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GM, Ford, Honda winners in 'Car Wars' study as industry growth continues

General Motors' plans to aggressively refresh its product lineup will pay off in the next four years with strong market share and sales, according to an influential report released Tuesday. Ford, Honda, and FCA are all poised to show similar gains as the auto industry is expected to remain healthy through the rest of the decade. The Bank of America Merrill Lynch study, called Car Wars, analyzes automakers' future product plans for the next four model years. By 2020, 88 percent of GM's sales will come from newly launched products, which puts it slightly ahead of Ford's 86-percent estimate. Honda (85 percent) and FCA (84 percent) follow. The industry average is 81 percent. Toyota checks in just below the industry average at 79 percent, with Nissan trailing at 76 percent. Car Wars' premise is: automakers that continually launch new products are in a better position to grow sales and market share, while companies that roll out lightly updated models are vulnerable to shifting consumer tastes. Though Detroit and Honda grade out well in the study, many major automakers are clumped together, which means large market-share swings are less likely in the coming years. Bank of America Merrill Lynch predicts the industry will top out with 20 million sales in 2018 and then taper off, perhaps as much as 30 percent by 2026. Not surprisingly, trucks, sport utility vehicles and crossovers will be the key battlefield in the next few years, Car Wars says. FCA will launch a critical salvo in 2018 with a new Ram 1500, followed by new generations of the Chevy Silverado and GMC Sierra in 2019, and then Ford's F-150 for 2020, according to the study. Bank of America Merrill Lynch analyst John Murphy said the GM trucks could be pulled ahead even earlier to 2018, prompting Ford to respond. "This focus on crossovers and trucks is a great thing for the industry," Murphy said. Cars Wars looks at Korean (76 percent replacement rate) and European companies more vaguely (70 percent), but argues their slower product cadence and lineups with fewer trucks puts them in weaker positions than their competitors through 2020. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2016 Chevrolet Silverado View 11 Photos Image Credit: Chevrolet Earnings/Financials Chrysler Fiat Ford GM Honda Nissan Toyota study FCA

FCA worker in Indiana tests for coronavirus, but the plant will stay open

Fiat Chrysler Automobiles NV said Thursday that an employee has tested positive for COVID-19 at its Kokomo, Indiana, transmission plant, but the location will remain open. The Italian-American automaker said the company placed the employee and his immediate co-workers and others he may have come into direct contact with in home quarantine. The automaker said it is “deploying additional sanitization measures across the entire facility, re-timing break times to avoid crowding and deploying social spacing.” Fiat Chrysler is canceling all in-person meetings unless “business critical” and conducted meetings through video conferencing technologies. Automakers also have canceled non-essential travel. Ford, meanwhile, said its plants in North America remain unaffected. General Motors spokesman Jim Cain said the Detroit automaker has not had any cases of the coronavirus in its North American plants yet, citing such measures as reduced travel and restricted entry to plants as helping. How the No. 1 U.S. automaker would respond to a positive test would depend on the situation, he added. “You do plan to operate with a certain amount of absenteeism, but every facility has a different operating plan,” he said. The Fiat side of the FCA operation, meanwhile,  is temporarily halting operations at some plants in Italy and will reduce production rates in response to coronavirus in the country, the largest outbreak in Europe, a spokesman for the automaker said on Wednesday. FCA said in a statement it had stepped up measures across its facilities, including intensive sanitation of all work and rest areas, to support the government's directives to curb the spread of the infectious disease. "As a result of taking these actions the company will, where necessary, make temporary closures of its plants across Italy," it said. The spokesman said affected plants were Pomigliano, Melfi, Atessa and Cassino, each of them halted for two or three days between Wednesday and Saturday. FCA said that to allow greater spacing of employees at their workstations, "daily production rates will be lowered to accommodate the adapted manufacturing processes." However, a source close to the matter said FCA did not expect an impact on overall production rates. The source added that temporary closures were in no way linked to disruptions of auto parts supplies following anti-virus measures imposed by Rome all over Italy.

Share price falls on skepticism of Chrysler-Fiat five-year plan

Following this week's Fiat Chrysler extravaganza, where the Italian-American manufacturer announced its plans for the next five years, the Autoblog staff was cautiously optimistic of the company's future. Investors? Not so much.
Fiat saw its shares tumble 12 percent in Wednesday's trading, falling from 8.67 euros ($12.06 at today's rates) to 7.44 euros ($10.35) as of this writing, with blame partly going to the Italian half of the FCA marriage, which recorded a pretty significant drop in profits during the first quarter of this year.
The plan, which will cost around $77 billion over the next several years, is facing criticism from investors thanks in part to a 1.4-percent drop in Fiat's first-quarter profits, to 622 million euros ($862 million). That figure is also short of Bloomberg analysts' projections, which predicted $1.18 billion in profits before taxes, interest and one-time items.