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Ford, GM extend auto plant outages

  • : Coking coal, Metals
  • 21/05/11

Semiconductor shortages continued to cut into North American automotive production, with light trucks taking many of the hits.

Steel and aluminum-intensive full-size pickup trucks and SUVs have been among the casualties as automakers attempt to stem the global impact of a lack of semiconductors.

AutoForecast Solutions estimated that the production of 883,000 vehicles in North America will be impacted in some way by the semiconductor supply issues, with 16pc of those being pickups and 3pc being SUVs. Compact utility vehicles (CUVs) make up the largest group, 46pc, while passenger cars make up 30pc. The remainder was vans.

The impacted pickup truck production should be recoverable, according to AutoForecast Solutions.

Ford Motor extended by two weeks outages at its Chicago, Illinois; Flat Rock, Michigan; and Kansas City, Missouri, assembly plants. Those plants, which had been set to resume production on 16 May, will now be closed until at least 30 May.

The Chicago facility builds the Explorer SUV, Police Interceptor Utility and Lincoln Aviator SUVs, while the Kansas City plant builds Ford's top selling and steel- and aluminum-intensive, F-150 full-size pickup truck and Transit van. The Flat Rock plant builds the Mustang and the Lincoln Continental sedan.

All told, Ford has cut production of its F-150 truck — produced at its Dearborn, Michigan, and Kansas City plants — by at least 66 days in 2021, with partial closures adding another 14 days of affected production.

The Kansas City plant will operate one shift on its Transit van line from 31 May through 13 June to produce E-Transit vans.

Ford's Michigan assembly plant west of Detroit, which produces the Ranger midsize pickup truck, will be idled for two weeks from 17 May through 30 May.

The Ohio assembly plant, which produces heavier duty pickup trucks, will extend its partial shutdown through 23 May, and then stop production from 24 May through 30 May.

In Mexico, Ford's Hermosillo sedan assembly plant, which was shut down on 3 May, will be down for two weeks through 16 May. The Kentucky truck plant will be down from 7-20 June to make plant modifications for the launch of the new model of Super Duty trucks.

General Motors (GM) extended its plant outages at its CAMI SUV assembly plant in Ontario through 4 July, while the shutdown at its Fairfax sedan assembly plant in Kansas was extended through 11 July. Both have been closed since 8 February.

GM's Lansing Grand River assembly plant, which produces the Chevrolet Camaro and Cadillac CT4 and CT5 sedans, will idle 10 May through 5 July, except to build limited numbers of the 2022 Cadillac Black Wing pre-production vehicles in June.

At the company's San Luis Potosi, Mexico, small SUV plant, production will stop from 17 May through 30 May.

GM's Ramos assembly in Mexico, which produces the Chevrolet Blazer and Equinox, will be closed from 3 May through 30 May.

Stellantis will stop production at its Windsor, Ontario, minivan assembly plant from 17 May through 23 May. The company is also keeping its Belvidere SUV plant in Illinois and Warren truck assembly plant in Michigan closed through the end of May.

Toyota reported unspecified production disruptions to all of its plants in Canada and the US, which began last month.

Automaker Honda continues to report production issues at its North American plants.


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25/04/11

US consumer sentiment 2nd lowest on record: Survey

US consumer sentiment 2nd lowest on record: Survey

Houston, 11 April (Argus) — US consumer sentiment fell for a fourth straight month in April, reaching lower levels than during the Great Recession in 2008, as inflation expectations surged to four-decade highs. The preliminary consumer sentiment gauge fell to 50.8 in April, below the 55.3 end-of-month level it reached in November 2008 during the start of the Great Recession, according to the University of Michigan's preliminary reading for April. The only lower reading in records going back to 1952 was in mid-2022 during Covid-19. Year-ahead inflation expectations surged to 6.7pc this month, the highest reading since 1981, from 5pc last month. Sentiment fell by 10.9pc from 57 in March and has lost more than 30pc since December 2024 "... amid growing worries about trade war developments that have oscillated over the course of the year." "Consumers report multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate," the survey said. The index of current economic conditions fell to 56.5 in April from 63.8 the prior month. The index of consumer expectations fell to 47.2 this month from 52.6 in March. The proportion of consumers who expect unemployment to rise in the year ahead rose for a fifth month and is more than double the November 2024 result. Interviews for the report were done between 25 March and 8 April, ending prior to the 9 April partial reversal of US tariffs. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US inflation eased for 2nd month in March


