Dodge Ram production idled at Mexico plant

Another victim of the downturn in sales of full-size pickup trucks was revealed today as Dodge will be closing its Saltillo plant in northern Mexico for a period of two weeks. The plant produced nearly 170,000 Ram trucks last year. Yesterday, Chrysler CEO Robert Nardelli indicated that Ram production would need to be adjusted to reflect weak customer demand, and this seems to be the adjustment. According to reports, the plant was idled on Monday and its two-thousand workers are set to return to work on June 23. Last month, sales of the Ram fell by an alarming twenty-five percent. We'd imagine that the last thing Chrysler wants is a large stock of unsold 2008 Ram trucks as it readies the 2009 model, which will thankfully get somewhat better fuel mileage.

Dodge is certainly not the only automaker finding it tough to move large pickups off dealer lots. Both Ford and GM have placed large incentives on their pickups and Toyota, Nissan and Honda have or will shift truck production to passenger cars at plants capable of making the switch.

Ford's Mark Fields calls plug-in hybrids a "national priority"

In these days of nearly nonexistent profits for every one of Detroit's Big Three automakers, R&D funds must be allocated very carefully. In contrast, Japanese manufacturers such as Toyota and Honda have been earning profits on a yearly basis. Not long ago, a mild spat arose regarding whether or not the Japanese government helped fund the development of Toyota's Hybrid Synergy Drive. Even if they didn't do it in the past, Ford's President of the Americas Mark Fields indicated that they are doing it now at a conference held today in Washington, D.C. by Brookings and Google.org titled Plug-In Electric Vehicles 2008: What Role for Washington?

Fields called on the U.S. government to step up to the plate, mentioning tax breaks and incentives as one option to aid consumers who'd like to purchase these ultimately expensive vehicles one day. On the manufacturing side, Fields suggests that plug-in hybrids should be a "national priority", with Washington needing to allocate funds for research and development. Another area singled out is a domestic supply of batteries, since most of the units used in today's hybrids are being manufactured overseas.

It should be noted that General Motors already has a head start towards PHEVs with its upcoming Chevy Volt. As far as we're aware, the development costs for this vehicle and its batteries has been moving forward without direct assistance from the government. Feel free to read Field's entire speech after the break.

Pininfarina confirms Ferrari, Brembo and Sabelt as new shareholders

Pininfarina has confirmed the three new shareholders who will take stake in the company as part of its 100 million euro capital increase. As we reported previously, Piero Ferrari, son of the late Enzo Ferrari and vice-chairman of the eponymous Maranello sportscar firm, and Alberto Bombassei, chairman of the Brembo brakes company, will take shares, in addition to the Marsiaj family at the helm of Italian seatbelt manufacturer Sabelt.

The increased capital will finance the development and production of the upscale electric minicar Pininfarina will produce together with French industrial group Bollore and Indian automaker Tata. The car is expected to begin production in 2010 with 2000 units, ramping up to a full capacity of 15,000 units by 2012 with sales in the United States, Europe and Japan. Although the size of each new shareholder's stake has yet to be confirmed, the shares will come out of the Pininfarina family's 55% ownership.

Fiat buys Zastava to build new Topolino microcar

If you told us a year ago that Fiat was going to sign a deal with the government of Serbia, we'd have laughed. But that was before the country announced that it was accepting tenders for investment in the state-owned automaker Zastava, makers of the famous Yugo (aka Skala 55). The process started back in December when the Serbian government made the announcement, sparking interest from various automakers. But even as recent as last week, the Fiat stance was that it was still considering the proposition. Well, it appears the Italian auto giant has done thinking, and has signed a memorandum of understanding with Serbia to establish a joint venture that involves Fiat investing a staggering 700 million euros (!) into Zastava's manufacturing facilities in exchange for a majority stake in the company, known in full as Zavodi Crvena Zastava. The Serbian government, meanwhile, will contribute some 200 million euros through tax incentives and similar measures.

Fiat has revealed that it will use the Zastava plant to produce the upcoming Topolino microcar. The vehicle will be based on the same platform as the 500 and Panda, but even smaller and positioned below either model, and share the same name as the concept car that previewed the new 500 and originally used on the 1936 runabout pictured above. According to reports, the new Topolino will be a compact two-seater measuring just 3150mm (124 inches) in length, slightly longer than the Smart ForTwo at 2692mm (106 inches). A four-seater version is expected to follow, in addition to an upscale version for the Lancia division.