Automakers Urge Dealers to Enforce Strict Coronavirus Precautions

First Up 08/20/20

Among New Vehicle Tech, Cameras Are a Big Hit with Consumers

Drivers appreciate an extra set of eyes on the road. But they're giving the finger, quite literally, to another feature making its way into new vehicles. According to Automotive News, those are the findings of a new J.D. Power study that measures how effective automakers are in bringing advanced technologies to market in ways that consumers find intuitive and not overbearing. Vehicle owners are most enamored with cameras, according to the company's 2020 U.S. Tech Experience Index. Luxury owners rate such features highest in five of the six satisfaction attributes measured in the study. But luxury owners disliked gesture controls, which let occupants control various interior features using hand gestures instead of touching a knob or screen. Gesture controls were the lowest-rated technology "by far," according to the report, experiencing 36 problems per every 100 vehicles — more than twice the rate of the second-most-problematic technology. Read more here (Source: Automotive News). 

Automakers Urge Dealers to Enforce Strict Coronavirus Precautions

Strict health measures such as mandatory mask-wearing and daily temperature checks have been the norm in auto plants since mid-May, when the U.S. auto industry resumed production of cars, trucks and SUVs after a pandemic-induced shutdown. But, reports The Detroit News, in showrooms and on the lots where customers actually purchase vehicles, the rules are less uniform as auto dealers navigate a patchwork of local and state orders, and varying degrees of COVID-19 outbreaks. Many automakers are offering dealerships guidance, and some are urging dealers to exceed local orders and follow the stringent protocols used in manufacturing facilities. For automakers and dealers alike, the goal is the same: to keep employees and customers safe, so plants and showrooms can remain open amid a fragile recovery of the U.S. vehicle market. Read more here (Source: The Detroit News). 

AutoNation to Shutter Aftermarket Collision Parts Business

AutoNation Inc. is closing its aftermarket collision parts business by the end of the year in a continued cost-cutting effort by the auto retail giant, reports Automotive News. The nation's largest new-vehicle retailer said Wednesday it expects to incur about $52 million in charges in the second half of the year, including $12 million in cash, related to closing AutoNation Collision Parts. The tally is comprised of about $28 million for writing down inventory, about $8 million in contract terminations and $16 million in other costs such as depreciation, severance, and closing fees, according to a regulatory filing. Following the closing, AutoNation expects to incur another $9 million in cash expenses related to contract obligations. AutoNation CEO Mike Jackson indicated last month on the company's second-quarter earnings call that the AutoNation Collision Parts business was struggling and called it "an area of concern." Read more here (Source: Automotive News). 

GM to Launch 5G-Connected Vehicles in China Starting in 2022

General Motors plans to launch vehicles capable of 5G connectivity for Chinese consumers beginning in 2022, providing the groundwork to expand the company’s in-vehicle and connected technologies, reports CNBC. The upgrade from its current new vehicles with 4G LTE in North America and China will provide faster connectivity for remote, or over-the-air, updates as well as communications with other connected vehicles and infrastructure. It will also better enable technologies such as autonomous vehicles and advanced driver-assist systems, which depend on connectivity and advanced mapping in addition to sensors and radars on the vehicles. Julian Blissett, president of GM China, said Wednesday all new Cadillac models and most new Buick and Chevrolet vehicles will be equipped with 5G connectivity starting two years from now in China. He announced the plan as part of a “Tech Day” for the region. Read more here (Source: CNBC). 

Hyundai Motor America Names VP for New Product Line, Sales Division

Hyundai Motor America has named Fred DePerez vice president of product line management and sales planning, a newly created division. According to Automotive News, the division is expected to improve decision making across the enterprise and allow the company to react more quickly to changing market conditions, the automaker said in a statement Monday. DePerez's appointment was effective Monday, and he oversees the current product line management, sales planning and retail operations teams and reports to Hyundai Motor North America CEO José Muñoz. "Creating this new division will allow us to better leverage data and take full advantage of national and regional opportunities to increase profits and gain market share," Muñoz said in a statement. "We are excited he's joined the Hyundai team." Read more here (Source: Automotive News). 

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