Volvo's U.S. Plant Hit by Mexico Parts Shortage, Weak Sedan Demand
According to Automotive News, Volvo aims to have its U.S. plant running again “within some weeks,” said CEO Hakan Samuelsson, who attributed the prolonged shutdown to two key factors. “First is the disturbances in the supply of parts from Mexico. But it also a supply-and-demand issue for the S60. There is definitely is a market trend toward SUVs,” Samuelsson told Automotive News Europe. In the first half, utility vehicles accounted for 69 percent of Volvo’s global sales while sedans such as the S60 represented 14 percent of the automaker’s worldwide volume. In addition, first-half sales of the S60 in the U.S. were down 25 percent to 6,738, according to the Automotive News Data Center. Global sales of the sedan were up 55 percent to 16,389, according to Volvo's data. Volvo closed its factory in Ridgeville, S.C., near Charleston, March 26 and restarted production on May 11. The plant was closed again in June because of supply disruptions, the automaker said in its first-half financial report. Read more here.
Toyota to Skip Quarterly Briefings Amid Pandemic Uncertainty
Toyota Motor Corp. won’t hold media briefings for its fiscal first- and third-quarter results this year as the automaker reviews its procedures following the coronavirus outbreak, reports Bloomberg. The Japanese company, which was recently surpassed by Tesla Inc. as the world’s most valuable carmaker by market capitalization, will hold press conferences for half- and full-year results, spokeswoman Kayo Doi said. Toyota hasn’t made decisions about briefings beyond this fiscal year. Prior to the outbreak, Toyota executives regularly briefed reporters every quarter. The company held its latest briefing, in May, as well as its annual shareholders meeting in June, online because of the pandemic and social-distancing measures. Toyota is scheduled to announce results for the fiscal first quarter that ended June on Aug. 6. Read more here.
Changes Made Quickly During Pandemic Will Have Lasting Effect on Retail
Automotive News reports that the coronavirus pandemic has forced U.S. dealers into a crucible of logistical and financial challenges: government shutdowns that limited operations, new-vehicle inventory constraints, roller-coaster used-vehicle values. And since the crisis emerged in March, fear of contracting a potentially deadly virus has prevented many consumers from stepping foot into dealerships. Yet retailers pivoted rapidly to meet the challenges and will incorporate lessons learned from this pressurized environment for years to come, industry leaders said last week during the first panel discussion of the online Automotive News Retail Forum: Dealer Discussions series. Panelists told Automotive News Publisher Jason Stein that changes wrought by the outbreak could attract new talent to the industry, help dealerships better engage with customers digitally and cut costs from the dealership business model. Read more here.
Plants Running, But Automakers Face COVID-19 Fallout
The COVID-19 pandemic continues to hobble automakers as they scramble to find workers, parts, and buyers amid continuing concerns about public health, reports WardsAuto. “The surge in COVID-19 cases across the country is negatively impacting consumers and dealers,” Cox Automotive analysts say in a new report. “Almost half of the shoppers delaying their purchase described this as a ‘scary’ time to buy a vehicle. For those delaying service, almost half say it is because they are just not driving as much as they used to,” Cox says. “Anxiety is ratcheting up again for consumers and dealers.” Meanwhile, General Motors, Fiat Chrysler, and Ford all report absenteeism is running higher, prompting the companies to search for laid-off employees who can be hired temporarily to fill in for workers missing due to the virus. The higher-than-normal absenteeism does not mean more union members are sick, Rothenberg adds. But the pandemic has created other problems that have led workers to not show up for their regular shifts. Read more here.
Self-Driving Startup Aurora Expands Public Road Testing to Texas
The Detroit News reports that even as some robo-taxi developers are tapping the brakes, self-driving startup Aurora Innovation Inc. is expanding its testing operations to Texas, adding a third state to its existing public-road proving grounds in California and Pennsylvania. Aurora, founded by Chris Urmson, a former head of Google’s self-driving team, selected Texas due to the volume of public roads and the state’s AV-friendly regulatory environment, the company said Monday in a blog post. The venture plans to deploy small fleets of driverless minivans and later add autonomous semi trucks along commercial routes in the Dallas-Fort Worth area, it said. The move comes as much of the auto industry is expected to scale back investments in autonomous driving to lighten the financial investment burden at a time of shrinking profits and an uncertain sales outlook. Alphabet Inc.’s Waymo recently said it will need to rely on human drivers to co-pilot its driverless vehicles for the foreseeable future. And last year General Motors Co.’s Cruise postponed plans to make autonomous vehicles available for hailing rides. Read more here.
Webinar TODAY: Online Google Search Optimization: Are You At the Top?
Eric Miltsch, Co-Founder & Director of Marketing at Dealer Teamwork joins AutoTalk again TODAY, Tuesday, July 21 at 2:00 p.m. EDT to discuss:
-
10 Reasons Why Search Engine Optimization Is So Important For Your Dealership
-
What is Search Engine Optimization (SEO)?
-
Why does my dealership need SEO?
-
How should I measure SEO success?
Around the Web
The 5 Best Turbocharged Cars Ever Made [HotCars]
Every 2020 Subcompact Crossover SUV Ranked from Worst to Best [Car and Driver]
'Baby Driver' Subaru WRX STI Stunt Car Can Be Yours [Autoweek]
