Tight Inventory Stands to Hamper July Sales, At Least for Some

Fall holiday discounts aside, the height of summer is typically a good time to head out and buy a car. The weather’s good, new models are rolling into dealers, and markdowns are appearing on older stock taking up precious space. Yet 2020 is anything but a normal year.

As the industry struggles to regain the volume it once enjoyed, threadbare inventories continue to plague automakers, though not everyone’s equal in this exercise.

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Ford's Mexican Engine Pipeline Running at Half Speed; Automaker Warns of Plant Shutdowns

Ford cautioned that some of its American assembly plants could be put on ice as early as next week, as shortages persist at a Mexican plant still not running at full capacity.

The potential engine shortages stemming from coronavirus fears at Ford’s Chihuahua Engine Plant and in the surrounding countryside would stymie production of key Ford products, including the new-for-2020 Super Duty line.

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Good News: The Fiat 500L Is Back in Production

Fiat Chrysler’s Serbian assembly plant was the first European auto factory to shut down as a result of the growing coronavirus pandemic — a grim harbinger of things to come, and not just for Europe.

That temporary February shutdown stemmed from a parts shortage arising from the hard-hit Chinese manufacturing sector. A far more prolonged shutdown came in mid-March, for obvious reasons. Well, that’s all over, as a crucially important product is now back in production, ready to satiate the hunger of the American buying public.

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Housekeeping: Happy Masked Fourth of July, America

This year is a bit different. If you plan on celebrating the birth of your nation by blowing up a small part of it (still one of my favorite Simpsons lines), you best be doing it with a mask on and socially distanced from anyone you don’t live with.

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Fiat Chrysler to Workers: We'll Decide When Our Plants Shut Down, Thank You

Despite new health measures incorporating physical distancing, barriers, and personal protective equipment, working on a factory floor is undoubtedly a tense experience for many these days. That certainly seems to be the case at Fiat Chrysler, which issued a warning to its hourly workers over the weekend.

As reported by Bloomberg, the warning comes after production stopped at two U.S. assembly plants amid workers’ fear of a lurking virus. Do that again, and expect a smaller paycheck, FCA replied.

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Seeing Red: U.S. Auto Sales, Q2 2020

In what might be the most blindingly obvious statement ever to be made in this august publication, the second quarter of 2020 was an absolute disaster for vehicle sales. Under the withering gaze of a global pandemic, the nation’s car dealers were awash in red ink — and the bitter tears of various dealer principals.

Demand and supply have cratered, producing a bewildering simultaneous mix of good deals in some segments as stores try to keep the lights on while shortages of a few key models hold the pricing line on others. Pile on the vanishing rental market you have an automotive industry the likes of which few have ever seen.

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Revisiting No-Fan NASCAR

A while back, I penned a piece describing my mixed feelings about NASCAR running without fans during the pandemic.

Now, a few weeks on, I have a bit more clarity.

I was worried that even with NASCAR’s safety protocols in place, the coronavirus might spread among crew. I was also worried about contact between the safety crews and a driver after a crash that could lead to virus spread (this worry didn’t make the final edit).

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We're Cancelling 2021 Auto Shows Now

Well, that’s it, then. Is the traditional auto show dead? The tombstone has yet to be erected, but Monday’s cancellation of the 2021 Geneva International Motor Show, coming on the heels of so many cancellations in 2020, certainly makes it feel as if, somewhere, an epitaph’s being chiseled on a monument.

The planned 2020 Geneva event was the first international trade show cancelled this year (at the 11th hour, it should be noted) as the coronavirus spread north from a Northern Italy hot spot, heralding a slew of cancellations to follow. New York, a month later, then Detroit in June. China and Germany.

And now Geneva again.

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Industry In Line for Milder Sales Uptick in June

Your mileage will vary, automakers. As consumer confidence increases to some degree — a phenomenon partially dependent on what the novel coronavirus is doing in various regions — auto sales are expected to follow.

Forecasters now claim U.S. auto sales will see a marked uptick in June that pales next to the jump seen in May.

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You're All Driving Quite a Bit These Days

Without getting into the thick, tangled weeds of various coronavirus-related controversies, let it be known that, in some states, the streets and highways have returned to traffic levels seen before “lockdown” became common verbiage.

Yes, a good many of you are really putting miles under your belt (and tires). It’s summer, it’s hot, and lockdown measures are mainly a thing of the past, despite the rising levels of COVID-19 reported in regions that initially escaped the worst of the initial wave. But just how much are you driving?

