#Coronavirus

Toyota, the automaker that regularly jousts with Volkswagen for the title of World’s Largest Automaker, expects its finances to take a major hit this year. A solid blow, but not a knockdown punch.

With sales down severely and production depressed across the globe, Toyota envisions an 80-percent profit drop for the current fiscal year.

Furious over a decision by county officials to keep all non-essential businesses offline until the end of the month, Tesla CEO Elon Musk announced late Monday that his Fremont, California assembly plant is opening up anyway.

The move comes two days after the automaker filed a lawsuit against Alameda County. In it, Tesla called the county’s order unconstitutional and in violation of California Governor Gavin Newson’s statewide return-to-work mandate. Should county officials call in the cops, Musk wishes to be the only one in cuffs.

Spending the last three months chronicling every every single cancellation related to the coronavirus hasn’t been any more enjoyable than reading about it. And, while we apologize for putting you though that, there honestly isn’t much else to report on when every manufacturer on the planet suddenly enters into a panicked lockdown. Thankfully, we seem to be nearing the end of being forced to issue updates on the latest cancelled soirée you had your hopes set on attending.

Despite automotive trade shows being canceled in Detroit, Geneva, and Paris this year, the Specialty Equipment Market Association (SEMA) show scheduled for November is still on. We may also see the New York Auto Show, which was rescheduled, take place in August — assuming the Javits Center remains underutilized for COVID patients through the summer and NYC doesn’t see a sudden spike in infection rates. However, SEMA is the first major event that seems like a sure thing in the automotive realm and, boy, are we glad to hear it.

The Detroit Three has something of a problem. Sales of their cash-cow, bread-and-butter full-size pickups hardly waned during the extended pandemic lockdown, and are, as of a week ago, selling just as they had before anyone heard of the coronavirus. And yet the plants tasked with building them still aren’t online.

Automakers that just months ago were concerned with higher-than-average inventory levels now have the opposite problem.

Today is Back to Work Day for many North American Toyota workers, with the automaker joining other manufacturers in slowly resuming production following an extended period of pandemic downtime. The process of ramping up won’t be an overnight thing, given considerations related to employee health and market demand.

Indeed, Americans are heading back to dealerships in greater numbers, but Toyota isn’t planning on returning to normal production levels for some time, a source told Reuters. Overall output for the automaker stands to take a major hit.

California announced late last week that it will allow the cautious reopening of manufacturing operations across the state, but Alameda County resisted, claiming it will keep non-essential businesses shuttered until the end of the month.

Guess which county Tesla’s Fremont assembly plant is located in.

Now guess Tesla CEO Elon Musk’s reaction to the country’s announcement. If you speculated that Tesla might sue Alameda Country, with Musk launching an online tirade in which he promises to move Tesla HQ and all future products out of the state, you’d be right.

If full-size pickups were a human infected with coronavirus, friends and family would characterize it as a “fighter” in media interviews. It’s tough, they’d say ⁠— it’ll get through this alright.

And so it did, shaking off the pandemic-borne sales slump afflicting the U.S. auto industry and returning to almost normal, pre-virus levels last week. Compared to other segments, the pickup’s illness was a far milder case. Which isn’t to say other segments aren’t recovering. They are, just not as quickly as those much-loved trucks. And you have to wonder if certain segments will ever be the same again.

No longer the odd man out among its Detroit rivals, Ford Motor Company has issued an official restart date for North American production. May 18th is to be the beginning of a phased restart, the automaker said, which is in keeping with return dates offered up by General Motors and Fiat Chrysler earlier this week.

After the UAW signaled its approval of those earlier announcements, all that was left was confirmation from Michigan Governor Gretchen Whitmer that workers could indeed return. On Thursday, Whitmer extended the state’s stay-at-home order until May 28th (the measure was previously expected to expire May 15th), but gave auto manufacturers the green light to go ahead.

With General Motors aiming for a May 18th restart of North American vehicle production, powertrain components, in some cases, need a head start. That’s why May 11th will be the first day back to work for many employees of GM’s St. Catharines Propulsion Plant, home to much-used V6 and V8 engines, as well as a transmission.

The gradual return to work ahead of GM’s restart date comes after the Canadian labor leader Jerry Dias expressed concern over workplace safety.

Hey, things crop up. Little things, like a global pandemic that ground the economy (and vehicle production, and sales) to a halt for two months, can just appear out of the blue and wreak all sorts of havoc.

Because of just such an occurrence, Volkswagen of America’s long-awaited return to black ink will have to wait.

Fiat Chrysler is prepared to ramp up its U.S. manufacturing presence starting May 18th, but the situation on the south side of the Detroit River is another story. That’s according to Unifor President Jerry Dias, whose union represents Detroit Three autoworkers in Canada.

Dias’ U.S. counterpart, UAW President Rory Gamble, is now on board with FCA’s restart plan after initially opposing an early return to work, but the Canadian labor official is now having a change of heart.

Like its domestic rival, Fiat Chrysler, General Motors is also looking to begin firing up U.S. assembly plants on May 18th. The news first came by way of The Detroit Free Press, which learned of alerts sent from plant managers to UAW workers at GM’s Lansing Delta Township and Flint operations. The automaker later confirmed this via its first-quarter 2020 earnings report.

The non-renewal of Michigan’s stay-at-home orders (which run through May 15th), coupled with a new, company-wide health protocol and the UAW’s quiet acquiescence to a Detroit Three reopening, seemed to pave the way for a firm restart date.

With COVID-19 lockdowns suppressing auto sales around the globe, everyone expected April to be a rough month. However, we doubt the United Kingdom expected monthly deliveries to come in at the lowest level since the end of World War II. Registrations for April peaked at 4,321 in the UK, representing the lowest monthly figure since 1946 — when the nation was still rationing materials as it attempted to rebuild after a prolonged military conflict (and factories were just starting to transition back to manufacturing passenger vehicles).

While it’s possible some registrations are simply delayed, the Society of Motor Manufacturers and Traders (SMMT) says it doesn’t believe that to be a significant factor. Retailers typically register the vehicle for you and, with with precious little else to do, you’d think they’d have finished whatever paperwork they had lying around. Most of them, of course, weren’t capable of operating normally due to government mandates, allowing the few outlets offering at-home delivery to make up the lion’s share of sales.

The first quarter of 2020 spilled a tsunami of red ink over Fiat Chrysler’s balance sheet, with the automaker posting a $1.84 billion net loss.

FCA seemed to be the canary in the coal mine when it came to the coronavirus, as the automaker was forced to idle an assembly plant in Europe even when the pandemic was still a regional outbreak in China. Where did the virus then take hold? In Italy, of course — FCA’s European base of operations. You know what came after that.

Seemingly more so than its Detroit rivals, FCA has been eager to get factories back up and running, and the Q1 earnings report only adds to its desire for something approaching normalcy. The folks in Auburn Hills want to open things up starting May 18th.

Perhaps you read on Sunday how the week ending April 26th was the fourth consecutive week of rising U.S. sales. If you haven’t yet, please do so before we report you for venturing outdoors.

Yes, the recovery in U.S. auto sales is well underway, helped along by easing coronavirus measures and holdout states finally getting on board with online sales. Normal volume remains well down the road, however. And for some segments of the industry, pre-pandemic sales levels are even further out of reach.