Trade News

As the coronavirus pandemic continues to spread throughout the United States, the Alliance for Automotive Innovation has shifted priorities to focus "first and foremost on the health and safety" of its employees, member companies and their customers, CEO John Bozzella said.

The lobbying group, which represents automakers, suppliers and tech companies, formed in January before the first confirmed case of the novel coronavirus was reported in the U.S.

"When we formed the Alliance for Automotive Innovation, what we really wanted to do was make sure that we had a clear, singular voice to represent the industry broadly," Bozzella told Automotive News. "There couldn't be a more important time to do it than now."

As part of the health-and-safety effort, as of last Friday, the alliance instituted a mandatory telework policy that it is reviewing on a weekly basis to ensure employees and their families are protected during the outbreak.

On a larger scale, t…

Toyota, Volkswagen and Subaru on Thursday joined the parade of U.S. automakers suspending their production operations -- at least temporarily -- because of the coronavirus and the impact it's having on new auto sales.

Toyota Motor North America announced on Thursday afternoon that it will suspend production at all of its North American assembly and component plants beginning Monday, March 23, though at least April 5, with production tentatively scheduled to resume Monday, April 6. 

Canadian radio station 570 NEWS reported a worker at Toyota's Cambridge, Ontario, plant tested positive for COVID-19. The employee last worked there March 12.

Earlier in the day, Volkswagen of America said it is halting production at the plant from Saturday until at least the evening of March 29. The Chattanooga plant builds the Atlas and Atlas Cross Sport crossovers as well as the Volkswagen Passat sedan. The two-row Atlas Cross Sport is just beginning to arrive in U…

Audi said that its Q5 crossover plant in Mexico would suspend production beginning Monday due to a lack of parts caused by the global coronavirus outbreak.

It plans to resume output on April 13, Audi Mexico said in a press release Wednesday.

In addition to shortages in its global supply chain, the company also said it is having “diverse difficulties” transporting its finished vehicles to destination countries in a timely manner from the Mexico plant. Some plant  operations would continue, it said, under strict coronavirus protocols.

Audi Mexico said the plant employs 5,200 people and produces 150,000 units per year. 

DETROIT — General Motors is exploring the possibility of putting its manufacturing muscle toward medical equipment to help treat the novel coronavirus.

CEO Mary Barra spoke with officials from the Trump administration on Wednesday about the company's plans to halt North American production until March 30.

"GM is working to help find solutions for the nation during this difficult time and has offered to help, and we are already studying how we can potentially support production of medical equipment like ventilators," spokeswoman Jeannine Ginivan told Automotive News.

Ginivan said the possibility of medical equipment production is still only being analyzed at this point and there are no details yet on how the process would work.

In an interview Wednesday on Fox News, Larry Kudlow, director of the National Economic Council, said he had spoken with executives from two of the Detroit 3, without saying which companies.

"One of them told me that, …

Nio Inc warned there is substantial doubt about its ability to continue as a going concern on Wednesday, prompting the cash-strapped electric vehicle maker's shares to slump.

The EV startup, which is backed by Chinese internet giant Tencent and had been seen as a rival to Tesla Inc., has been hit by dwindling demand and reduced government subsidies in China, the world's largest light-vehicle market.

Auto sales in China tumbled 42 percent in the first two months of the year compared to a year earlier, while sales of NEV, which include battery electric, plug-in hybrid and hydrogen fuel-cell vehicles, sank 60 percent.

Nio's shares fell sharply on Wednesday, closing down 49 cents, or 17 percent, at $2.41 in New York trading, as Wall Street's main indexes slumped in the wake of the spreading coronavirus epidemic.

The deadly viral outbreak has exacerbated Nio's troubles, disrupting production and delivery of vehicles.

Nio delivered 2,305 vehicles…

The Automotive News family had, unfortunately, a front-row seat to a pandemic.

It was just three weeks ago in a small town in northern Italy where our Luca Ciferri, associate publisher and editor of Automotive News Europe, first wrote about an expanding presence of COVID-19.

There was a theme to what Ciferri was hearing in Italy, the second-hardest-hit region of the globe after China.

The virus was "coming from Milan," Ciferri wrote to me on WhatsApp, and Milan "is the common origin of infections in Switzerland and Germany."

It was Wednesday, Feb. 26.

Ciferri, who is now quarantined, was one of the first to caution us on the spread of the new coronavirus beyond China. It was moving quickly.

Automotive News was there then; we remain everywhere for the news, every moment.

This is the time when journalism shines and our partnerships with our readers and clients endure. Within the Automotive News family of brands, we are deeply co…

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. 

How do I subscribe?

Can't wait to hear the next episode of "Weekend 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

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

Android

“Weekend Drive” is available on the Google Play store. Click here to subscribe to "Weekend Drive"

…

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 …