DAILY DRIVE PODCAST: May 1, 2020 | How a pandemic pulled the handbrake on McLaren

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.

McLaren Automotive CEO Mike Flewitt says the outbreak will most likely put the supercar maker about two years behind schedule to achieve its ambitious goals.

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Alexandra Ford English, daughter of Bill Ford, to join Rivian board

DETROIT -- Ford Motor Co. said Friday that Alexandra Ford English, daughter of Executive Chairman Bill Ford, will join Rivian's board of directors, filling a vacancy left by the abrupt retirement this year of former President of Automotive Joe Hinrichs.

English, director of corporate strategy, will add the board role effective immediately, Ford said in a release.

"Alexandra and I share a deep passion for mobility and electrification, and her connection to Ford's long family role in transportation is something special. I am looking forward to working closely with her and the perspective that she will bring to the Board," Rivian CEO RJ Scaringe said in a statement.

The move comes days after the two companies said they would cancel joint development of an electric vehicle for the Lincoln brand. Both sides said their partnership remained strong.

"Our strategic partnership with Rivian plays an important role in the future of fully networked battery ele…

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Canada issues safety guidelines for auto retailing, manufacturing

The government of Canadian province Ontario has issued the province’s auto sales and manufacturing safety guidelines intended to keep workers healthy as the North American economy gradually reopens. 

The sectors were two of several that were issued guidelines Thursday. The sector-specific guidelines contain recommendations and tips for employers on how to keep workers safe on the job. 

Some of the suggestions the Canadian province makes for auto retailers include:

Having all employees and visitors wash their hands thoroughly with soap and water, or an alcohol-based hand sanitizer, before entering the workplace, after contact with others, or with surfaces others have touched; Including hand washing before breaks and at shift changes; Sanitizing the workplace thoroughly and often, especially frequently touched surfaces; Identifying all activities where people may come into contact with others, and employing ways to minimize contact and maintai…
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Tesla cuts Model 3 prices to qualify for subsidies

BEIJING -- Tesla Inc. has cut the starting price for China-made Model 3 sedans by 10 percent to qualify for subsidies in the world's biggest auto market.

Tesla, which started delivering cars from a $2 billion Shanghai assembly plant in December, said in a statement Friday it has cut the starting price for Standard Range Plus Model 3 sedans to 271,550 yuan ($38,463.17), after receiving 20,250 yuan per car as EV subsidies.

China announced plans in 2015 to end subsidies for EVs this year, but said in March it would extend them. However, it said the subsidies will apply only to passenger cars costing less than 300,000 yuan.

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Marchionne heirs collected FCA shares worth at least $23.5 million in 2019

MILAN -- The heirs of the late Fiat Chrysler Automobiles CEO Sergio Marchionne received shares in the automaker worth at least 21.6 million euros ($23.5 million) in 2019, according to FCA's annual report.

FCA’s current CEO, Mike Manley, received compensation totaling 13.28 million euros ($14.45 million).

The sum received by the heirs also was more than the compensation package of General Motors CEO Mary Barra, who received $21.6 million last year.

FCA said the 1,951,457 shares were delivered as part of its employment agreement with Marchionne, who died at age 66 on July 24, 2018, in Switzerland after being hospitalized a few weeks earlier. Prior to his death, Marchionne was also CEO and chairman of Ferrari.

The shares were awarded "as a result of overachievement of performance objectives for the 2014-2018 performance period," said FCA's annual report, which was filed with the U.S. Securities and Exchange Commission on Feb. 25.

Th…

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Vehicles pile up at Calif. ports

The length of almost two football fields, the cargo ship Jupiter Spirit arrived in Los Angeles’ harbor on April 24 after an almost three-week journey from Japan, ready to unload its cargo of about 2,000 Nissan Armada SUVs, Rogue crossovers and Infiniti sedans in a quick, half-day operation.

But when the ship, operated by Nissan Motor Co.’s freight arm, got about a mile offshore, its captain was ordered to drop anchor. And there the ship remained for almost a week -- a floating symbol of an unprecedented logjam as nearby storage lots covering hundreds of acres overflowed with vehicles that Americans suddenly have little desire to purchase.

There are gluts of all shapes and kinds forming in the U.S. nowadays, a testament to the scope of the economic pain the coronavirus is inflicting. Slaughterhouses are killing and tossing out thousands of pigs a day, dairy farmers are pouring away milk, oil sellers were paying buyers to take barrels off their hands last week, …

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Toyota, Hyundai sales sink as virus crimps demand

Toyota Motor Corp. and Hyundai posted sharply lower U.S. sales in April, previewing what is expected to be a low point for automakers as the market reels from closed showrooms and government restrictions on household and business activity because of the COVID-19 outbreak.

