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 …

Read more
  • 0

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…

Read more
  • 0

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…

Read more
  • 0

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

Read more
  • 0

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…

Read more
  • 0

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.

Read more

  • 0

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…

Read more
  • 0

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…

Read more
  • 0

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…

Read more
  • 0

Nissan responds to virus with dealer assistance

Nissan North America is offering a bottom-line boost to its financially embattled U.S. retailers as showroom traffic slows in the face of the coronavirus pandemic.

For the month of March, dealers will be guaranteed a $375 bonus per vehicle sold.

Earlier this year, Nissan increased the dealer volume bonus from $250 per vehicle sold to $550 per vehicle for meeting sales goals during the February-to-September period.

It now intends to pay $375 per vehicle regardless of the dealer's sales goal.

Additionally, finance captive Nissan Motor Acceptance Corp. is lowering its dealer floorplan rates. Qualifying dealers also will be able to apply for the cash-flow assistance program, which allows six months of interest-only payments on existing mortgages and capital loans.

"We continue to monitor how the situation is affecting traffic to your showrooms," David Kershaw, Nissan division vice president of sales and regional operations, said in a letter to …

Read more
  • 0

Lincoln-Mercury’s Comet takes off in 1960

Ford Motor Co. launches sales of the compact Comet on March 17, 1960, through Lincoln-Mercury stores.

The Comet, a stretched version of the Ford Falcon, was created to serve as an entry-level, compact alternative to the Edsel, which Ford had just scrapped. The team that developed the Comet previously worked on the Edsel.

It was introduced with four body styles — two- and four-door sedans and wagons.

The Comet shared many mechanical parts with the Falcon, mostly in the station wagon, and was powered by a lightweight, 90-hp straight six-cylinder engine. The standard transmission was a three-speed manual gearbox. A Ford-O-Matic transmission was optional.

The Comet carried more uplevel interior trim and more carpet compared with the Falcon and cost almost $100 more than the Ford.

Hemmings called it "an economical choice for buyers who wanted a little more pizazz than what the Falcon offered."

The…

Read more
  • 0

Ford pulls national vehicle ads, replacing them with a crisis-response campaign

Ford Motor Co. is pulling all national ads promoting its vehicles and will replace them with a new campaign describing how it is responding to the coronavirus, including giving Ford Credit customers some payment relief.

The effort includes two new spots, “Built to Lend a Hand” and “Built for Right Now,” from ad agency Wieden+Kennedy New York, which play off the automaker’s regular tagline, “Built Ford Proud.” 

The spots were rapidly produced starting late last week as Ford execs realized their normal marketing plans would no longer cut it as the coronavirus pandemic overtakes nearly every facet of American life.

“Thursday morning of last week, it became clear we were at a tipping point where we expect typical messaging in the marketplace isn’t going to work the same way,” says Matt VanDyke, director of U.S. marketing for Ford Motor. “It’s important to be reassuring right now and not trying to say to people 'Rush into your car dealership for a sales…

Read more
  • 0