Trade News

For Canadian auto retailer HGreg.com, setting up a cloud-based computer system was necessary to connect its dealerships across two nations. That initiative started around 2014, and it turned out to be a beneficial strategy during the current coronavirus pandemic.

The company uses a cloud-based phone system and Google technology for email and file-sharing across its 32 rooftops, including two Nissan stores and six used-car dealerships in Florida, CEO John Hairabedian said. When the coronavirus swept across North America in March and HGreg shifted non-customer-facing employees to work remotely, "we were pretty well prepared already," he said.

Companies have expanded remote work arrangements in recent weeks as governments have ordered nonessential businesses closed to keep people from congregating at offices, dealerships included.

Yet dealership consultants who specialize in information technology say retailers generally aren't familiar with having employ…

For the past two months, consumers have been awash in a wave of goodwill from automakers using TV and social media to say they are here to help.

This outpouring of assistance has revolved around a common toolbox among manufacturers: deferred payments, extended lease offers and no-interest loans that are enticing shoppers to buy during a period of economic uncertainty.

The traditional upbeat ads touting big deals have given way to sympathetic tones respecting the gravity of the moment. But the mood of the country appears to be shifting.

The atmosphere heading into the summer is one of reclamation as the economy — soon to be buoyed by the resumption of auto production to supply dealerships that have been classified as essential businesses — begins to reopen in numerous states.

The question now is, how should brands and dealerships move forward with their messaging in what could be the beginnings of an economic comeback…

LOS ANGELES — Dealership showrooms began opening in Los Angeles County on Friday and are poised to reopen across the rest of California, the nation's biggest new-vehicle market, after state and local officials eased some of the country's strictest rules to counter the coronavirus outbreak.

After permitting only online sales for the past several weeks, the new rules outlined by Los Angeles County officials allow explicitly for the opening of "car dealer showrooms (open for sales with adherence to distancing and infection control protocols)," with a 5-page list of health and safety protocols published Friday by the public health department.

Come Monday, the entire state should be open to in-store auto sales, with the city of Fresno setting the day for relaxed rules and six counties in the Bay Area this week permitting the reopening of businesses that are primarily located outdoors, according to the California New Car Dealers Association.

"Effective no late…

Dealership marketing company AutoWeb acknowledged this week it may have to return the $1.38 million loan it received in April under the U.S. Small Business Administration's Paycheck Protection Program.

The company advised with its first-quarter earnings this week that the federal government issued new guidance that large companies will have to certify their economic needs to receive the loans, part of the coronavirus relief package. The loans help cover small businesses' employee payroll costs for eight weeks and can be forgiven.

"Although we believe that we are compliant with the 'economic uncertainty' certification we made in connection with our PPP Loan, there can be no assurances given that upon an audit of our loan application, an adverse audit opinion might result that could require us to repay the entire amount of the loan, which could materially and adversely impact our financial performance," AutoWeb wrote in a regulatory filing Thursday accompany…

SHANGHAI -- Ford Motor Co.'s two China joint ventures reported year-over-year sales growth in April, indicating the world's biggest auto market has started a recovery from coronavirus-induced lows.

Ford's main joint venture with Chongqing Changan Automobile Co. sold 20,465 vehicles in April, up 38 percent from the same period a year earlier, Changan said in a stock exchange filing on Wednesday.

Jiangling Motors Corp., in which Ford owns a stake, said in a filing on Thursday that it sold 28,028 vehicles in April, up 7.8 percent. JMC sells Ford-branded SUVs, crossovers and vans as well as JMC-branded commercial vehicles.

Ford's China sales fell 35 percent to 88,770 in January-March. During that time, the government imposed restrictions on movement to slow the spread of the novel coronavirus, which has led to over 4,000 deaths in the world's second-biggest economy.

China's overall first-quarter light-vehicle sales fell 42 percent.

The two Chin…

DETROIT — American Axle and Manufacturing Holdings said earnings and revenue slipped during the first quarter as it grappled with the COVID-19 crisis, but the company said operating results remained strong under the circumstances.

Shares in American Axle surged on the news, rising 40 percent to close at $5.96 on Friday.

