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Manufacturers are quickly reducing vehicle production, i.e. employment, from Tokyo to Detroit and beyond. (cleanmpg.com/forums/showthread.php?t=18941)

http://www.cleanmpg.com/photos/data/501/2009_Ford_F150_Production_Line_in_KS.jpgWayne Gerdes – CleanMPG (clanmpg.com) – Jan. 22, 2009

2009 Ford F-150 production line in Claycoma, MO is running at reduced capacity until market conditions improve.

Beginning in 2005, the US automobile marketplace began its decline and is now accelerating to a level not seen in 27 years as the worsening US economy continues to decimate automobile demand.

One of the key contributors is housing prices. As housing prices declined, the ability to tap home equity for a larger or even second discretionary automobile purchase has been eliminated. The high cost of fuel last summer reducing the sales of the industry's most profitable vehicles is yet another reason for the severe decline in both sales and profits.

Layoffs

And the final blow is now occurring. A recent news report revealed that over 50,000 jobs were going to be cut in a single day in industries ranging from software and banking to pharmaceuticals and aircraft manufacturing. This is on top of the hundreds of thousands of automobile industry positions that have already been shed. Together, the job losses are leading to the inability for many to purchase any vehicle and scaring those still gainfully employed to cut back on discretionary and in some cases, non-discretionary purchases including replacement automobiles.

With 2008 US automobile sales reaching just 13.2 million vehicles and the possibility of another 30-percent sales decline from last years already distressed levels, Detroit’s future looks grim. In other words, some manufacturers will not survive.

Recent year over year US Automobile sales results

2003: 16.7 million
2004: 16.8 million
2005:16.9 million
2006: 16.5 million
2007: 16.1 million
2008: 13.2 million
2009: est. from 10.1 to 12.0 million

GM is currently borrowing over $1 billion a month through the Government bailout loan program just to stay afloat. Chrysler’s demise, whose sales were off over 50 percent in December alone, is close at hand. Is there anything left that can be done?

Around the world, the same factors that are ratcheting down automobile demand in the US are affecting overseas markets as well.

What can be done

Fortunately, most of the major foreign automobile manufactures are cutting hours and shifts and not employment yet.

Audi has decided to institute a phase of reduced work hours for six days between February 20 and 27 at its Ingolstadt and Neckarsulm plants. The arrangement affects some 25,000 employees. Divisions that are not directly associated with the production of automobiles are exempted from the reduced work hours.

Despite the fact that Audi concluded 2008 with the sale of one million cars and a new sales record, the company will not be able to permanently elude the negative impact of the current financial crisis.

“The overall demand in some major markets has dropped so drastically, especially in the last few weeks, that we’ve been forced to act,” said Dr. Werner Widuckel, Member of the Board of Management for Human Resources at AUDI AG. “This is our way of reacting to the downward trend in demand on worldwide car markets. By reducing work hours we’re securing the jobs of employees and can be confident of having good prospects for the future,” Widuckel emphasized. He added that the company is holding to its long-term targets for growth and is continuing its model initiative as planned.

How the German Unions work

“The works councils in Ingolstadt and Neckarsulm will be able to agree to the company’s proposal for reduced work hours,” said Peter Mosch, Chairman of the General Works Council of AUDI AG. He also emphasized that the reduction in work hours serves to secure jobs. “In the agreement on reduced hours compensation allowance, we agreed with the Board of Management on a gross increase in the reduced hours compensation. Through this, remuneration should for the most part be equalized.”

Norbert Rank, Chairman of the Audi Works Council in Neckarsulm, added: “To avoid burdening the time accounts of our workers any further, the works council is supporting the recommendation of the company management for reduced work hours. We expect the management to step up its efforts to secure jobs at our locations.”

BMW is responding to ongoing market weakness with selective short-time work schedules. The company has been able to adjust production to weaker demand while at the same time safeguarding jobs. Greater use of sabbaticals, flexible deployment of employees within the BMW Group's production network and the layoff of temporary workers is helping to save the full-time positions previously in place.

