Feb. sales sink at GM’s 2 joint ventures

Deliveries at General Motors' two joint ventures in China plummeted 90 percent to 19,412 last month as the Lunar New Year and coronavirus outbreak left plants idled and showrooms empty of buyers. 

February sales at SAIC-GM, GM’s passenger vehicle partnership with SAIC Motor Corp., nosedived 92 percent to 7,612, according to SAIC, a Shanghai-listed company. 

Deliveries at SAIC-GM-Wuling, a light-vehicle joint venture between GM and SAIC, plunged 88 percent to 11,800.

In the first two months, sales slumped 52 percent to 133,076 at SAIC-GM and 65 percent to 90,040 at SAIC-GM-Wuling.

As a result, total sales at the two partnerships slumped 58 percent to 223,116 in the two-month period. 

SAIC-GM builds and distributes cars and light trucks for GM’s Buick, Chevrolet and Cadillac brands, while SAIC-GM-Wuling produces and markets Baojun-badged cars and Wuling-brand microvans.

Because of the viral epidemic which spread from the…

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Honda picks Canada CEO Dave Gardner to run U.S. auto division

Editor's note: An earlier version of this report incorrectly characterized Honda Canada's production facilities. It has two assembly lines.

Honda has turned to Dave Gardner, CEO of its Canadian unit, to run the automobile division of American Honda Motor Co. in the U.S. after last month's abrupt exit of Henio Arcangeli Jr. in a dispute over his future role at the automaker.

Gardner's appointment is effective May 1, and his formal title will be executive vice president and business unit head of automotive sales. He will also be executive vice president of the parts, service and technical business unit, Honda said in a press release Monday.

"Dave is a strong Honda leader who brings years of broad-based experience to this key position in our U.S. operations," said American Honda CEO Shinji Aoyama. "He has extensive knowledge of the auto industry and is highly respected by our Honda and Acura dealers in Canada and by the leadership of our North American oper…

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VW launches ads plugging new Atlas Cross Sport crossover

The Volkswagen brand has snared stars from two of cable TV’s hottest dramas to star in a three-part ad series for its new Atlas Cross Sport crossover.

Paul Giamatti, who plays New York attorney general Chuck Rhoades in Showtime’s “Billions,” appears as a penny-pinching accountant in the campaign, which comes from ad agency Johannes Leonardo. His client is played by Kieran Culkin, known for his portrayal of Roman Roy, the spoiled, immature youngest son of media mogul Logan Roy in HBO’s “Succession.” 

Click here to view the ad

Shades of the cable TV characters are present in the ads, which portray Giamatti as a “celebrity accountant” counseling clients against outlandish purchases like “solid-gold jet ski." He looms over Culkin’s every move, trying to reign in his spending, but is relieved to find out that his client bought a VW, which is positioned as a sensible move.

The campaign’s tagline, “Excessive Where it Matters,” is meant to portray th…

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China driverless van startup sees demand surge amid outbreak

The coronavirus has hurt many companies in China and around the world. Neolix, a driverless delivery business based in Beijing, isn’t among them -- in fact, it’s seen a jump in demand.

The startup, which has attracted customers including Alibaba Group Holding, Meituan Dianping and JD.Com Inc., has booked orders for more than 200 vehicles in the past two months; before then, it had only produced 125 units since manufacturing began last May, founder Yu Enyuan said in an interview.

Amid the virus anxiety that has disrupted businesses and supply chains, China’s push into autonomous transport and the future of delivery is getting an unexpected boost. Neolix’s small vans help customers reduce physical contact and address labor shortages caused by lingering quarantines and travel restrictions.

Neolix’s inventories have been depleted during the epidemic with its vehicles being used to deliver medical supplies in hospitals, including in Wuhan, at the outbreak’s e…

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Nissan China sales drop 80% in Feb.

TOKYO/BEIJING -- Nissan Motor Co.'s vehicle sales in China, its biggest market, dropped 80 percent in February as coronavirus concerns sapped demand, in another blow to the carmaker which is struggling to recover from a profit free fall.

The Japanese automaker said on Monday it had sold just 15,111 vehicles last month in the world's biggest auto market as demand for its Sylphy sedans and X-Trail and Qashqai crossovers continued to tumble.

Nissan has been betting on growth in China to cushion the impact from its slumping business in the United States and Japan, where car sales fell 27 percent last month.

But commuting bans and road closures in many Chinese regions in February has led to a slowdown in production since last month, curbing output and raising risks to the automaker's global supply chain.

As uncertainty about the coronavirus outbreak shakes global markets, demand in the world's second-largest economy is expected to remain week…

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Tesla’s fast-track German plant charts a path through red tape

BERLIN -- Elon Musk's plan to turn a remote wooded lot in Germany into the home of a state-of-the-art car factory in less than two years sent an unequivocal message to local authorities: make it happen or lose it.

Eager to host Tesla's first European plant near Berlin -- a potential 4 billion-euro ($4.5 billion) development -- German officials assured the company's CEO fast-track navigation through the country's notorious bureaucracy.  

In recent years, onerous regulations have held up projects from a large train station in Stuttgart to Berlin's first new airport since the end of the Cold War.

Administrative red tape can cause the process of sorting out building permission to take as long as four years. Even something as simple as a mobile-phone mast can drag out for two years.

