Coronavirus Cases Surge at GM’s Arlington, Texas Truck Plant

The UAW wants it shut down.

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Coronavirus Cases Surge at GM’s Arlington, Texas Truck Plant © Coronavirus Cases Surge at GM’s Arlington, Texas Truck Plant

Good Monday morning and welcome back to Speed Lines, The Drive's daily roundup of what matters in cars and transportation. I trust you had a restful July 4 weekend. Today we're talking about the rising number of coronavirus cases at General Motors' important Arlington, Texas truck plant, when Chinese cars will catch on in America, and how the pickup trucks continue to keep the industry afloat. 

UAW 'On Alert' Over GM's Texas Plant

Texas has emerged as one of the hotspots for the coronavirus outbreak in the U.S., with hospitals in the Houston, San Antonio and Dallas areas concerned about running out of beds in the weeks to come. In the latter area, we have GM's Arlington Assembly plant, which makes the Cadillac Escalade, GMC Yukon, Chevrolet Tahoe and Suburban trucks and apparently the most profitable auto plant in America.

But it's also a plant that has now seen 22 confirmed cases of the coronavirus since May, according to a report by The Detroit Free Press. The local chapter of the United Auto Workers union has asked GM to halt production there because of the spiking cases, even though like every other car plant in America it now has aggressive safety measures in place. 

GM won't confirm the number of cases and it has not shut down any other plants. It also would, presumably, do so very reluctantly; the large SUVs made there are vital to GM's profits at a time when everyone is buying big trucks and many dealers worry about inventory running low. Another important GM plant that has had a similar problem is the one in Wentzville, Missouri, which makes the Chevy Colorado, GMC Canyon and the full-sized vans. From the Freep's story:

This is a trend we're likely to see at other auto plants, especially in states where cases are on the rise. Even with extreme safety measures inside, automakers can't control what workers do in their off-hours, and they're still likely to spread the virus to coworkers when they do clock in. 

The Trucks Will Save America

If GM is to have a coronavirus surge at its plants, it would likely prefer it not to be at the ones that make the trucks. New car sales were not great, to put it gently, in Q2, but the one bright spot continues to be sales of pickup trucks and large SUVs. That's true across the board. 

Big trucks are even outselling compact crossovers, which for a number of years were the reigning sales kings of the industry, according to Automotive News. It's great news for the U.S. automakers in particular:

So Ford, for example, can't get that new F-150 out soon enough.

When Does The Chinese Car Revolution Start In America?

One more from Automotive News that's really worth a read in full: a story about the various social and economic roadblocks facing Chinese automakers who want to break into the North American market.

It's kind of surprising that hasn't happened yet, when you really think about it. The Chinese auto market is the biggest one in the world, and it's got a pretty robust segment of homegrown automakers that have been for decades now. We buy everything else from China; why not cars? What's stopping China from following in the footsteps of Japan, Germany and Korea? It's an expansion effort that has been in the works for 20 years now.

Well, it's not like anyone hasn't tried. But trade barriers have been an issue, for starters:

There are barely a handful of Chinese-made cars for sale in the U.S., including the Buick Envision and Volvo S90. But they face a 27.5 percent tariff, currently. There are also concerns, real or perceived, about quality and reliability. 

China's also a leader in EVs and various startups have tried to become "the next Tesla" over here, including Nio, Byton and Faraday Future. But all of them have struggled with production and financial stability for various reasons, and with the pandemic economy, their future doesn't look spectacular.

One automaker to keep an eye on may be Vantas, a subsidiary of Chery that aims to build cars in the U.S. starting in 2022. From that story:

Read the whole thing here

On Our Radar

Gasoline Is Cheap This July Fourth. Fuel Retailers Aren’t Complaining. (WSJ)

Uber, Postmates Agree on $2.65 Billion All-Stock Deal (Bloomberg)

Moderate rebound in German industry orders points to slow recovery (Reuters)

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Your Turn

Chinese cars: Would you buy one? Do you generally care where your car gets built these days? After all, the lines between an "import" and a "domestic" have never been less clear; we're firmly in the era of Fords built in Mexico and Hondas built in Ohio. 

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