A total of approximately 26,000 employees will work short-time on certain days during the months of February and March (Dingolfing 15,000, Regensburg 8,000, Landshut 2,700, Berlin 190).

Even working short-time, the net income of employees with contracts in place will amount to at least 93% of regular pay.

"Safeguarding jobs - even in difficult times - by using a broad range of flexibility instruments has always been one of our key strengths," said Harald Krüger, Human Resources Director of BMW AG, on Tuesday in Munich. "Our wide variety of work schedule models helps us to achieve that. In addition to these measures we are also using a sophisticated combination of flex-time accounts, proactive leave planning and temporary short-time working at specific plants. I am confident we will emerge from the current difficult situation stronger than before - not least as a result of these measures. The highly-qualified employees we are able to retain today will give us a decisive competitive edge in the future."

Chrysler continues to struggle with the ongoing automobile market meltdown and is planning additional adjustments to production schedules at its North American manufacturing operations as conditions merit.

Currently, Chrysler will be extending shutdowns an additional week at three plants. Belvidere (Ill.) Assembly Plant, Sterling Heights (Mich.) Assembly Plant and Toluca (Mexico) Assembly Plant employees will return to their jobs on Jan. 26.

Other previously announced exceptions include Chrysler’s Toledo (Ohio) North Assembly Plant and Supplier Park (return to work date: Jan. 26) and Windsor (Ontario, Canada) Assembly and Conner Avenue Assembly plants (return to work date: Feb. 2).

Workers at the rest of Chrysler’s 23 plants are expected to return to work on Jan. 20 (Jan. 19 for Canada and Mexico employees). Select workers at the company's powertrain, stamping and component plants will be contacted by their respective human resources group to confirm if they are to return to work on either Jan. 20 or Jan. 26.

Honda is reported to lay off at least 3,100 temporary employees in Asia beginning March of 2009 to cope with its current production and employment overcapacity. It is unknown what other production and employment adjustments Honda will make in the near future but with an 8.2 percent fall-off for the 2008 model year and a 36.7% fall-off in December sales, more layoffs and idling are sure to be announced if negative sales conditions continue to occur.

Mazda is adjusting its Japanese vehicle production which reflects the rapid declines in global market conditions. To date, Mazda has announced it is implementing the following measures to decrease overall production.

The Hiroshima Plant suspended operations on December 25-26, 2008. This is in addition to the prior announcement that Mazda would suspend operations at its Hofu Plant for the same two days.

Night shift operations at the Hiroshima and Hofu Plants will be suspended throughout all of January, 2009. Although no decision has been made about operations after February 2009, matching production levels to prevailing market conditions dictate drastic cutbacks.

In February and March 2009, the Hiroshima Plant’s Ujina Plant No.1 (U1) and the Hofu Plant’s Hofu Plant No.1 (H1) will resume night shift operations.

In February, the Hiroshima Plant’s Ujina Plant No.2 (U2) and the Hofu Plant’s Hofu Plant No.2 (H2) will switch from a two-shift (day/night) production system to a single shift with the night shift suspended.

The Hiroshima and Hofu plants will suspend production on Fridays in February and March.

With the implementation of these measures, employees that have been working biweekly shifts in January due to suspended production will commence a four-day workweek in February and
March.

Toyota is reducing North American production by scheduled additional non-production days at several of its North American manufacturing facilities over the next few months in response to high inventory levels caused by slow industry sales.

“This is a tough environment, and it may continue for a while. We are making responsible business decisions now in order to sustain our business over the long term,” said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “In addition to slowing production we are redoubling efforts to cut costs at each of our facilities. Further actions and sacrifices may be necessary, but we will continue to do everything possible to assure the viability of our plants and protect the long term employment security of our team members.”

