantis with presenting a “convincing and sustainable” plan of investments that may stop additional work stoppages and a rejuvenation of the nation’s auto {industry}. No biggie, then.
