Coronavirusly COVID-19 Automotive News

In automotive COVID-19 news are Ford, State Farm, Ultium, Cubic, Honda Power Sports, TrueCar, Hyundai, Mazda, Apple and Google.

Ford Slowed Production But Design Virtually

Ford is delaying by two months, the production of the new Mustang Mach-E and Bronco due to Coronavirus COVID-19.

Ford Virtually Designs Cars

While vehicle production has restarted at Ford facilities across Europe and North America, vehicle development has been kept on track during the COVID-19 crisis through the use of virtual reality.

During the lockdown, Ford designers collaborated on new vehicles in a virtual design studio. Using VR headsets, they worked alongside each other in a virtual world to review computer aided design-generated models of vehicles in development, as clay modelling wasn’t possible.

The team also worked on early sketches of the ultimate virtual racing car designed for the Team Fordzilla P1 Project. The captains of Ford’s five Fordzilla esports teams from France, Germany, Italy, Spain and the UK, and their communities, have been closely involved in co-creating this racing car. An initial series of eight polls received more than 220,000 votes to help shape the design package of this unique vehicle, with the design scheduled for completion in mid-June.

“Collaboration is integral to design. We need to be able to try things, bounce ideas around and get feedback from others. Virtual reality enables us to do just that while staying at home, but we never imagined we would employ it the way we have and that it would make us see vehicle design in a new way,” said Amko Leenarts, director, Design, Ford of Europe.

Key members of Ford’s global design leadership team, including

Ford is also using virtual reality for rendering vehicle interiors. 360° sketching is a tool that enables designers to imagine and share drawings that can immediately be experienced from the driver’s point of view, or from anywhere inside the car, in 3D or in virtual reality.

As the Ford design teams gradually return to the actual design studio, virtual reality will continue to be used for global collaborations and to complement the clay modelling process.

State Farm Reduces Insurance Rates

As driving behaviors evolve during the COVID-19 pandemic, State Farm continues to identify ways to support customers. Based on current trends, State Farm is working to reduce auto rates in every state. The national average for those rate reductions is 11%, saving customers a total of approximately $2.2 billion. Rate changes in some states are subject to regulatory approval and customer rate reductions will vary based on their individual renewals.

GM Ultium Prepping

Ultium Cells LLC is the name of the General Motors and LG Chem joint venture for cell manufacturing. Construction has started with ground prep activities for the future site of the Ultium battery cell manufacturing facility in Lordstown.

During the pandemic, product development work on GM’s future EV and AV portfolios continues to progress at a rapid pace. The Cruise Origin was revealed in San Francisco earlier this year, and production timing remains on track for the yet-to-be-revealed Cadillac Lyriq and GMC HUMMER EV, all powered by the Ultium battery system.

MTA Workers Protected by Face Coverings from Cubic

To protect its workers on the frontlines, the MTA is supporting its essential workers with protective face coverings. Cubic — the transit agency’s technology partner behind the contactless OMNY fare payment system — is providing 300,000 masks to help them do the job, going to every side of the frontline staff.

But that’s just the beginning of their support for front-line workers, and what is essentially now a national war effort. Thought you might be interested. Cubic is also:

• Producing 200 PPE face shields per day by repurposing machines (ex: lasers) that were formerly used to create fare gates from its Tullahoma TN facility;
• Creating an immersive training program to help medical staff get trained up on vents & other tech: As medical professionals from podiatrists to skin care doctors get called to the front lines, they need rapid training on machines they wouldn’t otherwise use. Cubic’s game-based learning team in Orlando created it in three days.
• Developing a prototype ventilator in partnership with the University of Alabama for FDA approval: Once approved, Cubic will be able to produce 100 emergency ventilators per week– particularly important as rates in the southern and central parts of the country begin to climb. The manufacturing plant is typically used to produce an inflatable satellite terminal called GATR, which is deployed to help get up communications signals to areas after crises like hurricanes, floods and fires. This, sadly, is the crisis now.

This is all part of Cubic’s broader effort to do good and contribute to the effort while keeping the families who rely on them employed– it’s a lesson that all of the US’s big manufacturers and tech companies should take to heart as the unemployment rolls swell.