25/04/10
25/04/10

US inflation eased for 2nd month in March

Houston, 10 April (Argus) — US inflation slowed more than forecast in March, pulled lower by falling gasoline prices and slowing shelter inflation, as the new US administration's tariff policies have prompted concerns of a global economic slowdown. The consumer price index (CPI) slowed to an annual rate of 2.4pc in March, down from 2.8pc in February and the lowest rate since November 2024, the Labor Department reported Thursday. Analysts surveyed by Trading Economics had forecast a 2.6pc rate for March. Core inflation, which strips out volatile food and energy, rose at a 2.8pc annual rate, down from a 3pc annual rate the prior month and the lowest since March 2021. The deceleration in inflation came a month after President Donald Trump began to levy tariffs on imports from China and on steel, aluminum and automobiles, starting in February. Several tariff deadlines were pushed back, including a three-month pause enacted this week on much steeper tariffs for most countries. The tariffs have prompted companies and consumers to pull back on investments and some purchases while shaking up financial markets, and heightening concerns of a global recession. The energy index fell by an annual 3.3pc in March following a 0.2pc annual decline in February. Gasoline fell by 9.8pc after a 3.1pc decline. Piped natural gas rose by 9.4pc. Food rose by an annual 3pc, accelerating from 2.6pc. Eggs surged by an annual 60.4pc, as avian flu has slashed supply. Shelter rose by an annual 4pc in March, slowing from 4.2pc in February and the smallest increase since November 2021. Services less energy services rose by 3.7pc, slowing from 4.1pc in February. New vehicles were unchanged after an annual 0.3pc drop in February. Transportation services, which includes what maintenance and repair, insurance and airfares, rose by an annual 3.1pc, slowing from 6pc in February. Car insurance was up by an annual 7.5pc and airline fares fell by 5.2pc. CPI fell by 0.1pc in March after a monthly 0.2pc gain in February. Core inflation rose by 0.1pc for the month. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s JFE finalises investment in EAF steel plant


25/04/10
25/04/10

Japan’s JFE finalises investment in EAF steel plant

Tokyo, 10 April (Argus) — Japanese steel producer JFE has made the final investment decision on its first large-scale electric arc furnace (EAF) plant as part of the company's decarbonisation efforts, it announced today. JFE will invest ¥329bn ($2.2bn) in a 2mn t/yr EAF steel production facility in western Okayama, aiming to start commercial operations sometime during April-June 2028, according to the firm. This would make it the largest EAF facility by capacity in Japan, the firm said, adding that JFE is likely to replace its existing basic oxygen furnaces (BOF) plant although further details were yet undecided. JFE initially expected to start mass production in 2027 , but it delayed the project partly because the ¥105bn subsidy from the Japanese government was approved only on 9 April, the firm said. Major domestic steel producers using the BOF method are accelerating their shift to EAFs to meet decarbonisation goals. The country's largest steel mill Nippon Steel started EAF commercial operations in 2022 , and it plans to invest in another EAF plant in the southern Kyushu area. This is to replace the existing BOF facility that is producing 3.6mn t/yr of steel products, according to Nippon. Kobe Steel, the third-largest domestic steel firm, also announced in May 2024 that it will introduce a new EAF sometime during the 2030s, looking to replace one of the two BOFs at its Kakogawa steel works in the country's western Hyogo prefecture. Japan aims to hit its net zero emission goal by 2050 and it is critical to reduce greenhouse gas emission from the steel industry, which accounts for 35pc of total emissions in the country's manufacturing industry. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Recent deep-sea and short-sea cfr Turkey scrap deals


