Coronavirus Expected to Cripple U.S. Auto Sales

First Up 04/01/20

Coronavirus Expected to Cripple U.S. Auto Sales

Automakers are offering 0% financing, deferred payments, and online tools in an attempt to salvage sales as the coronavirus pandemic cripples the auto industry. CNBC reports that as a result of skyrocketing jobless claims, weakening consumer confidence and state orders for residents to stay at home and nonessential businesses such as dealer showrooms to close, automakers this week are expected to report their worst sales declines in years. J.D. Power expects auto sales to decline at least 32% in March compared with a year ago. Edmunds forecasts sales to fall 35.5% this month, capping an 11.8% decline in the first quarter. Cox Automotive, citing the “volatility of the U.S. economy,” decided not to provide a sales forecast. March sales are expected to be the lowest in the U.S. since January 2014 and the lowest first quarter since 2012, according to Edmunds. “It’s obviously a disappointment,” said Jessica Caldwell, executive director of industry analysis at Edmunds. “Auto sales will be soft in March,” a month that typically is “the big volume month” in the first quarter. Read more here.

Subaru to Suspend Japan Output; Extend U.S. Shutdown

Subaru Corp. will join Japanese rivals in suspending domestic production because of the coronavirus pandemic with plans to shut its main assembly plant here from April 11 to May 1, reports Automotive News. The automaker is also extending a previously announced U.S. shutdown by eight days. Subaru’s suspension will affect its main assembly operations in Gumma as well as an engine and transmission plant, taking factories offline for 17 workdays, the company said April 1. The shutdown translates to roughly 39,100 units of lost production, given the Gumma complex’s normal output rate of 2,300 vehicles a day, Subaru said.  The move affects popular U.S. export nameplates such as the Forester and Crosstrek crossovers. Last year, Subaru of America sold 335,504 imported vehicles. The plant also produces the WRX and BRZ sporty cars for the U.S. as well as a host of vehicles, ncluding the Outback crossover, Legacy sedan, Levorg wagon and Impreza small car, for both Japan and export markets. Output is slated to resume May 11, after an originally scheduled break for Japan’s Golden Week holiday. Read more here.

Trump Administration Scraps Obama Fuel-Efficiency Standards, Opts for Laxer Rule 

The Trump administration proposes a modest increase in fuel-efficiency standards for new cars and light trucks, scrapping a more aggressive Obama-era rule aimed at curbing the planet's largest source of carbon emissions, which contribute to climate change. According to USA Today, the Safer Affordable Fuel Efficient (SAFE) Vehicles rule applies to most passenger vehicles for model years 2021 through 2026. Administration officials who unveiled the rule Tuesday said it will save hundreds of lives each year by encouraging families to buy newer cars that have the latest safety features because they'll be more affordable when freed from meeting tougher standards. “This rule reflects the Department’s No. 1 priority – safety – by making newer, safer, cleaner vehicles more accessible for Americans who are, on average, driving 12-year old cars,” U.S. Secretary of Transportation Elaine Chao told reporters on a conference call. The final rule will increase stringency of Corporate Average Fuel Economy (CAFE) and CO2 emissions standards by 1.5% each year through model year 2026, compared with the standards issued in 2012 under President Barack Obama, which would have required about 5% annual increases over that period. Read more here. 

VW Names Schneider to Government Affairs Post 

Volkswagen Group of America has named a longtime industry executive with experience at Toyota and Mitsubishi as its new head of public affairs and public policy, replacing David Geanacopoulos, who is retiring after 17 years with VW. Anna Schneider, 59, will assume the role April 3, Volkswagen Group of America said in a statement Monday. Automotive News reports that she has been with Volkswagen since 2008, leading the group's legislative and public affairs priorities and advocacy efforts, the automaker said. Before joining Volkswagen, Schneider had worked at Toyota Motor Sales as vice president of industry and government relations, and had previously been executive director for government relations for Mitsubishi Motors North America. "Anna is not only a respected figure in the industry and among political leaders in Washington and across the country," Scott Keogh, Volkswagen Group of America CEO, said in a written statement. "With her leadership and expertise, she will be an excellent representative of our company with national, state and local government officials, building on the strong foundation David set." Read more here.

Paris Motor Show Latest to Cancel Due to Coronavirus Pandemic 

The City of Light will be a little darker in October as the Paris Motor Show has become the latest in a growing list of automotive events to cancel – or, in some cases, postpone – due to the global coronavirus pandemic. According to The Detroit News, the decision follows the Sunday announcement that the North American International Auto Show in Detroit will be canceled, as well. Other automotive events impacted by the pandemic include auto shows in Geneva, Shanghai, and New York, as well as the Goodwood Festival of Speed and even the Indianapolis 500. “In light of the seriousness of this unprecedented health crisis and its consequent economic shock wave, which has severely struck the automotive sector, we are forced to announce that we will not be able to hold the 2020 Paris Motor Show in its current format at the Porte de Versailles,” show organizers announced. Read more here. 

Around the Web

2021 Porsche Panamera Sport Turismo Spy Shots [MotorAuthority]

Volvo Valet is the Automaker's New Concierge Maintenance Service [Autoblog

Brian Benstock Talks About Selling Cars During a Shutdown [CBT Automotive Network

Ford Will Build Respirators at Flat Rock Assembly [The Detroit News]

Menu
Close