TrueCar, Inc., the most efficient and transparent online destination to find a car, today published COVID-19 car buying insights based on TrueCar’s own marketplace data prior to and after COVID-19 social distancing mandates began to take effect as well as consumer sentiment from a 3-wave study of car shoppers during the Coronavirus pandemic.

“Website traffic and purchase intent returned to pre COVID-19 levels on the TrueCar marketplace in the last two weeks of April,” said Nick Woolard, Director of OEM and Affinity Partner Analytics at TrueCar. “We’re now seeing those numbers increasing going into Memorial Day weekend to levels closer to what we typically see toward the end of the year.”

“Automakers quickly turning on 0% financing offers in response to COVID-19 actually spurred an increase in pickups and utilities in the period after COVID-19 took effect,” added Woolard. “This was clearly a winning strategy to shore up demand and we see incentives as a driver of purchase intent in our consumer research as well.”

Key TrueCar marketplace insights include:
Pre-COVID-19 period defined as 3/01– 3/12
Post-COVID-19 period defined as 3/13 –5/05
Purchase intent: Connection made when a consumer submits their contact information to a dealer for a price offer on a specific vehicle indicating heightened demand and purchase intent for a vehicle.

• TrueCar marketplace traffic and purchase intent returned to pre-COVID-19 impact levels in the last two weeks of April and have continued to increase going into Memorial Day weekend.
• Purchase intent for new vehicles compared with used vehicles rose 9% in the post-COVID-19 period.
• For new vehicles, large and sporty vehicles saw an increase in purchase intent in the post COVID-19 period, fullsize pickup was up 38%, premium performance (Corvette, Porsche 911 etc.) was up 26%, midsize pickup was up 15%, and fullsize utility was up 11%.
• Domestic brands showed an increase in share of purchase intent on new vehicles in the post-COVID-19 period, with Ram up 38%, GMC up 17% and Ford up 5%.
• In the period after COVID-19 impact, purchase intent shifted toward more expensive vehicles, up by an average of $800 on new vehicles and up $850 on average on used vehicles.
• Across U.S. states, there was an average decline of 26% in combined new and used purchase intent in the post COVID-19 period, with Montana the only state up, at 2%. Recovery varied widely by state based on timing and details around stay-at-home mandates.

“The pace of change we’ve seen recently is unprecedented, so we wanted to capture consumers needs and concerns around car buying as they rapidly evolved,” said Wendy McMullin, Head of Research at TrueCar.

“Wave one respondents were feeling less of an impact, which is not surprising given that stay-at-home mandates had just begun and the number of cases was still relatively low. Concerns over safety and economic security peaked in wave 2. Two months into the pandemic in wave 3, we’re seeing the proportion of respondents delaying their vehicle purchase has recovered a bit to wave 1 levels, which is promising.”

Key Insights from TrueCar’s 3-wave research during COVID-19 include:
Each wave surveyed 1,200 consumers, screened for those planning to purchase a vehicle within the next 12 months.
Wave 1 fielded 3/17/20 (6,421 cases / 108 deaths U.S.*)
Wave 2 fielded 4/9/20 (461,437 cases / 16,478 deaths U.S.)
Wave 3 fielded 5/4/20 (1,180,375 cases / 68,922 deaths U.S.)

• Concern over being exposed to COVID-19 peaked in wave 2, yet remains a heightened concern in wave 3 (57% very or extremely concerned, versus 62% in wave 2).
• In wave 3, significantly fewer respondents stated they were delaying their purchase compared to wave 2, however 32% still stated they are delaying their purchase.
• Half of shoppers surveyed said that lower interest rates and increased discounts and incentives may encourage them to purchase a vehicle now.
• 8% of shoppers stated their primary reason for purchasing/leasing a vehicle is to avoid public transportation; this proportion is 10% for lower income consumers.
• Across all 3 waves, consumers selected aspects of remote retailing – such as configuring a deal online, at home test drives, completing the entire purchase online, and video conferencing) as the top reasons they would shop with a particular dealership now. At home test drive showed the most significant uptick between the three waves, increasing in interest 44% between wave 1 and wave 3.
• Two-thirds (65%) of shoppers surveyed said they would be more likely to shop with a dealership that offers the components of TrueCar’s Buy from Home experience which offers remote paperwork, vehicle sanitization and vehicle delivery).

