Trade News

Some House Democrats and Republicans representing hard-hit auto states such as Michigan and Ohio are asking Congress to support aid for the automotive industry in upcoming legislative proposals related to the coronavirus pandemic.

U.S. representatives including Michigan Republican Fred Upton, Michigan Democrat Debbie Dingell, Ohio Democrat Marcy Kaptur and others are gathering signatures on a draft letter that was circulated among lawmakers Tuesday.

"The projected economic fallout for the industry is grave," the lawmakers wrote in a copy of the letter obtained by Automotive News.

"Manufacturers moved swiftly to fill the desperate call for additional personal protective equipment and ventilators where they could," the letter said. "But sales are projected to drop as much as 30 percent for the year, from over 17 million cars sold in 2019."

All parts of the auto industry have been upended by the COVID-19 crisis and resulting economic downturn, with m…

The falling number of credit inquiries for auto loans, in the middle of a pandemic, should not shock anyone. After all, with many states under stay-at-home orders during March and people experiencing uncertain economic times, the Consumer Financial Protection Bureau's Consumer Credit Panel's look at how the coronavirus affected that month's credit applications is not surprising.

Nevertheless, they are stark reminders of the impact the COVID-19 pandemic is having. Looking at the number of credit inquiries in credit records, the panel found auto-loan inquiries dropped 52 percent between the first and last week of March, revolving credit card inquiries declined by 40 percent during the same period and new mortgage inquiries dipped by 27 percent.

"The observed drop in inquiries could be due to a drop in underlying credit demand, a drop in credit supply affecting inquiries either directly or indirectly by heightening consumers' expectation of being…

Household debt increased in the first quarter before the COVID-19 pandemic, driven primarily by the housing market. Debt levels across other credit products, including auto loans, dipped slightly, the Federal Reserve Bank of New York reported Tuesday.

The New York Fed noted that because individual consumer credit reports typically are updated on a monthly basis, the results of its latest survey of consumer credit doesn't reflect the true impact of the COVID-19 pandemic.

The total U.S. debt balance is now $1.6 trillion more than the previous peak of $12.68 trillion recorded during the financial crisis of 2008.

Auto-loan debt rose $15 billion in the first quarter, though loan applications fell and credit standards constricted marginally. Currently, there is about $1.35 trillion in outstanding auto-loan debt in the U.S.

Auto-loan originations slid in the first quarter, the New York Fed said, as the median credit score am…

After Ford Motor Co. reported a $2 billion net loss in the first quarter and warned of more than $5 billion in operating losses in the second quarter, analysts on a Bank of America webcast last week asked executives if they would consider spinning off the company's profitable captive arm.

"Heck no," Ford COO Jim Farley said. "When you look at the stress the dealer's been under over the last couple of months, Ford Credit has been indispensable."

Farley emphasized the effect of leveraging an auto lender whose operations are interwoven with the automakers. The relationship allowed Ford to rapidly launch aggressive incentives in the market as the coronavirus closed stores and slowed vehicle sales nationwide. The fruits of those incentives were reflected in vehicle sales figures for the end of March and the beginning of April, during which the Detroit 3 automaker's captives gained the highest market share of new-vehicle originations since 2004.

Customers in the market for Ford Motor Co.'s upcoming offroaders will have at least a couple grille options.

The automaker plans to offer three front-end designs for both the Bronco SUV and Bronco Sport crossover, according to Ford Authority. They'll reportedly be called "Modern," "Classic" and "Custom."

Ford, as a matter of policy, does not comment on future products.

Spy photos recently posted on broncosportforum.com appear to show two of the three designs for the smaller crossover. Both the Bronco and Bronco Sport were scheduled to be revealed by now but have been postponed indefinitely due to the coronavirus crisis.

Uncamouflaged photos of both vehicles have already leaked. The photos show the word BRONCO stamped in the middle of each grille, flanked by the vehicle's classic round headlights.

Ford told suppliers this week it now plans to begin mass output of the Bronco Sport at a plant in Mexico on Au…

DETROIT -- Despite the COVID-19 outbreak impacting worldwide auto sales, seating supplier Adient plc managed to reduce its losses in its second fiscal quarter of 2020.

The company reported a net loss of $19 million on revenue of $3.5 billion in the quarter that ended March 31, compared with a net loss of $149 million on revenue of $4.2 billion during the same quarter in 2019.

Adient attributed $530 million of its $717 million decline in revenue during the quarter to the COVID-19 outbreak's impact on sales, primarily from lower vehicle production across Asia, where the coronavirus erupted earlier in the quarter than in the U.S., according to the financial report it filed with the U.S. Securities and Exchange Commission.

