• Skip to main content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

LAYOFFS

Crumbling Chevrolet Sonic Sales Leads to Layoffs

October 27, 2015 by admin 1 Comment

Small car segment battered by low fuel prices.

Orion Chevrolet Bolt.
Orion plant will begin production of the Chevrolet Bolt for 2017.

Arguably, Chevrolet has the strongest line up it has ever presented in the US market, with solid entries ranging from the full-size Impala to the diminutive Spark. Truck and SUV sales are a bigger factor than ever before, giving the bow tie brand a solid product line from top to bottom.

But not all models are succeeding as consumers continue to make the shift to trucks and SUVs, and at the expense of small cars. Indeed, sales for the subcompact Chevrolet Sonic have fallen by 35 percent year-to-date through September, after rising 9.2 percent in 2014. Gas prices trending toward $2 per gallon is one reason why sales have dropped.

Orion Township Layoffs

Plunging sales mean GM has had to rethink its production plans. To that end, workers manning the second shift at its Orion Township (Michigan) plant will lose their jobs in January. The plant makes the subcompact Sonic as well as the compact Buick Verano, the latter seeing its sales fall by 27 percent through September.

The Orion plant has benefited from $962 million in upgrades since 2010, including $405 million in the past year alone as the automaker readies production of the Chevrolet Bolt, a small pure electric model. The start of production for the new model is months away. In the meantime, GM must align both production and its workforce with demand.

Hamtramck Expands to Accommodate New Cadillac Model

As difficult as layoffs are in the auto industry, this one comes with a silver lining — affected workers will be able to transfer to the Detroit-Hamtramck Assembly plant 35 miles south of Orion. That plan will double its workforce in 2016 by adding 1,200 hourly and salaried jobs as it brings on a second shift. Hiring is currently underway and soon to be displaced Orion workers have an opportunity to find new jobs.

Hamtramck currently builds the Chevrolet Volt, Impala and Malibu as well as the Cadillac ELR on a single production line. Beginning early in 2016 it will start production of the all-new Cadillac CT6. Like Orion, Hamtramck has also received upgrades over the past six years to the tune of $1 billion.

Shrinking Chevrolet Sonic Sales

The Chevrolet Sonic, previously sold as the Aveo, is available as a 5-door hatchback or as a 4-door sedan. Introduced in 2012, GM has not announced plans for a new model yet. The automaker may be waiting out the market to determine if future demand warrants such an investment.

Other automakers appear to be in the same wait and see mode, including Kia with its Rio. Introduced in 2012, Rio sales have fallen nearly as much as the Sonic and are down 31 percent through the same nine-month period. Notably, Ford Fiesta, Honda Fit, Toyota Yaris, and Hyundai Accent sales are up for the year. In addition, the Scion iA, an all-new model introduced in September, is showing strong sales out of the gate.

New Buick Verano Planned

Orion’s other model, the Buick Verano, is coming to the end of its first generation run. An all-new model is slated to arrive in 2016 for the 2017 model year, a vehicle that shares its underpinnings with the Opel Astra and Chevrolet Cruze. The new Verano is already on sale in China where both a hatchback and GS editions are now offered. There is no word on whether the US market will receive either new edition.

Sales of another small GM car, the Chevrolet Cruze are also off year-to-date. However, a new model arrives in Chevrolet showrooms this fall, one that is expected to be more competitive in a segment led by the Toyota Corolla followed by the Honda Civic.


See Also — LA Auto Show Sneak Peek

Filed Under: Automotive News Tagged With: BUICK VERANO, CADILLAC CT6, CHEVROLET SONIC, Chevrolet Volt, DETROIT-HAMTRAMCK ASSEMBLY, GM, LAYOFFS, ORION TOWNSHIP

Fisker Automotive: Stick EVs With a Fork?

April 10, 2013 by admin 1 Comment

Fisker Automotive, builder of the Fisker Karma luxury sedan has been in the news lately, but certainly not for good reasons. The struggling plug-in hybrid electric vehicle producer appears headed for bankruptcy, making news again last week when it laid off more than three-quarters of its workers at its Anaheim, Calif., global headquarters.

Fisker Departure

The layoffs follow the resignation of co-founder and auto designer Henrik Fisker in March, reportedly over his disagreement with executive management on business strategy. That departure follows problems the company has had with its A123 Systems-supplied battery system as well as the loss of 338 cars during Superstorm Sandy last fall.

Fewer than 2,000 of its $100K+ sedans are in the hands of consumers today, with no deliveries made in the past nine months.

Fisker Karma
The Fisker Karma electrified vehicle.

