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| Auto Sales Plummet in First Quarter as Coronavirus Keeps Buyers Away | Auto Sales Plummet in First Quarter as Coronavirus Keeps Buyers Away |
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| Automakers reported a plunge on Wednesday in new-vehicle sales as fear of the coronavirus and stay-at-home orders kept consumers from dealerships, adding to the troubles of the country’s largest manufacturing sector. | Automakers reported a plunge on Wednesday in new-vehicle sales as fear of the coronavirus and stay-at-home orders kept consumers from dealerships, adding to the troubles of the country’s largest manufacturing sector. |
| General Motors said its sales fell 7 percent and Fiat Chrysler said they fell 10 percent in the first quarter. Both companies said a significant decline in March offset strong sales in January and February. | General Motors said its sales fell 7 percent and Fiat Chrysler said they fell 10 percent in the first quarter. Both companies said a significant decline in March offset strong sales in January and February. |
| In addition, Toyota, Honda, Hyundai and Mercedes-Benz reported declines in March ranging from 37 percent to 50 percent. A total for the month won’t be available until Thursday, when Ford Motor and a few other carmakers plan to report their sales. | In addition, Toyota, Honda, Hyundai and Mercedes-Benz reported declines in March ranging from 37 percent to 50 percent. A total for the month won’t be available until Thursday, when Ford Motor and a few other carmakers plan to report their sales. |
| Tesla does not break out its U.S. sales, but is expected to report a first-quarter global total, and analysts expect a substantial decline, in part because Tesla had been growing in China, which was affected by the virus for much of the first quarter. Tesla began producing cars at a new factory in Shanghai late last year. It temporarily suspended production at its plant in Fremont, Calif., on March 23. | Tesla does not break out its U.S. sales, but is expected to report a first-quarter global total, and analysts expect a substantial decline, in part because Tesla had been growing in China, which was affected by the virus for much of the first quarter. Tesla began producing cars at a new factory in Shanghai late last year. It temporarily suspended production at its plant in Fremont, Calif., on March 23. |
| Toni Sacconaghi of AllianceBernstein is forecasting first-quarter sales of 78,000 cars, which would be a 20 percent fall from the same period in 2019. “First-quarter deliveries have clearly been tracking well below the fourth quarter over the last several weeks,” Mr. Sacconaghi wrote in a report to clients. | Toni Sacconaghi of AllianceBernstein is forecasting first-quarter sales of 78,000 cars, which would be a 20 percent fall from the same period in 2019. “First-quarter deliveries have clearly been tracking well below the fourth quarter over the last several weeks,” Mr. Sacconaghi wrote in a report to clients. |
| ALG, a company that tracks trends in auto sales, estimated that industrywide March sales fell 37 percent from a year ago. Analysts will tabulate a total for March sales after all automakers have reported their numbers. | ALG, a company that tracks trends in auto sales, estimated that industrywide March sales fell 37 percent from a year ago. Analysts will tabulate a total for March sales after all automakers have reported their numbers. |
| Dealers had hoped to continue selling cars at the beginning of March, but customer traffic quickly dwindled as it became clear that the virus was spreading rapidly. Many dealerships around the country remain open for repair and maintenance services, often with reduced hours. | Dealers had hoped to continue selling cars at the beginning of March, but customer traffic quickly dwindled as it became clear that the virus was spreading rapidly. Many dealerships around the country remain open for repair and maintenance services, often with reduced hours. |
| “The market right now is really shellshocked,” said Brian Benstock, general manager of Paragon Honda in Queens. He said his service department was in “limp mode” and his sales area was dark. | “The market right now is really shellshocked,” said Brian Benstock, general manager of Paragon Honda in Queens. He said his service department was in “limp mode” and his sales area was dark. |
| Tom Maletic, a retired pharmaceuticals salesman in Napoleon, Mich., was ready to turn in a 2011 Ford Focus in need of major repairs a week ago, but the virus forced him to put off a purchase. Instead he spent $1,500 on fixing his Focus, which has 130,000 miles on the odometer. | Tom Maletic, a retired pharmaceuticals salesman in Napoleon, Mich., was ready to turn in a 2011 Ford Focus in need of major repairs a week ago, but the virus forced him to put off a purchase. Instead he spent $1,500 on fixing his Focus, which has 130,000 miles on the odometer. |
| “My wife said we could get a Mustang, but I wasn’t going to go out shopping for a car,” Mr. Maletic said. | “My wife said we could get a Mustang, but I wasn’t going to go out shopping for a car,” Mr. Maletic said. |
| The drop in sales is the second big blow to automakers. Most companies have shut down factories across North America to prevent the spread of the virus among workers. | The drop in sales is the second big blow to automakers. Most companies have shut down factories across North America to prevent the spread of the virus among workers. |
