Semiconductor could be an issue…again

Automakers including BMW, Mercedes-Benz, Stellantis and Volkswagen are closely watching a trade dispute involving the chipmaker Nexperia that could shut off supplies of critical semiconductors and halt production within weeks. BMW said Oct. 16 that parts of its supplier network were already being affected. “We are in close contact with our suppliers and continuously assess the situation in order to identify potential supply risks at an early stage and take appropriate measures if necessary,” a BMW spokesperson told Reuters. Production continues at BMW’s plants as planned, the spokesperson said, without giving details on the supplier problems.

Source: Automotive News

Detroit hit hard

Fallout from a fire at an aluminum supplier in New York a month ago is hitting Detroit, where Ford Motor Co., Stellantis and their suppliers face production disruptions. Warren Truck, where Stellantis builds the Jeep Wagoneer and Grand Wagoneer, is being idled for three weeks because of a parts shortage, the company said. The shortage is emanating from the Sept. 16 fire at the Novelis aluminum factory in Oswego, N.Y., UAW officials confirmed. “Due to a parts shortage, Warren Truck Assembly Plant will be idled beginning the week of Oct. 13 for three weeks,” spokeswoman Ann Marie Fortunate said in an email to Crain’s Detroit Business, an affiliate of Automotive News. “The plant is expected to resume production the week of Nov. 3.”

Source: Automotive News

First Ford, Now Jeep. Automakers Are Hit by Lack of Parts

Assembly lines inside a Michigan factory that churns out high-end Jeep SUVs ground to a halt last week and won’t resume production until early next month. The cause, according to an official for the United Auto Workers, is a shortage of aluminum. Ford has paused production at three plants for the same reason. Between the two automakers, thousands of workers in Michigan and Kentucky are now collecting unemployment.

Source: Wall Street Journal

Jeep Factory Halted for Three Weeks After Aluminum Plant Fire

A Stellantis NV plant in Michigan will remain shut down for several weeks due to a shortage of key components, a sign of the growing fallout from a supplier’s aluminum factory fire last month. Production at the automaker’s Warren plant, which makes the high-end Jeep Wagoneer SUV, was halted Oct. 13 and will stay idle until the week of Nov. 3, the company said via email. Stellantis cited “a parts shortage” without providing additional details.

Source: Bloomberg

U.S. Automakers Struggle with Parts Shortages and Halted Output

Automakers across the United States are facing widespread production disruptions as supply-chain issues compound, affecting both Ford and Stellantis factories. Assembly lines for Jeep SUVs in Michigan halted last week due to a shortage of aluminum and are not expected to resume until early next month. Ford has similarly paused production at three plants, leaving thousands of workers in Michigan and Kentucky collecting unemployment. The disruptions stem from multiple supply bottlenecks, including aluminum, rare-earth minerals, and semiconductors. A three-alarm fire at a New York aluminum plant in September has been cited as a key factor, delaying manufacturing schedules for high-end Jeep SUVs and profitable Ford models, including the Expedition and Lincoln Navigator. Ford’s Kentucky Truck Plant has also scaled back production of Super Duty trucks, some of which retail for over $100,000.

Source: CBT News

A late-night fire that destroyed part of the Novelis aluminum plant in New York last month could cost Ford Motor Co. more than $1 billion in lost profits and lead to temporary plant layoffs, as some experts predict the automaker will be forced to pause production on more vehicles than it already has done. Ford paused production of the all-electric Ford F-150 Lightning and two of its large SUVs this week. The downtime could extend into further weeks due to an aluminum shortage, those familiar with the situation have said. It is unclear how many, if any, hourly workers are impacted yet, given some may be moved to other jobs.

Source: Detroit Free Press

Wholesale used-vehicle prices declined in the first half of October, following weakness observed in late September. The mid-month Manheim Used Vehicle Value Index fell to 203.6, representing a 3.4% drop from the unadjusted values in September, though it was up 0.4% compared to the full October 2024. Seasonal adjustments intensified the decline. Jeremy Robb, deputy chief economist at Cox Automotive, noted that the early October declines indicate a return to normal depreciation after unusually strong pricing earlier in 2025. He also stated that softer retail sales in late September signal weaker wholesale demand.

Source: CBT News

Toyota is transforming its flagship Century model into a standalone ultra-luxury brand positioned above Lexus, previewing the move this week ahead of its official debut at the 2025 Japan Mobility Show. The new Century brand aims to capture the luxury segment, competing directly with high-end rivals like Rolls-Royce and Bentley, and will be sold internationally for the first time. First introduced in 1967 to mark Toyota founder Sakichi Toyoda’s 100th birthday, the Century has long been a symbol of prestige in Japan. Favored by high-ranking executives and officials, the model expanded into an SUV in 2023, built on Toyota’s latest plug-in hybrid system. The brand spinoff signals Toyota’s intention to offer a more exclusive luxury experience beyond its existing Lexus lineup.

Source: CBT News

The current U.S. automotive retail marketplace is like a split personality according to the latest market research from the buy-sell website CarGurus, whose release highlights outcomes found in its Q3 2025 Quarterly Review. It suggested that, on one hand, price-conscious people on a budget are more inclined to buy high-mileage older used cars while, at the same time, big-spender premium buyers are eager for new product, according to Kevin Roberts, CarGurus’ director of economic and market intelligence, who told WardsAuto this is keeping the market strong.

Source: Wards Auto

German auto giant Volkswagen on Wednesday warned of temporary production outages citing China’s export restrictions on semiconductors made by Nexperia. The update comes shortly after the German Association of the Automotive Industry (VDA), the country’s main car industry lobby, said the China-Netherlands dispute over Nexperia could lead to “significant production restrictions in the near future” if the supply interruption of chips cannot be swiftly resolved. A spokesperson for Volkswagen told CNBC by email that while Nexperia is not a direct supplier of the company, some Nexperia parts are used in its vehicle components, which are supplied by Volkswagen’s direct suppliers.

Source: CNBC

Delinquency rates on subprime auto loans have reached record highs, signaling growing financial strain among lower-income Americans as vehicle prices and borrowing costs remain elevated. According to Fitch Ratings, more than 6% of subprime auto loans are now at least 60 days past due, the highest rate ever recorded, as tighter household budgets, slowing wage growth, and unemployment edge higher. Affordability remains a central challenge in the U.S. auto market. J.D. Power reported that nearly 14% of new-car buyers in September had credit scores below 650, the highest share since 2016.

Source: CBT News

Ten months after he was ousted, Stellantis’ former chief executive officer says the company faces a potential breakup. Carlos Tavares, in a new book, says that the group’s French, Italian and U.S. operations might have to go their separate ways if the maker of Jeeps and Fiats fails to withstand pressures from various stakeholders in its home bases. Within Stellantis, “I am worried that the three-way balance between Italy, France and the U.S. will break,” Tavares said in a book published Thursday in France. The group’s survival as a standalone company will depend on management paying attention to unity “every day” given the risk of being pulled in multiple directions.

Source: Bloomberg via Automotive News

General Motors said it plans to bring eyes-off driving to the market in 2028, starting with its Cadillac Escalade IQ electric SUV. The automaker unveiled the plan at its GM Forward event on Wednesday. The company said it has already mapped 600,000 miles of hands-free roads in North America, and that customers have driven 700 million miles using its hands-off driver-assistance system Super Cruise without a single reported crash attributed to the system.

Source: Wall Street Journal