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For thousands of US auto workers, the downturn is already here

LORDSTOWN, Ohio - Wall Street is fretting that the auto industry is heading for a downturn, but for thousands of workers at General Motors factories in the United States, the hard times are already here. Matt Streb, 36, was one of 1,200 workers laid off on Jan. 20 - inauguration day for President Donald Trump - when GM canceled the third shift at its Lordstown small-car factory here. Sales of the Chevrolet Cruze sedan, the only vehicle the plant makes, have nosedived as consumers switch to SUVs and pickup trucks. Streb is looking for another job, but employers are wary because they assume he will quit whenever GM calls him back. "I get it," said Streb, who has a degree in communications, "but it's frustrating." Layoffs at Lordstown and other auto plants point to a broader challenge for the economy in Midwestern manufacturing states and for the Trump administration. "This is about economics, not what Trump says. Even if Trump went out and bought 10,000 Cruzes a month, he wouldn't get the third shift back here." The auto industry's boom from 2010 through last year was a major driver for manufacturing job creation. The fading of that boom threatens prospects for US industrial output and job creation that were central to Trump's victory in Ohio and other manufacturing states. "This is about economics, not what Trump says," said Robert Morales, president of United Auto Workers (UAW) union Local 1714, which represents workers at GM's stamping plant at Lordstown. "Even if Trump went out and bought 10,000 Cruzes a month, he wouldn't get the third shift back here." Last week the Federal Reserve said factory output fell 0.4 percent in May, the second decline in three months, due partly to a 2 percent drop in motor vehicles and parts production. Mark Muro, a senior fellow at the Brookings Institution, has compiled data from government sources that show the auto industry punching higher than its weight in job creation in recent years - accounting for between 60 percent and 80 percent of all US manufacturing jobs added in 2015 and 2016. In the first quarter of this year, the auto industry accounted for less than 2 percent of the 45,000 manufacturing jobs created. "There's no argument with the idea that auto has been pulling the manufacturing sled up the mountain for the last three or four years," Muro said.

Fiat boss Elkann being mentored by... Bill Ford?

Fiat Chairman John Elkann has been turning to an unusual source for advice on the car business. While speaking during an interview with The Detroit News, Elkann said he often asks Bill Ford Jr. for advice on how to proceed with the turnaround at Chrysler. "It's great to have the opportunity to share this with someone like Bill, who has experienced many things and gone through many things ... especially linked to Detroit." Elkann said.
As the Agnelli family heir, Elkann has inherited a long and fruitful friendship with the Ford family. While Giovanni Agnelli built his first Fiat four years before Henry Ford created his first vehicle, it was Ford that showed Agnelli the benefits of mass production and helped pave the way for what would become the Fiat empire.
Giovanni's grandson, Gianni, helped mentor Bill Ford when he was elected chairman of Ford Motor Company. Now, Ford is returning the favor by helping Elkann navigate the automotive industry's tumultuous waters.

More than 800,000 Fords recalled for faulty Takata airbags

The Basics: Ford is recalling about 816,000 Ford, Lincoln, and Mercury vehicles built in the US for faulty passenger-side Takata airbags. The affected vehicles were all built in North America, with 654,695 recalled vehicles in the US and 161,174 vehicles in Canada. A wide variety of cars, trucks, and SUVs are affected. This is a planned expansion of an earlier recall. 2005-09 and 2012 Ford Mustang 2005-06 Ford GT 2006-09 and 2012 Ford Fusion 2007-09 Ford Ranger 2007-09 Ford Edge 2006-09 and 2012 Lincoln Zephyr and Lincoln MKZ 2007-09 Lincoln MKX 2006-09 Mercury Milan The Problem: Like every other Takata recall, the problem rests with faulty airbags that can potentially expel shrapnel, injuring or killing vehicle occupants. Millions of vehicles from dozens of automakers are affected, so don't think that Ford is alone on this one. Injuries/Deaths: Ford stated in a press release that there have been no injuries or death linked to the vehicles in this recall. All in all, 11 deaths and 180 injuries across a variety of automakers have been linked to these Takata airbags. The fix: Ford will contact owners soon, and the affected vehicles will have their airbags replaced by a dealer at no additional charge. If you own one: Wait for contact from Ford, then head to the dealer to get a replacement. If you're wondering if your vehicle is affected, go to this Ford website and enter their Vehicle Identification Number (VIN). The recall reference number is 17S01. Related Video: News Source: FordImage Credit: Associated Press Recalls Ford Lincoln Mercury Auto Repair Ownership Safety Truck Coupe Crossover SUV Sedan airbag Takata airbag recall