J.D. Power Warns Coronavirus Could Cause Car Part Shortages
The Detroit News reports that coronavirus pandemic could cause parts shortages at auto dealership service departments, J.D. Power warned as it unveiled its 2020 U.S. Customer Service Index survey. “There’s no telling how widespread or long lasting the ripple effect of the coronavirus will be for the automotive industry, but it inevitably will have a financial effect on dealers’ service business,” Chris Sutton, vice president of the U.S. automotive retail practice at J.D. Power, said in a statement. “Automakers and dealers need to prioritize securing sources for their parts supplies or face the consequences of losing business," Sutton continued. "Customers will be initially understanding of coronavirus consequences, but shortages will continue well beyond the current public health crisis. Customers will not understand in August, for example, why there are no parts to repair their vehicles." Read more here.
Mitsubishi Offers Dealers Choice of New Digital Tools
Mitsubishi Motors isn't like other mainstream automakers in the U.S. — it's smaller. With sales of just over 121,000 vehicles last year across about 350 stores, resources are tighter at headquarters and on dealership lots compared with bigger rivals such as Toyota. But, reports Automotive News, Mitsubishi has big plans as it adds franchises every month, revamps its facilities program and works with alliance partner Nissan on new generations of its crossovers. A critical part of rebuilding the brand is the new "Small Batch" marketing initiative designed to reach customers through digital-first advertising. And now, Mitsubishi is making it easier for dealers to access modern ad tools in their local markets and bring that more-for-less approach to chasing after customers online. The Mi Digital Solutions program, or MiDS for short, was launched in November and allows dealers to choose from five curated providers offering prenegotiated rates and 100 percent reimbursement through Mitsubishi's co-op ad program. Read more here.
Toyota to Resume Normal Operations at Guangzhou Plant Next Week
Toyota Motor Corp. said on Friday that production at its plant in Guangzhou, China, would return to normal on Monday, after a month-long output suspension due to the coronavirus outbreak, reports Automotive News. The Japanese automaker's plant in southeast China will resume its second shift, returning to production levels from before the outbreak accelerated last month. The plant, which produces the Camry sedan and the Yaris compact hatchback models, resumed its first shift earlier this month. Operations at two other Toyota plants, in Changchun, Jilin Province, and Chengdu, Sichuan Province, have also returned to normal, while its plant in Tianjin is only operating a single shift, compared with double shifts at the start of the year. Global automakers continue to grapple with production in China due to logistical delays and limited workforces as the country's manufacturing sector slowly recovers from coronavirus-related stoppages, which have disrupted the global supply chain. Read more here.
UAW Confirms First-Known Coronavirus Case of Fiat-Chrysler Auto Plant Worker
CNBC reports that the first-known employee of a Detroit automaker to be diagnosed with the coronavirus in the U.S. works at a Fiat Chrysler plant in Indiana, company and union officials confirmed Thursday. The unnamed male employee at the Kokomo Transmission Plant, located about 50 miles north of Indianapolis, is currently quarantined and receiving medical care, according to Fiat Chrysler and the United Auto Workers union, which represents workers at the plant. A Fiat Chrysler spokeswoman said the company was notified of the employee testing positive for the disease on Wednesday. Production at the plant continues as normal, she said. Officials with the company and union said they are working with local representatives at the plant to support the treatment of the employee and taking measures to monitor and protect other workers. An undisclosed amount of the others who may have come into direct contact with the person also have been quarantined, according to the company. Read more here.
Volkswagen's New Software Aims to Eliminate Crashes by 2050
Volkswagen wants to rid the world of car accidents by 2050. According to The Detroit Bureau, the German automaker will introduce a new vehicle operating system later this year on the make’s new ID.3 EV to help make that happen. “We want to have no more accidents by 2050,” said Michael Jost, the VW brand’s strategy chief. The automaker’s next-generation cars will be equipped with the new software, sensors and processors to enable vehicles to anticipate and avoid accidents. The system also continues to learn over time, according to the automaker. The new ID.3 will come with three battery packs eventually with a range from 226 miles to 342 miles. Jost noted that the new software-based vehicle operating system will be continually updated as software algorithms improve. Read more here.
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