Tagged: auto

Toyota reported a sales increase in May of 87% compared to the same month a year ago - when the company's vehicle production had plummeted due to the tsunami hitting Japan in March.  

There were more selling days this month than last May, but it is still a robust recovery from the disaster, which reduced inventories on Toyota dealer lots and sent some customers to other car companies.

Toyota remains number three in overall sales in the U.S., however, just behind Ford, which saw its sales increase 13% in May.

A strike by Canadian railway workers threatens to slow or shut down production at some U.S. auto plants.

5,000 Canadian Pacific Railway workers walked off the job early Wednesday because of a dispute with management over a new contract.

Large numbers of finished vehicles and auto parts come to U.S. factories via Canadian Pacific.

Ford and General Motors say they don't expect the strike to affect production - at this time.

Chrysler says it is actively working to mitigate any impact to its operations through alternative shipment methods, such as trucks.

The longer the strike goes, the greater the chance it could affect the U.S. auto industry.  The Canadian Labor Ministry says it has the authority to intervene and will do that if the two sides haven't reached a deal by Monday.

Harold A. Poling, a former Ford Motor Company chairman and CEO who was credited for reviving the company in the 1980s, died at age 86. The Detroit Free Press reports Poling passed away on May 12 in Pacific Grove, Calif.

Ford Motor Company released this statement after the news of Poling's death.

“Red Poling was an extraordinary leader who had a profound impact on Ford Motor Company and everyone who worked with him.  With a list of accomplishments that span 43 years, including leading the company through a remarkable turnaround during the 1980s and 1990s, Red was respected by all for his leadership, his passion for being the low-cost producer and  his genuine affinity for people.  Our thoughts and prayers go out to his family.”

The Detroit News reports Poling made difficult decisions in the 1980s, including decisions that led to plant closures and layoffs, that returned the company to profitability.

But earlier than most American car executives, he studied Japanese practices such as just-in-time parts delivery.

"I took some very harsh actions back then," he told The Detroit News in 1993. "Ford was losing large sums of money, and there were no road maps for turning a company around. So it was all up to me."

Poling focused on quality. During the 1980s, Ford was counting on the new Escort to shore up sagging sales. But Poling delayed the introduction of an automatic transmission for the car until quality problems had been solved.

He also delayed the introduction of the Taurus by nine months until quality issues had been resolved.

The Detroit Free Press reports when Poling retired in 1994 "the company was preparing to launch a new Mustang, introduce its first minivan with the Windstar and sell the tiny Aspire subcompact car," and that he was part of a management team that "approved $3 billion to develop the Ford Taurus and Mercury Sable." 

As a child, Poling said he spent a lot of time with his father who was a mechanic. “We’d grind valves, change piston rings and clutches and do lots of other jobs. It was serious work but to me it was interesting.”

One of four children, he enlisted in the Navy and then went to graduate from Monmouth College before receiving his MBA from Indiana University.

The Freep reports Poling's "all-time favorite car was the 1932 Ford Model A, the first car he bought, used, but in good shape."

A French auto parts maker says it plans to buy a parts plant in Saline, Michigan. Faurecia SA says the interior components plant will be part of a joint venture.

From the Associated Press:

Faurecia and Rush Group announced Thursday that they're creating Detroit Manufacturing Systems, a joint venture to build and automotive interior components in Detroit.

The companies say the venture expects to employ about 500 people in Detroit within the next three years and will make parts at first for Ford Motor Co.

Here's more from a Faurencia SA press release:

Faurecia will acquire the Saline business, which generates $1.1 billion annual sales supplying cockpit modules, instrument panels, door panels and center consoles for 12 vehicle programs assembled at eight Ford plants throughout North America. With this acquisition, Faurecia’s objective is to create a new operation that is optimized for efficient production, in line with the Faurecia Excellence System.

In conjunction with the Saline acquisition, Faurecia will enter into a new joint venture with Rush Group Ltd., one of the Rush Group of companies that together comprise one of the largest Native American and woman-owned businesses in North America. The joint venture, called Detroit Manufacturing Systems (DMS), will do injection molding, assembly and sequencing of interior trim components from a new facility in Detroit. Rush Group will hold the majority of the capital and the management of DMS, while Faurecia – with 45% of the capital – will bring its technology and manufacturing expertise to the joint-venture. As a result, the Saline plant will focus in the future on core technologies such as injection molding, skin manufacturing and foaming operations with annual revenues of nearly $400 million.