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How COVID-19 is Affecting International Vehicle Shipping

July 11, 2020 by Jordan McDowell 2 Comments


In the age of COVID-19, international vehicle shipping has undergone an unprecedented transformation. Travel and tourism have both been hard-hit industries when it comes to the movement of passengers from one location to another. But what about the impact on moving vehicles internationally? Here are some ways the industry is evolving to meet challenges and still meet consumer demand.

How Are Shipping Companies Mitigating the Risk?

The shipping industry has taken many similar measures as other sectors to help mitigate risks for their employees. In the midst of ever-evolving border restrictions, the risks are hugely dependent by geographical area and how you plan to move your vehicle. Shipping via sea, air, and land all have their own caveats and considerations. Additionally, each local situation will hugely impact the delivery speed and logistics on the purchases of new vehicles.



Shipping Vehicles By Sea

Shipping by sea has traditionally been the most affordable and smoothest way to transport a vehicle between continents. During the COVID-19 epidemic, the industry has taken a huge hit, with reduced global demand for some products and many interrupted routes. Shipping a vehicle by sea vessel is still possible, but keep these things in mind:

  • Expect to do your research, or hire a company to do it for you.
  • Be flexible with your timeline and anticipate possible delays.
  • Consider insurance, doorstep delivery and the sanitization of your vehicle when it arrives.

In some regions, shipping by sea and entry into local ports is business as usual. But in countries or states where COVID-19 spread is successfully under control, strict screening measures or barred port entry is possible.

Transportation by sea is particularly affected due to the tremendous volumes of cargo generally carried by each ship. An ocean-based shipping service that may typically quote 10-12 weeks for delivery may now take 16 weeks or longer.



Shipping Vehicles by Air

Typically, shipping your vehicle by air would come at a premium regardless. Historically, this type of transit means fewer interruptions, quicker shipping times, and a greater range of destinations.

The current pandemic situation has brought with it some interesting transitions in the air industry and in shipping protocols. With fewer passengers flying internationally for leisure, one may conclude that shipping a vehicle via air is the way to go. Don’t make assumptions too quickly:

  • Due to the demand of PPE, air freight capacity has dropped, leaving prices sky-high for shipping by air.
  • Expect to pay a premium for this type of transport as passenger planes are being converted into cargo planes at additional expense.
  • Many other buyers like yourself have opted to switch from ocean to air transport – increasing demand for space.

Shipping by air could mean fewer interruptions, but may come at an even steeper cost than before.



Shipping By Land

COVID-19 has forced a mass migration of people back to their ‘home’ countries or states, attempting to reunite with family; college students, military workers, snowbirds, and employees on extended business trips all fall into this category. Many quick departures have forced people to leave vehicles at their previous residences in hopes of transporting them back safely later on. Shipping by land seems simple enough, but borders still stand in the way.

What About Land Border Closures?

The closure of the Canada-U.S. border is one example of a hurdle caused by the emergence of COVID-19. Luckily, transportation is deemed an essential service in many countries, and border closures like this often have exceptions to the rules for truck transit and other essential services like picking up a car or other personal items. In short:

  • It’s still possible to ship your car, truck, RV or motorcycle across borders in many places, even during a COVID-19 outbreak
  • Precautions will need to be taken both in terms of sanitizing your vehicle and protecting workers who may be helping you move it via truck or other transport
  • Small delays should be expected, but be patient as each area is different

As the situation unfolds, many of these groups are trying to access their vehicle safely and transport it to their new location. You are not alone.

Is there an Upside?

We reached out to contacts at Enjuku Racing Parts for an impression on how COVID-19 has been affecting their business and shipping. Here is what they had to say:

“The demand for automotive parts has increased tremendously during the epidemic. We’re busier than ever and constantly trying to keep up. The growth has allowed us to build stronger relationships with our suppliers and dealers. It has been a learning opportunity as we fine-tune our internal processes to better assist customers,” explained Ramón Russe, Enjuku Racing Parts.

