Manheim, ADESA and CarMax host digital-only auctions next week

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…

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New Fed loans offer additional liquidity to auto dealers

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…

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FCA Canada implements temperature taking protocol for workers

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…

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Kim McCullough, Jaguar Land Rover’s VP of marketing, steps down

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…

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DAILY DRIVE PODCAST: April 10, 2020 | Ford’s Farley: ‘We’re getting our ducks in a row’

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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Jeep urges public to stay off the road in new campaign

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…

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China sales fall 43% in March; industry sees 2nd-half recovery

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, …

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Nissan restructuring may assume cut of 1M vehicles to annual sales target, report says

TOKYO/BEIJING -- Nissan Motor Co. management has become convinced the struggling automaker needs to be much smaller and a restructuring plan due out next month would likely assume a cut of 1 million cars to its annual sales target, senior company sources said.

Even before the spread of the coronavirus, Nissan's sales and profits had been slumping and it was burning through cash, forcing it to pull back on an aggressive expansion plan pursued by ousted leader Carlos Ghosn. The pandemic has only piled on urgency and pressure to renewed efforts to downsize.

No new sales target has been finalized and it remains unclear whether one will be formally disclosed.

But Nissan's plans for restructuring through March 2023 should be based on the assumption that it would only be able to return to annual sales of 5 million cars by then, two people familiar with the matter said, adding this would entail a large reduction to manufacturing capacity.

That c…

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Subaru to furlough workers at Ind. plant for one week

Subaru of Indiana Automotive is joining the growing ranks of automakers putting hourly plant employees on furlough due to the COVID-19 outbreak.

The Japanese automaker's only North America factory was initially idled on March 23. The shutdown was later extended until April 6 and again until April 20.

The company said the one-week furlough will begin Monday.

"While Subaru of Indiana Automotive was pleased to provide full pay for three weeks, next week will be unpaid for our hourly associates," a plant spokesman said via email. "The situation was no longer sustainable while production remains suspended amid health concerns, declining market demand and supply chain issues."

Plant employees, including temporary production employees with at least 90 days of service, are receiving full pay through April 10.

Subaru said health insurance and all other benefits will be retained. Hourly employees will qualify for unemployment benefits beginning on Ap…

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Rivian pushes pickup, SUV sales debut into 2021

The shelter-at-home orders and other government restrictions that have brought North American light-vehicle output to a halt are forcing a delay in the debut of one of the U.S. auto industry's newest upstarts.

Electric truck maker Rivian is pushing back plans to launch sales of a pickup and SUV assembled at a resurrected Mitsubishi plant in Normal, Ill.

The company planned to begin deliveries in late 2020 and now says customer shipments will begin in 2021.

"The world has changed a lot in these last few weeks," the company said in a letter April 1 to customers. "This evolving new reality is not without impact on our program timing. While we expect some level of delay, we are working to minimize the disruption to our launch schedule."

Rivian spokeswoman Amy Mast said the company can't provide more guidance on the sales launch beyond the 2021 window.

The delay was first reported by The Chicago Tribune.

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Michigan allows online auto sales, extends stay-at-home order to April 30

Michigan Gov. Gretchen Whitmer on Thursday extended her stay-at-home order to combat the spread of the coronavirus to April 30, emphasizing that the deadly threat of the virus to public health has not subsided enough to resume normal activity in the home state of the U.S. auto industry.

The governor's executive order "prohibits all businesses and operations from requiring workers to leave their homes, unless those workers are necessary to sustain or protect life or to conduct minimum basic operations."

A lifting of the the order on April 30 could pave the way for auto production to resume in the state on May 4 – Fiat Chrysler's target date for the reopening of some plants.

On the retail front, the extension included a key change: Employees engaged in online vehicle sales and deliveries have been added to the list of "critical infrastructure workers":

"Workers at motor vehicle dealerships who are necessary to facilitate remote and electronic sales …

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VW to furlough Tenn. factory workers

Volkswagen of America said Thursday it will furlough production and maintenance workers at the automaker's assembly complex in Chattanooga, less than nine months after workers there narrowly defeated a second effort to unionize under the UAW.

The plant, idled because of government restrictions to help stem the coronavirus outbreak, employs 3,800 hourly and salaried workers.

The automaker said the "emergency furloughs" would go into effect Saturday, and are "expected to last no more than four weeks. During this time, the company will continue to provide health care benefits and coverage of premiums, paying both employer and employee contributions. Employees will still receive their first quarter bonuses as well as their March monthly bonuses."

Furloughed employees are eligible to receive state unemployment benefits as well as an extra $600 per week in federal compensation under the $2 trillion CARES Act passed last month. Volkswage…

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