That makes Tesla's ambitious deadline a critical test case of Germany's ability to adapt just as the powerhouse economy sputters. And even the U.S. automaker's German…

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As Wuhan hub comes back up, automakers fear disruptions

BEIJING -- Automakers across the world face the possibility of extended supply chain disruptions as factories in China stutter back to life after closures due to the coronavirus outbreak.

The car industry is especially exposed as Wuhan -- the epicenter of the outbreak -- is known as one of China's 'Detroits', accounting for nearly 10 percent of vehicles made in the country and home to hundreds of parts suppliers.

Non-essential factories in Wuhan and other cities in Hubei province remain on lockdown at least until Wednesday. When they reopen on March 11, or whenever authorities give the go-ahead, it is not clear if companies will have the raw materials or workers to get back to normal operations.

Automakers are concerned about their employees' health and the uneven and unpredictable application of rules in different cities and regions that is making it hard for an industry that is used to uniformity to plan ahead.

"In some cities, one worker g…

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The coronavirus and the test of a career

Jerry Lavine is quick to agree that the challenges of a fledgling Chinese electric vehicle maker don't merit much sympathy amid a global health crisis.

Still, as president of Bordrin North America, the 51-year-old former Ford engineer is responsible for the livelihoods of some 80 r&d employees in Oak Park, Mich., just north of Detroit. And they and their co-workers in China started this year with a landmark achievement within reach: production of Bordrin's first vehicle, a two-row crossover called the iV6.

For Lavine, the year had begun routinely enough, with trips to Las Vegas for CES and to Shanghai. He returned to Detroit on Jan. 21, as his Chinese colleagues were about to begin their 10-day New Year's holiday.

Before long, news of the spreading coronavirus made it clear that Bordrin's fifth year of existence would be marked early by a big detour.

Seven weeks later, things are still off-course. Some employees who traveled to their hometowns…

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Bigland leaves big jobs to fill

DETROIT — Ram's interim North American chief, Mike Koval Jr., says outgoing Fiat Chrysler Automobiles U.S. sales boss Reid Bigland pushed him to be the best he can be.

Now it's up to Koval to take what he learned under Bigland and keep the truck brand's momentum going. Bigland, a do-it-all executive who has spent 22 years at Chrysler and FCA, is stepping down next month after his 2019 whistleblower lawsuit helped bring the relationship to a premature end.

Bigland, who claimed in the lawsuit that FCA retaliated against him for aiding a U.S. investigation into sales-reporting practices by withholding his compensation, is leaving April 3 after coming to an amicable resolution with the automaker.

Bigland, a bodybuilding enthusiast known for his 4 a.m. workouts, built a solid reputation as a tough but fair operator who challenged dealers.

He leaves at a time when Ram is flourishing. The brand achieved record U.S. sales i…

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Daimler CEO warns against rash actions as virus cases rise

The growing number of confirmed coronavirus cases in Germany has raised questions about the vulnerability of long international supply chains to such an epidemic.

Daimler CEO Ola Kallenius warned against a return to economic nationalism as a response to the crisis.

"These events show how fragile global supply chains are," he told Der Spiegel magazine in remarks published on Saturday. "But a world without global work sharing would be less successful ... We should protect [that success] while checking for vulnerabilities where we can bring more security into the supply chain."

He said Daimler was "gradually ramping up" production again in China after the Chinese New Year stoppage, which had been lengthened because of the coronavirus. But the disease would have an impact on company results.

"We can't yet say what the impact will be, but it is clear that both production and sales will be affected," Kallenius said.

The number of confirmed coronaviru…

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Top Ford dealers see small pickup due in ’21

Ford Motor Co. is betting a compact, unibody pickup due out in late 2021 will fill an entry-level hole in its portfolio created when it discontinued low-margin sedans in North America.

COO Jim Farley and other executives showed off the still-unnamed pickup to roughly 100 of its highest-volume retailers at a multiday event in Tucson last month, according to some who attended. Ford has indicated to retailers the vehicle will be priced under $20,000, dealers told Automotive News, making it roughly $5,000 less expensive than the base version of the Ranger midsize pickup. One dealer said the sides of the vehicle resembled that of the original Ranger.

The small pickup, codenamed P758, is expected to be built at Ford's plant in Hermosillo, Mexico, and have an annual volume of more than 100,000, suppliers have been told.

A Ford spokesman said the company doesn't comment on future products.

Ford has said it plans to launch an …

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Possible case for federal takeover of UAW gets push

DETROIT — The UAW's efforts at rooting out corruption from within have failed to impress federal prosecutors, who allege that an intricate embezzlement scheme reached the union's highest office and are weighing the option of pursuing a government takeover of the nearly 85-year-old labor organization.

In charging former President Gary Jones with stealing more than $1 million from members and spending it on lavish vacations, dinners and golf outings, U.S. Attorney Matthew Schneider strengthened an argument that the union's top ranks have been marred by greed and illegal behavior for years. He stressed that the Justice Department is "not done" prosecuting the case, which has so far produced 13 convictions of former union and automaker officials, including two retired UAW vice presidents and a onetime top negotiator at Fiat Chrysler Automobiles.

"It's not the people working the jobs; it's the leadership," Schneider said last week. "That is a real indicator there'…

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