Trade News

Across Denver this spring you could hear the joyous honking of cars lined up for drive-through graduation ceremonies in high school parking lots.

The adaption of this annual celebration to meet the physical distancing realities of the COVID-19 era vividly displayed our nation's power of resilience — and the power of cars in helping us rise to this unprecedented challenge.

The same pandemic that has sorely tested the automotive industry is demonstrating its bright future as a key element of the U.S. recovery. Is it possible that one of our worst moments will pave the way for some of our best?

In a world with new dangers, there is a renewed appreciation of the personal vehicle as a place of safety and an important element in our nation's recovery.

The nation's privately owned vehicle fleet has become a lifeline and lifesaver.

Before the pandemic took hold in Denver, cars were increasingly being targeted as a problem that needed to be solved…

As dealerships reopen, making sure customers — on edge due to the coronavirus — are confident their serviced cars are clean and germ-free has become a top priority.

Antimicrobial treatments for vehicles have become increasingly popular at dealerships. In many instances, dealerships provide the cleaning for free. But in the past two months, antimicrobial treatments as F&I offerings have experienced a 20 percent market-share gain compared with last year, according to F&I product provider Portfolio.

When dealers needed a product to sanitize cars in their service departments, Cilajet — a supplier of aviation-grade paint and metal sealants — started manufacturing an antimicrobial solution. The product, which was offered as a free service to front-line workers in some stores, is making its way into the F&I department.

"We are working with major administrators to ensure that there are some good and valuable F&I benefits …

Hyundai made a big bet heading into the coronavirus pandemic, and it paid off in May.

The Korean automaker's moves over the past several weeks should position it for a stronger rebound coming out of the industry's shutdown.

Hyundai was among the first brands to introduce 0 percent financing for 84 months, deferred payments for 120 days and an industry exclusive in March: job-loss insurance that would cover up to six payments.

But for the strategy to work, Hyundai had to gamble on stocking up on inventory as its sole U.S. plant in Alabama was closing because of stay-at-home orders.

Luckily, South Korea had mostly overcome the worst of its virus outbreak, so Hyundai executives in the U.S. had a pipeline for popular crossovers such as the Kona, Tucson and Palisade.

"We elected to be very aggressive upfront to demonstrate leadership, to demonstrate confidence in the company and to provide resources for our …

This was supposed to be a comeback year for Aston Martin and its retailers with the arrival of its DBX SUV, a major component of the automaker's Second Century business plan issued in 2015.

But halfway into 2020, the British ultraluxury brand — which has struggled financially since going public in 2018 — has experienced more turmoil. The DBX is still set to arrive at dealerships this summer, but it will now go on sale without one of the key executives behind the vehicle, Andy Palmer.

Palmer stepped down as CEO last month. He is to be replaced by Mercedes- AMG CEO Tobias Moers, who is set to start his new role on Aug. 1.

Last week, the automaker said it would cut up to 500 jobs, or about 20 percent of the company's work force, as the COVID-19 pandemic saps consumer demand and the need for vehicle production.

The change in CEO followed the addition of a new executive chairman, Canadian billionaire Lawrence Stroll, in A…

Wearing masks in public to slow the spread of the novel coronavirus has quickly become a staple in American life.

Should it be common in automotive advertising, too?

Donning masks is a polarizing issue in some circles, and it appears auto retailing is one of them. Ford has experienced this firsthand.

Matt VanDyke, Ford's director of U.S. marketing, said some dealers aren't ready to accept ad content with people wearing masks. Others think it's important to show mask use.

"We shared with our dealer association groups some new creative that we have developed and literally about a third of the group said, 'If you show people in the showroom of a Ford dealership and they don't have a mask on, I can't or won't use it,' " VanDyke told Automotive News Publisher Jason Stein last week during the Congress Conversations series.

Other dealers argued that if Ford shows people in a showroom with masks on, it will scar…

BERLIN -- Volkswagen is considering more cost cuts to help cope with the economic impact of the coronavirus pandemic, a spokesman for the automaker said on Saturday.

The issue was recently discussed at an internal event, the spokesman said, when asked about a report in Automobilwoche, a sister publication of Automotive News.

"There were general deliberations about what further cost measures could be taken to respond to the pandemic," the spokesman told Reuters. "There are no concrete decisions yet."

Automobilwoche quoted Volkswagen CEO Herbert Diess as telling top managers at a meeting on Thursday: "We must significantly cut R&D expenditure, investments and fixed costs compared with the previous planning."

The group's net liquidity would "continue to decline at least until July due to weak demand," the magazine, citing participants at the event, quoted Diess as saying, adding that not all group brands would achieve a positive result in 2020. Read more

Auto fraud has increased exponentially in the wake of the coronavirus pandemic as some people attempt to take advantage of the unprecedented moment in time. Investing in identity verification technologies can reduce fraudulent auto originations during the crisis, fraud experts said, but only if dealerships and lenders are on board.

One unexpected, increasing area of fraud risk for dealerships and auto lenders: the federal financial hardship and forbearance strategies keeping millions of Americans from falling behind on auto loan payments.

Thanks to existing protections and additional guidance in the Coronavirus Aid, Relief and Economic Security Act, lenders granting forbearance to customers in need aren't jeopardizing their credit standing.

Lee Cookman, director of product strategy of global fraud and identity solutions at credit bureau TransUnion, said while these tools are preserving legitimate customers' credit standing, they …

Jeff Guyton picked an interesting time to move back to the U.S. from Europe to take over as president of Mazda North American Operations just more than 14 months ago. The brand's first redesigned model under its new "premium" image — the compact Mazda3 sedan and hatchback — was headed toward a disappointing sales debut after a price hike and a wrong bet that offering all-wheel drive would entice Americans out of their crossovers.

Guyton, 53, who was head of Mazda Europe for a decade, inherited rapidly fading sales in the U.S. But Mazda had a plan: Redesign the dealerships in addition to remaking the vehicles, and hit hard at the crossover space with an upscale entry that would still compete with Toyota and Honda in the base-trim volume segment. Guyton's job was to execute that plan quickly.

The Japanese automaker kicked off this year with record sales, along with the debut of the CX-30 crossover that essentially is the higher-riding cousin of the Mazda3 hatch…

General Motors designated $10 million to support organizations that promote inclusion and racial justice, the company said Friday after making public statements advocating for inclusion and an end to racism this week.

The automaker's support will start with a $1 million donation to the NAACP Legal Defense and Educational Fund, the company said in a statement.

GM will determine recipients for the additional funding with input from its employee resource groups and the inclusion advisory board, which CEO Mary Barra will chair and commission by the end of the quarter.

The company also will match employees' contributions as part of its $10 million commitment.

"Through today's donations, GM is taking action in helping root out intolerance – and that means racism, bigotry, discrimination and any other form of hatred," Barra said in a statement. "We want to be part of meaningful, deliberate change and we will not allow ourselves the passivity of urging ot…