PRODUCTION

Dodge Cancels SRT Hellcat Orders, Resets for 2016

July 28, 2015 by admin 2 Comments

Some customers waiting for 2015 SRT Hellcat variants of the Dodge Charger or Dodge Challenger will soon find themselves with their orders canceled. That’s the word from Fiat Chrysler Automobiles (FCA), as it announced on Monday that it will not fulfill a portion of the remaining orders.

Left hanging are about 900 customers who will be called by FCA beginning this week to learn their fate reports Automotive News. But this dark cloud comes with a silver lining as FCA will permit affected customers to buy a 2016 SRT Hellcat. Further, these customers will be eligible to procure their 2016 models at discounted prices, matching the price of the 2015 models. FCA hasn’t announced pricing for the 2016 Hellcats, but both coupe and sedan prices are expected to rise appreciably.

Demand for the SRT Hellcats has outstripped supply. Even so, FCA is working diligently to finish its scheduled run of 2015 models as it cancels its unscheduled orders.

SRT Hellcat Production

Dodge will also increase Hellcat production for 2016 and will work with dealers to allocate cars based on the dealer’s inventory. Beginning on August 10, Dodge dealers will have the opportunity to order their first allocation of 2016. Those dealers able to move their inventory will be permitted to participate in a second allocation next February. Production of the 2016 SRT Hellcats will begin in September.

“We could not have asked for a more enthusiastic response to the Charger and Challenger SRT Hellcats – it was absolutely unprecedented, but then again, these 707-horsepower muscle cars are unprecedented,” said Tim Kuniskis, President and CEO, Dodge and SRT brands, FCA US. “To meet this demand, we are more than doubling our SRT Hellcat production for 2016 and simplifying the process to make it easier for our enthusiasts to get their hands on the hottest muscle cars in history. In addition, customers with verified sold orders that weren’t built in the 2015 model year will receive special discounted pricing if they re-order in 2016.”

Upgraded Standard Equipment

Both rear-wheel drive models will now be outfitted with higher-end standard equipment, including ultra-premium Laguna Leather interiors, and an 8.4-inch UConnect infotainment system with navigation, five years of SiriusXM Travel Link and Traffic reports, and HD radio.

As before, both SRT Hellcats are powered by a 6.2-liter, supercharged V-8 engine making 707 horsepower and 650 foot-pounds of torque. The Hellcat engine comes paired with an 8-speed automatic transmission with AutoStick. An adaptive competition damping suspension features independent suspension up front and five-link suspension at the rear. Each model comes equipped with 20-Inch x 9.5-Inch SRT low-gloss black forged wheels and Pirelli PZero tires at the corners.

As appealing as SRT Hellcat models have been, both vehicles come with a level of overhead that should give some buyers pause. Pricing for the new models is expected to push closer to $70,000, well within luxury brand parameters. Further, buyers should get an estimate from their insurance agent to discover what their premium pain point will be.

Combined 16 mpg fuel economy and premium grade gasoline is yet another cost factor. Finally, you’ll pay a mint to replace the tires, with a set of four Pirelli PZeros setting you back by at least $1,000, plus installation. They’re also summer-only tires, so you will need another set for colder conditions. And for those who love to spin their SRT Hellcats on the track, yet another set of tires may be required.

Muscle Car Sales

Despite the challenges inherent with owning top-end Dodge models, the brand has benefited from the added recognition. While Dodge brand sales are down 16 percent for the year through June 2015, Dodge Charger sales are up 2 percent and Dodge Challenger sales are up a whopping 41 percent. Combined, sales of these muscle cars were at 87,772 units, well ahead of both the Ford Mustang and Chevrolet Camaro.

Capacity Unconstrained: Kia Plans Mexico Factory

June 5, 2014 by admin 4 Comments

Hyundai might benefit from Kia’s plant too.

Kia Rio hatchback — Kia Rio 5-door hatchback.

The Hyundai Kia Automotive Group is the fourth largest automotive manufacturer in the world with the Hyundai brand taking leadership worldwide. Kia, however, has been showing strength in several markets including in the US where it has been gaining on Hyundai.

Hyundai Kia Capacity Constraints

Sales for both brands have been held down in the past year as capacity constraints weigh in. Both manufacturers have just one North American plant with Hyundai’s based in Montgomery, Alabama, and Kia’s plant in Georgia. That West Point, Georgia, plant also builds the Hyundai Santa Fe, a model that Hyundai moved from Alabama soon after the plant opened.

Hyundai and Kia have been operating under an informal self-imposed capacity constraint as both US manufacturing plants operate at full tilt across three work shifts. Both companies also import cars from South Korea, but additional North American capacity is still needed.

Kia Mexico Manufacturing

On June 2, 2014, Reuters reported that Kia Motors will build a new plant in Monterey, Mexico. That plant will build two small vehicles including perhaps the Kia Forte and Kia Rio. With a capacity of 300,000 units per year, it might also build a Hyundai product such as its compact Elantra. That would free up space for Hyundai to expand Sonata production, its popular midsize sedan that has been updated for 2015.