WARN Act

For Fisker, the negative news cycle is only likely to spin faster as its laid-off employees sue the automaker for violating the federal WARN act. That law requires most employers with 100 or more employees to alert staff to an impending layoff or plant closing 60 calendar days in advance of any occurrence.

In a move that does not bode well for Fisker, the affected workers have hired the same law firm that defended former Solyndra workers as they take up their case against the company reports Road & Track magazine. The Department of Energy extended a $529 million loan to Fisker, although the company has tapped only $193 million to date; its first loan payment is due this month. As for Solyndra, the solar cell company received $535 million in federal loan guarantees from the Obama administration, but it went bankrupt and closed down in 2011.

EV Confusion

Once again, a company that has received federal government loan backing is in crisis. And once again you can expect critics to call for the end of government support for EVs, an industry that is often misunderstood or is at least portrayed too broadly.

Notably, the term EV is often associated with models that are not strictly powered by an electric motor such as the Nissan LEAF. You can blame policymakers and public relations folk for the confusion, as terms such PHEV (plug-in hybrid electric vehicle), HEV (hybrid electric vehicle) and FCEV (fuel cell electric vehicle) are placed under the greater EV umbrella.

The Fisker Karma is a PHEV, powered by a pair of electric motors and a 2.0-liter four-cylinder gasoline engine supplied by General Motors. The distinction between PHEV and EV is a clear one and especially apparent when you talk about driving range. Whereas the Nissan LEAF can travel only 80 miles or so on one charge, the Fisker Karma can go 50 miles on electric-only power before the gasoline engine takes over to extend its range.


See Also — About Lucid Motors


Stick it With a Fork?

Fisker’s pending bankruptcy will result in one of two actions taken: reorganization or liquidation. Either way, the US taxpayer loses. Reorganization may only be possible if a suitor steps forth Chinas Geely Automotive was interested earlier but has pulled out. Liquidation would require Fisker’s assets to be sold off, a corporate dissolution where one of its main creditors, the United States government, might recoup some money, but certainly not all of it.

Taxpayers on the hook for failed corporations is certainly fodder for critics, but not everyone thinks that EVs and other electrified vehicles should be automatically discarded because of the failed business models of the relatively few.

EVs Are Coming

Indeed, Mike Arman who is a gearhead and has authored various motorcycle books including What Fits What on Harley Davidson believes that electric vehicles are coming, and they are coming soon. The problem with EVs isn’t the idea, rather Fisker’s business model is what Arman says is screwed up. Arman also levies criticism of President Obama for making statements apart from the facts, noting that the president and most other politicians know nothing about electric cars other than they seem to have four wheels.

Said Arman about the inevitable transition to EVs, The only real hold-up is battery technology. As soon as energy density improves enough to even begin to approach gasoline’s energy density (and they will), people will abandon gasoline-powered cars and put them into museums. As soon as there is a better way, something more cost-effective than refined dead dinosaurs, people will abandon gasoline cars in favor of electric cars the way they abandoned typewriters for word processors.

CNG Instead

John Graves, author of Fracking: Americas Alternative Energy Revolution, believes that a completely different approach to energy independence should be taken: the development of compressed natural vehicles for public consumption. Natural gas is an abundant commodity, one that is under the control of Americans, not hostile foreign countries as oil is. Right now, the only CNG model available is the Honda Civic GX, although select heavy-duty pickup trucks from Ford and GM can be converted.

Graves notes that CNG models feature lower fuel costs, cheaper maintenance and a lower overall ownership cost. The higher acquisition cost can be offset in just a few years by fuel savings. Regarding consumer preferences Graves asks, Does the invisible hand of the marketplace trump the clumsy manacles of the government? Unfettered, Graves believes CNGs would win out.

Fisker Automotive

Although Fisker may not be the poster child for failed EV companies, its demise could make it harder for proponents to support a segment that clearly won’t reach the president’s goal of having 1 million EVs on the road by 2015. Instead, what we may have left is a handful of large corporations such as Nissan, GM, Ford, Honda and Toyota contributing various PHEV, HEV and FCEV models, with the upstart car companies out of business or their business models changed to supply the technologies that some other companies may still want. That may not be a bad conclusion either as capitalism, not government intervention, would determine winners and losers in this industry.

