Geneva Auto Show Canceled After Swiss Government Bans Mass Events
The organizers of the Geneva auto show said the event has been canceled after Swiss government banned gatherings of more than 1,000 people, reports Automotive News. "We regret to announce the 2020 Geneva motor show will be canceled. This is force majeure," a spokesman for the Palexpo show venue said on Friday. Organizers said the show will not be held at a later date. “The show cannot be postponed. It's not possible. It's too big. It's not feasible," the spokesman said. Earlier on Friday Swiss Federal Health Minister Alain Berset announced that events involving more than 1,000 people were prohibited with immediate effect. The Geneva show was due to start on Tuesday with a media day for new product debuts. Automakers and suppliers had already begun pulling back staff from the event after the virus became more widespread in Europe, with an outbreak paralyzing large parts of northern Italy, which borders Switzerland. Read more here.
Auto Manufacturers Start Flying in Parts as Virus Threatens Supply Chain
The auto industry is preparing for supply-chain problems from the coronavirus outbreak in China to soon hit vehicle production in the world’s healthiest car market: the U.S. According to The Wall Street Journal, automotive suppliers are warning car companies they could run out of certain parts used in North American factories in coming weeks, with particular concern over potential shortages of electronic components, industry executives and attorneys say. Hoping to stave off factory work stoppages, some manufacturers have taken the unusual and costly step of flying in critical parts by cargo planes. Sheldon Klein, a Detroit-area attorney at Butzel Long representing auto-industry clients, said he has been sending letters daily on behalf of suppliers to auto makers in the U.S., warning of potential parts shortages and asking for leniency in their contracts because of the unforeseen nature of the outbreak. Read more here.
Pentagon Reverses Guidance on Military Lending Act Rule
The Department of Defense reversed its guidance on the Military Lending Act, clearing confusion that has prevented automotive dealers from selling guaranteed asset protection, or GAP, to military members and covered relatives, reports Automotive News. The Pentagon said Thursday it was withdrawing part of a previously amended Q&A published in the December 2017 Interpretive Rule that tried to define the scope of motor vehicle financing exclusion in the Military Lending Act. The department granted a joint petition filed by the National Automobile Dealers Association and the American Financial Services Association to withdraw Q&A 2, which "interpreted the MLA in a way that effectively prevented auto dealers from making [GAP] waiver coverage available to service members," NADA said in a news release. The change is a victory for dealers, many of whom effectively halted GAP sales for fear of running afoul of the rule. Read more here.
U.S. New Vehicle Sales Holding Their Own in February
TrueCar, online car-shopping platform and its data and analytics subsidiary, ALG, are predicting mild winter weather will boost sales of new vehicles 0.2% during February from a year ago when adjusted for the same number of selling days, reports The Detroit Bureau. After a slow start in January, February’s monthly, seasonally adjusted annualized rate for total light vehicle sales is an estimated 17.1 million units. Excluding fleet sales, ALG expects U.S. retail deliveries of new cars and light trucks to increase 1.2% from a year ago when adjusted for the same number of selling days. “Although consumer confidence is stable and economic fundamentals remain strong, consumers are still receiving a lot of mixed messages about the economy,” said Eric Lyman, Chief Industry analyst at ALG, in a release. Kia and Hyundai are continuing their momentum with increased sales this month. Kia is up 14.3% and Hyundai is up 11.6% respectively year-over-year for total sales, according to TrueCar’s estimates. Read more here.
Kia Recalls Over 193K Vehicles; Fuel Leaks Can Cause Fires
Kia is recalling more than 193,000 cars and minvans in yet another move to fix nagging problems that could cause engine fires, reports The Detroit News. The largest of two U.S. recalls released by the government Thursday covers nearly 142,000 2013 and 2014 Optima midsize cars. They have 2.4-liter direct fuel injection or 2-liter direct injection turbocharged engines. Kia says a fuel hose can deteriorate and crack due to engine heat. The hoses can leak and cause fires. A fix is still being developed. The recall is expected to start April 16. The second recall covers about 51,000 2011 and 2012 Sedona minivans. The fuel injector rail can crack from exposure to heat, causing a gas leak. Dealers will replace the injector part starting April 16. No fires or injuries have been reported in either recall. But Kia has eight reports of fuel leaks in Optimas and 24 reports in Sedonas. Read more here.
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