Hyundai and Kia had been rumored to be looking at new locations in the southern United States including the former GM plant near Shreveport, Louisiana, the future home to the three-wheeled Elio Motors trike. The Korean automakers, however, prefer to build its factories from the ground up instead of taking over existing facilities.

The Hyundai-Kia juggernaut has been increasing its global and US market share steadily for more than a decade. A new factory is planned in China and the Mexican factory, if built, would take approximately 21 months to complete. Thus, production would not begin before spring 2016 even if groundbreaking were held today. Likely, Hyundai and Kia will lose market share in 2016 without the expanded capacity notes Reuters.

2014 Kia Forte

Hyundai Kia Pricing Advantage

Producing cars in Mexico would enable the Korean automakers to gain some stability as higher labor costs and currency erosion has made it difficult to maintain a pricing advantage. Both brands have been known for pricing their vehicles about 5 percent below competitor’s prices and including more standard content. With competing manufacturers also turning to Mexico to find low-cost labor, that pricing advantage has been slipping away. Mexican built cars, incidentally, come by way of NAFTA and are included in North American build capacity.

The Kia brand has enjoyed strong growth in the past few years as it taps Hyundai platforms and powertrains to build new models of its own. For instance, the Kia Optima is based on the same platform underpinning the Hyundai Sonata and the Kia K900 is a derivative of the Hyundai Equus.

Turbocharged: Hyundai Sonata midsize sedan.

Auto Trends: Hyundai Kia Sales

Both Kia and Hyundai posted record US sales for May 2014.

Kia enjoyed a 14.8 percent year-over-year increase, selling 60,087 units. Its best-selling Optima sedan continues to lead with 16,843 unit sold for the month. Other strong sellers included its Soul multi purpose vehicle at 15,606 units and its Sorento crossover utility vehicle with 10,548 units sold.

Hyundai sales rose by 3.7 percent to 70,907 units. The company’s Elantra compact continues to lead, with 21,867 units sold followed by the Sonata at 20,404 models distributed. In third place was the Santa Fe crossover at 10,638 units. This CUV is also Hyundai’s fastest growing model.

Together, Hyundai and Kia are battling Nissan for sixth place in US sales. GM is on top followed by Ford, Toyota, Chrysler and Honda.

Volkswagen Hits 10 Million Unit Milestone in Mexico

August 23, 2013 by admin 1 Comment

A heritage VW Beetle marks the occasion.

Volkswagen de México -- Volkswagen of Mexico

VW workers celebrate a significant build
achievement in Puebla, Mexico.

Volkswagen’s US production cannot hold a candle to what is going on south of the border. In Mexico, the German automotive manufacturer has been building cars for nearly a half century including some models that have been sent to the United States.

On Aug. 13, the Volkswagen marked the 10-millionth vehicle it has built in Mexico, with that model a Volkswagen Beetle GSR limited edition in yellow and black markings.

Puebla Mexico Manufacturing

The milestone was achieved at Volkswagen de México’s Puebla manufacturing plant, recognized as the largest automotive plant in North America. That plant builds 2,500 cars on average each day; in 2012 it built a record 604,000 vehicles with 84 percent of its volume sent abroad.

On hand to offer tribute was Jonathan Browning, President of Volkswagen of America, Inc. Said Browning, “This is an important milestone and symbol of Volkswagen’s long-term commitment to the North American market. It’s only fitting that the milestone car is a Beetle in light of this being the 75th anniversary of the car. Puebla has been manufacturing quality Beetles and other Volkswagens for the United States for nearly 50 years, and continues to play a key role in our growth strategy.”

Volkswagen Group Growth

The Puebla manufacturing plant will continue to play a significant growth in fueling Volkswagen’s growth in North America and worldwide. The Volkswagen Group has committed to invest more than $5 billion in Mexico and the United States over the next three years including expanding its Tennessee plant and completing an Audi plant, also in Mexico.

Its all part of an overall strategy where Volkswagen would like to assume global car build leadership by 2018. Under its Group Strategy 2018 plan, VW plans to build more than 10 million vehicles annually, taking a greater share of the pie in emerging markets.

Production in Mexico

More than three million Volkswagen Beetles have been built in Mexico since 1967. Besides its iconic nameplate, VW manufactures Jetta, Jetta Sportwagen and Beetle Convertible models, all of which are sent to the United States. Beginning in 2014, Puebla will build the next generation Golf, supplying this model throughout North and South America.

The Beetle GSR is a new model, one that employs retro themes including yellow and black model markings inspired by the “Yellow Black Racer” of the 1970s. The new model is powered by a EA888 turbocharged and direct-injection 2.0-liter engine, what VW says gives it more power, torque and improved fuel economy. The GSR is a special and very limited edition model too as only 3,500 Beetle copies were built globally.

