Germany’s Schaeffler AG will reportedly be eliminating 4,400 jobs and abandoning several facilities in its home country as the supplier confronts what it dubbed complications relating to the global pandemic. Like Continental, which is actually controlled by the same people, Schaeffler has been coping with lessened demand after automakers around the globe shut down earlier this year as a precautionary measure. While the coronavirus lockdowns can’t be faulted for every issue the companies are facing, they have been a thorn in the side of parts suppliers everywhere.
Continental announced it would need to eliminate roughly 13 percent of its workforce last week. That’s roughly 30,000 fewer jobs. Schaeffler’s restructuring plan only calls for eliminating 4,000 positions. However, it is the smaller of the two and has decided to spread its cuts out as much as possible.
Cox Automotive eliminated around 1,600 jobs this month as it prepared to better embrace online commerce (and nobody having any money). The company axed nearly 300 employees in June after having furloughed over 12,000 people in response to the coronavirus pandemic this spring. A large number of those positions were related to its Manheim auction arm, which suffered the hardest due to stringent lockdown protocols that prohibited public gatherings.
Now it’s talking about improving some of the digital features it added to Autotrader this year and embracing the virtual landscape to future-proof itself while forecasting a 25-percent cut in annual profits, and letting people go — with the majority of the layoffs coming to furloughed Manheim employees.
General Motors CEO Mary Barra predicted a brief recession and streamlined economic recovery in a recent interview. Mixed in with favorable coverage of how the company saved Michigan’s Governor Gretchen Whitmer by manufacturing personal protective equipment intended to combat the pandemic, the Detroit Free Press took time out to get Barra’s expert opinion on various subjects.
She mused that a 300-mile range will be the sweet spot for GM’s electric vehicles, noting that the company may eventually offer distances in excess of that with its new Ultium platform, and touted the merits of the Inclusion Advisory Board she recently placed herself at the head of. Things began to get more substantive when she attempted to predict how long the economy would languish as a result of COVID-19 lockdowns
After coronavirus lockdowns wiped out vehicle production for a few months, dealer inventories are going to have to wait a little longer than normal to be resupplied with new product. Meanwhile, the used market has become awash with cars offloaded by rental agencies with no use for them — except as a way to drum up cash during a difficult time.
Chuck in every American citizen getting free money from the government and you’ve got yourself the perfect storm. Average folks are thinking about using that money on a new car and dealers need to offset depleted inventories and delayed deliveries by scooping up used ones for the purpose of flipping. That’s driven up prices, which could potentially work in your favor if you happen to have an automobile you no longer have much use for.
The 10 Auto Brands That Bounced Back Fastest After the Last American Auto Sales Collapse, and the Seven That Didn't
Sales fell 27 percent. Brands such as Chrysler, Infiniti, Jeep, and GMC were in torments; shedding volume as demand withered. Subaru showed signs of relative strength, however, as did the Toyota RAV4. Passenger car market share was on the rise and…
Wait a second — we’re clearly not talking about the frightening first quarter of 2020. Scan the auto sales reports from 11 years ago and aside from a few familiar patterns, the U.S. light vehicle market of 2008 and 2009 did not resemble the U.S. light vehicle market of 2020.
Year-over-year, 2009 volume plunged 27 percent in the United States as a global recession melted home equity, eliminated jobs, and sent some of the biggest automakers in the world into a tailspin. Over the course of two years, auto sales actually dropped 35 percent, a loss of 5.7 million units.
Yet by 2012, three years after the collapse and three years into a recovery that would eventually produce record annual volume, 17 major auto brands (more than 100,000 U.S. sales/year) were selling in greater levels than they had in 2008. Meanwhile, seven other auto brands had yet to fully bounce back.
With another global recession looming on the horizon, executives at General Motors and Ford are busy touting the merits of being prepared. On Tuesday, the financial heads of both automakers were present at a J.P. Morgan Conference in New York to explain the steps being taking to mitigate economic disaster.
While financial hardship is not yet a guarantee for the United States, the ongoing trade war with China has impacted the cost of doing global business. Likewise, most sizable automotive markets are either underperforming or have surpassed peak growth levels. Depending upon the severity of the anticipated recession, GM claims its “downturn planning” could include postponing non-essential capital expenditures and shifting toward lower-priced automobiles.
One coupe flies, two coupes die.
By the time that Akio Toyoda was standing on that Detroit stage crowing about the triumph of the LC500, the nails were already being hammered into Scion’s coffin. The Scion tC, perhaps the best combination of practicality, style, and durability available for under twenty-five grand in the United States, will be taken out back and unceremoniously shot. The FR-S … your guess is as good as mine, but I’d be surprised if Toyota brought it over as the Celica, no matter how personally gratified I would be by such a move.
The story of Toyota’s American sub-marques could not be more different. Lexus has gone from strength to strength, effortlessly assuming a position as the thinking man’s luxury car with the LS460 while also flooding the market with Camry-platform high-profit product. Scion, on the other hand, has struggled from its first day with customer perception, dealer-satisfaction issues, and schizophrenic product planning.
Yet it’s easy to show that Lexus has been just as poorly managed as Scion; take a look at the Lexus lineup over the past 27 years and tell me that you can’t spot quite a few duffers and misfires. So why is the Official Toyota Brand of McMansion Owners soaring while the Official Toyota Brand of Dubstep Aficionados crashes? The answer, naturally, is: Barack Obama.
According to a Reuters poll of 30 economists, data to be released next week will show that the recession in Europe has ended, but that the euro zone will not start growing significantly until 2015. The consensus prediction for the second quarter of 2013 was 0.2% growth.
I live in a nice quaint small town called Powder Springs, Georgia.
The sidewalks are paved downtown and even partially bricked for artistic value. Thanks to a generous donation by the taxpayers. The streetlamps are ornate and well lit thanks to the same contributors.
The old closed down ACE hardware store is now the new police station. The old city hall has been replaced by the new city hall. Even the vehicles that get too old to keep get replaced with shiny new ones thanks to American taxpayers far and wide.
How many miles do you think would it take to replace a car owned by the local city government?
The good old days of late summer 2009.
It was a great time to buy a new car. Monthly new car sales in North America had plummeted to under 10 million units. Access to financing seemed to be near impossible for a lot of consumers. Brands were orphaned. Leasing collapsed. Banks were picky. The future was uncertain and… raw materials were cheap.
It was a good time to buy new at a deep, deep discount. Has that time passed?
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- VoGhost I don't really care about sub-branding. I care about great product. GM should focus less on the branding and more on the great product part of the equation. Barra was appointed CEO on the premise of 'no more boring cars'. It hasn't worked out that way.
- 28-Cars-Later Tim - I seriously did not log in just to complain but this site is completely jacked up now from a website design perspective. I always whitelisted for ten years but I had to turn on No Script because its just so horrible now, and with it on the layout looks even worse. I'm truly stunned by the callous design choices coming from on high, just wow.
- 28-Cars-Later Corey I need talked down here:https://pittsburgh.craigslist.org/cto/d/pittsburgh-1999-cadillac-eldorado-etc/7561280135.htmlI talked to the seller, he said his father had it sent to a specialty shop to had the head bolts done which is the main design flaw in these. I need another car like I need another hole in the head... still...
- Lou_BC The birfield joints on these older units tend to need a rebuild and are very expensive to replace.
- Luke42 I'm only interested in the electric models.I own a 6L GM V8 (in a pickup truck), and it's a big sound and fury for small delta-V.A bunch if E-Vettes which reflect the Porche range would be interesting,.