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Chrysler slows minivan production, hasn't built VW Routan this year

Chrysler has slowed production of its Town and Country and Dodge Grand Caravan minivans this week, Automotive News reports. The Windsor, Ontario plant will cut its three shifts from eight hours each to four hours each in an effort "to align production with market demand," a Chrysler spokesperson told AN. Chrysler also builds the closely related Routan minivan for Volkswagen at its Ontario facility, but has not built a single example thus far in 2013.
Sales of Chrysler's minivans fell 15 percent for the first two months of 2013, and a large part of that has to do with the 26-percent drop of the Grand Caravan alone (the T&C was only down by one percent). According to Automotive News data, as of March 1, Chrysler had an unsold inventory of 24,713 Town and Country models and 18,547 Grand Caravans - a 69- and 43-day supply, respectively.
"No sense running full speed now, then have a lot of vehicles sitting around a few months down the line," Chrysler spokeswoman Jodi Tinson told AN. Full production is expected to resume again on March 18.

Piech is back (kinda) at VW

Before the company was rocked by the diesel emissions scandal, you would've thought that the ouster of Ferdinand Piech as chairman of the Volkswagen Supervisory Board in April was the biggest corporate news from the automaker all year. After all, the longtime exec was a towering figure in the German auto industry. He wasn't gone for long, though. In a fascinating article, The Wall Street Journal breaks down how Piech is now wielding influence within the giant corporation yet again. Piech's continued sway has come in part because two people close to him have started running the company. His resignation reportedly came because Piech was supporting Matthias Muller as next group CEO, rather than Martin Winterkorn. Now, Muller has achieved exactly that role. In addition, Hans Dieter Potsch has taken over as supervisory board chairman. He's also the chief financial officer at Porsche SE, the family holding company that controls a vast swath of VW stock. "The Porsche-Piech family will exert more influence over the company in the future," an anonymous person close to the board said to The Wall Street Journal. Piech appears fully aware of his changing fortunes within the company, too. According to the WSJ, he and his wife Ursula arrived at the VW factory's main gates in a red Bentley the day after WInterkorn's resignation. If you find all of these corporate machinations fascinating, then the piece is well worth a read.

For emissions control suppliers, VW diesel scandal is good news

In the "making Lemonade out of lemons" department, European makers of emissions control and catalytic systems are seeing their stock prices rise in the wake of Volkswagen's diesel emissions scandal, Reuters says. Investment bankers and money managers are touting companies such as Johnson Matthey, Faurecia, Umicore and ElringKlinger. Shares of some of those companies jumped more than 25 percent since the scandal broke last month. Despite the scandal, demand for diesel-powered vehicles is expected to continue in Europe because of the powertrain's superior fuel economy. Additionally, a new version of nitrogen-oxide testing is slated to start in 2016, while prices for platinum, which is required for catalytic systems, have dropped. All of this put together is helping to make the emissions control companies more valuable. However much they may benefit, though, VW and other diesel-vehicle makers such as Mercedes-Benz and BMW may continue to suffer. That's because governments around the world are calling for heightened diesel-emissions testing procedures that better simulate real-world driving conditions. And according to the European Automobile Manufacturers' Association (ACEA), that alone could cause costs associated with making diesel vehicles to spike and negate the fuel-economy advantages that drive demand in the first place. Regulators in VW's home country of Germany have demanded a recall of 2.4 million vehicles whose software has been programmed to under report emissions level. Such "cheating" software has been installed in as many as 11 million vehicles worldwide. VW, whose CEO resigned last month because of the scandal, has set aside $7.3 billion to address the issue. Related Videos: News Source: ReutersImage Credit: AP Photo/Markus Schreiber Green Volkswagen Emissions Diesel Vehicles vw diesel scandal