The companies which have acted as suppliers for Chrysler are starting to feel the crunch as some of them are now closing down. Cummins Inc. today announced a number of job actions affecting its manufacturing operations in Southern Indiana. The Company is temporarily closing the Columbus MidRange Engine Plant (CMEP) in Walesboro, just outside Columbus, as a result of Chrysler’s decision last week to idle its manufacturing operations while it undergoes bankruptcy reorganization.

CMEP is the sole manufacturing site for the 6.7-liter turbo diesel engine used in the heavy-duty Dodge Ram pickup truck. The plant will close effective May 15 and be down until Chrysler resumes pickup truck production.

Chrysler’s Dodge Ram manufacturing plant in Saltillo, Mexico, which closed Monday, is expected to be idle for at least four weeks and Chrysler has indicated that its entire manufacturing operation could remain closed for nine weeks or longer.

The shutdown affects a total of approximately 690 workers at CMEP. Cummins will layoff approximately 610 hourly workers – 560 members of the Diesel Workers Union and 50 members of the Office Committee Union. The Company plans to redeploy as many of the 80 exempt employees in the plant as possible throughout its Southern Indiana operations.

These job reductions are in response to further weakening demand for engines and components as a result of the global recession, and are consistent with our efforts to align manufacturing capacity and costs with that lower demand.

(Source) Press

Tags: bankruptcy filing, bankruptcy reorganization, cmep, cummins inc, demand source, Dodge Ram, exempt employees, global recession, indiana operations, layoff, manufacturing plant, midrange, nine weeks, ram pickup, ram pickup truck, saltillo mexico, southern indiana, turbo diesel engine, workers union

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The falling trend in the car industry continues and to sustain their business, expect some tire manufacturers to lower their prices to stay afloat as well. It is practically a chain reaction. With most car companies suffering from low car sales, the demand for rubber tires is likewise expected to encounter rough sailing.

Tire makers, the biggest consumers of rubber, could report a 6.8 percent sales slump in 2009 as the global recession cuts auto demand, according to the government-funded International Rubber Study Group in Singapore. Supplies from Thailand, the top exporter, will increase after a seasonal drop, producers say. Prices of $1,530 a ton are 18 percent higher than alternatives made from oil, data compiled by Bloomberg News shows.

Demand will drop because people are buying fewer cars and delaying the purchase of replacement tires. U.S. auto sales plunged 37 percent in March, and the annual rate fell to the lowest in more than 25 years in February, according to Autodata Corp. Japan’s sales tumbled 32 percent in March to a level not seen in more than three decades. U.S. vehicle miles traveled fell by 7 billion, or 3.1 percent, in January from a year ago, the Federal Highway Administration said.

(Source) Ohio

Tags: auto sales, autodata corp, car companies, car industry, car sales, chain reaction, federal highway administration, global recession, international rubber study group, more than three decades, ohio rubber, replacement tires, rough sailing, rubber industry, rubber tires, tire manufacturers, u s auto

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China may be the only country right now that is showing positive sign of life as far as the car industry is concerned. Hence, with that in mind, the Shanghai Motor Show officially opened in China to which carmakers are expected to unveil 13 new models.

China has just overtaken the US as the world’s largest car market, with buyers spurred on by government incentives. US and European car sales are sharply down in the global recession.

Porsche kicked off the show on Sunday night by unveiling the Panamera, the German luxury carmaker’s first foray into the sedan segment. In another world premiere on Sunday, German automaker Daimler AG unveiled the remodelled Mercedes-Benz S65 AMG sedan. AMG sales nearly tripled in China last year.

The company says it expects government incentives to give sales of luxury cars a major boost this year. Beijing has introduced tax cuts on fuel-efficient cars and incentives for people in rural areas to buy newer models.

Organizers say the Auto Shanghai 2009 will feature 13 launches, mostly from local brands, but up from five at the show two years ago.

Most Chinese carmakers have so far focused on competing mainly on price with basic and often rudimentary vehicles, leaving foreign-branded cars to sweep up the mid- to high-end segments.

The show opens to the public for a week starting on 22 April.

(Source) BBC

Tags: car industry, car market, car sales, daimler ag, foray, fuel efficient cars, german automaker, global recession, local brands, luxury carmaker, luxury cars, mercedes benz s65 amg, Mercedes-Benz, panamera, rural areas, shanghai, world premiere

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Toyota is not exempted from the declining car buying market as they found that out through figures on sales for their $64,000 Lexus LS sedan and $67,000 Lexus SC Coupe. Demand for the best-selling luxury car brand in the U.S. dropped 37 percent in the first quarter, led a 43 percent plunge in sales of the costliest car models. The company has sacrificed profit margins to stanch the decline.

Toyota had its first annual loss in six decades as the global recession decimates auto sales. Surging incentives at other luxury brands including Bayerische Motoren Werke AG, Daimler AG and Audi AG has forced the Toyota City, Japan-based carmaker to more than quadruple discounts on Lexus models in the last two years, according to Edmunds.com.

U.S. Lexus sales shrank 27 percent in Toyota’s fiscal year that ended March 31, versus a combined 23 percent drop for Toyota and Scion models. While the premium line accounts for 12 percent of Toyota’s overall U.S. volume, analysts estimate it has generated a much larger portion of profit.

(Source) Bloomberg

Tags: audi ag, bayerische motoren werke, bayerische motoren werke ag, car brand, car models, carmaker, daimler ag, down economy, edmunds, global recession, lexus ls, lexus models, lexus sc, line accounts, luxury brands, luxury car, profit margins, toyota city, toyota lexus

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Falling demand and the continued economic gloom are becoming the main factors that are pulling down car manufacturers to date. Volkswagen and BMW, both known for providing classy and luxury cars in the market with a hefty tag are feeling the effects of plunging profits as both announced a first-quarter loss and German rival BMW said earnings fell after it set aside money for potential defaults by car buyers as the global recession erodes sales.

Carmakers in Europe are likely to build 25 percent fewer vehicles this year as sales fall 20 percent because of the recession, the European Automobile Manufacturers Association estimated on March 5. Volkswagen is cutting 16,500 temporary jobs and restraining production. BMW eliminated 4,000 jobs last year and will trim a further 1,000 in 2009.

(Source) Bloomberg

Tags: automobile manufacturers, BMW, car buyers, economic gloom, Europe, european automobile, global recession, volkswagen

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A decline in sales and continued global recession placed the construction of two new Toyota plants on hold. The new plants that were supposed to be put up in Russia and Thailand were temporarily shelved until some improvement in car sales and the economy would occur.

Toyota already made it public that it is expecting a net operating loss at year’s end. To help cut down on costs, downsizing the global plants situated in key regions of the world had to be done.

Toyota’s car-making plant in Russia was put in operation on the 21st December of 2007. Encouraged by the growing number of Russian motorists favoring Toyota-made cars, the company eyed building another plant in Russia, though now it has to hold up its plans.

(Source) Russia IC

Tags: car sales, Cars, economy, global recession, motorists, Russia, Thailand, Toyota

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