Virus Issue Returns to Showrooms
The surging virus has more dealers reviving mask requirements and implementing or considering vaccine incentives — even mandates — for their employees. According to Automotive News, many are wrestling with how to balance some staffers' resistance to public health guidelines with others' concerns for their own safety. In a tight labor market, the stakes are high. One of the country's largest dealership groups, Asbury Automotive Group Inc., this month began requiring COVID-19 vaccinations for all new hires but has not mandated or incentivized vaccines for current employees. Asbury officials said the retailer continues to adhere to U.S. Centers for Disease Control and Prevention recommendations, which means it instructed vaccinated employees in locales with high infection rates to mask back up after the CDC revised guidance in late July. A Group 1 Automotive Inc. executive described encouraging but not mandating elevated precautions. Read more here (Source: Automotive News).
Detroit Sticks with Trucks, SUVs, Despite Lofty 2030 Goals for EVs
The future may belong to electric cars, but for U.S. automakers, trucks will rule for years to come, reports Reuters. Automakers in North America plan to build more big pickups and sport utility vehicles than electric vehicles well into the late 2020s, chasing sales trends that run counter to the Biden administration's goal of boosting EVs to half the market by 2030, according to internal production forecasts viewed by Reuters. The popularity of Detroit's big trucks is a challenge both to the industry and efforts by lawmakers and regulators to reduce emissions of carbon dioxide and other exhaust gas pollutants from combustion engines. Unflagging demand among American consumers for full-size trucks and SUVs, among the industry's most profitable vehicles, will largely fund a combined $100 billion in investment commitments for new North American EV and battery plants by General Motors Co., Ford Motor Co, and Stellantis NV. Read more here (Source: Reuters).
COVID, Chips Just Part of Supply Chain Headaches
A coronavirus outbreak at a microchip factory in Malaysia will force Nissan North America to halt vehicle production at its plant in Smyrna, Tenn., for the next two weeks, reports Automotive News. Volvo had to shut down its assembly plant in Gothenburg, Sweden, last week as a result of a shortage of chips. BMW and Mercedes-Benz have warned that the next few months could be problematic for meeting production plans because of the chip shortage. And Tesla CEO Elon Musk said on Twitter last week that "we are operating under extreme supply chain limitations regarding certain 'standard' automotive chips. Most problematic by far are Renesas & Bosch," he added. The issues reflect the current state of affairs for supply chains in North America and around the world. Even as they are rebounding from a year of financial challenges, suppliers continue to be dogged this summer by daily operating difficulties. Read more here (Source: Automotive News).
Up 15% Year-to-Date, CPO Sales on Track for Best Year Ever
The certified pre-owned vehicle market continues to rocket toward what would be the 10th record year in the past 11, reports Auto Remarketing. CPO sales through seven months are up more than 4% from 2019, which was the best year ever for certified, and are beating 2020 figures by 15%. That’s according to a Cox Automotive analysis of Motor Intelligence data, which indicates there have been 1,712,320 CPO sales year-to-date. July CPO sales of 248,748 were down 2% year-over-year, but take that with a grain of salt: July 2020 was amid the surge in the used-car recovery. What Cox considers to be a “much more relevant comparison” is the fact that last month’s certified sales beat July 2019 figures — a “more normal period” — by 5%. Certified sales in July beat June figures by 4%, the company said. Read more here (Source: Auto Remarketing).
Revival of Ford Bronco SUV Hits Production Snag
Ford Motor Co. said it would halt delivery of some new Bronco sport-utility vehicles because of a production problem, a high-profile setback as the auto maker tries to address nagging quality issues. According to The Wall Street Journal, Ford said Thursday that it will replace the roofs on some of the SUVs it has produced so far because of a problem that affects appearance, though not functionality. The fixes will cause a delay for customers who had ordered Broncos, which went on sale in June, a spokesman said. Ford said the molded, hardtop roofs made by German supplier Webasto Group for some Broncos didn’t meet Ford’s standards. Webasto said in a statement that the company’s goal is to ensure its products always meet customers’ expectations. “The imperfections are microscopic, do not affect the functionality of the roof and are exposed in heavy rain and humidity. We found it and have now put in corrective steps,” Webasto said. Read more here (Source: The Wall Street Journal).
Around the Web
McLaren F1 Sells for $20.5 Million [CNBC]
Testing the Real-World Range of EVs [Jalopnik]
Audi Unveils Shape-Shifting Concept Car [CNN]
China's Nio Aims to Take On VW, Toyota with New Brand [Autoblog]