Should You Hire a Professional for Vehicle Shipping?

During regular times, dealing with customs laws and legal documents when you ship a vehicle can be overwhelming. Luckily, an experienced international auto importer could be just what you need.

COVID-19 will continue to affect international vehicle shipping for some time. Some countries have completely shut down auto manufacturing and shipping while others proceed as though nothing happened. Be prepared.

Buying and Shipping Internationally: The New Normal

While some manufacturers and dealerships are in big trouble, others have found a hidden opportunity, leaving shoppers with some interesting choices as they embrace a new normal in the auto industry.

Expect a huge movement to online car sales and some massive changes in how manufacturing and shipping of cars evolves in the future.


Photo Credits:

IMG 1: Link

IMG 2: Link

IMG 3: Link

IMG 4: Link


Filed Under: Special Tagged With: coronavirus, COVID-19, Enjuku Racing Parts, international, Jordan McDowell, Ramón Russe, vehicle shipping

Pandemic Times: Car Disinfecting Tips

May 9, 2020 by admin 1 Comment

Interior cleaning, such as in the cabin of this Nissan Titan pickup truck, takes on a whole different meaning in pandemic times.

These are extraordinary times. America, indeed the entire world, is currently under siege by a pandemic known as COVID-19. This coronavirus has upended life as we know it and the reverberations are likely to last a long time.
The illness has taken many lives and we haven’t witnessed the end of it yet. At the same time, people need to go about their business, including driving to work, heading to the park, and shopping, among other pursuits.

Our vehicles may not have been used much over these past few months, but that’s soon to change. And with the increased driving time, another concern has arisen: how to disinfect car safely and without doing damage to the interior.

Nissan Disinfecting Tips

Nissan is offering tips on how to disinfect your vehicle to thwart the spread of COVID-19. Frequent hand washing as directed by The Centers for Disease Control and Prevention (CDC) is a crucial part of staying healthy, but so is disinfecting surfaces, including those in your car.

“Most people are still using their vehicles, whether they are essential employees commuting to work or someone running to the grocery store while in quarantine,” said Ryan Fulkerson, director, New Model Engineering, Nissan North America. “We want to make sure they’re informed on how to best keep their vehicle disinfected.”

The CDC recommends wearing disposable gloves for cleaning and then disinfecting surfaces. If a surface appears dirty, it should be wiped down with soap and water before disinfection. For vehicle cabins, a soft or microfiber cloth dampened with soap and water may be used to wipe down hard surfaces.



Alcohol-Based Wipes

While most common household disinfectants are effective, some are not ideal for use on a vehicle including bleach, hydrogen peroxide, benzene, thinners or other harsh and abrasive cleaners. These chemical products can damage your vehicle’s upholstery and/or interior surfaces. Instead, alcohol-based wipes or sprays containing at least 70% alcohol are effective against the coronavirus according to the CDC and can be safely used in your vehicle.


See Also — 4 Car Upholstery Cleaning Tips


The infotainment screen is tricky because it’s a high-touch area that should not come in contact with aggressive cleaners. Use screen wipes or a soft cloth dampened with soap and water to clean the screen surface. Wipe dry with a clean, soft cloth. Ammonia-based cleaners should not be used on infotainment screens, as they can damage the anti-glare and anti-fingerprint coatings. If the vehicle is equipped, using voice commands can help avoid touching the center screen altogether.

Your Disinfecting Checklist

The following is Nissan’s checklist to help you remember vehicles surfaces to regularly disinfect:

  • Steering wheel
  • Key and remote fob
  • Exterior door handles, both sides
  • Trunk lid or lift gate grab areas
  • Interior door pulls, both sides and interior door panels
  • Start button, if equipped
  • Rearview mirror: back and edges
  • HVAC vents
  • Gear selector
  • Turn signal lever
  • Windshield wiper controls
  • Center stack knobs
  • Center console and armrest
  • Seat belt and buckle. Avoid harsh cleaners on the belt itself, they can degrade the fibers and the belt’s strength
  • Parking brake handle, parking brake or release lever
  • Deep Cleaning, Automotive Dealership Style

If a vehicle requires more attention, remember that automotive dealerships and their service departments are deemed essential services while many businesses around the country are closed in response to government mandates aimed at slowing the spread of COVID-19.