Non-production idle days are not just affecting Toyota’s FSP’s but also its hybrid and fuel efficient hybrid production. As an example, the following list shows the vehicles and the number of day’s production lines will be silenced through the beginning of April.
Camry/Avalon KY - 17 days
Camry/TCH/Venza KY - 12 days
Sequoia IN - 17 + days
Sienna IN - 29 days
Corolla CA - 18 days
Tacoma CA - 25 days
Corolla/Matrix Canada - 17 days
RX350 Canada - 5 days
Rav4 Canada - 5 days
Camry IN - 4 days
Tundra TX - Single shift vs. three and 3 Days
Camry IN - 3 days
VW is scheduling five days’ of under 8-hour work days for some production lines from February 23 – 27. The arrangements affect approximately two-thirds of the 92,000 employees in Germany. Research and Development will not be affected.

Jochen Schumm, Head of Human Resources Germany at Volkswagen AG, commented: “Volkswagen operates a highly flexible working system across the Group. We are now also making use of a five-day short-time working period. This temporary curb in production marks the continuation of our systematic and disciplined approach to bringing production capacity into line with demand.”

Full-time work will resume with the night shift on Sunday, March 1 and continue on the regular three-shift basis if market conditions warrant.

In short, the manufacturers are doing what they can to keep their employees under their umbrella but until market conditions improve, the real layoffs could begin at anytime as they have in the US for the domestic auto workers for years.

I'm pretty sure the Claycomo, MO Ford plant builds the Escape Hybrid as well. Maybe that could pull up a little slack.

It will be an interesting year ...

Hi All:

Audi has decided to institute a phase of reduced work hours for six days between February 20 and 27 at its Ingolstadt and Neckarsulm plants. The arrangement affects some 25,000 employees. Divisions that are not directly associated with the production of automobiles are exempted from the reduced work hours.

Despite the fact that Audi concluded 2008 with the sale of one million cars and a new sales record, the company will not be able to permanently elude the negative impact of the current financial crisis.

“The overall demand in some major markets has dropped so drastically, especially in the last few weeks, that we’ve been forced to act,” said Dr. Werner Widuckel, Member of the Board of Management for Human Resources at AUDI AG. “This is our way of reacting to the downward trend in demand on worldwide car markets. By reducing work hours we’re securing the jobs of employees and can be confident of having good prospects for the future,” Widuckel emphasized. He added that the company is holding to its long-term targets for growth and is continuing its model initiative as planned.

How the German Auto Unions work

“The works councils in Ingolstadt and Neckarsulm will be able to agree to the company’s proposal for reduced work hours,” said Peter Mosch, Chairman of the General Works Council of AUDI AG. He also emphasized that the reduction in work hours serves to secure jobs. “In the agreement on reduced hours compensation allowance, we agreed with the Board of Management on a gross increase in the reduced hours compensation. Through this, remuneration should for the most part be equalized.”

Norbert Rank, Chairman of the Audi Works Council in Neckarsulm, added: “To avoid burdening the time accounts of our workers any further, the works council is supporting the recommendation of the company management for reduced work hours. We expect the management to step up its efforts to secure jobs at our locations.”

___Good Luck

___Wayne

I wonder how many other industries are (or should be!) doing this type of cutback to preserve jobs?

Hi All:

___And the slowdown continues...

Toyota takes further measures to reduce North American Production

Erlanger, Ky. – Toyota yesterday announced they will be implementing additional measures at its North American manufacturing plants designed to further reduce production in the midst of the worst automotive slump in decades. The new actions are consistent with the company’s philosophy of making every effort to protect jobs during the sales downturn.

“We’ve taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,” said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term.”