Offsetting the lost sales, the company cut expenses during the quarter by 18 percent, or $757 million, down to $3.3 billion. Restructuring and impairment costs also dropped by 54 percent down to $52 million during the recent quarter.

Group 1 Automotive Inc. reported a drop in first-quarter revenue and profit as the global coronavirus pandemic derailed what had been a strong start to the year.

The Houston dealership group said Tuesday that its U.S. and U.K. markets were on track for a record first quarter before March. Instead, the company has had to slash costs amid stay-at-home orders and a subsequent lack of business, though sales were beginning to improve near the end of April.

First-quarter revenue fell 4.2 percent to $2.69 billion. Net income declined 23 percent to $29.8 million. When adjusted for one-time items, the company's profit was $30.6 million.

Group 1 shares rose 8.8 percent to $58.42 in midday trading in New York.

"Beginning in early March 2020, all three of our regions were negatively impacted by 'shelter in place' mandates in most of the cities where we operate," CEO Earl Hesterberg said in an earnings release. By mid-March, Group 1's U.K. operations were clos…

René Lalique, a French glass artist and jeweler who created some of the most coveted automobile mascots — initially known as radiator caps but commonly referred to as hood ornaments today — dies May 9, 1945, at age 85.

The internal-combustion engines used in early automobiles resulted in the need for radiators to cool them, featuring caps that were visible above the engine hood. Automakers often displayed their emblems, or mascots, on radiator caps.

Small metal sculptures began to widely supplant thermometers and safety valves atop radiators in the 1920s, when the auto industry was just several decades old. Rolls-Royce' Spirit of Ecstasy, also known as the Flying Lady, debuted in 1911, becoming perhaps the most famous of all mascots.

Over time, affluent car owners often personalized the family car with favorite designs fabricated from metal.

Lalique, who worked in ivory, wood, semiprecious stones and enamel, was already a well-known, entrepreneur…

In the weeks since Jaguar Land Rover's product development centers closed to help thwart the spread of COVID-19 in the U.K., Adam Hatton, 48 and Alister Whelan, 44, have been focusing on refining how future Jaguars will look inside and out.

Hatton, a 22-year Jaguar veteran, is creative director of exterior design. Whelan, with Jaguar at 20 years, is creative director, interior design. Both spoke with Staff Reporter Richard Truett via Zoom from their home offices. Here are edited excerpts.

Q: Has the use of aluminum — which is not compatible for deep draws and dramatic bends for body panels — limited some of the shapes you've wanted to create for Jaguars? If "limited" is too strong, then maybe "influence" is better?

Hatton: It is more difficult to press shapes in aluminum than in steel, but we are experts in that field now. We know well how to get really good form into the cars, and you can see that in the cars on the road today an…

DETROIT — The UAW said Tuesday that it continues to talk with the Detroit 3 automakers about protecting workers even as Fiat Chrysler Automobiles announced plans to resume production at most U.S. plants the week of May 18.

The decision, announced as part of FCA's first-quarter earnings report, comes after the automaker pushed back initial plans to reopen plants early this month. The union opposed an early May return to work, but a UAW statement Tuesday did not renew its previous opposition.

"As for the start date, the companies contractually make that decision and we all knew this day would come," UAW President Rory Gamble said in a statement. "Our UAW focus and role is and will continue to be, on health and safety protocols to protect our members."

FCA said Tuesday it plans to restart production at its North America plants, with the exception of the Jeep Cherokee factory in Belvidere, Ill., the week of May 18. The Belvidere factory, which has been idled…

Subaru of America's lineup is a little bit faster and more extreme with the addition of the STI S209 last year. Subaru Tecnica International, Subaru Corp.'s motorsports arm, rolled out the S209 after nearly two decades of S-line models that were sold only in Japan.

The S209 — exclusive to the U.S. — has a 341-hp engine, a wide-body exterior treatment, front, rear and side spoilers, a carbon-fiber roof panel and 19-inch wheels and Brembo brakes. With a starting price of $65,880, the S209 is by far the highest priced model in Subaru's non-performance, crossover-heavy lineup. Subaru built only 209 S209s.

Here's a look at select reviews from the automotive media.

"Keeping the S209 in third gear puts it in the perfect place for quick corner exits, with the engine's maximum torque coming on at 3,600 rpm. Yes, I feel every bump in the road with this super-stiff chassis and the bump steer is a little disconcerting, but the trade-off is amazing. The S209 does my…