As a result, many service departments remain open and are available to assist with vehicle service and repairs. Many also offer no-contact drop-off or at-home pick-up and delivery, including your Nissan facility.


See Also — How to Detail Your Car Like a Professional

Photo copyright Auto Trends Magazine. Chart copyright Nissan North America.

Filed Under: Special Tagged With: car cleaning, coronavirus, COVID-19, disinfecting tips, NISSAN, pandemic

Coronavirus: An Industry Under Siege

May 5, 2020 by admin 3 Comments

Car manufacturers are finding different ways to support Americans during the pandemic. Here, a technician administers a COVID-19 test for a passenger at a drive-thru testing center. This particular center is the Children’s Hospital in Washington, DC. Hyundai supplied $4 million in grants through its Hyundai Hope On Wheels program to help underwrite testing (photo copyright Hyundai Motors).

Two months in and the 2020 Covid-19 pandemic shows little signs of ebbing. Sure, we’re seeing the number of new cases fall in many of the earlier hotspots, but in other areas of the country as well as in the world, the scourge seems persistent and ever-expanding.

Trillions of dollars of commerce have disappeared, with the federal government countering with trillions more in financial relief to assist small businesses and taxpayers. In the middle of it all is big business, including the automakers who depend on a steady stream of customers to keep their enterprises afloat.

Deep Losses Abound

To the surprise of no one, the U.S. auto industry’s sales have plunged, with some manufacturers, such as Honda, reporting losses above 50 percent. Manufacturing plants the world over have shut or are operating at reduced capacity. Also, the supply network is on hold, while consumers are more concerned about putting food on their tables, obtaining unemployment assistance, and holding off landlords, mortgage companies, and utility companies in an effort to stay afloat.

Yet, in these distressing times there remains a glimmer of hope. Americans are practicing physical distancing, virus testing and tracing continues to expand, and businesses are figuring out ways to reach consumers going forward.

Early on, manufacturers set out to console consumers, including those who were already financing or leasing their vehicles. Auto Trends received copies of various alerts, informing owners of options available, including deferred payments. The last thing anyone wants to see is a massive repossessing of late-model cars and the financial carnage that would cause.

Special Financing and Cash Back Deals

Besides reaching out to current owners, the automakers quickly updated their financing and leasing schemes to reach new-vehicle shoppers. Fiat Chrysler led the charge, rolling out 0-percent financing for up to 84 months, an uncommonly long timeframe. Besides its novel financing approach, the cashback deals are also better. Our internal survey shows savings of $7,300 to more than $10,000 on the Ram pickup trucks alone.

Other manufacturers joined in, delivering a variety of offers. For example, Toyota offers 0-percent financing for 60 months on three models: its midsize Camry sedan, compact RAV4 crossover, and Tacoma pickup truck. Hyundai rolled out 0-percent financing for 84 months on its compact Elantra sedan and compact Tucson crossover. Moreover, well-qualified Hyundai buyers enjoy a 120-day deferment on their first payment.

Canceled: Electrified Lincoln SUV

Beyond consumer assistance, the manufacturers have responded in various ways by delaying the introduction of new models or scuttling a planned vehicle completely. For an example of the latter, the Ford Motor Company canceled the planned all-electric SUV for Lincoln. The company cited the coronavirus crisis as the reason for canceling the SUV. Ford will, however, continue with its plan to release a Ford-brand pickup truck based on Rivian’s platform.

Manufacturing plants across America endured weeks of shut down, beginning in March. By early May, several plants in the southern U.S. resumed operation, including facilities owned by BMW, Hyundai, and Kia. All three follow Volkswagen, which restarted production at its massive Chattanooga plant at the end of April.

