Source: Tesla’s “Pilot” Model 3 Body Line Still In Development Near Detroit

Photos, apparently of a Model 3 “pilot team” in “Area 51,” were subsequently deleted by a now-private Instagram account.

Three months ago Tesla CEO Elon Musk tweeted that production of the new Model 3 in “Aug[ust] should be 100 cars and Sept[ember] above 1500.” But over the following quarter Tesla ended up delivering only 220 of its new more-affordable electric cars, or just 15% of Musk’s guidance. Though Tesla’s delivery press release didn’t identify the cause for this dramatic miss, it did state that

“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”

What does and does not constitute a “fundamental issue” with the Model 3 production ramp is open to debate, but a source tells Daily Kanban that elements of the Model 3 body line are still in development at the Michigan-based supplier Thai Summit America and not yet installed at Tesla’s Fremont facility.

[Continue Reading]

Tesla: Production Capacity Of Model 3 To Average 226,563 Units Per Year Over Next Five Years

George Orwell famously wrote that “to see what is front of ones nose takes a constant struggle,” and it turns out that the answer to one of the biggest mysteries in the auto industry has been hanging out directly in front of the public’s nose for some time. In a January 2017 application [PDF] for sales tax exemption (STE) from the CAEATFA program, the California Treasurer revealed that

“Tesla represents the Project will launch the Model 3 and provide the capacity to produce and deliver an average of 226,563 units per year over a five year period, in addition to its Model S and Model X production.”

This revelation provides an unprecedented clarity about Tesla’s production ambitions for its “more-affordable” Model 3 sedan, and contradicts representations that Tesla executives have made in quarterly conference calls with analysts and the media.

[Continue Reading]

Documents Show Tesla Expanding Annual Production To About Half Of 500K Goal

coverlet

The Daily Kanban has obtained Tesla’s application [PDF here] to the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) for about $100m worth of Sales and Use Tax Exclusion (STE) on its purchase of about $1.2 billion worth of production equipment to be used to produce its affordable Model 3. An analysis of key unredacted portions of this CAEATFA application shows that this massive investment –along with CAEATFA documents related to Tesla’s expansion of Model S and Model X vehicle production— will only increase the electric automaker’s annual production to between 230,000 and 300,000 units per year, well short of the firm’s 500,000 unit per year goal for 2018.

Though Tesla could reach its much-discussed half-million per year production goal through other means, these CAEATFA documents appear to validate Daily Kanban‘s analysis of air quality permits at Tesla’s Fremont plant which indicates a current production limit of about 230,000 units per year.  Tesla has yet to publicize any plans to apply for the new permits or make the new investments required to bring its production rate beyond these limits and towards its planned 2018 rate of 500,000 units per year.

[Continue Reading]

Chrysler Is Still Waiting For Its Quality Turnaround

Who's laughing now?

Who’s laughing now?

In 2009, when Sergio Marchionne’s team presented the first five-year plan for what would become Fiat Chrysler Automobiles (FCA), his VP for Quality Doug Betts told attendees that Chrysler’s quality problems would soon be a thing of the past. Thanks to Fiat’s superior fit-and-finish standards and “World Class Manufacturing” system, Chrysler hoped to match the best mass-market competitors on quality by 2012 according to Betts. Three years after that initial goal had passed unaccomplished, Betts is gone but FCA’s US-market brands are still occupying the bottom tier of Consumer Reports’ most recent automotive quality survey. With quality problems plaguing even its “halo” Hellcat and Ecodiesel engines as recently as last week, it’s clear that Marchionne hasn’t been able to bring the long-term quality backmarker up to pace.

[Continue Reading]

Mazda’s Secret Weapon: The CNC Motor Factory

Everybody route now!

Everybody route now!

 

Of all global automakers, Mazda may be in the toughest position. As if it weren’t hard enough to be one of the smallest independent mainstream automakers left, it faces the thankless task of marketing an enthusiast-oriented brand as well. And without the support of a major partner now that Ford has departed its alliance with the Hiroshima-based automaker, Mazda is hustling to stay in the game. But the hottest fires produce the hardest metals, to borrow a phrase used more by marketing types than engineers, and Mazda’s fight for existence is producing some interesting innovations. As Dave Coleman, vehicle development engineer at Mazda’s North American Operations tells Wards Auto:

“We needed to approach that fundamental truth (of economies of scale) and find out if it’s still fundamentally true, or is there a way to engineer our way around it. And it turns out there is a way to engineer around it.”

[Continue Reading]