Coronavirus Piles More Pressure on the Struggling Car Industry

First Up 03/06/20

Be Proactive in the Fight Against COVID-19

AIADA Chairman Jason Courter writes that if you told him a month ago that his home and two Honda stores in Kirkland and Bellevue, Washington, would be at ground zero for the Coronavirus in the United States, he wouldn’t have believed you. It’s somewhat surreal, but also a good reminder that as a small business owner you have to always be ready to roll with the punches. In our case, Jason writes, rolling with the punches means being flexible with employees and ensuring that they stay home if they’re feeling at all unwell (symptoms of the virus can be mild, and mirror the common cold). It also means stocking up on gloves and hand sanitizer, and saying goodbye to the hand shake deal. I have worked with AIADA to put together a one page pamphlet that I hope you will find useful. Please print out as many copies as you need. Distribute it to your employees and post it in visible spots so that both workers and customers can see that you are following best practices and staying ahead of the situation. Uncertainty and fear are far more contagious than any disease. Let’s push back by staying informed and proactive in fighting this virus. Read more here.

Coronavirus Piles More Pressure on the Struggling Car Industry

Car sales are showing early symptoms of the coronavirus, reports The Wall Street Journal. They could get a whole lot worse if—as seems increasingly likely—more big economies go the way of China, Japan, and Italy. China, where the epidemic originated, has seen by far the biggest impact. Vehicle sales were down an extraordinary 80% in February compared with the same month of 2019. The country imposed draconian so-called social-distancing measures that make it an extreme template for the rest of the world. Car sales were slightly better in the final week of February as the health situation in the country appeared to stabilize. In South Korea—the country worst affected by the crisis outside China—car sales dropped by roughly 20% year over year in February to their lowest monthly level since 2009. In Japan they fell 10.7% and in Italy 8.8%. That is despite the leap year, giving February an extra day relative to last year, and an unusual concentration of five weekends in the month. Read more here. 

BMW Changes Logo for Digital Age 

BMW has updated its logo for the first time in 23 years, but the automaker is stopping short of making the change on its vehicles, it said in a statement. Automotive News reports that the update, which began rolling out this week, is for "online and offline communication purposes," the brand said, positioning its new look as "better-suited to the digital age." The biggest change is that the thick outer ring in the circular logo went from a solid black to transparent. So whatever color the logo is set against will appear in that portion.   The design was also made simpler and flatter, a change from the slightly rounded look of the old logo, which made it look more three-dimensional.   The automaker follows other brands, such as Volkswagen, that have gone to a flatter look for digital media reasons.  "BMW is becoming a relationship brand. The new communication logo stands for openness and clarity," Jens Thiemer, BMW's head of brand management, said. The update is "geared to the challenges and opportunities of digitalization for brands," he said. Read more here. 

Ex-UAW President Gary Jones Charged in Corruption Probe 

Federal prosecutors have charged Gary Jones, the former head of the UAW, in the corruption probe, reports USA Today. The charges, which accuse Jones, among other things, of conspiring to embezzle union funds and aiding racketeering activity, were unsealed Thursday. They were filed as an information in U.S. District Court in Detroit, meaning Jones is expected to plead guilty. Jones resigned in disgrace last year after he was implicated in federal court papers which said he was one of several top union officials who had embezzled more than a million dollars and spent it on meals, cigars and other lavish goodies. The paperwork charging Jones was actually filed on Feb. 27 but kept under seal. That was just days before Jones' former aide Edward "Nick" Robinson pleaded guilty in the case and agreed to cooperate. Previous filings, where Jones was listed as UAW Official A, accused him of offering to "take care of" a relative of Robinson's with a sham job if he would take the rap for a portion of the embezzlement. There were even references to a burner phone. Read more here. 

Jaguar Land Rover Expects Profit Hit Due to Coronavirus 

Tata Motors warned on Friday of lower profit at its British luxury car brand Jaguar Land Rover for the fiscal year as the coronavirus outbreak has hit sales in China, reports Automotive News. The outbreak, which started in China and is spreading globally, has hurt sales in the world's biggest auto market. The spread of the virus to South Korea, Japan, and Northern Italy is creating similar issues, Tata said in a statement. "Recognizing the present situation is highly uncertain and could change, the reduction in China sales resulting from the coronavirus presently is estimated to reduce Jaguar Land Rover's full year EBIT margin by about 1 percent," it said. China is also a major hub for vehicle parts production and a prolonged shutdown at plants has disrupted auto supply chains affecting carmakers in all parts of the world. "Suppliers in China are resuming operations but remain below full capacity," Tata said, adding that JLR has managed to avoid potential parts shortages by working closely with its suppliers and with some increased use of air freight. Read more here. 

Around the Web

Here Are the Top Boats Designed by Automakers [Car and Driver]

6 Creative Solutions to Drive Customer Engagement in the Auto Industry [CBT Automotive Network]

Volvo Using Renewables, Automatic Lighting to Reduce the Impact of Major Production Site [CNBC]

Toyota Dealership Employee Tests Positive for Coronavirus Near Seattle [Automotive News

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