In previous moves, TEMA:
scheduled periodic non-production days as needed, but protected jobs by providing training and plant improvement activities;
established a hiring freeze;
eliminated overtime;
suspended capital spending.
But the ongoing downturn necessitates additional steps:
some additional non-production days in April, varying from plant to plant;
strong possibility of reduced work/pay weeks, known as “work sharing,” at some plants. Production team members at affected plants would work and be paid 72 hours instead of 80 during the two-week pay period;
executive and salaried bonuses eliminated;
executive pay cuts;
production team member bonuses reduced;
voluntary exit program for team members who wish to pursue other opportunities;
no wage increases for the foreseeable future.
___Good Luck

___Wayne

I wonder how many other industries are (or should be!) doing this type of cutback to preserve jobs?

Well, I'm just a tiny fish. I chose not to license 1 of the two tractors this year, hoping to sell it later when? freight flows a little better. Now I've suspended the insurance on the other tractor (my dad) because demand is too slow and rates won't support it. I'm VERY glad that I have no debt on my tractors or trailers. My most profitable customer starts shipping at the end of April, so I'll activate the insurance again for my dad, and rent a tractor for myself. My worry is whether the customer makes it. Six weeks of hard running makes for lots of expense, I don't look forward to sweating out getting paid.

Right now I hire myself out to an LTL Trucking company to do pick up and delivery in their tractors. They've kept me busier than I wanted to be until about four weeks ago. Even with their roster one driver short, and another one out with long term illness, I sit at home. Not complaining, just anecdote of slow economy.

Keith

Hi Keith:

___I hope it improves for you in the very near future. I am just not seeing a turnaround yet???

Economic Conditions Require Short-time Work at Truck Production Plants in Germany

Short-time work will take effect at the Mercedes-Benz truck plants of Daimler AG. The short-time work is scheduled to begin after Easter, but by May at the latest. With this change the company is responding to the continuing weak demand and declining level of incoming orders related to current market conditions.

The very positive development in recent years had made it possible for the Mercedes-Benz truck plants to adjust to the falling level of orders and corresponding reduced production output by expiring temporary contracts, ending fixed-term contracts and using up the ample balances of well-stocked working time accounts. In the meantime, an extensive reduction of the working time accounts has created conditions for introduction of short-time work, which will primarily affect production and production-related areas.

Demand continues to be at a high level for special vehicles such as the Unimog and the Mercedes-Benz Econic, and for Mercedes-Benz and Setra buses. This is why the move to short-time work does not affect employees in these segments.

The specific terms and conditions of short-time work are subject to employee codetermination and specified by means of works agreements between plant management and labor councils at the locations. The works agreements are concluded on basic principles but not in details. The works agreements call for short-time work to initially be in effect until the end of the summer holidays in 2009. The detailed plans for the short-time working days are made together with the works council in correlation to the incoming orders on a monthly basis. From today’s perspective, approximately 18,000 employees at the Wörth, Gaggenau, Kassel, and Mannheim truck plants will be subject to short-time work or to shut down days.

Employees with positive working time accounts have to reduce these accounts first before they start with short-time work. For employees with negative working time accounts the arrangements for short-time work are effective right away.

Employees working short-time at the truck plants in Germany are subject to the same remuneration stipulations as are in effect in the Daimler AG passenger car plants in Germany. In Baden-Württemberg the remuneration is specified by the terms of the collective bargaining agreement for the metalworking and electrical industry. It allots a subvention from the company to the reduced remuneration and short-time work compensation. Daimler AG pays a supplement agreed within the company in plants located outside of Baden-Württemberg where such a regulation for supplements is not agreed in respective bargaining agreements.

Specific measures for each plant

Employees at the Mercedes-Benz plant in Wörth will be working short-time from May 4, 2009 likely until the end of the summer holidays in 2009. The preliminary indication is that about 7,500 employees will be on short-time work schedules. Employees working on production of special vehicles, e. g. in the assembly of the Unimog and the Mercedes-Benz Econic, are not subject to short-time work due to a high level of orders for these vehicles.

