Trade News

Unless the North American auto industry begins now to plan and coordinate the restart of factory production in the weeks or months ahead, it could find broken supply lines and a frustrating series of shortages.

The real-world worries now being expressed by some executives and consultants include suppliers with too little cash to pay for manufacturing restarts, a tussle over limited raw materials, the absence of smaller Tier 2 and Tier 3 companies because of insolvencies and even the disappearance of myriad regional trucking companies relied on to keep industry manufacturing chains linked together.

"You're talking about starting up 50 or so major auto plants at the same time," said Dietmar Ostermann, U.S. automotive advisory leader at PwC, who is working with auto companies across the continent. "Going from zero back to 100 [percent], all at once. That's never been done.

"Consider what happens just in the normal course of a model launc…

The coronavirus is doing strange things in the car world.

Ford, General Motors, McLaren, and Tesla have turned factories into outposts to produce medical equipment; Bentley is holding cocktail hours for journalists, via Zoom; and Audi, Jaguar, and Mercedes-Benz have released printable sketches of iconic models so enthusiasts can color them at home. 

Now Porsche is auctioning off what could be one of the last non-turbocharged 911s ever made. The automaker will sell the final, seventh-generation 911, a Speedster, in an online auction with RM Sotheby’s on April 15.

It was the last 911 to roll off the production line as part of the wildly successful generation known internally as “991,” which Porsche started in 2011 and ended on Dec. 20, 2019. The car is offered at no reserve. 

All proceeds from the sale will benefit the United Way Worldwide fund for COVID-19 pandemic relief.  

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TOKYO — Toyota was quick to respond to the COVID-19 pandemic in the U.S. with plans to make medical face shields. Now that the Japanese government has declared a state of emergency in its home market, Toyota is rallying resources to fight the spread here.

Toyota's plan for Japan — similar to what automakers are doing in the U.S. — includes making face masks, producing face shields, building hospital beds, fabricating emergency partition walls and churning out other medical supplies.

To do that, the company is marshaling the full force of the Toyota Group constellation of partner companies and suppliers. It draws on the manufacturing firepower of Aisin Seiki Co., Denso Corp. and Toyota Boshoku Corp.

Toyota outlined the strategy last week as Japan Prime Minister Shinzo Abe declared a state of emergency in major metropolitan areas as coronavirus infections rise. Some experts fear Japan is on the edge of a massive outbreak.

The government's decree st…

DETROIT — For the second time in 11 years, Livonia Chrysler-Jeep has been forced to close its showroom through no fault of its own.

The suburban Detroit dealership reopened in 2015 after President Colleen McDonald prevailed in her six-year battle over its termination as part of Chrysler's bankruptcy reorganization. Business had been on a steady climb since then, until the store had to suspend sales last month under Michigan Gov. Gretchen Whitmer's stay-at-home order to slow the spread of the coronavirus.

"It's rather surreal, being in a position like this again, knowing what we've done," McDonald said.

But the dealership's doors have not been completely shuttered during the coronavirus pandemic, which has caused layoffs, school closures and stay-at-home orders throughout the U.S. Its showroom has become a makeshift site for much-needed blood donations as health care facilities become overwhelmed with patients fighting COVID-19. Read more

The coronavirus outbreak will delay by nearly two months the start of production for Ford Motor Co.'s Bronco Sport crossover, suppliers have been told.

The Escape-size off-roader will start rolling off assembly lines at Ford's Hermosillo, Mexico, plant on Sept. 7, nearly 60 days after the original July 13 target, according to supplier information obtained by Automotive News.

Ford declined to comment, saying it doesn't discuss future products.

The coronavirus outbreak has shuttered Ford assembly plants and supplier parts factories across North America, delaying pilot production of the Bronco Sport, as well. Parts used for Bronco Sport pilot production were originally scheduled to be shipped this month, according to suppliers. 

The Bronco Sport, which sits on the same front-wheel-drive platform as the redesigned Escape, has a stance similar to that of the Jeep Renegade, based on photos leaked in March. It's expected to go on sale this fall ahea…

Major auction companies have confirmed plans to run digital-only auctions at a majority of their locations beginning Monday, April 13.

KAR Global's ADESA auction arm has since Monday, April 7, been running simulcast-only sales at 45 sites in the U.S. and four in Canada. Beginning Monday, April 13, that number will rise to 49 in the U.S. and eight in Canada. The company also is hosting two multisite digital auctions — one in the eastern part of the U.S. and one in the western half — on Wednesday, April 15.

