Subaru to suspend Japan output, extend U.S. shutdown

TOKYO – Subaru Corp. will join Japanese rivals in suspending domestic production because of the coronavirus pandemic with plans to shut its main assembly plant here from April 11 to May 1.

The automaker is also extending a previously announced U.S. shutdown by eight days.

Subaru’s suspension will affect its main assembly operations in Gumma as well as an engine and transmission plant, taking factories offline for 17 workdays, the company said April 1.

The shutdown translates to roughly 39,100 units of lost production, given the Gumma complex’s normal output rate of 2,300 vehicles a day, Subaru said. 

The move affects popular U.S. export nameplates such as the Forester and Crosstrek crossovers. Last year, Subaru of America sold 335,504 imported vehicles. The plant also produces the WRX and BRZ sporty cars for the U.S. as well as a host of vehicles, ncluding the Outback crossover, Legacy sedan, Levorg wagon and Impreza small car, for…

Read more
  • 0

Genesis recruits new U.S. sales director from Infiniti

LOS ANGELES — Genesis Motor America has chosen Infiniti executive Tedros Mengiste as its new sales director following the March transfer of Genesis COO Erwin Raphael to Hyundai Motor America.

Mengiste will immediately take over sales and dealer-facing duties from Raphael and will report to Mark Del Rosso, CEO of Genesis Motor America, the company said in a release. Mengiste's formal title is executive director, sales operations.

The 23-year auto industry veteran most recently was regional vice president at Infiniti USA.

"Ted has exactly what Genesis needs as we extend our 'Young Luxury' platform," Del Rosso said in a statement. "I'd like to welcome him to the Genesis family and can't wait to introduce him to our retail network."

The recruitment of Mengiste follows a trend of Nissan executives finding new positions at the Korean automaker after the appointment of Jose Muñoz as Hyundai North American CEO. Muñoz was a 15-year veteran of Nissan before…

Read more
  • 0

BorgWarner warns Delphi acquisition could be at risk

BorgWarner Inc. may back away from its $1.5 billion deal for Delphi Technologies Plc after the latter auto-parts supplier tapped out its credit line without receiving permission from its acquirer.

Delphi drew down its full $500 million revolving credit facility to position for the downturn related to the coronavirus pandemic, the Gillingham, England-based parts maker said Tuesday. BorgWarner gave Delphi notice that this breached their agreement announced in January and that it has 30 days to resolve the issue.

BorgWarner said it received a response letter from Delphi disputing its breach assertion, claiming BorgWarner unreasonably withheld its consent to the revolver draw. 

“Both companies continue to believe in the long-term strategic value of the transaction and are still working together towards closing the transaction in the second half of 2020,” Delphi said. “There can be no assurance, however, that BorgWarner and the company will rea…

Read more
  • 0

Automakers poised to signal U.S. sales collapse ahead

DETROIT -- A year that started off well for the U.S. auto market, with only a subtle down shift expected following years of strong demand, is suddenly shaping up to be a disaster.

The coronavirus pandemic has disturbed the virtuous blend of lofty consumer confidence and low interest rates that buoyed sales in January, February and even early March. Analysts are now all over the map for how low sales will go, with virtually no one expecting a speedy recovery.

“The whole world is turned upside down right now,” said Jessica Caldwell, executive director of insights for market researcher Edmunds, which sees the industry’s annualized selling rate slowing to 11.9 million in March. That would be the worst reading since the 2011 tsunami that hit Japan and interrupted shipments of cars and components for months.

Even the reporting calendar will be skewed, according to a survey by the Automotive News Data Center. Most automakers will provide first-quarter numbers W…

Read more
  • 0

BMW readies fuel cell tech for SUVs

FRANKFURT -- BMW revealed some details of the powertrain in an X5-based fuel cell vehicle that could go into small series production in 2022.  

The automaker said it will continue to cooperate with Toyota Motor Corp. to roll out the technology in the second half of the decade, depending on market conditions.

"Hydrogen fuel cell propulsion can in the longer term become a fourth pillar in our drivetrain portfolio, in particular for the upper end of our X family," BMW's outgoing R&D chief Klaus Froehlich said in a statement Monday, referring to the brand's SUV/crossover lineup.

BMW said the fuel cell stack of the BMW i Hydrogen NEXT, which is based on the X5, converts the 6 kg of stored compressed hydrogen gas fed from two 700-bar tanks into an output of 168 hp, with water vapor as a waste product.

The vehicle also has an additional battery housed above the electric motor, helping to provide additional performance, for example, when acc…

Read more
  • 0

The good, the bad and the pricey of driving electric

European Union regulators would like us to drive electric vehicles to reduce emissions, but is all of Europe ready for the transition?

After three weeks of living with a battery-powered car in northwest Italy, I still do not have a definitive answer to that question. Let me explain why.  

Product: I drove a Hyundai Kona Electric compact crossover in Excellence trim, which comes with a 64 kWh battery pack that is homologated for 449 km of range under the WLTP cycle. The real-world range of about 217 miles (350 km) allows for urban daily use and reasonable weekend trips. Even on battery-saving "eco" mode, the Kona's 204 hp let me outrace many internal-combustion vehicles from a stoplight.    Home charging: With a standard Italian outlet of 3 kWh, a full charge should take a little more than 21 hours. But in reality, the available power varied from 2.1 to 2.7 kWh. "Range anxiety" prevented me from running down the battery all the way, but my charging …
Read more
  • 0

Peugeot adds hybrid power to 3008

Peugeot has launched a plug-in hybrid version of the 3008 compact crossover, with the option of front- or four-wheel drive.

