Moody’s slashes outlook for global auto sales

Credit ratings agency Moody's Investor Service on Friday sharply cut its 2020 outlook for global auto sales, with Western Europe expected to take the biggest hit as the coronavirus outbreak worsens outside of China.

The agency said it now expects global auto sales to fall 14 percent in 2020, much more than its previous estimate of about 2.5 percent drop in February.

The credit rating agency now expects auto sales in Western Europe to see the steepest drop-off in demand - at 21 percent this year, sharply weaker than its previous forecast of a 4 percent decline.

In China, the world's largest market, auto unit sales are expected to fall 10%, a steeper decline than the previous projection of a 2.9% drop.

In the U.S., the agency expects light vehicle sales to fall at least 15 percent in 2020, weakening from its previous forecast of a 1.2 percent decline.

The number of U.S. coronavirus infections climbed above 82,000 on Thursday, surpassing the n…

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As deaths grow, when to reopen the plants?

DETROIT — Whenever Fiat Chrysler Automobiles restarts North America production, the UAW members working the lines will have to cope with the grim reality that COVID-19 has claimed the lives of several colleagues.

The rising death count from the global coronavirus pandemic is personal for them now. It includes familiar faces who walked the same halls and toiled on the same factory floors they did.

Clocking in won't be the same for Aric Holloway, a longtime worker at FCA's Warren Truck Assembly Plant north of Detroit. A co-worker who would greet people at the door died Wednesday, March 25.

"He would usually be there in the morning when you come in the front door, shaking your hand and telling you, 'Thanks for coming to work.' It was a joke that we" had, Holloway told Automotive News. "He would be in front of the plant every morning."

These deaths loom as automakers plot their courses of action. Mid-April appears to be the earliest that most North A…

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How self-driving star fell off course

SAN FRANCISCO — On a rainy December afternoon, Anthony Levandowski sat on a stool near the front of a coffee shop, engrossed in his phone.

He scrolled through pictures on a website that dares users to discern the difference between images of humans generated by artificial intelligence and actual photos of humans. For the uninitiated, it’s a crapshoot. The more time spent staring at the images, the more convincing the fakes appear. Doubt seeps in. The more unnerving the game becomes.

For Levandowski, more skilled in separating what’s real from Silicon Valley creations, spotting the telltale signs of images designed to deceive is an easier task. A small discoloration. A stray hair. He has aced six in a row, and his enthusiasm spills over as he gains momentum.

“Look, look at the freckle on the side,” he exclaims, pointing to an otherwise innocuous blemish.

While he examines images with dermatological care, he’s oblivious to the gawkers and passersby…

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Making the hard call to close store

On March 11, an employee of Roy O'Brien Ford in St. Clair Shores, Mich., visited his pregnant sister. Three days later, she went into labor and developed a fever.

When the employee phoned the dealership to say his sister was awaiting the results of a COVID-19 test and he had potentially been exposed, leadership acted quickly.

"Our general manager — who happens to be my brother — and I sat down and talked about our plan of attack," said dealership Chairman Mark O'Brien. The employee, who had worked at the store for several days before his sister developed symptoms, was told to quarantine at home for two weeks. On March 17, O'Brien and his brother decided to split shifts across the dealership.

Sales staff divided into two teams that would work every other week while technicians halved the day; morning shift clocked in at 7:30 a.m., leaving at 12:30 p.m., while a second team of technicians worked from 1 to 6 p.m. During the break b…

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In Japan and Korea, the show goes on

TOKYO — The auto industries of Japan and South Korea have remained out of step with the pandemic-beleaguered worlds of North America and Europe in recent days.

As vehicle assembly plants and dealerships shut down in rapid succession from Madrid to Wolfsburg to Detroit, those in Japan and South Korea have been able to continue pumping out and selling cars.

Although cracks began appearing last week, along with mounting calls to lock down social activity, it has been almost business as usual for the two Asian automotive heavyweights in the face of the global health crisis. Factories stayed open, as did much of the rest of society, including bars, restaurants and shopping malls. Springtime revelers in Tokyo were still turning out to drink under the trees for the annual cherry blossom viewing.

But last week, the world's new economic worries began to prove a contagion of its own here. Soon after the governor of California issued a stat…

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Feds add leasing, rentals to essential-worker guidelines

Car rental and leasing employees have been added to U.S. guidelines that identify "essential critical infrastructure workers" amid the coronavirus outbreak.

"Workers critical to rental and leasing of vehicles and equipment that facilitate continuity of operations for essential workforces and other essential travel," the Cybersecurity and Infrastructure Security Agency said in its updated memo, issued Saturday.

An earlier version of the guidelines, dated March 16, covered automotive repair and maintenance as well as transportation equipment manufacturing and distribution facilities. Guidance for retail operations, including leasing and rental activities, had not been clear.