25/04/09
25/04/09

Recent deep-sea and short-sea cfr Turkey scrap deals

London, 9 April (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 27-Mar 30,000 378 (80:20) May Izmir Cont. Europe HMS 1/2 85:15, shred, bonus Y 27-Mar 40,000 382.50 (80:20) April Marmara USA HMS 1/2 85:15, P&S Y 21-Mar 40,000 383 (80:20) April Izmir USA HMS 1/2 85:15, shred, bonus Y 18-Mar 30,000 376 (80:20) April Iskenderun Cont. Europe HMS 1/2 80:20, shred, bonus Y 18-Mar 40,000 381 (80:20) April Iskenderun USA HMS 1/2 80:20, shred, bonus Y 18-Mar 40,000 380 (80:20) April Marmara Baltics/Scan HMS 1/2 80:20, shred, bonus Y 17-Mar 30,000 375 (80:20) April Iskenderun Cont. Europe HMS 1/2 80:20, shred, bonus Y 14-Mar 30,000 380 (80:20) April Marmara USA HMS 1/2 80:20, shred, bonus Y Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 2-Apr 3,000 350 April Izmir Romania HMS 1/2 80:20 Y 31-Mar 3,000 355 April Izmir Romania HMS 1/2 80:20 Y 24-Mar 3,000 353 April Izmir Romania HMS 1/2 80:20 Y 24-Mar 3,000 351 April Bartin Romania HMS 1/2 80:20 Y 21-Mar 5,000 370 April Izmir Greece HMS 1/2 80:20 Y 21-Mar 6,000 369 April Marmara Italy HMS 1/2 80:20, bonus Y Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Delta pulls full-year forecast amid US tariffs: Update


25/04/09
25/04/09

Delta pulls full-year forecast amid US tariffs: Update

Adds details from earnings call throughout. Houston, 9 April (Argus) — Delta Air Lines pulled its full-year 2025 financial guidance today, citing US tariff-related uncertainty. "Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook," the airline said Wednesday in an earnings call. Delta said it hoped the growing US tariff war with the world would be resolved through trade negotiations, but that it also told its main aircraft manufacturer, Airbus, that it would not purchase any aircraft that includes a tariff fee. "If you start to put a 20pc incremental cost on top of an aircraft, it gets very difficult to make that math work," chief executive Ed Bastion said in an earnings call today. In the meantime, Delta is protecting margins and cash flow by focusing on what it can control, including reducing planned capacity growth in the second half of the year to flat compared to last year, while also managing costs and capital expenses, Bastion said. Delta expects revenue in the second quarter of 2025 to be either 2pc higher or 2pc lower from the year earlier period with continued resilience in premium, loyalty and international bookings offsetting softness in domestic and standard flights. Punitive taxes on imports from key US trading partners were implemented on Wednesday despite President Donald Trump's claims of multiple trade deals in the making. Trump's 10pc baseline tariff on imports from nearly every country already went into effect on 5 April. The higher, "reciprocal" taxes went into effect today, although at midday Wednesday he announced a 90-day pause on most of the higher tariffs, while increasing tariffs on Chinese imports even higher. The company reported a profit of $240mn in the first quarter of 2025, up from $37mn in the first quarter of 2024. Confidence craters in 1Q Corporate travel started the year with momentum, but a reduction in corporate confidence stalled growth in February and March, Delta said. For the first quarter, corporate sales were up by low-single digits compared to the prior year, with strength led by the banking and technology sectors. The company's fuel expenses were down by 7pc in the first quarter of 2025 compared to the prior year period. The average price Delta paid for jet fuel was $2.45/USG, down by 11pc to the prior year period. Delta said it has seen "a significant drop off in bookings" out of Canada amid the trade disputes with that country which started earlier than the broader US tariffs. Meanwhile, Mexico is "a mixed bag," the company said. Delta is considering reducing capacity levels in Mexico and Canada in the future. The company reported a profit of $240mn in the first quarter of 2025, up from $37mn in the first quarter of 2024. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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