AutoNation offers 25% off service work through April

AutoNation Inc., the nation's largest new-vehicle retailer, is offering 25 percent off service work to all customers through April, hoping to help people financially impacted during the coronavirus outbreak.

The retailer, which on April 1 launched the deal that includes parts and labor, shared a video of the promotion on Twitter on Monday. The company also has information about the offer on its website.

"For everyone that has to be on the road @AutoNation says #ThankYou & brings you some relief," the company tweeted.

Auto retailers from the largest companies to smaller dealerships are rolling out promotions aimed at helping customers — and their businesses — during the coronavirus pandemic. With service driving a significant portion of dealership revenue and profits, some stores are offering service discounts to essential workers or deferrals on service work for a certain time period.

"We have had many thank us for helping to keep them on the…

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GM begins mass production of ventilators for U.S. government

General Motors said on Tuesday it has started mass production of ventilators needed to treat severely sick coronavirus patients and would deliver the first batch of the medical equipment to the U.S. government this month.

Last week, the Department of Health and Human Services awarded GM a contract worth $489.4 million to make 30,000 ventilators by the end of August.

GM, which is working with ventilator firm Ventec Life Systems to produce the medical equipment, said it will ship more than 600 ventilators in April.

It added that it expects to fill nearly half the order by the end of June and the full order by August-end.

The news drew praise from the Trump administration weeks after the president accused the automaker of dragging its feet.

While Trump criticized GM CEO Mary Barra in March for taking too long to start building the medical devices, people familiar with the matter told Bloomberg at the time the company and Ventec were waiting on…

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Porsche, Kia dominate World Car awards

The Porsche Taycan won two of the five categories in the 2020 World Car Awards, as did the Kia brand, including Car of the Year for the Telluride SUV.

The battery-powered Taycan sports sedan was named Luxury Car of the Year, ahead of the Porsche 911 and Mercedes EQC. The Taycan was also named Performance Car of the Year in a Porsche-only contest, beating the 718 Spyder and the 911.

The winners were selected by 86 international jurors, including Automotive News Europe. The awards were to be handed out at the New York auto show on Wednesday, but the show was postponed due to the coronavirus crisis. The winners were announced on a video available on YouTube.

PSA Group CEO Carlos Tavares was named Person of the Year, an honor announced in March. 

The Telluride, a model not sold in Europe, won Car of the Year over the Mazda CX-30 compact crossover and the Mazda 3 small hatchback. Kia’s other award-winner was the Soul EV, which was named Urban Car…

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Tesla wooed by $1 billion Missouri package for Cybertruck plant

A small Missouri city is trying to lure Tesla Inc. with big bucks.

The city of Joplin, near Missouri’s borders with Oklahoma and Kansas, is seeking to tempt the electric-car maker with $1 billion in incentives and savings to build a new factory for its futuristic Cybertruck.

Joplin is offering Tesla a 1,042 acre site at a 50 percent discount, according to a website it’s built to court the company led by billionaire Elon Musk. It’s also coaxing the carmaker with a 100 percent tax abatement for 12 years and various other tax breaks and incentives.

The city, which is home to a pair of industrial-battery production facilities, has taken its campaign directly to Musk, with Joplin Area Chamber of Commerce President Toby Teeter appealing to the CEO Monday on Twitter. Tesla didn’t respond to a request for comment on Joplin’s proposal.

Musk, 48, said in a March 10 tweet that Tesla was scouting locations to build the Cybertruck somewhere in the …

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Automakers from Audi to Renault begin rebooting European plants

Volkswagen Group's Audi unit is among automakers gradually reopening factories in Europe, even as coronavirus lockdowns drag on across much of the region.

Some 100 workers at Audi’s Gyoer, Hungary site, one of the world’s largest engine plants, restarted output on an assembly line in a single-shift system, the company said Tuesday. A second line is set to follow at the end of this week.

Manufacturers are facing a crushing economic blow after governments across Europe placed restrictions on public life to combat the pandemic, which has claimed some 120,000 lives worldwide. The slump may mean 3 million lost vehicle sales this year in Europe, or 60 billion euros ($66 billion) in lower revenue, according to Bloomberg Intelligence analyst Michael Dean.

After weeks of restrictions, governments and corporations are sketching out exit strategies. Still, efforts to get the economy back on track are likely to be gradual and may encounter setbacks if the …

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Mazda comes ashore in U.S. with R100 in 1970

Mazda prepares to enter the U.S. market, with the first batch of R100 imports departing Hiroshima, Japan, on April 14, 1970. The shipment was scheduled to arrive at the Port of Seattle.

The U.S. was Mazda's second North American market after Canada sales were launched in 1968.

The company initially shipped 60 R100 coupes to the U.S. in 1970, and it introduced the rotary-powered RX-3 here in 1972.

Mazda first showed the R100 at the 1967 Tokyo auto show along with the new Cosmo.

The subcompact R100 was priced at $2,495 and featured a rotary engine.

SPECIAL REPORT: Mazda's first 100 years

No automaker had perfected the engineering and manufacturing of the rotary engine, which spins a rotor in a circle rather than pistons going up and down. The engine provides strong power and smooth operation in a compact package. With the rotary engine, the R100 weighed about 1,775 pounds and averaged 23 mpg.

