Trade News

Dana Inc. said Thursday that weaker demand in a key segment and the impact of the COVID-19 pandemic weighed on its first-quarter sales and profits.

The axles and transmission supplier said sales fell nearly 11 percent to $1.93 billion in the quarter.

A sluggish heavy-vehicle market in January and February and production halts across all mobility markets in March as a result of the global response to COVID-19 impacted sales, the company said.

Dana reported net income of $38 million, down 61 percent from the same period last year. This includes a goodwill impairment charge of $51 million resulting from the impact of the virus, the company said.

First-quarter adjusted earnings before interest, taxes, depreciation and amortization dropped 20 percent to $205 million. Dana said cost management helped mitigate the margin impact of the sales decline in the first quarter.

Dana joins several suppliers that have reported earnings during the crisis. Ma…

FRANKFURT -- Continental is postponing the planned listing of its powertrain unit Vitesco Technologies, citing ongoing economic uncertainty.

Shareholders will not be asked to sign off on the plans for a Vitesco spinoff at the annual general meeting on July 14 and the deal will not take place this year, Continental said in a statement on Thursday.

"We are now arranging the organizational and procedural requirements so that Continental and Vitesco Technologies are in a position to swiftly implement the spinoff with listing once the market environment is suitable. The decisive preparations for this will have been completed by the end of the year," Vitesco CEO Andreas Wolf said.

With the listing, Continental is hoping to capitalize on the industry's rapid move toward electrification. By 2025, Vitesco expects 40 percent of all powertrains to be electrified because of a combination of tougher global emissions regulations and rising consumer demand.

Auto…

MILAN -- Fiat Chrysler Automobiles said its Italian network of approved dealers and repair workshops would reopen on Monday, when the country is set to start lifting a national lockdown put in place to limit the spread of the coronavirus.

A package of health and safety measures for workers and customers will be put in place across the automaker's retail network to comply with the rules set by the Italian government to prepare for a staged restart of economic activities.

A vast majority of FCA's dealers and workshops in Italy are run by private operators, while the automaker directly operates some large ones in big cities.

Dealerships of other automakers will also be allowed to reopen on Monday.

In France, dealerships will be reopen a week later than Italy, starting on Monday, May 11, as the country takes the first steps to emerge from a nearly two-month lockdown. Showrooms in Germany, Europe's largest auto market, were allowed to reopen on April 2…

Ford Credit's earnings before taxes dropped 96 percent in the first quarter as the lender clocked $600 million in credit losses as a result impacts from the coronavirus pandemic.

The Dearborn, Mich., captive finance arm attributes the drop to efforts to bolster credit-loss reserves — the funds it sets aside for auto loans it doesn't expect will be repaid — higher depreciation on off-lease vehicles awaiting sale at auction and anticipated operating lease defaults.

Ford Credit posted $30 million in first-quarter earnings before taxes, executives said Tuesday, down $771 million compared with one year ago. The added reserves and estimates for lease performance projections reflect the likely worsening financial situation caused by coronavirus closures and impacted consumers.

Ford Motor Co. CFO Tim Stone told investors Tuesday that the lender expected used-vehicle markets to rally, although he couldn't establish a timeline until auction…

Auto retail giant AutoNation Inc. has named Marc Cannon, its chief marketing officer, to a newly created position of chief customer experience officer.

The move is effective Wednesday and adds technology oversight to his responsibilities. He will continue to oversee brand, advertising, marketing, e-commerce, customer relations and communications.

Cannon, 58, with more than three decades of experience, has helped AutoNation develop digital customer experiences and has participated in strategic planning for technology relating to customer experience.

Cannon said he now oversees information technology including infrastructure, digital, phone, special projects and the company's information security group. AutoNation's Chief Information Officer Christos Kotsakis, a senior vice president, now reports to Cannon.

"We have an incredible relationship and he is very talented," Cannon said of Kotsakis in an email. "This brings al…

DETROIT -- General Motors is postponing the debut of the GMC Hummer high-performance electric pickup because of the coronavirus, a spokesman said Wednesday.

GM planned the debut for May 20 at a GMC dealer meeting in Las Vegas, but the event has been canceled. The spokesman said GM will look at all options, including a virtual event, when it reschedules the reveal "as the pandemic continues to affect all parts of business."

GM plans to build the Hummer at its Detroit-Hamtramck Assembly plant, which was being retooled to become GM's EV manufacturing hub. Construction has been put on hold to comply with Michigan's stay-at-home order. It's unclear when the project will resume, but Michigan's governor is planning to allow construction activities to resume in the state May 7.

With GM's designers and engineers unable to go to work at GM's Tech Center in Warren, Mich., most development work has stopped. But GM says the Hummer pickup will go on sale in late 2021 …

Before COVID-19 shelter-in-place orders necessitated digital sales and remote deliveries, Lithia Motors Inc. recognized the majority of its consumers struggled in digital environments. Consumers in positive equity positions with their trade-in vehicles and perfect credit scores are least likely to require assistance with the process, executives said.

The Medford, Ore., retailer said just one-fifth of its customer base can start and finish a deal online without intervention from a dealership employee. Automated processes embedded in digital processes may reject deals consumers put together themselves or lock them into contracts they may struggle to fulfill.

The majority "just don't have the ability ... to be able to understand the disequity in their car to get rid of their trade and then find a finance source that meets all of that criteria," CEO Bryan DeBoer said. "That's what Lithia Motors does; that's what our 500-plus specialists in finance…

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.

Jim Hallett says there are "encouraging signs" for the wholesale vehicle auction company despite falling used-vehicle prices, an inventory glut and a switch from physical to digital sales.

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Sonic Automotive Inc. has reduced its employee headcount by a third through terminations and furloughs amid the coronavirus pandemic and cut advertising and other expenses in an effort to save about $14 million a month, the company disclosed Wednesday.

The details are among the first cost-savings initiatives the nation's sixth-largest new-vehicle retailer has shared publicly during the crisis that has led to stay-at-home orders across the U.S. Sonic said all of its stores remain open for service and are offering "various levels" of vehicle sales depending on state and local orders.

Sonic did not provide specifics on how many employees were terminated vs. furloughed. At the end of 2019, Sonic had about 9,300 employees.

Sonic wrote down the value of its franchised dealership business by $268 million in the first quarter, citing a decrease in its stock market value and expected near-term business reduction. The write-down led to a fi…

BorgWarner is planning to resume limited production in early May at its Seneca, S.C., facility that was severely damaged by a tornado on April 13, the company said.

"We have teams on-site working on necessary repairs to the facility to make this happen in a safe and efficient way," BorgWarner spokeswoman Michelle Collins said Wednesday. "We appreciate the support of the Oconee community and the state of South Carolina, our neighbors and our customers during this time."

The parts factory was hit by a tornado in the early morning on April 13. A 77-year-old contract worker was killed at the time the tornado hit. Four employees also were at the plant at the time, but they suffered only minor injuries. Photos from the scene showed severe damage to the facility.

BorgWarner is telling employees that some workers will begin returning to work next week.

"Hello friends! The rumors are true ... we are officially restarting next week with LIMITED PRODUCTION…