The Mercedes-Benz plant in Gaggenau is, among other things, Daimler Trucks’ worldwide supplier of commercial vehicles transmissions. Approximately 3,800 employees will be working short-time from April 22, 2009 until the end of the summer holiday in 2009. In addition, the location produces passenger car parts for Rastatt and for vans. Around 700 employees in these areas have already been working short-time since March 1, 2009.

Axles, transmissions and components for trucks, trailers, vans and passenger cars are produced at the Mercedes-Benz location in Kassel. About 1,300 employees in the truck areas will be working short-time from April 14, 2009 likely until August 31, 2009. In the van-related areas 550 employees have been working short-time since March 1, 2009.

The Mercedes-Benz truck plant in Mannheim produces engines. From April 6, 2009 short-time work will be in effect for roughly 3,500 employees, with the short-time period initially expected to end in September, 2009. The employees of the Competence Center for Zero Emission Commercial Vehicles at this location and the employees of the Mercedes-Benz bus plant in Mannheim are not affected by any short-time work measures.

Hi All:

___Another :(

Mazda to Make Further Adjustments to Production System in Japan

As part of the emergency measures implemented by Mazda Motor Corporation, progress has been achieved in optimizing inventory levels. Mazda has therefore announced it is taking the following actions in Japan during April 2009:
Hofu Plant No.1 and Hofu Plant No.2 will resume production on Fridays.

The Hiroshima Plant’s Ujina Plant No.1 and Ujina Plant No.2 will have production on the first and second Fridays in April (April 3 and April 10).
Previously, Mazda suspended production on Fridays at all of its plants in Japan in February and March.

Mazda will continue to manage inventory levels and maintain an appropriate balance in production supply, monitor market conditions that are changing daily, and respond swiftly with appropriate measures as necessary.

Volvo avoids notices by reducing personnel costs

Volvo signed a unique agreement with the local unions which most probably means that the company can avoid further employee separations. The agreement means that all employees - both white collars and blue collars - will contribute to lowering personnel costs in the company during 2009 through, for example, postponed salary revisions. The cost savings also include the company's top management.

"We are in an extreme situation with a continuing weak global market for new cars, especially in the US and Sweden, and we need to take action to further reduce our costs," says Stephen Odell, President and CEO of Volvo Car Corporation.

After last autumn's cost reductions Volvo Car Corporation has reached an acceptable balance and is now taking further measures to retain competence in the company and to enable maximum efficiency for when the market situation begins to improve. These measures will provide a saving of close to 500 million SEK (approximately 50 million USD) in 2009. In addition, a reduction of production volumes is planned in both Gent and Torslanda to meet the current market situation.

The agreement, valid from April 1 to December 31 2009, includes the following measures:
The company's salary revision is postponed until January 2010 for all employees, and corresponds to approximately half of the total saving.


The so called "Work time compensation" (ATK- arbetstidskompensation) is reduced by approximately 1.5 hours/week for all employees between April 1 to December 31 2009.


The company's 40 highest ranked managers including the executive management team will reduce their salaries by 5 percent from April 1 to December 31 2009.


No bonus will be paid to employees (including managers) in 2009 and 2010.
To handle the decline in order intake, the agreement also contains up to 45 lay off days during 2009 for employees in production. A salary reduction of 15 percent will be made for each of the lay off days. This means a reduction of the monthly salary of up to 5 percent. The number of lay off days varies from each plant in Göteborg, Skövde, Floby and Olofström.

"This is a unique agreement," says Stephen Odell. "We are in a unique situation and need to take extraordinary measures to improve the competitiveness of our business. We have had a good and open dialogue with the unions. This agreement we all believe is a good model to secure our business and avoid further employee separations at the present time," he concludes.

Hi All:

___Although most within the auto manufacturing industry are hit from all sides, there is a ray of hope... At least with Audi emplooyees are concerned! I should have made a News item about this instead...