None are operating anywhere near full capacity as manufacturers maintain distancing, while also testing the veracity of their fragile supply chains.

Looking Ahead

The current downturn easily rivals the losses experienced during the Great Recession of 2008-2009. But the unemployment numbers today are far higher, with the rate spiking to an estimated 16.1-percent when the figures become known on Friday. As the states relax their various shutdown edicts, we expect that number to start to drop. Still, it could be many months if not longer before unemployment returns to an acceptable level.

If you’re in the market for a new vehicle, there are deals to be had. This writer exchanged his 2017 RAV4 for a 2020 Corolla, in April as the lease on the crossover came due. Opting for another lease, we lowered our monthly payments by selecting a lower-cost car and took advantage of incentives to save more money. Likewise, savvy consumers able to swing a new vehicle purchase should also garner an outstanding deal.

But there is one problem on the horizon: dealer stock is falling and, in many cases, won’t see replenishment until manufacturing resumes. Therefore, look for spot shortages until then, with pickup truck stock shrinking the most.


See Also — Auto Industry Reacts to Coronavirus Threat

Filed Under: Automotive News Tagged With: AUTO SALES, coronavirus, COVID-19, FINANCING, Ford, INCENTIVES, Lincoln, pandemic, Rivian, Toyota

U.S. Auto Sales:
A Pandemic Race to the Bottom

April 2, 2020 by admin Leave a Comment

dealers

March 2020 U.S. auto sales drop through the floor.


As expected, the U.S. auto sales numbers for March 2020 reflect what we already knew: a substantial correction, resulting almost entirely from the COVID-19 pandemic. Every manufacturer and brand posted losses in March, as the country went through an expanding area of “stay at home” orders covering most of the nation. The full impact of the coronavirus outbreak is not yet known, but consumers are staying away from showrooms.

More than 3 million Americans were suddenly left jobless by the third week of March, effectively removing a source of consumers who might show interest in purchasing a new vehicle. In some states, dealerships shut down, while in others they stayed open under local “essential services” rules.

All three of the major domestics – GM, Ford, and Fiat Chrysler – reported losses. The Big 3, as they are colloquially known – stopped reporting monthly sales figures, choosing to share quarterly data only. With the first quarter done, nearly every brand showed net losses. Ram was the lone exception; Korean make Kia also came out on the plus side.
GM’s quarterly sales fell 7 percent, while Fiat Chrysler slid 10 percent. Ford’s numbers were not available as of this writing, but losses rivaling its chief competitors is in order.

Other automakers reported their March sales, which give a stark picture of what happened last month. Subaru, which has seen a steady increase in sales since the last recession, registered a 47-percent drop in March. The loss snapped a month-over-month streak that spanned more than eight years. Indeed, Subaru is facing the end of 11 consecutive years of growth that have transformed this niche automaker into an important player in the U.S. market.

In no particular order, sales numbers culled from manufacturing data is as follows:

Kia sales fell 22.9 percent for the month, but remain up slightly for the year. Two strong months to begin the year have kept this Korean manufacturer in the black, although we expect that’ll change during the first week of April. Hyundai’s sales fell 43 percent of the month, thus it sold fewer cars than Kia, its sister brand.

Mitsubishi reported a 42-percent sales drop, while Mazda’s sales plunged 42.8-percent. Mazda enjoyed strong sales in January and February, thus it is only down 4.9 percent for the quarter.

Porsche’s quarterly sales dropped 20.2 percent, with every established model registering double-digit losses. Porsche also started delivering its Taycan all-electric model, with 221 units sold in the first quarter.

Volkswagen sales dropped 42 percent for the month and are down 13 percent for the year. The automaker rolled out the new Atlas Cross Sport model during the first quarter.

Toyota sales fell nearly 37 percent for the month and are down 8.8 percent for the first quarter. New models counted during the January-March period include the GR Supra sportscar and the Yaris Hatchback.

Nissan Group sales, inclusive of the Infiniti and Nissan brands, are down nearly 30 percent for the quarter. This automaker had already experienced a significant downturn ahead of the coronavirus crisis with its sales falling the steepest amongst the major manufacturers.