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Subaru USA CEO Tom Doll Gets Specific About COVID and Post-COVID U.S. Sales Goals

After a streak of 11 consecutive years of U.S. sales growth for Subaru, a period in which the brand doubled its market share to 4.1 percent, “We’ll start a new streak next year,” the brand’s U.S. CEO Tom Doll says of 2020.

At any other point in history, the declines reported by Subaru over the last few months would be calamitous. Yet Subaru’s year-over-year losses in 2020, a year torn to shreds by COVID-19, have not been as severe as anticipated. Moreover, bright spots have been more numerous than expected.

The company, as a result, is now planning for 2020 to end as the brand’s sixth-best on record.

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At Home Forever: Automakers Consider New Ways of Working
If the last few months have taught us anything, it’s that you can keep people isolated in their homes without any negative consequences whatsoever.Sure, we’ve seen articles from scientific journals like The Lancet warning that similar experiments run on a much smaller scale resulted in psychological stress and disorder, including low mood, insomnia, stress, anxiety, anger, general irritability, emotional exhaustion, paranoia, drug abuse, depression and post-traumatic stress symptoms, but where’s the evidence of that happening this time?Don’t answer that.Employers the world over are already seeing the benefits of remote work and have begun to consider how to make it a long-term proposition. In addition to protecting companies against any new COVID-19 outbreaks, stay-at-home orders mean paying for less office space and utilities. Automakers are starting to think this is a pretty sweet deal — especially with productivity not having taken much of a hit — and are now considering whether to extend at-home employment indefinitely.
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Back to the Office Cooler? It Might Not Happen for Some Ford Employees

By now, most Americans are sick of seeing the inside of their own homes, but not everyone falls into that camp. There’s pros to go with working from home that, in some cases, outweigh the cons.

Ford Motor Company, which sent 30,000 U.S. employees home amid the coronavirus pandemic, wants to hear from this cohort on whether remote work should become the status quo.

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Flood Turns to a Trickle As U.S. Demands Fewer Cars From Japan

The trans-Pacific flow of automobiles between the U.S. and Japan has always been a lopsided thing, with an infinitely greater number of cars heading east than west. Lately, thanks to a spiky virus, that flow has tapered off.

Just how fewer Japanese vehicles made a boat trip in May is cause for concern for their country of origin.

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Coronavirus Still a 'Thing' for Volkswagen As Mexican Facilities Remain Shuttered

Don’t let that beer in your hand (and the public patio surrounding you)fool you into believing everything’s normal — the novel coronavirus is still causing headaches, including for automakers attempting to return to full-scale production.

For Volkswagen, it means the plants supplying U.S. dealers with strong-selling models will remain offline for a while longer, complicating the return to normalcy.

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  • Redapple2 4 Keys to a Safe, Modern, Prosperous Society1 Cheap Energy2 Meritocracy. The best person gets the job. Regardless.3 Free Speech. Fair and strong press.4 Law and Order. Do a crime. Get punished.One large group is damaging the above 4. The other party holds them as key. You are Iran or Zimbabwe without them.
  • Alan Where's Earnest? TX? NM? AR? Must be a new Tesla plant the Earnest plant.
  • Alan Change will occur and a sloppy transition to a more environmentally friendly society will occur. There will be plenty of screaming and kicking in the process.I don't know why certain individuals keep on touting that what is put forward will occur. It's all talk and BS, but the transition will occur eventually.This conversation is no different to union demands, does the union always get what they want, or a portion of their demands? Green ideas will be put forward to discuss and debate and an outcome will be had.Hydrogen is the only logical form of renewable energy to power transport in the future. Why? Like oil the materials to manufacture batteries is limited.
  • Alan As the established auto manufacturers become better at producing EVs I think Tesla will lay off more workers.In 2019 Tesla held 81% of the US EV market. 2023 it has dwindled to 54% of the US market. If this trend continues Tesla will definitely downsize more.There is one thing that the established auto manufacturers do better than Tesla. That is generate new models. Tesla seems unable to refresh its lineup quick enough against competition. Sort of like why did Sears go broke? Sears was the mail order king, one would think it would of been easier to transition to online sales. Sears couldn't adapt to on line shopping competitively, so Amazon killed it.
  • Alan I wonder if China has Great Wall condos?