As the resulting complications of coronavirus lockdowns obliterate the economy, reports have emerged that subprime car buyers are beginning to skip payments. Delinquencies were expected to come up a bit this year, even before local governments started issuing lockdown orders, but the swift economic impact of these health initiatives have proven wider-reaching than anyone anticipated.

Normally, the status of the more volatile subprime market is a useful tool in assessing the financial well-being of the country as a whole — sort of an early warning device for economists. However, getting an accurate read on who stopped paying could be hard during the pandemic. Many lenders are offering deferral programs to keep one or two delinquent payments from turning into full-blown defaults. Still, the initial signs are about what you’d expect, and it plants another economic red flag into American soil.  (Read More…)

Updated social distancing guidance released by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) on Friday indicates the automotive industry is now an essential business.

Version 3.0 (for those keeping count) of what constitutes “essential critical infrastructure workers” added a number of job descriptions as the federal government mulls how to restart the U.S. economy. Among them is pretty much every job related to automotive manufacturing and sales. (Read More…)

While OPEC member states and other oil-producing counties have signed a pact to stem the flow of crude by 10 million barrels a day and hopefully rein in the current price-crashing glut, the situation remains bleak for oil producers around the world. On Monday, May futures for West Texas Intermediate (WTI) dropped to the floor, with prices hitting $5 per barrel.

That number shifted into the negative* as the above paragraph was being written. We’re guessing that’s because the end of the May contract forces physical receipts at a time when storage capacities are basically nonexistent. June WTI prices are still riding just below $23 per barrel.

Meanwhile, Brent Crude is hovering around $26 bbl as the OPEC Basket hangs onto $17.73 bbl on a 4-day delay. The assumption is that both will come down, though perhaps not as dramatically as WTI did.  (Read More…)

Volkswagen Group has announced that its sales declined 23 percent against the previous year, to 2 million deliveries, from January through March of this year. Based upon last week’s assessment of the ailing European market, the region seems to have contributed quite a bit to VW’s downfall. However, the company said it is optimistic that the Chinese market will soon recover as the coronavirus pandemic loses strength in the region.

As the manufacturer’s largest market, Volkswagen has a lot riding on China coming out of this in once piece. There certainly have been a surplus of articles claiming the nation is on the fast track to economic restoration, but we’ve also heard enough conflicting reports on the status of its convalescence that it’s difficult to feel confident of anything. What exactly is in store for VW and other automakers doing business in China? (Read More…)

While Ford long ago put the kibosh on the Focus RS for this market, Europe planned on eventually bringing the blisteringly hot hatchback back from the grave. Unlike the United States, where the entire Focus line has been discontinued, European and Asian markets press onward with the car’s fourth generation. That model was originally presumed to include the performance-fixated RS variant; however, EU regulations have reportedly made that impossible.

The continent’s new CO2 emission mandates now require automakers to either meet a fleet-wide average of 95 grams of carbon dioxide per kilometre in 2021 or ready their accounts for sizable fines. With everything going on, Ford decided it wasn’t worth the trouble to try and make the model complaint. And yet the Focus RS isn’t some V8-powered monstrosity that’s single-handedly upping fuel prices. It uses the same, modestly sized 2.3-liter turbo found in many Ford products — just tuned for maximum output.  (Read More…)

The coronavirus pandemic took a sizable bite out of new car registrations in the European Union last month. Volume was down 51.8 percent in March (including the United Kingdom), according to the European Auto Industry Association. While some of the absent vehicles are potentially waiting on official documents to come through after lockdown measures ease, most can be explained by the general lack of demand. Everyone knew last month would be a tough one, with the nations experiencing worst outbreaks likely see the largest sales disparities.

While no country was left unscathed, Reuters reports that Italy performed quite poorly in comparison to its neighbors. As it was the first European nation to report widespread contagion of COVID-19, that’s hardly surprising, and may indicate that its neighbors are about to find themselves in a similarly undesirable situation.  (Read More…)

Ford Performance has expanded its catalog, adding tunes for the Mustang and Ranger that should make mashing the right pedal a tad more exciting. While the pony car kit is basically an extension of the staged Power Packs already on sale, just for the 2018-2020 model years, the Ranger package is rather novel — as this is the first factory tune available for the model in North America.

It also happens to offer noteworthy performance gains. (Read More…)

Volkswagen has decided to waive up to six months of payments for customers who lost their jobs due to the economic complications of the coronavirus pandemic. Of course, there’s a catch. Customers have to qualify for VW’s expansion of its “Community-Driven Promise” and must have recently purchased a new vehicle, though avenues exist to help existing customers who aren’t brazen enough to buy a new car after a viral outbreak.