Honda experienced one of the largest month-over-month drops of any manufacturer with March 2020 sales down 48 percent compared to March 2019. For the quarter, Honda sales – inclusive of the Honda and Acura brands – are off 19.2 percent.

Other manufacturers, including Ford, Mercedes-Benz, and BMW will report today or Friday. All three will share substantial losses for March.

Looking Ahead

April 2020 sales will continue to fall as the COVID-19 pandemic worsens across the United States. With various “stay at home” directives in place, consumers won’t be visiting showrooms in many areas. For lessees, opting for an extension may bide them some time, otherwise inventory turnover should be light for the second quarter, perhaps rebounding in the second half of the year as the pandemic eases.


See Also — Auto Industry Reacts to Coronavirus Threat

Filed Under: Automotive News Tagged With: AUTO SALES, coronavirus, COVID-19, FIAT CHRYSLER, Ford, GM, March 2020, pandemic

Jaguar Land Rover Brings Resources to Bear to Fight the Coronavirus Pandemic

March 31, 2020 by admin Leave a Comment

Jaguar Land Rover models, including these new Defender models, are aiding Red Cross Societies around the world in the fight against the coronavirus.

The coronavirus pandemic, best known as COVID-19, is the world’s greatest challenge of our time. Hundreds of thousands of individuals have tested positive for the virus with likely millions more affected but showing no signs of symptoms at present.

We’ve reported about the impact the pandemic has had on the auto industry, which has shut down scores of manufacturing facilities around the world. This unprecedented move will have a far-reaching effect on the industry, perhaps lasting for many years.

JLR Responds; Redirects Press Fleet

Nevertheless, automakers are not simply waiting for the pandemic to end. Instead of sitting by the sidelines, many are proactively doing their part to meet the challenge.

Indeed, Jaguar Land Rover has deployed more than 160 vehicle globally to support emergency response organizations. Specifically, the Britain-based manufacturer has redirected dozens of British press fleet vehicles, including the all-new Defender SUV, to the British Red Cross. Consequently, the Red Cross is empowered to reach the most vulnerable citizens, including the senior population.

Simon Lewis, Head of Crisis Response, British Red Cross, elaborated on his organization’s response efforts. “This unprecedented global health emergency requires us all to pull together. As part of the British Red Cross response to coronavirus, we’re delving deep into the heart of communities across the UK to help strengthen support for the most vulnerable people through delivering essential food parcels and medicines to those unable to get out.”
Furthermore, an additional 65 vehicles are now deployed to support Red Cross Societies in several countries, including Australia, France, Spain, and South Africa. The company plans to offer additional vehicles to support the COVID-19 response moving forward.

An Enduring Red Cross Partnership

Jaguar Land Rover’s involvement with the International Red Cross spans more than 65 years. Down through the years, JLR has lent vehicles to Britain’s National Health Service. Moreover, the company is donating protective equipment, including wraparound eye gear for medical staff, to the NHS and is working closely with the British government to aid in various capacities.

Britain has been hard hit by this strain of the coronavirus, with more than 22,000 confirmed cases as of this writing. Some 1,408 individuals have died. The pandemic, though, is far from running its course with even more widespread outbreaks expected. Some fear that the virus may also produce a second wave, especially in China where it originated.

Auto Trends received a press statement from JLR regarding its involvement in the battle against COVID-19.

Said Finbar McFall, Jaguar Land Rover Customer Experience Director, “The health and safety of our employees, customers and their families remains our priority. Jaguar and Land Rover will do everything we can to support people in need around the world. Our partnership with the Red Cross goes back 65 years and we will work hand in hand with them to do all we can during this global health emergency. We will also provide help to those closer to home in our local communities. We can all play a part in helping the vulnerable during this global pandemic.”

JLR temporarily shuttered its British manufacturing facilities earlier this month, while maintaining production at plants in Brazil and India. The company hasn’t set a timeframe for resuming production, which likely will occur once the British government has lifted its lockdown directive.