The 4wd version uses two electric motors and a gasoline engine to produce 300 hp, making it the most powerful model in Peugeot's lineup.

Peugeot will offer 4wd only on the hybrid 3008. The gasoline and diesel versions are front-wheel drive only. The rear wheels are driven by an 83-kilowatt-hour electric motor.  

The 3008 hybrid is built on PSA Group's EMP2 platform for compact and midsize vehicles. It is nearly identical mechanically to the Peugeot 508, DS 7 Crossback, Citroen C5 Aircross and Opel/Vauxhall Grandland X plug-in hybrids, all of which are also new to the market in 2020.   

Peugeot says the only difference that customers will notice in the hybrid version from the gasoline and diesel versions is that the spare tire under the cargo floor on internal-combustion versions is replaced by a charging cable…

Read more
  • 0

Volvo to offer pickup, delivery, loaners for service

Volvo is removing a major pain point for U.S. customers with a vehicle undergoing service — having to schlep to and from the dealership.

Volvo Valet is a new service that allows customers to schedule pick-up and delivery for vehicles that need service or maintenance. As part of the service, customers receive a loaner while their vehicle is in the shop.

The service is offered by more than 100 of Volvo's 282 U.S. dealers.

While available now for service appointments, Volvo Valet will be expanded to include lease and purchase deliveries, lease returns, and overnight test drives later this year.

"Volvo Valet gives owners the flexibility to service and maintain their vehicles in a way that works best for them," Anders Gustafsson, Volvo Car USA CEO, said in a statement.

Using the Volvo Valet app, a customer can see where their driver is and when they will arrive. After handoff and vehicle exchange, the customer can receive a notification when the…

Read more
  • 0

Ford indefinitely delays reopening N.A. plants

DETROIT -- Ford Motor Co. is postponing for a second time the reopening of its North American manufacturing facilities amid the global surge in coronavirus cases.

The automaker said Tuesday it will indefinitely delay the restart of production at plants in Mexico, Canada and the United States and declined to offer a restart date.

It was previously aiming to begin work at Hermosillo Assembly in Mexico on April 6 and a handful of U.S. plants on April 14. Those dates came after it pushed back original projections of returning to work March 30.

"The health and safety of our workforce, dealers, customers, partners and communities remains our highest priority," Kumar Galhotra, Ford president, North America, said in a statement. "We are working very closely with union leaders -- especially at the UAW -- to develop additional health and safety procedures aimed at helping keep our workforce safe and healthy."

Two UAW-Ford workers have died from the virus si…

Read more
  • 0

VW: Sales picking up across industry after blow

FRANKFURT -- Volkswagen Group expects vehicle sales in China to quadruple in March, the head of its China operations said, pointing to a recovery following the coronavirus pandemic.

"We are cautiously optimistic that the worst effects of the crisis will be behind us in two to three months," said Stephan Woellenstein, head of VW Group's China business.

VW is the largest global automaker in China.

Demand was still limited, the automaker said, but it is prepared to ramp up capacity at factories in the country, 22 of which had resumed production. Two assembly plants in Changsha and Urumqi are still closed, the automaker said.

Woellenstein said he expected total market sales of up to 1 million in March, up from 250,000 in February.

"There are more and more signs that business is recovering. By the middle of the year, we could be back to last year's planning," Woellenstein said. "Hope is returning on the Chinese market."

In 2020, Volkswage…

Read more
  • 0

Penske Automotive to cut executive pay, furlough employees, postpone capital expenditures

Penske Automotive Group said it is slashing executive pay, furloughing employees, postponing $150 million in capital expenditures and taking a range of other steps to "to help mitigate the financial and operational impact of COVID-19."

CEO Roger Penske and President Robert Kurnick will accept no salary for the duration of the coronavirus outbreak, while executives and managers across the company also are taking pay cuts, Penske spokesman Anthony Pordon said Monday. Pordon said Penske was not disclosing how many employees would be furloughed, nor how many would see reductions in compensation, or how much. The company also is freezing hiring.

In addition, the board of directors has waived its cash compensation for six months, the second-largest U.S. dealership group said in a statement.

"The COVID-19 crisis is impacting our operations requiring us to take swift and decisive action to address declining business levels," Penske said in the statement. "I am …

Read more
  • 0

Scooter company Bird to lay off 30 percent of staff amid COVID-19 uncertainties, report says

Micromobility services have begun to feel the impact of the COVID-19 pandemic as it rips through every aspect of the global auto industry.

One such example: e-scooter company Bird, which is reducing company headcounts as it braces for financial instability heightened by COVID-19. The Santa Monica, Calif.-based company is laying off about 30 percent of its employees, according to a company memo obtained by TechCrunch.

The internal memo reportedly cites Bird CEO Travis VanderZanden and says, "The unprecedented COVID-19 crisis has forced our leadership team and the board of directors to make many extremely difficult and painful decisions relating to some of your teammates. As you know, we've had to pause many markets around the world and drastically cut spending."

Bird did not immediately respond to request for comment.

Competing scooter company Lime also is considering turning to layoffs, Bloomberg reported, but Lime h…

Read more
  • 0