Manheim will be running simulcast-only sales at 63 of its 76 auction locations.

Both auction companies will continue to waive related simulcast fees.

CarMax said Friday it would be hosting 42 simulcasts starting Monday, April 13. The retailer said it worked with its auction customers this week to set up virtual accounts for its new, digital-only auction format.

CarMax has been running its own auctions, branded as CarMax Auctions, sinc…

The Federal Reserve's actions on Thursday to provide up to $2.3 trillion in loans to support the economy give businesses -- including auto dealerships -- more access to liquidity.

Under the Fed and Treasury Department's $600 billion Main Street lending program, eligibility is broadened. The program supports small and midsize businesses by offering four-year loans to those with up to 10,000 employees, or up to $2.5 billion in 2019 revenue. Principal and interest payments are deferred for one year, the Fed said.

Main Street loans can be new or can be used to increase existing loans with a lender. Loan amounts start at $1 million. The Fed will purchase 95 percent of Main Street loans, with lenders retaining a 5 percent share.

Additionally, businesses that have received forgivable loans under the Paycheck Protection Program -- a crucial part of the $2 trillion Coronavirus Aid, Relief and Economic Security Act and a top option for dealers seeking financial re…

As automakers eye a return to production, FCA Canada says it is taking steps to keep its factory employees safe on the shop floor.

Some employees are currently working at the automaker’s Canadian assembly plants in Windsor and Brampton. They’re deep cleaning the facilities and tweaking job stations to make room for social distancing. But those that arrive for work each day no longer simply swipe their time card and walk into the factory as they used to.

FCA Canada spokeswoman LouAnn Gosselin told Automotive News Canada that employees are now required to wear face masks and gloves. 

“Employees also will be asked to complete a wellness self-assessment at home each day before reporting to work. This includes taking their temperature and answering five survey questions,” Gosselin said in an email.

FCA on Monday said said that it “intends to progressively restart its U.S. and Canadian manufacturing facilities beginning May…

Kim McCullough, Jaguar Land Rover's vice president of marketing for North America, left the company this week, ending a long run with the luxury importer.

For now, Joe Eberhardt, JLR's North American CEO, will assume McCullough's duties, said spokesman Stuart Schorr. McCullough, 59, took over as vice president of marketing in 2014 after serving as brand vice president of Land Rover during some of Land Rover's highest growth years.

Her departure ended her second stint at the company. From 1997-2001, when Land Rover was owned by BMW and then sold to Ford in March of 2000, McCullough worked in marketing for the brand. She then held numerous senior marketing jobs at Toyota, Nissan and Lexus. She returned to Land Rover in 2011.

Her departure comes at a crucial time for Jaguar Land Rover as it grapples with the coronavirus pandemic. The company is on the cusp of one of the most important launches in its history. The new generation Land Rover Defender is schedu…

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.

Ford COO Jim Farley discusses scenario plans and intermediate steps the company is taking to prepare to bring back employees once the coronavirus outbreak subsides.

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DETROIT -- Jeep, a free-spirited brand known for adventures, is pushing a more cautious message during the coronavirus pandemic: Stay off the road.

Jeep, in a new digital spot released Friday, is urging the public to stay home during the outbreak as it reminds consumers that the trails will be waiting for them when the crisis subsides. The video, "Same Day," is part of a larger social media campaign by Fiat Chrysler Automobiles that will tout responsible behavior to stop the spread of the virus and honor essential workers such as medical personnel and police officers.

FCA's other brands will post videos on their social channels in the weeks ahead.

Jeep is confronting this serious moment with a lighthearted tone. It revives the Groundhog Day theme from its Super Bowl spot this year and once again features actor Bill Murray in a series of videos that will launch in the coming weeks. The brand's other videos, which have a more inspirational, heartfelt touc…

BEIJING -- Auto sales in China plunged 43 percent in March, data released on Friday showed, as the world's biggest light-vehicle market struggles to get into gear following a prolonged demand slump that has been exacerbated by the coronavirus outbreak.

Light-vehicle deliveries have now declined 21 consecutive months, but the latest drop was less steep than February, when volume plunged 79 percent as the coronavirus outbreak curbed demand.

Sales fell by 1.43 million vehicles from the same month a year earlier, according to data from the China Association of Automobile Manufacturers, the country's largest auto industry association.

The number of new energy vehicles sold -- excluding those from  Tesla Inc. -- fell for the ninth straight month to 53,000, CAAM said. NEVs are battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles. Tesla does not report sales to CAAM.

"If we only consider domestic factors, …