Impact on U.S. Operations

In the U.S., JLR has largely curtailed its operation, with showrooms closed in various locations, depending on local “stay-at-home” edicts. Auto Trends will continue to report on industry happenings, including how manufacturers, suppliers, and other key players are responding to the crisis.


See Also — Corona Strikes; Industry Reacts

Photo copyright Jaguar Land Rover. All rights reserved.

Filed Under: Automotive News Tagged With: coronavirus, COVID-19, JAGUAR, Land Rover, pandemic, press fleet, Red Cross

Auto Industry Reacts to Coronavirus Threat

March 30, 2020 by admin 1 Comment

General Motors and Ventec Life Systems are partnering to convert the GM Kokomo, Indiana ERC building for the production of Ventec ventilators in response to the COVID-19 pandemic. (Photo GM Corp.)
COVID-19 is turning the world upside down, with nearly every country and region reporting cases, including deaths. “Business as usual” is no longer the case as companies large and small adjust or in some cases shut down.
The auto industry is no exception and has, in fact, seen production stopped at most plants scattered across the United States. We examined the impact earlier this month (see Coronavirus Strikes; Industry Reacts). Today, the picture has changed with the major players doing their part to fight the battle.

Here are the latest updates from key original equipment manufacturers:

GM will build critical care ventilators. GM is not currently building vehicles as its production facilities remain shuttered following the COVID-19 outbreak. But one plant, it’s Kokoma, Indiana, manufacturing facility will soon come back online, as it launches production of critical care ventilators> for Ventec Life Systems. Ventec, based in Bothell, Washington, is unable to meet demand at its lone facility. With GM’s help, the companies will produce the ventilators needed by hospitals in the United States and abroad. A second GM plant, this one in Warren, Michigan, will soon assemble Level 1 masks. Within two weeks, GM should produce 50,000 masks per day, potentially doubling that number.

The 2020 Detroit Auto Show is canceled. The North American International Auto Show was last held in January 2019 and was supposed to move to a late spring/early summer schedule this year. Indeed, journalists marked June 2020 on their calendars, expecting to head to the Motor City for a warm-weather preview of new cars and concepts. The show, however, will not go on as the city will instead turn the host Cobo Center into a temporary hospital for the duration of the coronavirus crisis. The show’s organizers have already updated their page to reflect the next show, which is scheduled for June 11-26, 2021.

Dealerships reel under local “stay-at-home” directives. Tens of thousands of car dealership employees are on furlough as various “stay-at-home” edicts shutter showroom doors. The Penske Corp. has avoided layoffs so far as senior staff accepts pay cuts and Roger Penske and the company’s president, Rob Kurnick, forgo their salaries for the duration of the crisis according, to Autoweek. Dealers throughout the country have reduced hours or temporarily closed down and laid-off employees.

Plant shutdowns extend into April. March 30 was supposed to be the day for manufacturers to resume production, but that isn’t going to happen. GM, Ford, and Fiat Chrysler were among the first companies to shutter their plants and each will stay closed for at least another week. Volkswagen says it’ll restart production on April 5, while Toyota says it’ll bring its plants back online on April 20. These resumption dates, however, will likely change especially as President Trump extended the national pullback through April 30. That said, each state has its unique directives in place.

Manufacturers and lenders give consumers a break. With millions of new unemployment claims filed in March, many consumers are suddenly experiencing financial trouble. With finance and lease payments due, some people are unable to make their next payment. Fortunately, manufacturers are responding through their financing arms to give consumers a break. Depending on the company, payment deferrals and lease payment extensions are in place. That said, in some cases only consumers with top credit ratings are eligible. We’ve surveyed various schemes in place from Ford, Hyundai, Nissan, and others. Auto Trends recommends affected consumers contact their respective lender for guidance. Tell them your story and work out an agreement that’s right for you.

