Trade News

DETROIT – General Motors and Ford Motor Co. said they would close all of their manufacturing sites in the United States, Canada and Mexico until at least March 30 – marking a costly and dramatic step to battle the coronavirus pandemic that the automakers had hoped to avoid. 

Fiat Chrysler Automobiles also said it would begin easing production today, through the end of the month. 

Ford said the shutdowns will begin after Thursday's shifts. GM said it will begin cutting production Wednesday in a cadence. 

“We’re continuing to work closely with union leaders, especially the United Auto Workers, to find ways to help keep our work force healthy and safe – even as we look at solutions for continuing to provide the vehicles customers really want and need,” Kumar Galhotra, Ford’s president of North America, said in a statement. “In these unprecedented times, we’re exploring unique and creative solutions to support our work force, custom…

North American auto production and dealer inventory shouldn’t be affected by the mutually agreed upon decision by Canada and the United States to close its border, say industry stakeholders.

Prime Minister Justin Trudeau and President Donald Trump agreed Wednesday morning to close the border to non-essential traffic in both directions.

Trump first posted the news on Twitter just after stock markets opened. 

“We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic. Trade will not be affected. Details to follow!” Trump tweeted, the morning after CNN first reported a closure was coming.

Trudeau then confirmed the news at a news conference in Ottawa.

“Travelers will no longer be permitted to cross the border for recreation and tourism,” Trudeau said.

The prime minister said it was “critical to maintain supply chains” that link the two countries.

Neither leader…

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.

Mack McLarty, vice chairman of RML Automotive in Dallas, discusses the uncertainties and challenges ahead for dealers amid the COVID-19 pandemic. 

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DETROIT — Fiat Chrysler Automobiles, Ford Motor Co. and Hyundai all idled a U.S. operation on Wednesday after an employee in each location tested positive for COVID-19. Volkswagen of America closed an office in suburban Detroit after an employee there tested positive.

Later on Wednesday, Ford and General Motors said they would close all manufacturing sites in the U.S. Mexico and Canada through at least March 30. FCA was expected to announce a similar move.

FCA said said early Wednesday it was temporarily shutting the Sterling Heights Assembly Plant, which makes the Ram 1500 pickup, "out of an abundance of caution for the health and welfare of the employees."

The worker who contracted the virus had not been in the plant for more than a week and is receiving medical care, the company said.

"Employees on the first shift have been sent home. Workers on the second shift should not report," FCA said in a statement. "The Company is working to a…

I spent part of last week with some service managers and fixed ops directors in Phoenix and listened as they shared the innovations and best practices they've instituted in their stores' service lanes. As we talked inside the hotel conference room, the world outside was quickly changing because of the coronavirus outbreak.

The J.D. Power 2020 U.S. Customer Service Index study released last week was a precursor of what dealership service operations will face if parts shortages from China and other regions negatively impact the speed in which customers' cars can be repaired.

But since then, the issues confronting service managers have certainly accelerated and become more complicated as some dealerships have shuttered completely or at least closed sales departments, leaving — for now — its service lanes open. I checked in with those I met in Phoenix to see how things were going at their stores.

Most reported a spike in canceled service appointments, and th…

Tesla Inc. is preparing to reduce staffing by about 75 percent at its lone U.S. assembly plant after initially resisting an order from the local sheriff, according to a county spokesman.

“We had a positive conversation, and it sounds like they are beginning to comply with the health order,” said Ray Kelly, the spokesman for the Alameda County Sheriff’s Office. “In war times, all automakers are considered vital national infrastructure, but this is a different era. This is a health pandemic.”

Representatives for Tesla didn’t respond to requests for comment. The company is preparing to reduce staff at its plant in Fremont, Calif., to about 2,500 from roughly 10,000, Kelly said.

Tesla makes the Model 3, S, X and new Model Y at the Fremont plant. The San Francisco Bay Area has implemented stringent measures to slow the spread of the coronavirus, ordering more than 7 million residents to stay home except for exercise or quick, necessary outings such …

Martinrea International Inc. Chairman Rob Wildeboer said automakers could look into moving one of their two annually scheduled assembly-plant shutdowns forward as a way to slow the spread of the coronavirus.

Automakers typically idle assembly plants for weeks during the summer and winter for retooling.

“I would think that if I’m an OEM, I would say I’ve got a July shutdown anyway, so let’s think of doing that,” Wildeboer said. “I don’t know if they’re having that discussion, but it would not be an unwise discussion. We’ve got the inventory in place, so why don’t we do this industry-wide? I have not heard anyone say that, but don’t forget that we do this twice a year. We do it every July, and we do it every Christmas.”

Automakers, suppliers and labor are scrambling to adjust in the wake of the global coronavirus pandemic. Plants are closing in Europe, now the epicenter of the crisis, while unions in the United States and Canada have called on automak…

ATLANTA -- Mercedes-Benz USA will tweak dealer payouts and relax objectives as the automaker braces for a pullback in sales in the wake of the coronavirus pandemic.

In an email to U.S. dealers Monday, CEO Nicholas Speeks quoted England's wartime Prime Minister Winston Churchill while underscoring the "unprecedented" situation facing the auto industry.

"Winston Churchill once said, 'If you are going through hell ……. KEEP GOING!' " Speeks wrote to dealers. "The challenge we have is not of the dimension he was forced to confront but that is exactly what we, all of us, are going to do: Keep going."

On Tuesday, Mercedes parent Daimler Group said it will shutter car, van and commercial vehicle plants in Europe for at least two weeks in an effort to contain the spread of COVID-19. Global supply chains currently cannot be maintained to their full extent, Daimler said. The company's U.S. plant in Vance, Ala., remains open, for now.

The email to dealer…

Tuesday, March 17

-- Geely is taking extraordinary steps to keep its 6,000 employees at its global headquarters working in their offices - Geely Media Center

-- Acura cancels March-Madness-themed ad campaign -- MediaPost

After the coronavirus outbreak caused a nationwide shortage of face masks in January, Chinese officials were quick to ensure that Tesla Inc. wouldn’t be left without.

China’s government helped the U.S. carmaker secure the sought-after supplies that allowed it to reopen at a time when many of its competitors were still shut down. Tesla received 10,000 masks, cases of disinfectant that require a government permit, thermometers and other materials that allowed the company to restart a new factory near Shanghai the first working day after the extended Lunar New Year break, according to state-run media.

The support for Tesla -- which also included providing accommodation for some employees as the outbreak snowballed -- is emblematic of China’s wider embrace of CEO Elon Musk’s car venture. The tycoon has waged a charm offensive since deciding to build the company's first plant outside the U.S. in China, home to the world’s biggest EV market, and has been rewarded wit…

Self-driving systems don't get distracted from the road ahead — they also don't get sick or spread germs.

Amid the coronavirus pandemic, Waymo said Tuesday it will pause its Waymo One commercial ride-hailing service that's underpinned by human safety drivers. But a driverless research program that carries passengers within Waymo One will continue.

"Removing the human driver holds great promise for not only for making our roads safer, but for helping our riders stay healthy in these uncertain times," the company said in a written statement.

Waymo has not divulged specific details on the number of self-driving rides it provides in Phoenix that operate without human safety drivers. Last October, CEO John Krafcik said the scope of those driverless operations had expanded.

Those rides remain available only for members of the company's Early Rider Program, a research-focused subset of its broader Waymo One service.

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