DAILY DRIVE PODCAST: March 18, 2020 | From solid ground to ‘sudden whiplash’

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.

Mack McLarty, vice chairman of RML Automotive in Dallas, discusses the uncertainties and challenges ahead for dealers amid the COVID-19 pandemic. 

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FCA, Ford, Hyundai idle locations after employees test positive

DETROIT — Fiat Chrysler Automobiles, Ford Motor Co. and Hyundai all idled a U.S. operation on Wednesday after an employee in each location tested positive for COVID-19. Volkswagen of America closed an office in suburban Detroit after an employee there tested positive.

Later on Wednesday, Ford and General Motors said they would close all manufacturing sites in the U.S. Mexico and Canada through at least March 30. FCA was expected to announce a similar move.

FCA said said early Wednesday it was temporarily shutting the Sterling Heights Assembly Plant, which makes the Ram 1500 pickup, "out of an abundance of caution for the health and welfare of the employees."

The worker who contracted the virus had not been in the plant for more than a week and is receiving medical care, the company said.

"Employees on the first shift have been sent home. Workers on the second shift should not report," FCA said in a statement. "The Company is working to a…

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The service lane in the age of coronavirus

I spent part of last week with some service managers and fixed ops directors in Phoenix and listened as they shared the innovations and best practices they've instituted in their stores' service lanes. As we talked inside the hotel conference room, the world outside was quickly changing because of the coronavirus outbreak.

The J.D. Power 2020 U.S. Customer Service Index study released last week was a precursor of what dealership service operations will face if parts shortages from China and other regions negatively impact the speed in which customers' cars can be repaired.

But since then, the issues confronting service managers have certainly accelerated and become more complicated as some dealerships have shuttered completely or at least closed sales departments, leaving — for now — its service lanes open. I checked in with those I met in Phoenix to see how things were going at their stores.

Most reported a spike in canceled service appointments, and th…

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Tesla prepares to reduce staff by 75% at Calif. plant

Tesla Inc. is preparing to reduce staffing by about 75 percent at its lone U.S. assembly plant after initially resisting an order from the local sheriff, according to a county spokesman.

“We had a positive conversation, and it sounds like they are beginning to comply with the health order,” said Ray Kelly, the spokesman for the Alameda County Sheriff’s Office. “In war times, all automakers are considered vital national infrastructure, but this is a different era. This is a health pandemic.”

Representatives for Tesla didn’t respond to requests for comment. The company is preparing to reduce staff at its plant in Fremont, Calif., to about 2,500 from roughly 10,000, Kelly said.

Tesla makes the Model 3, S, X and new Model Y at the Fremont plant. The San Francisco Bay Area has implemented stringent measures to slow the spread of the coronavirus, ordering more than 7 million residents to stay home except for exercise or quick, necessary outings such …

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Martinrea chairman suggests automakers move summer shutdown forward amid crisis

Martinrea International Inc. Chairman Rob Wildeboer said automakers could look into moving one of their two annually scheduled assembly-plant shutdowns forward as a way to slow the spread of the coronavirus.

Automakers typically idle assembly plants for weeks during the summer and winter for retooling.

“I would think that if I’m an OEM, I would say I’ve got a July shutdown anyway, so let’s think of doing that,” Wildeboer said. “I don’t know if they’re having that discussion, but it would not be an unwise discussion. We’ve got the inventory in place, so why don’t we do this industry-wide? I have not heard anyone say that, but don’t forget that we do this twice a year. We do it every July, and we do it every Christmas.”

Automakers, suppliers and labor are scrambling to adjust in the wake of the global coronavirus pandemic. Plants are closing in Europe, now the epicenter of the crisis, while unions in the United States and Canada have called on automak…

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Mercedes-Benz will tweak U.S. dealer payouts, relax objectives

ATLANTA -- Mercedes-Benz USA will tweak dealer payouts and relax objectives as the automaker braces for a pullback in sales in the wake of the coronavirus pandemic.

In an email to U.S. dealers Monday, CEO Nicholas Speeks quoted England's wartime Prime Minister Winston Churchill while underscoring the "unprecedented" situation facing the auto industry.

"Winston Churchill once said, 'If you are going through hell ……. KEEP GOING!' " Speeks wrote to dealers. "The challenge we have is not of the dimension he was forced to confront but that is exactly what we, all of us, are going to do: Keep going."

On Tuesday, Mercedes parent Daimler Group said it will shutter car, van and commercial vehicle plants in Europe for at least two weeks in an effort to contain the spread of COVID-19. Global supply chains currently cannot be maintained to their full extent, Daimler said. The company's U.S. plant in Vance, Ala., remains open, for now.