“With continuing concerns around being exposed to COVID-19 or exposing others, remote retailing capabilities and safety measures around test driving vehicles and home delivery are critical components dealers can offer to get consumers to engage now,” added McMullin.

“In particular, the third wave of the study highlights that consumers are looking for a more customized way to shop that meets their personal safety expectations. It’s encouraging to see how quickly dealerships have responded and how flexible they have been in making these offerings available.”

Hyundai Clean Assurance

In response to the COVID-19 pandemic, Hyundai Motor America is providing its dealer body with Clean Assurance guidelines to help safeguard the health of its customers. As communities across the country reopen, customers can expect Hyundai dealers to follow their local state, county and city guidelines that include social distancing and cleaning measures at their facilities. Most Hyundai dealerships are also now offering digital transactions and remote service to minimize contact interactions.

This approach is led by Hyundai Motor America’s Chief Customer Officer, Barry Ratzlaff, along with expert guidelines from public health officials and input from Hyundai’s global headquarters in South Korea.

“Hyundai Assurance is built on the foundation of America’s Best Warranty and represents the guiding principle behind everything we do,” said Ratzlaff. “We want our customers and owners to know that we are reinforcing our commitment to prioritize their health in this new retail and service environment. It’s been a collaborative effort with our dealer body to develop training materials, guidelines, and digital and remote services.”

Hyundai developed a video summary of its retail and service health initiative that is being shared with customers on Hyundai’s website and social media channels.
Elements of Hyundai Clean Assurance include:

• Cleaning Protocols: Hyundai has partnered with Bioesque Solutions to equip interested dealers with disinfectant cleaner for facilities and vehicles, and developed comprehensive steps for expanded cleaning and sanitization processes
• Social Distancing Measures: Hyundai dealerships follow the guidelines recommended by their state, county and city health officials, including social distancing and managing the flow of customers and employees in both showroom and service facilities
• Dealer Training: Hyundai has created training materials for dealerships and distributed best practices with recommendations for staffing, sales and service operations, customer communications, social distancing protocols, and cleaning and sanitization procedures

Hyundai customers and owners can also take advantage of several digital and remote offerings for retail sales and service:

• Online Retail Sales: Leveraging Shopper Assurance and Click to Buy, digital retailing is available on most Hyundai dealer websites, allowing buyers to select a vehicle, calculate payments, apply for credit, value a trade-in, and complete the paperwork online; customers can also arrange flexible solo test drives at participating dealers with the vehicle brought to a customer’s home for evaluation
• Home Delivery: Most Hyundai dealers, depending on participation and local franchise laws, will deliver new vehicles directly to the customer’s home
• Service Pick Up and Drop Off: Hyundai owners can have their vehicle picked up for service and repair, and dropped back off once the work is completed at most dealerships

Apple & Google Provide Exposure Notifications

Apple and Google cooperated to build Exposure Notifications technology that will enable apps created by public health agencies to work more accurately, reliably and effectively across both Android phones and iPhones. Over the last several weeks, our two companies have worked together, reaching out to public health officials, scientists, privacy groups and government leaders all over the world to get their input and guidance.

Starting today, our Exposure Notifications technology is available to public health agencies on both iOS and Android. What we’ve built is not an app—rather public health agencies will incorporate the API into their own apps that people install. Our technology is designed to make these apps work better. Each user gets to decide whether or not to opt-in to Exposure Notifications; the system does not collect or use location from the device; and if a person is diagnosed with COVID-19, it is up to them whether or not to report that in the public health app. User adoption is key to success and we believe that these strong privacy protections are also the best way to encourage use of these apps.

This technology is in the hands of public health agencies across the world who will take the lead and we will continue to support their efforts.

Titan Inc. Thanks Ag Workers

Titan International Inc. (Titan) has launched its Goodyears Ahead campaign to recognize and thank those in agriculture who continue to work hard on food production during the current pandemic. The campaign also gives farmers an opportunity to pay it forward with some assistance from Titan. Visitors to GoodyearsAhead.com can select the nonprofit organization of their choice to receive a $5 donation from Titan/Goodyear Farm Tires, and as a token of thanks, Titan will send a free hat to anyone who participates while supplies last.

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