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British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.

2017 Honda Ridgeline: A sleeper or a snooze?

Ah, yes... "Baby Steps," an expression that describes gradual improvements in what preceded. Overused for sure, but it clearly describes Honda's approach to the 2017 Ridgeline. Now that the news embargo is over we will be seeing a slew of preliminary road tests. Time to dig a little deeper, examine Honda's thinking and to see where Honda might go with this new truck. Honda set a number of goals with the new Ridgeline: 1) Sell more trucks. 2) Appeal to current Ridgeline owners who are ready to trade for a new truck. 3) Sell more trucks. 4) Expand their market share by attracting new buyers who hated the styling of the old Ridgeline. 5) Sell more trucks. 6) Convince skeptics that the Ridgeline is indeed capable of doing truck tasks. 7) Sell more trucks. My take is that this new Ridgeline is about 80 percent there; as the saying goes, "Close but no cigar." I'm really curious as to how this truck might evolve. There have been rumors that a regular cab model with a long bed may be in the works. Will we see it? Who knows — but by having such a model available, it would go a long way in terms of convincing (some) critics who say it's nothing but a "Pilot with a bed." Then there's the "youth market." Honda has gone on record saying they're not interested in courting them; a huge mistake in my opinion. Hopefully they'l re-think that and offer a legit off-road model with all the requisite goodies like more ground clearance, 2-speed transfer case, skid plates, tow hooks, larger all-terrain tires —5 of them, meaning no temp spare tire! It doesn't have to be a rock-crawler, but at least give it more capability to be considered an alternative to the 4x4 competition. Another area that needs to be re-thought is that Honda is offering seven trim levels. That's crazy. Most of them are so close to one another that it makes decision-making difficult. Cut it back to three of four trim levels, max. Makes life much easier. But yes, I think this truck, even as it stands, will be a sleeper in its segment and will do reasonably well in terms of sales. I think truck customers have seen and gotten used to the old Ridgeline, and have found — for what it was intended to do, it's really a pretty good truck. This new one certainly builds upon that — and it's no longer ugly. That's all good in my book. Related Video: Image Credit: Honda Honda Truck open road

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.