Surging Beetle Sales

US sales of the Beetle have been rising sharply topping 5,200 units in July with further gains expected in Aug. That model recently was recognized by the Insurance Institute for Highway Safety as a “top safety pick” the ninth Volkswagen model to garner that coveted safety award.

Photo courtesy of the Volkswagen of America.

Acura NSX Supercar: Made In Ohio

May 17, 2013 by admin 2 Comments

The highly anticipated Acura NSX supercar has a new home. This week, Honda of America announced that it plans to convert a former seat plant adjacent to its Marysville Auto Plant into a Performance Manufacturing Center to build the resurrected Acura NSX coupe. Honda will make a $70 million investment and tap 100 highly skilled manufacturing associates from its existing operation to construct its halo model.

2016 Acura NSX

The original Acura NSX was marketed from 1991 to 2005 with just hundreds of models built annually. A prototype of the future model was displayed at the 2012 Detroit auto show, a mid-engine model outfitted with a V-6 engine and a dual-clutch transmission. It is a hybrid model too, demonstrating Honda’s commitment to combine performance with fuel efficiency.

Honda’s Performance Manufacturing Center represents its third auto plant in Ohio. Honda’s engine plant in Anna, Ohio, will supply the NSX’s powertrain.

Executive Appointments Announced

Besides identifying its plant location, Honda announced that Honda R&D Americas chief engineer Ted Klaus is leading the global team developing the new NSX. In addition, Clement D’ Souza, associate chief engineer at Honda of America, will lead the team that will bring the Acura NSX to production beginning in 2015.

“We have a very clear understanding of the high customer expectations luxury buyers around the world have for a supercar, and our challenge is to exceed them and create new value for the customer,” said Klaus. “This new Performance Manufacturing Center will be key to this challenge.”

Honda will likely move quickly to identify the workers that will build the Acura NSX. Once the team has been assembled it will begin training and the manufacturing processes will be put in place. The Ohio manufacturing plant will be the exclusive builder of the all-new Acura NSX, a model that will be exported worldwide.

Luxury Segment Strength

Committing to building the supercar will enhance Acura’s image in the United States and abroad. Acura represents one of the better selling luxury brands in America, beating out Cadillac while finishing behind BMW, Mercedes-Benz and Lexus. For 2012, Honda reported 156,216 Acura models sold.

When the Acura NSX arrives on the market, it will join seven other Acura models ranging from the RLX flagship sedan to its ZDX four-door sports coupe. The balance of the Acura line up is composed mostly of sedans and crossovers with the TSX sold both in sedan and wagon body styles.

Acura NSX prototype model courtesy of Honda of America.

Record Global Vehicle Sales Reached in 2012

March 15, 2013 by admin Leave a Comment

Global vehicle sales broke a record in 2012 with more than 82 million units sold. That figure represents an increase of nearly 34 percent over 2009s economy-challenged global sales of 61.2 million units according to the International Organization of Motor Vehicle Manufacturers or OICA.

sales increase — Global auto production and sales are on the rise.

Production and Sales

Global vehicle production reached 84.1 million units in 2012 as Asia produced 43.7 million vehicles followed by the Americas at 20 million units. Europe came in third at just under 20 million vehicles; Africa and Australasia contributed the remaining amount.

The difference between production figures and sales numbers can be attributed to excess inventory and unrecorded registrations for government vehicles.

Ups and Downs

The sharpest production increase was recorded by the NAFTA nations: Canada, the United States and Mexico, rising by 17 percent. Japan and South Korea followed with an increase of 11 percent followed by China, India and other Asian countries coming in at 6 percent. African production also rose, increasing by 5 percent.

Production south of Mexico for the rest of the Americas fell by 2 percent last year, breaking a string of increases that began in 2003.

Europe saw some stark differences in 2012 with production in the E27 or mostly western European nations plunging by 8 percent. Turkey and Russia, however, helped pace production in the other European countries, with an increase of 4 percent observed.

Looking Ahead

Automotive production and sales are expected to set another record in 2013 with the OICA forecasting a sales rise of 3 percent based on continued strong demand in China and in the United States. Nearly half of all new vehicle sales take place in Asia with China accounting for about one in four new vehicle sales.

Production and sales are expected to continue to fall in Europe as the continent works through its current economic challenges. Emerging markets beyond China such as Russia, India, Brazil and Africa are expected to also see improved sales in 2013.

About the OICA

The OICAs mission is defend the interests of new car manufacturers, assemblers and importers, particularly as relates to their national federation. The organization brings together the various national associations and studies issues that impact the development and future of the global automotive industry. OICA is the global voice of the auto industry, speaking on its behalf to both governmental and nongovernmental entities.

OICA also puts its imprimatur on select auto shows around the world, coordinating the scheduling of the same. In the US, shows in Detroit and Chicago are OICA sanctioned as are shows in Geneva, Seoul, Buenos Aires, Johannesburg and Tokyo.