See Also — Multiple Controversies Shroud Fisker Karma Debut

Filed Under: Commentary Tagged With: A123 Systems, BANKRUPTCY, Fisker Automotive, FISKER KARMA, Henrik Fisker, John Graves, LAYOFFS, Mike Arman, WARN Act

Primary Sidebar

Recent Posts

  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis
  • Peugeot May Not Return to the U.S. Market After All

Recent Comments

  • Drive Dissection: 2017 Nissan Maxima SR — Auto Trends Magazine on From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Premium Nissan Maxima Sedan — Auto Trends Magazine on From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan — Auto Trends Magazine on Second Look: 2020 Nissan Sentra
  • Buying Guide: 2020 Kia Sedona — Auto Trends Magazine on Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • Highlights of the 2020 Kia Sedona — Auto Trends Magazine on Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008

Categories

  • Auto Parts
  • Auto Shows
  • Automotive Career
  • Automotive News
  • Book Reviews
  • Car Tips
  • Classics & Discontinued Models
  • Commentary
  • Commercial Vehicles
  • Concept Vehicles
  • Dealers
  • Engineering & Technology
  • Fleet
  • Fun News
  • Maintenance & Repairs
  • Motorsport
  • New Car Reviews
  • New Models
  • Ownership Experience
  • Product Reviews
  • Special
  • Specifications
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

New!
Check out our Jobs Board!

via GIPHY

Subscribe to Auto Trends

Subscribe in a reader

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

The Carolinian (new car reviews)
NAPA Know How Blog
On the Road Again

Pages

  • About
  • Authors List
  • Automotive Brochures
  • Contact
  • Industry Jobs
  • Write
    • Style Guide

Categories

Recent Posts

  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis
  • Peugeot May Not Return to the U.S. Market After All
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • GM Launches BrightDrop, Its Commercial EV Brand
  • The Refreshed and Handsome
    Lexus IS 350 F Sport
  • What We Know About the All-New 2021 Jeep Grand Cherokee L
  • The All-New and Formidable 2021 Nissan Rogue Crossover
  • Fuel-Efficiency and AWD Champion: 2021 Toyota RAV4 Hybrid
  • Midsize Performance Master: 2021 Hyundai Sonata N-Line
  • Performance Hatchback: The All-New 2021 Mazda Mazda3 Turbo!
  • NACTOY Finalists For 2021 Offer Familiar and Futuristic Choices
  • Super Trooper: Nissan Titan Pickup
  • Behind the Wheel of the Popular 2021 Toyota Corolla Sedan
  • Lucid Motors Completes Arizona Factory
  • A Robust Turbodiesel Comes to the Chevrolet Silverado 1500
  • Mid-Engine Masterpiece: The Eighth-Generation Chevrolet Corvette Stingray
  • Compact Performance:
    2021 Cadillac CT4-V
  • All-Wheel Drive Supplies the Nissan Altima With a Competitive Edge
  • Return of the Toyota Venza!
  • Lexus Brings a Convertible to the Gorgeous LC 500 Line
  • Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger
  • Preview: 2021 Nissan Rogue Crossover
  • How to Fix a Broken Rivian Vehicle
  • Cadillac Gets Most Things Right
    With the XT6 Crossover
  • The High Potency Dodge Challenger SRT Hellcat Redeye Widebody Coupe
  • The All-New Chevrolet Trailblazer Forges Urban Paths
  • The Small Infiniti QX50 is Big on Tech and Engineering Features
  • Toyota Brings the TRD Treatment to the Midsize Camry Sedan
  • The Kia K5 Outclasses Most Competitors, Including the Departing Optima
  • Can the Toyota RAV4 TRD Off-Road Handle Tough Terrain?
  • Subaru WRX Showcases Its Performance Chops
  • Infiniti Overhauls QX80 Trims and Makes This Important Safety Feature Standard
  • Ford F-250 Super Duty and a Trail-Stomping Tremor Package
  • A Cut Above: Mazda’s Mazda3
  • The Highly Efficient Hyundai Ioniq
  • Volkswagen Atlas Revels in its Strengths
  • General Motors Deepens Partnership With Honda, Takes Stake in Nikola
  • Smart Concept: Jeep Grand Wagoneer
  • More Than an Encore: Buick Encore GX
  • Got a Recall? There’s an App for That.
  • Refreshed Nissan Titan Makes Its Case
  • BMW M235i: Not Your Typical Coupe
  • Hot Stuff: Lexus RC F Sport Coupe
  • Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?
  • Rumors? We Got Them!
  • About Bollinger Motors, EV Startup
  • Raptor Fighter: Ram 1500 TRX!
January 2021
S M T W T F S
 12
3456789
10111213141516
17181920212223
24252627282930
31  
« Dec    

Copyright © 2021 · News Pro on Genesis Framework · WordPress · Log in