Tag Archives: center for automotive research

EV Grumblings – Auto Execs Waffling on Growth

With hybrid electric vehicle sales soaring, and the badly needed EV charging infrastructure lagging, there is considerable discussion among auto executives and industry pundits about the EV market.*

As always a walk – or in this case an electrified drive – into the unknown provokes considerable speculation and anxiety about where things are headed. Compounding the EV market grumblings are the intensive capital investments involved and the dire state of our climate with the deleterious effects of global warming increasingly laying waste to large areas of the planet. Continue reading

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A Closer Look at Biden’s 49 MPG CAFE Standard

The new Corporate Average Fuel Economy standards proposed by the Biden Administration# last month require an industry-wide fleet average of ~49 mpg for passenger cars and light trucks in model year 2026, the strongest fuel efficiency standards to date. On … Continue reading

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Milestones – Production Begins for Ford F-150 Lightning EV

Ford Motor, whose existence was tenuous during the Great Recession, is now the top automaker in America in terms of 2021 production, sales of US-made vehicles and employment of hourly autoworkers. The F-150 Lightning is the only full-size electric pickup available now with a starting price less than $40,000. Ford F-Series has been America’s best-selling truck for 45 years running and is second only to the iPhone in revenue among all American consumer products, according to a 2020 study. Continue reading

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Auto Assembly Plant Restarts  – Yes, Maybe and Unknown

FCA, GM, and Volkswagen announced planned to restart production at four plants during the week of 31 May 2020. Continue reading

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Limit Vehicle Disease with Bacteria, Virus Resisting Materials

Shashank Modi a Research Engineer at the Center for Automotive Research in Michigan notes that drivers of Uber, Lyft, and other ride-hailing services are concerned about their own health and that of their passengers. Company guidelines recommend ride-hailing drivers to wear masks and disinfect their cars regularly. “But are these safety measures sustainable in the long run? Is there a better way to instill confidence in shared mobility?” asks Modi. Continue reading

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CAR – Estimated Costs of the UAW-GM Strike are Low

CAR estimates the U.S. employment multiplier for UAW-GM jobs is 11.5.This means that when UAW-GM workers are at work producing vehicles, engines, transmissions, stampings, parts, and components, every UAW-GM job supports 10.5 other jobs in the U.S. economy, with 3.2 of those jobs in the production-focused U.S. supplier sector.
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Trump Mexican Tariffs – Negative on Prices, Economy and Jobs

The Center for Automotive Research, where I am a vice president, estimates that a 5% tariff rate would increase the price of an average new vehicle built in the United States by at least $250. At a 25% tariff rate, U.S.-built vehicle prices would rise at least $1,100. Vehicles imported from Mexico would see sharper price increases — at least $1,100 at 5% tariff rate and at least $5,400 if the tariffs were ratcheted up to 25% by this fall. Overall, the tariffs would reduce U.S. gross domestic product by at least $7 billion to $34 billion annually and cause the loss of 82,000 to 390,000 U.S. jobs.   Continue reading

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Trump Tariffs on Mexico – Job Destroying Taxes on Workers

Ultimately, prices on models imported from Mexico could increase by $8500. Factoring in parts for assembly in the US, the average price of all vehicles sold in the US could rise by as much as $2,500-3,000. the substantial increase could lower sales by 500,000-1.5 million units annually. Continue reading

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If Trump Closes the Mexican Border, the Entire U.S. Auto Industry Shuts Down in Days

There are few vehicles assembled in the United States that do not rely on Mexico for at least some parts content. Vehicle assembly is the quintessential “complete set” — an assembly plant cannot build a partial vehicle. Even if a few relatively minor parts are missing, automakers do not make a practice of storing the vehicles and then repairing them when the parts are ready. This repair work alone creates the potential for quality issues. Since it is impossible to do a partial build, the assembly plant and many of its associated supplier plants will be idle until the automaker can obtain sufficient stock to relaunch production. Continue reading

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Trump Tariffs Hurt New Auto Prices, Jobs, Consumers

NADA is worried that under a 25% tariff on all imports and parts, “consumers would see the price of the typical vehicle sold in the United States rise by $4,400. Prices of U.S.‐assembled vehicles rise due to an increase in the cost of imported vehicle parts, adding $2,270 to the price. For the typical imported vehicle, these tariffs raise consumer prices by $6,875 per vehicle.” Continue reading

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Wither US Automotive Sales? Uncertainties Abound

CAR notes that there are “many risks to the 2019 automotive outlook: Will 2019 be the start of the economic downturn? How will U.S. trade policies affect the auto industry? Will regulatory and technological developments start to change what products are made and sold in North America?” Continue reading

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Trump Tantrum on Trade Kills Jobs, Distracts from Expanding Russian Collusion Investigations and Criminal Indictments

The impact on automotive and parts production will be significant, but the magnitude of the action is not yet known. Continue reading

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NAFTA Talks Stalled. Doomed?

There are three main options if the NAFTA negotiators do not reach a new agreement: the parties could continue to negotiate, knowing that there would be limited time to get the agreement approved in all three countries; the three countries could agree to continue trading under the existing agreement; or one or more parties could withdraw from NAFTA, effectively terminating the agreement. Continue reading

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Annual CAR MBS Conference Under Way in Changing Industry

It’s summer in northern Michigan, a time when people flock there for fun, relaxations such a swimming, sailing and fine dining amid verdant rolling hills. There is, however, a significant number of people who come each year at the beginning … Continue reading

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Collision Course – Trump, Mexico, NAFTA

Despite what appears to be Trumps ill-informed trade views – if they are informed at all – CAR using data, not diatribes, observes that the major reason for this rapid growth of the auto industry in Mexico comes from the injection of $13.3 billion in investment to move 3.3 million units of vehicle capacity from Japan, Germany, and South Korea to Mexico Continue reading

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