After COVID-19

At some point, the COVID-19 threat will be gone, with businesses returning to a new normal. Most American citizens will see some relief in April as unemployment checks arrive and as the IRS distributes $1,200 to $3,400 to eligible households. The industry will endure a deep sales slump in March and April, with the likely rebound beginning in May. We may see record sales by July as consumers who have delayed their purchases flood dealer showrooms. Again, all this is predicated on how the crisis plays out.

Filed Under: Automotive News, Dealers Tagged With: coronavirus, COVID-19, FIAT CHRYSLER, Ford, GM, masks, plant shutdowns, ventilators

Coronavirus Strikes; Industry Reacts

March 19, 2020 by admin 3 Comments


It was only a matter of time before the U.S. auto industry reacted to the coronavirus pandemic, as both domestic and foreign-based manufacturers announced plans this week to thwart the spread of the contagion. The action taken varies from automaker to automaker, but ultimately a full production shut down ranging from a few days to up to two weeks, perhaps more, is occurring.

Following positive COVID-19 test results from one or more plant workers, companies such as Fiat Chrysler, GM, and Ford are idling their plants for at least 10 days. The companies responded to union pressure to shut down their plants, following Honda’s decision to take a six-day break of its own.

Honda workers are not represented by a union.

The industry-wide shutdown is unprecedented and will go beyond the pullback manufacturers faced in 2008 as a result of a deep recession. Then, all three U.S. manufacturers faced collapse with Chrysler and GM ultimately walking through bankruptcy. After that, Chrysler merged with Fiat, and all three companies restructured and built vast reserves of cash to weather the next cyclical downturn.

After years of anticipation, that downturn is here, driven largely by a pandemic that’s shaken much of the world.

Nissan will shut its plants from March 20 to April 6, while Hyundai closed its Alabama plant and is disinfecting the same following a positive COVID-19 result for one of its workers.

Toyota plans a two-day pause on March 23 and 24 for all its North American locations, allowing for special cleaning as well as to readjust production for lowered demand. The company says it will resume production on March 25.

Mercedes-Benz has yet to announce plans for its Alabama plant, but it is likely to shut it down as part shortages loom. According to Bloomberg, the company is experiencing a parts shortage as the European Union is amid a 30-day closure. Italy, Spain, and France are all hard-hit with virus cases in Germany and other countries increasing sharply. Mercedes imports engines and transmissions from Europe, which power two utility vehicles built stateside.

As of this writing, Kia has no plans to scale back production or temporarily reduce worker headcount at its West Point, Georgia, manufacturing plant. The automaker told the LaGrange Daily News that it has a COVID-19 response team tasked with monitoring the situation and minimizing risks. These include restricting public access and shutting down the facility’s fitness center.

BMW intends to keep its Spartanburg (Greer), SC, plant operational, at least for now. The company ordered many of its office employees to work from home, but it will keep its plant running.

Responding to a Fox Carolina inquiry via Twitter, BMW said, “In regard to closing Plant Spartanburg, we continue to monitor the situation in South Carolina daily and are in close alignment with both state and local government officials. We recognize that we are in a dynamic situation and we are prepared to adjust quickly based on the daily analysis of the current environment. In parallel we have implemented numerous measures to protect the health and safety of our employees.”

Auto Trends has learned that other automakers with a manufacturing or business presence in the U.S. are also responding to the crisis.

For instance, Tesla plans to temporarily reduce its workforce from 10,000 individuals to 2,500, although a timeline hasn’t been announced. The company finds itself in an unusual position as the area is under a mandatory three-week shelter-in-place directive.

But employees who are going to work are violating the edict, which only makes allowance for essential personnel to travel. The Alameda County Sheriff’s Department contends the plant must shut down, although it may permit a smaller workforce to remain for non-production work only.


See Also — 9 Winners and Losers of 2019

Image by Tumisu from Pixabay.

Filed Under: Automotive News Tagged With: BMW, coronavirus, COVID-19, FIAT CHRYSLER, Ford, GM, HONDA, Hyundai, Kia, Mercedes-Benz, TESLA, Toyota

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