The email to dealer…

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More COVID-19 headlines

Tuesday, March 17

-- Geely is taking extraordinary steps to keep its 6,000 employees at its global headquarters working in their offices - Geely Media Center

-- Acura cancels March-Madness-themed ad campaign -- MediaPost

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For Tesla, a big hand from China to restart new Shanghai factory

After the coronavirus outbreak caused a nationwide shortage of face masks in January, Chinese officials were quick to ensure that Tesla Inc. wouldn’t be left without.

China’s government helped the U.S. carmaker secure the sought-after supplies that allowed it to reopen at a time when many of its competitors were still shut down. Tesla received 10,000 masks, cases of disinfectant that require a government permit, thermometers and other materials that allowed the company to restart a new factory near Shanghai the first working day after the extended Lunar New Year break, according to state-run media.

The support for Tesla -- which also included providing accommodation for some employees as the outbreak snowballed -- is emblematic of China’s wider embrace of CEO Elon Musk’s car venture. The tycoon has waged a charm offensive since deciding to build the company's first plant outside the U.S. in China, home to the world’s biggest EV market, and has been rewarded wit…

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Waymo pauses some service amid virus crisis

Self-driving systems don't get distracted from the road ahead — they also don't get sick or spread germs.

Amid the coronavirus pandemic, Waymo said Tuesday it will pause its Waymo One commercial ride-hailing service that's underpinned by human safety drivers. But a driverless research program that carries passengers within Waymo One will continue.

"Removing the human driver holds great promise for not only for making our roads safer, but for helping our riders stay healthy in these uncertain times," the company said in a written statement.

Waymo has not divulged specific details on the number of self-driving rides it provides in Phoenix that operate without human safety drivers. Last October, CEO John Krafcik said the scope of those driverless operations had expanded.

Those rides remain available only for members of the company's Early Rider Program, a research-focused subset of its broader Waymo One service.

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Digital retailing can be a coronavirus contingency plan

March is one of the busiest sales months for Jeff Wyler Automotive Family in Milford, Ohio, prompted in part by early tax filers with refunds in hand.

But an escalating outbreak of COVID-19 in the U.S. — and the resulting mass cancellation of public gatherings, from conventions to classrooms, to slow the spread — has the dealership group looking at ways to attract shoppers who might be ready to buy a car but wary of visiting a showroom.

Foot traffic hadn't slowed as of late last week, said Kevin Frye, marketing director of the 15-store group near Cincinnati. The Jeff Wyler dealerships were still operating on a normal schedule as of midday Tuesday even as some dealerships had started to close because of the outbreak. As an alternative to in-store shopping, Wyler plans to promote its digital retailing platform, Wyler Direct, and home vehicle delivery through a series of videos ranging from 6 seconds to 30 seconds on YouTube and social media.

The services h…

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Nissan moves Marsh to head up production, purchasing in North America

Nissan career veteran Steve Marsh, who went to work for the automaker at age 16, has been promoted to manufacturing chief for its North American operations.

Marsh, 49, will become Nissan North America's senior vice president of manufacturing, supply chain management and purchasing, responsible for manufacturing operations in the U.S. and Mexico.

Marsh, who grew up in the U.K., replaces Heath Holtz, who left Nissan in late February to join retailer Target Corp.

Marsh takes over as the financially embattled Nissan moves into a product offensive, with plans to launch 10 new or updated models in the next 20 months. Nissan produces Nissan and Infiniti brand models, powertrains and components at plants in Tennessee, Mississippi and Mexico.

But like the rest of the auto industry, Nissan is also now grappling with the fallout from the coronavirus pandemic that threatens to disrupt manufacturing and supply chain operations.

Due to the evol…

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UAW presses Detroit 3 for 2-week plant shutdown, sets deadline tonight

DETROIT — The UAW has set a Tuesday evening deadline to decide whether it is satisfied with the actions taken by the Detroit 3 to protect workers from the coronavirus pandemic or if it will seek stronger measures.

It's unclear whether the union might try to force the automakers to halt production. In Canada, the Detroit 3 and the union Unifor formed a joint task force -- similar to the one automakers formed with the UAW -- to address coronavirus safety issues.

UAW President Rory Gamble said in a letter to members and staff Tuesday afternoon that the union requested a preemptive two-week shutdown based on World Health Organization and Centers for Disease Control and Prevention guidelines. He said the automakers "were not willing to implement this request" and asked for 48 hours to come up with a plan.

"The 48-hour window is up this afternoon," Gamble said in the letter. "We will be evaluating what the companies submit today and there will be a meetin…

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