Audi employees buck the indutry

http://www.cleanmpg.com/photos/data/2/European_Union_Flag.jpg The Four Rings is a company you wanted to to work for in 2008. (cleanmpg.com/forums/showthread.php?t=18941)

Ingolstadt, Germany - Audi’s outstanding profitability in 2008 is paying off for the roughly 43,000 wage-scale employees at its German plants in Ingolstadt and Neckarsulm. This year the company is distributing €230 million to its employees.

“An attractive employer translates the success of the company into success for its employees,” said Dr. Werner Widuckel, Member of the Board of Management of AUDI AG for Human Resources. “Especially in times like these, the dedicated work of each individual employee contributes to the success of the company and helps secure jobs.”

At the companies Annual Press Conference, Audi announced the highest profit from operating activities in the history of the company at $3.56 Billion USD. Ten percent of the operating profit over a threshold of $1.54 Billion USD will be distributed to employees in May of this year for this profit-sharing component alone. This amounts to an average of $4,623 per employee.

“The terrific effort of the team during Audi’s record year in 2008 has paid off,” said Peter Mosch, Chairman of the General Works Council of AUDI AG. “The Audi story of success is the story of the success of the employees whose work for the company has in all areas been marked by motivation, dedication and self-confidence.” It is now particularly important that we emerge from this crisis onto the automotive market as a stronger and more competitive company, with new models and a motivated workforce. This will provide long-term security for the jobs at the plants, as well as for the company’s success, and therefore for profit-sharing as well.

With additional bonus levels per contract agreements, Audi will reward the performance of the employees this year with an average bonus of $6,807 USD, maintaining the level of the previous year.

Despite the problematic economic situation, Audi is sticking to its plans to invest $2.56 Billion USD per year in new products alone. At the same time, the carmaker will continue to invest in its employees, with plans to hire 300 new experts in 2009. “By doing this we are specifically strengthening new fields of innovation in the area of Technical Development and in Production,” Widuckel said.

“In the area of skilled personnel, we will do more than just maintain the level of 682 traineeships – this year we will in fact enable 40 additional young people to train at Audi,” he emphasized. “Audi is holding to its practice of training and continued education for its employees.” To be equipped for the challenges of the future, the skills of employees must be continuously developed – from the start of training all the way to retirement.

Hi All:

___Ford of Europe is readjusting its production capacity with rescheduling, closures and possible layoffs as well...

http://www.cleanmpg.com/photos/data/2/European_Union_Flag.jpg Ford of Europe making more production adjustments. (cleanmpg.com/forums/showthread.php?t=18941)

Cologne, Germany -- Ford of Europe today confirmed that, due to the unprecedented decline in the European new car market and the continuing negative economic outlook, it is taking further decisive actions to bring its production capacity in line with significantly decreased industry demand.

In addition, Ford of Europe is realigning its sourcing plans to meet its future business needs, given that demand is unlikely to improve significantly in the European market for some considerable time.

"Cutting capacity, reducing costs and safeguarding our future product plans are essential actions for Ford of Europe to sustain a viable business for the future," said John Fleming, Ford of Europe Chairman and CEO. "We have already taken a number of actions but, as the market has continued to weaken substantially, we are now taking additional necessary actions."

The actions announced today primarily affect Ford's manufacturing operations in Germany and Spain, and at its new manufacturing facility in Craiova, Romania:
The Valencia Plant in Spain will move to a two-shift pattern from 1 May. Further discussion is continuing with all parties on how to manage the surplus labour in the short-term. Longer term, two-shift versus three-shift working will depend on market demand.


Current Fiesta production will continue at Valencia, and Ford Focus production will be replaced by production of the next-generation Ford C-MAX.


In addition, from later this year, Valencia will produce a new 2.0-litre version of Ford's EcoBoost petrol engine.


Saarlouis Plant in Germany will continue with its current down-time plan. The current labour level will be reviewed on a regular basis to determine if it is sustainable.


