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Mercedes cutting production in AlabamaAs consumer demand for thirsty vehicles continues to wane, Mercedes-Benz is being forced to slow production at the Alabama plant which manufactures their GL- and ML-Class SUVs and the R-Class crossover. Sales of Mercedes domestic trucks fell to 5,090 vehicles in June, representing an 11.9 percent decline from the same period last year. The move marks the first time in more than a decade of U.S. production, that the German automaker has reduced output due to market and economic conditions. The cuts will affect more than 4,000 of the plant's employees, and unfortunately will trickle-down to hurt the countless other companies who provide just-in-time components to support Mercedes production.
posted : 8/7/2008 @8:19:05 PM

Honda cuts Odyssey and Pilot production; makes room for more Civics

Honda has got to be happy that it has a hot selling compact car to take some of the pain out of the slowing minivan and SUV markets. Hurt by the sky-high price of gasoline, both the Odyssey and Pilot, both recently redesigned, are sitting on dealers lots longer than Honda would like. In order to match production with consumer demand, Honda will close its plant in Lincoln, Alabama for two days next month and cut second shift production at the plant every Friday in August through October. Displaced workers can choose to take either unpaid time off or use paid vacation leave. Some of that unused capacity will be taken up by the Ridgeline, which will now be assembled at the Lincoln plant instead of in Ontario where it is currently being built.

The Civic, on the other hand, will see its production boosted at the East Liberty, Ohio plant and in Alliston, Ontario, where capacity will be available due to the Ridgeline's departure. Score another point for Honda's modular manufacturing techniques.

posted : 8/7/2008 @5:04:35 PM
Next Volkswagen Passat could be built StatesideFollowing-up on last week's announcement that Volkswagen was looking at Alabama for a new manufacturing facility, the German automaker's management board is expected to make their final recommendation today. Following that announcement, Volkswagen's supervisory board, headed by former VW group CEO Ferdinand Piech, will make its decision by tomorrow. Whether Huntsville, Alabama, or second-choice Chattanooga, Tennessee, gets the nod, the move is key for Volkswagen as they attempt to increase sales in the United States with more targeted, and lower priced, vehicles. In addition to the Volkswagen Jetta (itself being redesigned to better compete with the Honda Civic) the new facility will produce an all-new Passat-sized sedan with a base price of about $20,000. Larger, in order to compete with the Toyota Camry, the new sedan would undercut the current Volkswagen Passat's pricing by about $5,000--a significant margin. The plant would open in late 2010 with an annual production capacity of nearly 250,000 vehicles.
posted : 7/15/2008 @1:17:23 AM
Volkswagen looking at Alabama for new plantVolkswagen's management will meet tomorrow to refine plans to expand automobile production into the United States. While a final recommendation isn't expected until July 15, Alabama appears to be the front runner (over second-choice Tennessee) to receive the $788 million plant that will initially build the Volkswagen Jetta sedan and an all-new Passat-sized sedan. VW is also rumored to be considering production of a long-wheelbase version of the Volkswagen Tiguan and the Audi's Q5 on our shores. Volkswagen isn't the only German automaker to announce manufacturing expansion in the United States this year. The falling value of the dollar has also encouraged BMW to increase U.S. production in Spartanburg, South Carolina.
posted : 7/8/2008 @11:04:48 AM
VW decision on U.S. plant in July, sorry MichiganThe large disparity between the value of the Euro and the U.S. dollar has given European automakers incentive to build plants Stateside. VW has been looking for the location of its next North American plant, and it appears as though we'll have an answer by July 8. Tennessee and Alabama are said to be the two major candidates for the $788 million facility, which could come online as soon as 2011 and produce 300,000 units per year by 2018. Word from Auto Motor Und Sport is that Michigan is completely out of the picture, and considering the state's history with the UAW and Volkswagen's white collar exit from the mitten, the news isn't all that surprising, though certainly disappointing for the depressed state. There is no word at this point which vehicles VW is planning to build at the new plant, though the German automaker will likely creately a flexible manufacturing facility that can build several vehicles on one line.
posted : 7/1/2008 @3:28:44 PM
Honda shuffles production so it can make more CivicsAs domestic automobile manufacturers cut production and lay off workers because they were caught off-guard when consumer buying habits switched to more fuel-efficient vehicles, Honda will effortlessly shuffle its production to meet U.S. demand for small cars. Without cutting any jobs in North America, Honda will move assembly of the Honda Pilot SUV and Honda Ridgeline pickup from Alliston, Ontario, to Lincoln, Alabama. This move will allow the Japanese automaker to increase production of the fuel-efficient Honda Civic in its Canadian plant. Later this year, Honda is expected to add another 2,000 jobs as it begins to build Civics in Indiana, as well. That plant will be Honda's seventh in North America. Honda has sold 34,163 units of the Civic in North America through April of this year, which is 8.2% more Civics sold on average per day than in 2007. For comparison's sake, Toyota has sold 32,435 Corollas, Ford has sold 23,850 Foci and Chevy has sold 18,636 Cobalts so far this year.
posted : 6/2/2008 @6:22:24 PM
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