Investment

Despite crisis, automakers kept investing in assembly plants – Automotive News

Published

4 years ago

December 27, 2020

The assumption of 2020 was that the year would be a washout when it came to automakers making big, new investments in assembly plants. Given the cataclysm of the coronavirus pandemic, the halt in industry production, the crash of the U.S. economy, the scramble for cash reserves, the new uncertainty over the health and safety of industrial workplaces and the very real fear that Americans would be in no hurry to buy a new vehicle, it was logical that nobody needed to spend money on an auto factory.

But things turned out differently.

Despite the early worries, automakers pressed ahead with new investments, expansions, retoolings and undeveloped land in 2020. These were the largest projects in the January-November period, as tabulated by the Center for Automotive Research of Ann Arbor, Mich., for its industry-tracking Book of Deals database.

$1.45 billion
Ford: Oakville, Ontario
Retooling and preparation for production of battery-electric vehicles

$1.2 billion
FCA: Windsor, Ontario
Retooling and preparation for the production of plug-in hybrids and battery-powered vehicles

$1.1 billion
Tesla: Austin, Texas
A manufacturing plant on undeveloped land to produce the Tesla Cybertruck, Semi, Model 3 and Model Y for the eastern half of North America

$1 billion
General Motors: Spring Hill, Tenn.
An expansion to introduce production of electric vehicles, including the all-new Cadillac Lyriq

$1 billion
General Motors: Oshawa, Ontario
Capital investment for retooling to implement a new, flexible assembly module for the production of heavy-duty and light-duty T1XX pickups

$830 million
Mazda Toyota Manufacturing USA: Huntsville, Ala.
Additional investment at the plant project to incorporate new manufacturing technologies into production lines and provide enhanced training for its work force

$170 million
Toyota Motor Corp.: Apaseo el Grande, Guanajuato, Mexico
Additional investment to expand capacity at the newly opened Corolla assembly plant to add the Tacoma pickup

$158 million
Subaru of Indiana Automotive: Lafayette, Ind.
Expansion of manufacturing, addition of transmission assembly and construction of a new service parts facility

$115 million
Ford Motor Co.: Windsor, Ontario
Investment in two powertrain plants, Windsor Engine and Essex Engine, to launch a new 6.8L engine in 2022 at Windsor, and to enhance production of 5.0-liter engines and Nano cylinder heads at Essex

$100 million
General Motors: Lansing, Mich.
Retooling for production of the GMC Acadia

$85 million
General Motors: St. Catharines, Ontario
Investment to modify the assembly plant and production tooling to introduce a new transmission and variants

$53 million
Mercedes-Benz U.S. International: Vance, Ala.
Construction of a storage and sequence facility for parts used in the plant’s coming U.S. production of EVs

$46 million
Arrival: Rock Hill, S.C.
Vehicle assembly plant on undeveloped land for the U.K.-based manufacturer of electric buses

$39 million
General Motors: Toledo, Ohio
Upgrade and enhancement in the production of GM’s eight-speed rear-wheel-drive transmissions

$39 million
FCA: Brampton, Ontario
Upgrades in existing assembly operation

$32 million
General Motors: Defiance, Ohio
Additional investment to support engine component casting

$32 million
General Motors: Flint, Mich.
Expansion for production of heavy-duty Chevrolet Silverado and GMC Sierra pickups

Source: Center for Automotive Research, Book of Deals. January-November 2020

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

3 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.