Saarlouis is confirmed as the lead plant for all derivatives of the next-generation Ford Focus. The current Ford Kuga and Ford C-MAX models will not be replaced there when production ends at the plant.


Cologne Engine Plant will share with Ford's Craiova Engine Plant the production of a new, small-displacement EcoBoost advanced petrol engine.

Approximately 7,500 GM Hourly Employees Participate In Attrition Program

http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg Program Adds to Progress Made Toward GM's Viability Plan. (cleanmpg.com/forums/showthread.php?t=18941)

http://www.cleanmpg.com/photos/data/501/GM_Logo2.jpgWayne Gerdes – CleanMPG (cleanmpg.com) – Mar. 26, 2009

GM asking employees to go for its very survival.

Detroit, MI -- GM continued to make important progress on its restructuring plan by announcing approximately 7,500 of its UAW-represented employees have decided to take advantage of the company’s attrition program. Most of the employees participating in the program will leave the company no later than April 1, 2009.

GM will fill job openings with current employees whenever possible, as spelled out in the provisions of the GM-UAW National Labor Agreement. In facilities where new employees are needed, GM will hire individuals at the entry-level wage and benefit structure. The extent of the new hiring at each facility will be determined on a plant-by-plant basis.

“These employees have many years of dedicated service to General Motors and I’d like to personally thank them for all they have done for the company,” said Gary Cowger, Group Vice President Global Manufacturing and Labor Relations.

“This is another example of GM’s commitment to execute our Viability Plan. There is still much to do, but the Special Attrition Program, along with the many difficult but necessary actions we have taken in recent months will help ensure the long-term viability and future success of General Motors.”

Cowger noted that the UAW has been an important partner in GM’s ability to make changes to its business model. “And with the recently negotiated changes to the 2007 agreement, we will further improve our long term viability,” he said.

In 2006, approximately 34,000 hourly employees left the company through a Special Attrition Program and in 2008, another 19,000 hourly employees did the same. Today’s announcement brings the total hourly reduction to just over 60,500.

Honda is staying ahead of the curve the best that they can...

Honda to Delay Start of Operations of New Auto Plant in Yorii

Tokyo, Japan -- Honda yesterday announced plans to delay the start of operations of a new auto plant which is currently under construction in Yorii, Saitama.

The start of operations of the new auto plant in Yorii was initially scheduled for 2010; however, a delay of more than one year was decided in December 2008 due to the global market slowdown which began in the latter half of last year. As there is no sign of market recovery on the horizon, Honda decided to delay the start of operations for at least one more year.

The new auto plant in Yorii will employ various advanced technologies to establish high-quality and highly-efficient manufacturing systems and will be responsible for sharing such technologies to other Honda operations worldwide. Honda will further advance manufacturing technologies in Japan and, once the new engine plant in Ogawa and the new auto plant in Yorii become operational, refine automobile technologies which will support the next 100 years of automobile industry.

In addition, the new auto plant in Yorii will strive to become a resource/energy-recycling Green Factory which will improve resource/energy efficiency to significantly reduce the amount of CO2 generated to produce each vehicle.

Is all this slow down a surprise to anybody with half a brain cell. Lets see,,, are the car company's building junk or are they use to folks trading cars like they change there underwear.

I've been guilty of buying cars like I change my underwear in the past. And I've also been force to buy more cars than I wanted to replace GM junk. All of which had warranty issues before I could get them home after purchase.

I think its a double edge sword.

Hi All:

___The suppliers are having a tough time as most know and this is one of the latest from what appears to be a profitable company. That being Michelin.

BFGoodrich tire manufacturing plant in Opelika, Ala. to close

Opelika, AL. -- Michelin North America announced a restructuring plan for its manufacturing operations in response to the unprecedented drop in market demand. The company will close its BFGoodrich Tire Manufacturing plant in Opelika, Ala. by Oct. 31, 2009.