Volume dropped 54 percent at Toyota Motor, with demand down the same amount at the Toyota division and Lexus. Overall, the automaker's truck deliveries slid 50 percent and car sales dropped 61 percent -- even as the company's average new-vehicle incentive rose 24 percent to $2,551 last month. (See chart below.)

The Toyota division's top-selling vehicles all posted declines of 30 percent or more: Camry, down 62 percent; Corolla, off 53 percent; RAV4, down 56 percent; Tacoma, off 30 percent and Highlander, down 64 percent.

U.S. sales fell 39 percent at Hyundai, one of the hotter brands in recent quarters because of an expanded crossover lineup, with light-truck deliveries off 13 percent t…

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U.S. consumers willing to pay auto bills in quarantine, TransUnion finds

Consumers are continuing to prioritize auto expenses ahead of other payments, a credit bureau study finds, despite record job losses and shelter-in-place orders preventing many consumers from driving beyond trips to the grocery store or to seek medical care.

Those financially affected by COVID-19 closures were about twice as likely to default on a mortgage than an auto payment, maintaining historical trends of ranking transportation needs above other credit products, according to the survey of nearly 3,000 U.S. consumers conducted by TransUnion.

Charlie Wise, head of global research and consulting at TransUnion, said U.S. consumers who have lost jobs or hours during the pandemic are not willing to turn over their keys just yet.

"The recognition many consumers have is, this isn't going to be forever," Wise said. "At some point, we will be let out of our homes. When that call comes, I don't want to be without a car."

About 61 percent of respondent…

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Delivery’s time to shine?

Delivery's time to shine?

Coronavirus has wrought significant changes across the transportation landscape. Among them: a renewed focus on using autonomous-driving technology for delivery services.

On April 7, self-driving startup Nuro received a permit to test its driverless delivery vehicles on certain California roads.

Now comes the Yandex Rover.

On Wednesday, Russian tech titan Yandex launched a commercial rollout of its Rover delivery robot. The company deployed the six-wheeled sidewalk vehicle that's about as big as a cooler, in Skolkovo, a tech-minded suburb of Moscow. It's the first deployment of the Rover, which began road testing in November, outside the company's private campuses.

Employees of city offices will be the first to use the app-based delivery service, and the Rovers will travel "several kilometers" between buildings on public sidewalks. Along these trips, the Rover will meet pedestrians, cross streets and encoun…

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Nissan holds off U.K. plant restart until June

LONDON -- Nissan will resume vehicle production at its U.K. plant in early June, the automaker said in a statement.

The plant is the largest car factory in the U.K. and Nissan's largest in Europe. The Qashqai and Juke crossovers, and the Leaf electric car, are built at the facility in Sunderland, northeast England. Production fell 22 percent to 346,535 units last year.

Vehicle production at the plant was halted March 13 due to the coronavirus outbreak. About 150 employees returned to work last week to begin engine production, Nissan said.

Nissan is waiting to see how car sales recover before ramping up the factory to full production.

"Our goal is to navigate through this crisis while maintaining activities critical for business continuity and to make sure we are prepared for the time when business resumes in Europe," the company said.

Nissan will reopen its other European assembly plant in Barcelona, Spain, on May 4, it said last week.

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CONGRESS CONVERSATIONS: Former Ford CEO sees gradual ramp-up, pent-up demand, consolidation

Hear Mark Fields’ views on the industry’s return to normalcy. He also looks at the future of retailing, manufacturing, electrification and investments in autonomous driving.

Speakers:Jason Stein, Publisher, Automotive NewsMark Fields, Senior Advisor, TPG Capital

This conversation was originally broadcast on April 30, 2020 at 11am EDT as part of our Congress Conversations series. The series runs through June 4. Register to watch future Congress Conversations live at http://autonews.com/congress.

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BMW plans to resume S.C. operations on Monday

After a monthlong shutdown, BMW on Monday plans to crank up the lines at its largest assembly plant in the world, the automaker said Wednesday.

BMW's plant in Spartanburg, S.C., which employs 11,000 people, joins Hyundai and Kia in hoping to restart after efforts to contain the spread of the coronavirus shuttered auto manufacturing across the nation.

Toyota and Volkswagen were expected to restart their factories May 4 but have since pushed back the start date.

BMW's German rival Mercedes-Benz holds the distinction of beating the industry in getting back to business. Daimler's Vance, Ala., assembly plant opened April 27. The factory, which builds the GLE crossover, GLS SUV and C-Class sedan, began operating with one shift.

BMW's 7 million-square-foot South Carolina plant builds the popular X-Series crossovers. About 70 percent of production volume is exported to around 125 markets worldwide, with China being the biggest.

Next week's restart …

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