The agency said the guidelines, which cover a broad swath of industries across the nation, are advisory in nature and should not be considered a federal mandate. Individual jurisdictions should use their own discretion in determining essential-workforce categori…

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Two Ford workers die of coronavirus in Detroit area

DETROIT — Two Ford Motor Co. workers have died from the coronavirus, the UAW said Saturday.

One worked at the automaker's Dearborn Stamping plant while the other was a skilled trades employee at the Ford Data Center in Dearborn, Mich., the union said.

The pair are the first Ford employees known to have died from the virus. Five workers at Fiat Chrysler Automobiles have died, four of whom were UAW members.

"It is a tragic reminder that the coronavirus crisis is everywhere and requires the attention of all of us," Ford said in a statement confirming their deaths. "Our thoughts are with their families, friends and co-workers during this difficult time. Nothing is more important than the health and safety of our work force, dealers, customers and communities. We will continue to follow the guidance from global health experts to do all we can to keep our people healthy."

It was unclear when exactly the workers died. The names of the two workers we…

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2020 Detroit auto show canceled; venue to be used as field hospital

DETROIT -- The 2020 North American International Auto Show has been canceled amid the worsening coronavirus pandemic. 

The TCF Center, where the Detroit show was set to take place in June, will be converted by the Federal Emergency Management Agency into a field hospital as COVID-19 cases in Michigan continue to rise.

The next Detroit auto show will be staged in June 2021, according to a memo sent to sponsors obtained by Automotive News.

"The health and welfare of the citizens of Detroit and Michigan is paramount," Rod Alberts, executive director of the show, said in the memo. "TCF Center is the ideal location for this important function at this critical and unprecedented time.” 

In a statement released later Saturday, Alberts said: “With the more than 100 convention centers and facilities around the country being considered to potentially serve as temporary hospitals, it became clear to us that TCF Center would be an inevitable op…

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Supplier’s first move: Protect employees

Editor’s note: This story is part of a package on leadership during the coronavirus crisis that will appear in the March 30 issue of Automotive News.

By the time automakers halted production across the globe in response to COVID-19 — all but forcing their parts makers to do the same — one South Korean automotive supplier, StradVision Inc., had already recognized the danger and implemented a multistep plan to tackle the virus' spread.

Before the coronavirus became a pandemic, the fledgling supplier of autonomous vehicle and advanced driver-assistance systems technology began responding to the crisis in January, taking steps to protect its staff at offices in South Korea, Germany, Japan and San Jose, Calif.

The company was determined to protect its early successes with customers, as well as its chief assets — the employees who were making it possible.

That response made the 6-year-old StradVision one of the early adopters of critical precautionary …

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Suppliers’ factories could aid medical push

Parts suppliers are scrambling to play a role in the industry's new effort to convert automotive factory capacity to the production of ventilators, respirators, masks, hospital gowns and other key medical supplies to help combat the COVID-19 pandemic.

But first they must sort through a host of real-world manufacturing questions — such as how to obtain the necessary tooling to produce the items, how to properly train their workers, and how to provide quality assurance on unfamiliar products.

Vehicle door handle and exterior mirror supplier ADAC Automotive last week signed up for duty in the health crisis.

Carol Stewart, ADAC executive vice president, told Automotive News in a statement that the Grand Rapids, Mich., company is working with General Motors to "identify if we can support production of critical parts for medical ventilators." The company declined further comment.

Canadian supply giant Magna International s…

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Cleaning top priority for dealerships, public transit

The lobby has been designated a handshake-free zone. Pump bottles of hand sanitizer, already a fixture, have been replaced by automatic dispensers. Cleaning crews are on site multiple times a day. No more than 10 customers are allowed inside at a given time.

As with everyone else these days, the staff at Lindsay Volkswagen of Dulles in Sterling, Va., is emphasizing hygiene practices and implementing new measures to help stave off coronavirus.

"We're doing what we can to minimize physical interactions and reduce the time in the dealership if customers do decide they want to physically visit," said Jerry Holloway, the dealership's general manager. "Customers can upload documents ahead of time. There's so much they can do ahead of time."

From car dealerships to public- transit operators, businesses and organizations that provide rides have been rethinking procedures and, perhaps more broadly, ushering in a new era of mobility in whi…

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COVID-19 is ruining the timing for eagerly awaited new models

The coronavirus epidemic hasn't just slammed the brakes on the economy — it's also upending some critical new-model launches.

Automakers are having to rethink the carefully orchestrated go-to-market strategies for several key models.

Market launches will be impacted for the next 12 months, Tyson Jominy, vice president of the Power Information Network at J.D. Power, told Automotive News.

"We have this incredible mismatch of vehicle supply to demand," Jominy said. "It's going to take some time for that to balance out."

Last week, electric-vehicle startup Polestar announced the start of production in Luqiao, China, of its Polestar 2 electric fastback, a model the company has been waiting for to substantiate the young brand and take on Tesla's Model 3.

Polestar USA CEO Gregor Hembrough told Automotive News by email that the company is still planning to begin U.S. deliveries of the car in midsummer. An assoc…

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