The decision comes in the wake of the continuing economic crisis as consumers are driving fewer miles, purchasing fewer vehicles and delaying tire replacement purchases. The dramatic drop in market demand has created significant overcapacity in the North American tire markets that Michelin does not expect to rebound in the near term. According to the Rubber Manufacturers Association, North American tire sales volume is expected to decline for the second year in a row in 2009.

“Business decisions that directly impact the lives of our employees are extraordinarily difficult,” said Dick Wilkerson, chairman and president of Michelin North America. “This action is necessary, however, for the long-term health and competitiveness of Michelin North America. In this crisis, there is no more business as usual.”

The BFGoodrich Tire Manufacturing facility in Opelika, Ala. produces BFGoodrich and Uniroyal brand passenger car tires. It currently employs approximately 1,000 wage and salaried workers. Michelin will consolidate production at the BFGoodrich Tire Manufacturing facilities in Tuscaloosa, Ala. and Ft. Wayne, Ind.

The decision ensures the company will be better able to fully utilize the capacity of its remaining Michelin and BFGoodrich facilities in North America, accelerating work already under way to reduce costs and improve competitiveness. The company’s strategy is to manufacture in the markets where its tires are sold. More than 85 percent of the tires Michelin sells in North America are manufactured in North America.

The company will work with appropriate government agencies, communities, and the United Steel Workers union to help make the transition for all affected employees as smooth as possible, including providing separation pay and other benefits...

___Good Luck

___Wayne

See??? Higher tire pressure does make tires last longer!!!

;)

What I'm hearing from the first baby boomers is the days of two cars is over when they retire. This is coming from almost everyone I know that are coming up on retirement.

Just like 2003 was the last big year for the purchase of second homes. The baby boomers are done buying homes. The number of consumers behind them will not be able to make up for their spending.

Hi ALS:

___So true... I am trying to convince my parents that (2) vehicles going nowhere is more expensive than (1) car going nowhere. They have a Yukon and VW Bug in the garage and with my dad now in his 70's, his driving days are coming to an end. They both believe they “may” need the Yukon to haul stuff at some point and I told them it has already depreciated from $33K to maybe $7K over the last 5-years and has all of 18,000 miles on it while hauling nothing but luggage back and forth to the airport.

___When the new Prius-III arrives, I am hoping they will see the light and use it for hauling as well as an occasional trip to the store or church and get rid of both the GMC Yukon and the VW Bug.

___The amount of $'s going out just to insure both vehicles is ridiculous as well!

___Back on topic a bit... I was speaking with a marketing manager at Honda just two days ago and their salaries have been reduced in commensurate with the market downfall. I bet Honda will make this up to them if the market picks back up but there is pain being felt by not just the guys on the line but the salaried employees all the way to the exec’s. Of course the Exec’s at 100 or more times the average line workers wage being cut by 50% means they have to forgo their new 75’ Yacht this year. So much pain those high paid exec’s must be feeling :rolleyes:

___Good Luck

___Wayne

Hi All:

___Chrysler layoffs pilng up in the State of IL.

Illinois Belvidere Assembly and Satellite Stamping Plant update

Auburn Hills, MI. -- Chrysler today announced that the Belvidere Assembly Plant and Belvidere Satellite Stamping Plant (Belvidere, Ill.) will move from a shift-smoothing schedule to a traditional one-shift operation. The shift-smoothing process enabled employees from the first and second shifts to share work as a one-shift operation while working a one-week work/one-week layoff practice.

While the facility moves to a traditional one-shift operation, volume production remains the same.

Approximately 992 employees will be placed on indefinite layoff which will take effect July 27, 2009. Chrysler will work closely with the United Auto Workers union to manage these changes in a socially responsible manner. All employees at these facilities are also eligible for a special buyout program which was extended to Tuesday, May 26, 2009. All separations and retirements may occur at the Company’s discretion on or before May 27, 2009. Currently, the plant is temporarily idled.

The Company will continue to monitor economic indicators as it develops its future operating schedule.