auto

The Perfect Storm

2020 has taken us by storm, and things continue to pick up speed for the automotive industry. Some dealers experienced inventory being stolen during the midst of the Coronavirus chaos and shutdowns. Things have segued into a more unfortunate situation, following the death of George Floyd a few weeks ago. If things were not already crazy enough, more fuel has been added to the fire of unrest in our country.

Since the initial announcement back in October of last year, the Fiat Chrysler-Peugeot 50/50 merger has been ironed out and prepped for completion. The original goal in mind was to combine two steady forces along with their staff and revenue to make what will be the fourth largest automaker.

Science says it takes 66 days to form a new habit. Most people started self-quarantine in the beginning of March, so things will probably never go back to how they were before Covid-19. We’ve all changed a little - businesses and individuals.

The Coronavirus has traveled long and far to make it to the U.S. and wreak havoc on many things. Aside from the abrupt increase in hospital stays and unfortunate deaths, this virus also has obviously affected the economy and the automotive industry.

The problems started in China where many manufacturing plants have been shut down since early this year with no production in motion. The risks were too high to have sick workers come in, masked or not, so things came to a fast halt.

With the signing of the United States-Mexico-Canada Agreement, the auto industry is expecting to see some changes over the next few years. But will this shift be good for automakers and dealers?

Dana Inc. CEO, Jim Kamsickas thinks it’s a good move stating, "We believe this law will further reduce the chance for disruptions and allow North American vehicle production to remain competitive globally."

Telematics have evolved since the very first automotive GPS system was introduced in 1990, and we’ve come a long way from basic OnStar. Theories of humans being tracked and recorded is becoming less sci-fi and more the norm. Many vehicles now come with built-in GPS, vehicle positioning assistance and more. Some automakers are now giving the option to control your vehicle from your phone. Yes, there’s an app for that.

The UAW GM strike rolls on. They haven’t come to an agreement. The union wants higher wages (of course), but strike is also about the two-tiered wage system. Workers hired in 2007 or earlier make about $28 per hour. Workers hired after 2007 make $16-$19. You can see the obvious divide this would cause among workers.

While this agreement was necessary to keep plants open during the recession, we’re far from that now. The union wants to renegotiate the terms of this agreement.