Yahoo Autos Automakers Face 'Weeks Of Disruption' As They Divert Cars From Baltimore’s Blocked Port
Good morning! It’s Thursday, March 28, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Bridge Collapse Takes Hold Of Auto Industry
Early Tuesday morning, the Francis Scott Key Bridge collapsed after it was hit by a container ship leaving the Port of Baltimore. The bridge crumbled into the water below, killing six people and cutting off access to one of America’s busiest ports. Now, the impact of the bridge’s collapse is starting to take hold, as automakers begin diverting imported cars to other ports across the U.S.
Experts have now warned that automakers are facing “weeks of disruption” as a result of the bridge collapse, reports Politico. According to the site, some will be forced to re-route shipments to other ports in America, while others may have to delay some deliveries. As Politico reports:
“It would be a challenge to reschedule that much incoming flow to a different place,” Golara said. He expects companies will redirect imports to ports in New York and Georgia during the disruption, but they could still face constraints in the availability of certain models.
Golara noted that the automotive supply chain is more resilient than it was before the pandemic, and dealers have more inventory available, especially for electric vehicles. “Electric cars are in still better position than the average car,” he said.
As a result of the collapsed bridge, automakers such as Ford and General Motors have already confirmed that they will need to divert vehicle shipments to other ports in America. Toyota also expects to feel some impact of the bridge collapse, while Volkswagen, Volvo and Nissan said the impacts would be minor, reports Politico.
President Biden has also weighed in on the issues facing the auto industry in America. The certified Corvette guy said the White House would “move heaven and earth” to reopen the bridge and get the port up and running once again. To read more about the impact of the Francis Scott Key Bridge collapse on the auto industry, head here.
2nd Gear: Ford And Stellantis Announce Layoffs
Automakers around the world are searching for ways to make their cars cheaper in the hope that one day it will mean electric vehicles are actually affordable for everyday people. Whether that means pivoting to designing smaller electric cars or massively reducing their headcount, they all have their methods.
Ford and Stellantis are two companies that have opted for the latter, planning to cut more than 3,500 jobs at their facilities in the U.S. and Italy, according to reports. Ford will reportedly cut shifts at the Michigan plant that currently builds the F-150 Lightning pickup truck, with the Detroit Free Press reporting that 700 employees are being offered redundancy packages. As the site explains:
Ford Motor Co. is dramatically cutting the hourly workforce at the factory that builds the Ford F-150 Lightning starting next week, as the automaker slashes product targets of its all-electric pickup.
Of the 2,100 workers who make up three work crews at the Rouge Electric Vehicle Center in Dearborn, one third will remain on-site after April 1, Ford spokeswoman Jessica Enoch told the Detroit Free Press on Wednesday. A crew of 700 will be transferred to the Michigan Assembly Plant in Wayne to build the Bronco and Ranger while the remaining 700 or so will either take the $50,000 retirement package negotiated during the 2023 contract talks or accept reassignment in southeast Michigan. Ford is adding a third crew at Michigan Assembly.
Meanwhile the cuts at Stellantis are much more significant. At its Italian plants, Stellantis has negotiated layoffs of up to 3,000 employees, reports Reuters. The cuts come as the automaker pivots to new energy vehicles, as Reuters explains:
New deals were reached on Wednesday for over 1,000 lay-offs at facilities in Italy, including Melfi, Pomigliano d’Arco and Termoli, both for line workers and other functions, the FIOM union said in a statement, although it has not itself signed the agreements.
They add to similar deals announced on Tuesday for Stellantis operations in the city of Turin, with as many as over 1,500 voluntary layoffs, and for the engine making facility in Pratola Serra, with 100 additional jobs involved.
Reuters reports that the layoffs in Italy are predominantly on a voluntary basis, with Stellantis targeting older workers or those who may be looking to move to a new position already.
