The Week in Automotive: Riding the Coronavirus High

The Coronavirus outbreak in China is starting to hit the automotive industry worldwide as Hyundai, BMW and Jaguar-Land Rover warned investors of low sales and limited production performance in 1Q20. Companies are already taking preventive measures such as extending workers holidays until February.

In the meantime, the Mexican market is still free falling as financing registers its biggest backdrop in 10 years. However, with USMCA finally signed, the industry awaits only Canada’s ratification process to bring more certainty to the industry

Newcomers

Ford GT is already available in the Mexican market.

Hummer will make an electrifying comeback in 2021. GM announced its plans to bring the vehicle back to live as an electric pickup.

OEM Highlights

Financed car sales fell 6.9 percent in 2019, the biggest decrease in 10 years. AMDA forecasts a 2 percent drop in 2020.

BMW reported a drop of 3.2 percent in sales in 2019. Despite its red numbers, Mexico remains a strategic actor for BMW’s operations in Latin America.

Suzuki aims to grow 16 percent in sales in 2020 after 10 years of uninterrupted growth. In 2019, the company grew 31.2 percent in the country.

Mazda celebrates its 100th anniversary launching a sustainable plant to reduce CO2 emissions by 50 percent by 2030.

Canadian billionaire Lawrence Stroll and investors have rescued Aston Martin with a £500 million (US$659.6 million) cash injection. Stroll bought 20 percent of the 107-year-old English company.

Coronavirus Special

China’s auto sector braces for hefty virus impact. It is expected that the Coronavirus will hit auto sales and production performance.

Hyundai announced its plans to skip South Korean production of Palisade this weekend to cope with a supply disruption caused by the outbreak in China.

BMW will extend its factory holidays at its plants in Shenyang, China until February 9 over travel restrictions imposed to contain the Coronavirus.

Jaguar-Land Rover warns about a hit on profits due to the outbreak in China. The virus could also hamper the brand’s production in china.

USMCA on Track

Donald Trump signs USMCA at the White House, thanking AMLO and Trudeau for their cooperation.

Justin Trudeau urges Canadian opposition for a quick USMCA ratification. The process started last Monday.