Adjusted earnings, after interest, taxes and other onetime deductions, fell 13 percent to $213 million during the quarter. The company said COVID-19 costs took a $47 million bite out of those EBITDA results.

On a call Friday, CFO Chris May credited the positive adjusted EBITDA performance to high productivity and low launch costs.

In the statement, the company reported first-quarter net sales dropped 22 percent to $1.34 billion.

The company previously targeted sales of $5.8 billion to $6 billion in 2020, lower than in previous years.

American Axle joins other suppliers — including Aptiv, BorgWarner, Magna, Lear Corp.…

DETROIT — American Axle and Manufacturing Holdings said earnings and revenue slipped during the first quarter as it grappled with the COVID-19 crisis, but the company said operating results remained strong under the circumstances.

Shares in American Axle surged on the news, rising 37 percent to $5.85 in midday trading.

Adjusted earnings, after interest, taxes and other onetime deductions, fell 13 percent to $213 million during the quarter. The company said COVID-19 costs took a $47 million bite out of those EBITDA results.

On a call Friday, CFO Chris May credited the positive adjusted EBITDA performance to high productivity and low launch costs.

In the statement, the company reported first-quarter net sales dropped 22 percent to $1.34 billion.

The company previously targeted sales of $5.8 billion to $6 billion in 2020, lower than in previous years.

American Axle joins other suppliers — including Aptiv, BorgWarner, Magna, Lear Corp. …

DETROIT -- Lear Corp. managed to churn a profit in the first quarter of 2020 despite a significant impact on production from the global COVID-19 outbreak.

The seating and electronics supplier said net income fell 67 percent to $76.4 million during the quarter while revenue fell 14 percent to $4.5 billion. COVID-19 sliced $900 million of sales in the quarter, the company said in a press release.

Lear's China plants were closed for several weeks in the quarter due to the outbreak that started in Wuhan, China. But while its China operations were reopened by the end of the quarter, "virtually all plants" in North America, Asia (outside of China), South America and Europe were closed.

"Our first quarter financial results were significantly impacted by production disruptions stemming from the COVID-19 pandemic.," Lear CEO Ray Scott said in the press release. "Excluding the impact of COVID-19, Lear's results reflect solid financial performance in both of our bu…

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

The president of JM&A Group opens up about giving dealers free access to the company's virtual finance and insurance training process playbook; the ''awkward blessing in disguise'' that has emerged from the crisis.

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Daily Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Daily Drive"

Android

“Daily Drive” is available on the Google Play stor…

Tenneco Inc.'s revenue slumped and the company swung to an adjusted net loss in the first quarter as automakers suspended production because of the coronavirus pandemic, the supplier said Friday.

The maker of ride control and emissions systems said first-quarter revenue fell 14 percent to $3.84 billion. The company estimates the COVID-19 crisis affected value-add revenue by $340 million.

Tenneco's first-quarter net loss widened to $839 million from a loss of $117 million last year. The net loss included noncash impairments of $854 million.

Its adjusted net loss was $26 million, compared with income of $42 million in the year-earlier period. Adjusted earnings before interest, taxes, depreciation and amortization dropped 27 percent to $239 million.

Shares of Tenneco were up 15.7 percent to $5.24 in midday trading Friday . Tenneco joins several other major suppliers, including Aptiv, Adient, BorgWarner and Magna, in reporting quarterly earn…

New approaches to selling autos forced by the coronavirus crisis will play right into the desires of consumers, a study by KPMG has found.

Seventy-five percent of consumers would prefer to handle their purchase, trade-in, financing and delivery remotely, according to a survey of 2,500 U.S. consumers in the week beginning April 8. Nearly half said they'd prefer to take a test drive without having to enter a dealership.

"The whole online experience, we think people are going to be pushing for that," Gary Silberg, KPMG's auto chief for the Americas, told Automotive News.

The study says remote sales and deliveries have kept U.S. sales from a total collapse during the COVID-19 pandemic and are the future of auto retailing. Dealers have weeks, not months, to get their systems ready for e-commerce capabilities, the management consulting firm says.

Twenty-five percent of those surveyed said they were considering purchasing a vehicle within three months pr…