The manufacturer previously said it would defer payments up to 90 days for existing Volkswagen Credit (VCI) customers affected by the economic crisis. While most automakers are trying to sweeten the pot while demand is down, deals and relief packages have rolled out pretty gradually. By contrast, VW seems to be doing quite a bit all at once — here’s how one goes about getting into those programs.  (Read More…)

Ford is experimenting with social-distancing wristbands as a way to mitigate the spread of the novel coronavirus once factories reopen. In recent weeks, the company has tested various preventative measures at facilities where it swapped from building cars to producing ventilators and respirators to supply hospitals amid the health crisis. While much of that effort revolved around good hygiene practices and the addition of sanitizing stations near assembly areas, Ford also experimented with some outside-the-box ideas.

Workers are now required to complete daily health questionnaires about how they feel and who they’ve been in contact with. But that’s just the start. Most automotive manufacturers are trying to establish a framework allowing employees to return to work without risking secondary outbreaks. For Ford, that means testing dozens of options while factories remain shuttered so the most-useful strategy can be implemented as things return to normal.

What counts as “normal” in this not-distant future sounds like it will be very different than what would have qualified before the pandemic.  (Read More…)

Acura is trying to get its act together by placing a stronger emphasis on performance in the years ahead. We’ve seen the physical manifestation of that strategy in the Type S Concept. While not intended for production, it foreshadows the next-generation TLX — which is presumed to offer improved powertrain options (as well as returning all-wheel drive) and a sporting variant bearing formerly defunct Type-S badging.

While Acura hasn’t exactly been secretive about its plans regarding performance models, the company has avoided confirming anything for production. But we’re getting closer to that moment. An application filed with the United States Patent and Trademark Office for the name “TLX Type S” on March 25th indicates Honda is readying its luxury division for something special.  (Read More…)

With a pandemic suppressing the world’s need for transportation, Uber has kept itself busy by offering free rides to healthcare workers and expanding its food-delivery service, Uber Eats. Initially, that meant activating the program in more countries. The ride-hailing company has since added ways for businesses to manage meal plans for employees working from home while attempting to supply drivers with masks and disinfectant sprays.

This week, the company said it will expand the ways in which customers interface with these services. But this new method has been popular for well over a century. In a bid to encourage older Americans to use its food-delivery services, Uber has implemented a telephone line designed to help Luddites trapped in their homes. Customers can now dial a toll-free number and discuss menu options with an Uber representative who will help then finalize and pay for their order.  (Read More…)

Now that Porsche has committed to Volkswagen Group’s plan for widespread electrification and manufactured its first purpose-built EV, many are starting to make comparisons with Tesla. Like it or not, Porsche’s Taycan is probably the closest competition the Tesla Model S has.

Porsche’s R&D boss, Michael Steiner, doesn’t like the comparison, saying any direct juxtapositions are apples to oranges — even if Tesla’s recent attempts to call out Porsche’s newest model seem contrary to this. (Read More…)

With the rippling economic effects of the coronavirus outbreak starting to take hold, some industry analysts have begun floating the increasingly popular theory that various markets could stage a retreat from China. While the Chinese Communist Party’s mishandling of the pandemic — including cover-ups (and the possible manipulation of the World Health Organization) that ultimately encouraged the virus’ spread — are often cited as the impetus for the change, the actual decisions will be largely economic. COVID-19 threatens countless nations’ financial welfare as it simultaneously disrupts global supply chains.

The virus has also sent the auto industry into a holding pattern as manufacturers and suppliers hemorrhage money. While the assumption exists that this situation could encourage international automakers to refocus on domestic production, there haven’t been many examples to point to. Renault changed that this week, announcing plans to abandon its joint venture with China’s Dongfeng Motor Corporation. The move, however, may have less to do with the presumed industrial exodus than the company’s general financial situation.  (Read More…)

Mazda Toyota Manufacturing will have to wait a while before it manufactures any automobiles. The jointly operated facility in Huntsville, Alabama won’t open next spring as planned. It’s delayed on account of the coronavirus outbreak.

Designed to produce collaborative crossovers, the facility came to be after state and local governments floated $800 million in incentives to temp the automakers. Apparently good enough, the $1.6-billion project launched under the assumption that the first of two production lines would be operational by April of 2021. That date has been pushed back indefinitely as Toyota and Mazda assess the situation. (Read More…)

Chip Ganassi Racing officials have confirmed the organization’s split with NASCAR Cup Series driver Kyle Larson (#42). Tuesday’s announcement comes less than two days after Larson was heard uttering a racial slur during an iRacing event held on Easter Sunday. Chip Ganassi Racing previously decided to suspend the driver without pay while it examined the situation. As that probably focused heavily on the public response, its decision to sever the seven-year relationship is hardly surprising.

While technically guilty of the same behavior every random teen with a gaming headset engages in during online play (until you mute them out of frustration), Larson made the rookie mistake of not being fourteen while also having a racing contract and enough NASCAR wins to be considered high profile. If he plans to keep racing within the sport, he’ll be required to attend sensitivity training. NASCAR has also issued an indefinite suspension, citing violations of the organization’s general procedures and member conduct guidelines.  (Read More…)