| Automakers and dealers expect a bigger decline in April because stay-at-home orders will be in effect for most or all of the month in many parts of the country. Even as some states lift or relax those orders, consumers will likely stay away from showrooms for some time. To lure buyers, G.M., Ford Motor and Fiat Chrysler are offering zero-percent loans that last up to seven years for new car purchases. | Automakers and dealers expect a bigger decline in April because stay-at-home orders will be in effect for most or all of the month in many parts of the country. Even as some states lift or relax those orders, consumers will likely stay away from showrooms for some time. To lure buyers, G.M., Ford Motor and Fiat Chrysler are offering zero-percent loans that last up to seven years for new car purchases. |
| In St. Louis, where a lockdown order has been issued by the local government, Ann Kittlaus is unsure of how to trade in her family’s 2017 Acura MDX, since the lease is expiring soon. “We would have to have the dealer deliver a new one and take the other away,” said Ms. Kittlaus, a public relations professional and mother of two college-age children. | In St. Louis, where a lockdown order has been issued by the local government, Ann Kittlaus is unsure of how to trade in her family’s 2017 Acura MDX, since the lease is expiring soon. “We would have to have the dealer deliver a new one and take the other away,” said Ms. Kittlaus, a public relations professional and mother of two college-age children. |
| She added she would probably let the vehicle sit for a week to be sure it doesn’t have any traces of the virus. In any case, she said she is not in a hurry to make the trade. “It’s not like we’re going anywhere,” Ms. Kittlaus said. | She added she would probably let the vehicle sit for a week to be sure it doesn’t have any traces of the virus. In any case, she said she is not in a hurry to make the trade. “It’s not like we’re going anywhere,” Ms. Kittlaus said. |
| Updated June 12, 2020 | |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| A dramatic drop in sales in April could cause a painful chain reaction. With no buyers driving cars off their lots, dealers won’t have to order more from the manufacturers. That could force car companies and their suppliers to keep their plants idle or production low even once officials allow more people to go back to work. | A dramatic drop in sales in April could cause a painful chain reaction. With no buyers driving cars off their lots, dealers won’t have to order more from the manufacturers. That could force car companies and their suppliers to keep their plants idle or production low even once officials allow more people to go back to work. |
| “April is likely to see further historic declines, driven largely by a lack of consumer confidence and substantial increases in unemployment,” said Charles Chesbrough, a senior economist at Cox Automotive. “And that trend will likely continue into early summer, at best. The second quarter will be the real measure of Covid-19’s impact on the economy and the auto industry.” | “April is likely to see further historic declines, driven largely by a lack of consumer confidence and substantial increases in unemployment,” said Charles Chesbrough, a senior economist at Cox Automotive. “And that trend will likely continue into early summer, at best. The second quarter will be the real measure of Covid-19’s impact on the economy and the auto industry.” |
| Signs of strain have already surfaced. G.M., Ford Motor and Fiat Chrysler have cut or deferred pay for executives. G.M. and Ford have drawn on lines of credit to stock up on cash. Group 1 Automotive, a Houston-based company that owns 242 new-vehicle dealerships and 49 repair shops, has cut executive pay and furloughed 3,000 U.S. employees for at least 30 days. | Signs of strain have already surfaced. G.M., Ford Motor and Fiat Chrysler have cut or deferred pay for executives. G.M. and Ford have drawn on lines of credit to stock up on cash. Group 1 Automotive, a Houston-based company that owns 242 new-vehicle dealerships and 49 repair shops, has cut executive pay and furloughed 3,000 U.S. employees for at least 30 days. |
| Automakers are better prepared for a downturn than they were 11 years ago, when the industry was among the hardest-hit sectors in the recession of 2008 and 2009, and G.M. and Chrysler were revived only by government-supervised bailouts. With consumers reeling and credit markets frozen, auto sales plunged in 2009 to a low of 10.4 million cars and light trucks, a level at which few automakers were able to earn profits. | Automakers are better prepared for a downturn than they were 11 years ago, when the industry was among the hardest-hit sectors in the recession of 2008 and 2009, and G.M. and Chrysler were revived only by government-supervised bailouts. With consumers reeling and credit markets frozen, auto sales plunged in 2009 to a low of 10.4 million cars and light trucks, a level at which few automakers were able to earn profits. |
| Since then, however, the companies have earned billions of dollars, stockpiled cash and rebuilt their creditworthiness. One of the toughest problems in 2009 was that banks all but stopped making auto loans, freezing out many consumers who needed vehicles or were still able to afford them. | Since then, however, the companies have earned billions of dollars, stockpiled cash and rebuilt their creditworthiness. One of the toughest problems in 2009 was that banks all but stopped making auto loans, freezing out many consumers who needed vehicles or were still able to afford them. |
| Today, auto loans are readily available and interest rates are historically low. | Today, auto loans are readily available and interest rates are historically low. |