To promote one of its first vehicles…

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Using video to help stay connected

I got the idea for a story about how dealerships were using digital video in their marketing strategies before the NADA Show in February.

Then the world changed.

Some dealers have said they are pulling back on their advertising to conserve cash as sales collapse and service demand falls off during the COVID-19 outbreak, either because customers are reluctant to venture to a dealership while practicing social distancing or because state and local governments closed showrooms to the public.

I started asking dealers how they're adapting to a virtual world when the physical one is limited. Over the past few weeks, I've heard about social media videos promoting online transactions and remote deliveries, virtual finance and insurance conversations, even staff video chats.

There still is a story to tell about dealers' videos — just not the one I'd envisioned.

Like many of you, I've been following social distancing guidelines to slow the spread of …

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Start of new Toyota-Mazda plant production delayed by COVID-19

The start of production at the joint-venture Toyota-Mazda assembly plant in Huntsville, Ala., will be delayed until later in 2021 because of setbacks related to the coronavirus pandemic.

"On April 9, we informed state and local government officials in Alabama, along with our key suppliers, how the COVID-19 pandemic is impacting our ability to maintain critical equipment delivery schedules, creating labor shortages and slowing construction," Toni Eberhart, a spokeswoman for Mazda Toyota Manufacturing, said in a statement emailed to Automotive News.

"As a result, we will delay the start of production of the Mazda Toyota Manufacturing plant to a time period later in 2021. We are eager to keep the project moving forward and appreciate the ongoing support of all key stakeholders."

The plant was to begin production of 150,000 units each of a Toyota and a Mazda crossover yet to be named, beginning in 2021. Eberhart declined to comment on when production would s…

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Ford broadens medical production, using airbag material for medical gowns

DETROIT -- Ford Motor Co. is expanding its unexpected foray into medical-supply manufacturing to include production of respirators, face masks and reusable gowns made from airbag material. It also is helping to increase production of collection kits used to test patients for COVID-19.

The automaker said it has started making face masks at a transmission plant in Sterling Heights, Mich., and will begin assembling respirators Tuesday near its Mustang plant in Flat Rock, Mich. Ford initially will pay about 120 UAW-represented workers who have volunteered for the assignments and expects to add 50 more workers as production of the face masks increases.

Ford also is working with airbag supplier Joyson Safety Systems to make reusable gowns for health care workers and helping Thermo Fisher Scientific increase production of COVID-19 test collection kits. Joyson expects to cut and sew 100,000 gowns a week starting next week, for a total of 1.3 million gowns by July 4. Read more

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SAIC profits drop 29% in 2019 amid broad industry decline

SAIC Motor Corp., the biggest automaker in China, reported a 29 percent drop in 2019 earnings as an industry-wide sales slump undermined manufacturers’ profitability in the world’s largest market.

Net income at the company, a partner of Volkswagen Group and General Motors Co., fell to 25.6 billion yuan ($3.6 billion) for 2019, it said in a statement Monday. Analysts predicted 27 billion yuan on average. Revenue fell 7 percent.

Trade tensions and slowing economic growth weighed on light-vehicle demand in China in the past two years, causing a slump that’s been since exacerbated by the coronavirus outbreak.

Automakers are betting on new models to lure potential shoppers back to showrooms as the government loosens stay-at-home orders aimed at fighting the spread of the virus.

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Recovery depends on a lot going right, but the economy isn’t broken

DETROIT — The forecasts seem impossibly wretched.

Economists at JPMorgan Chase project a 40 percent decline in gross domestic product in the second quarter. Trillions of dollars in economic activity abandoned in the wake of COVID-19. April's unemployment rate is expected to hit 20 percent or more. That's 25 million people without work. More than 817,000 filed for unemployment in Michigan in the last three weeks — and that's only those who could access the online system here in the epicenter of the U.S. auto industry.

The numbers are all far, far worse than we saw in the Great Recession. But there is reason to think the bounce back might also dwarf the long, slow recovery from the 2008 crisis.

The National Automobile Dealers Association's first-quarter sales analysis reported a 38 percent fall in new-vehicle sales last month compared with March 2019.

Second-quarter new-vehicle retail sales are expected to fall 80 percent in April and 40 to 70 perc…

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CAR Management Briefing Seminars conference moves online amid pandemic fears

DETROIT -- The Center for Automotive Research is moving its annual summer conference in Traverse City, Mich., to a virtual event in the wake of the deadly COVID-19 outbreak.

The Management Briefing Seminars, originally scheduled Aug. 4-6 at the Grand Traverse Resort and Spa, will now take place online on Aug. 4-5.

"While planning for the conference, we have been monitoring the COVID-19 pandemic very closely and following the decisions being made about national and international events," CAR CEO Carla Bailo said in a Monday press release. "We have decided to make CAR MBS 2020 a virtual event for the health and safety of everyone involved."

The event typically gathers hundreds of automotive executives, students and economic development officials from across the U.S. to lead keynotes and panels on trends in the industry and responses to current events.

CAR is currently restructuring the agenda and developing content, which will include conferenc…

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