Top 10 Moments and Trends of 2020 in the Auto Industry
The COVID-19 pandemic transformed all levels of the auto industry in 2020. Automakers, suppliers, dealers and of course consumers faced challenges and changes they had never seen before. Motorsports and auto shows were not spared. In fact, the latter are easily among the most affected by the crisis.
Beyond the (virtual) new model debuts that took place this year—which will be the topic of another Top 10 coming soon—what were the top moments and milestones of 2020? Go to the next few pages to find out…
Idled Plants and Delayed Models
With the threat of coronavirus, all the automakers had to idle production and close their offices at some point this past spring, in some cases for as long as two months. Many employees started working from home. Also, the pandemic forced companies to postpone a number of launches and caused significant delays in deliveries.
Accelerated Decline of Cars
The situation with traditional passenger cars got even worse in 2020. Several models were axed—so many in fact that we can’t list them all here. Meanwhile, SUVs, crossovers and pickups have become more popular than ever (they now account for 80 percent of the market in Canada) and the low stocks are causing problems for many dealers.
The Rise of Online Sales and Contactless Services
With showrooms closed for several weeks in the spring, the industry had to find new ways to get in touch with potential customers. Online transactions were one of them. Contactless services also became a thing. Hyundai recently followed the lead of its luxury brand Genesis by offering at-home test drives.
The Return of Icons
Losing models we love is never fun, but in 2020 a few icons from the auto industry came back to life. Ford resurrected the Bronco and Mustang Mach 1, Jeep revived the Grand Wagoneer and GM did the same with the Hummer, even turning the former gas-guzzler into a fully electric truck. How times have changed!
Electrification Continues, Batteries Remain a Problem
Sales of electric and plug-in hybrid vehicles continued to increase, more charging stations popped up across the country, several new models hit the market or made their debut, and Quebec even announced a plan to ban the sale of new gasoline-powered cars in 2035. Let’s just hope battery production will keep up with the growing demand—ask anyone who has ordered a Toyota RAV4 Prime!
Tesla’s Ascension
Tesla’s stock literally skyrocketed in 2020. Early in the year, it surpassed the market value of GM and Ford combined, and right now it’s No.1 among all car brands. Elon Musk has become the second richest person on the planet and Tesla is closing in on its goal to deliver 500,000 vehicles annually.
Three Historic Deals for Canadian Auto Workers
This past fall, Detroit’s Big Three agreed to new three-year deals with Unifor. FCA plans to invest up to $1.5 billion to launch a new platform at the Windsor Assembly Plant in Ontario in order to build plug-in hybrid and/or fully electric vehicles starting in 2023-2024. Ford will inject $1.95 billion in the Oakville and Windsor plants, with the former being retooled to make five EV models from 2025 to 2028. Finally, GM’s Oshawa Assembly Plant will get $1.3 billion to resume full-size pickup production in 2022.
Lawrence Stroll saves Aston Martin
Among the car brands facing major financial trouble was Aston Martin, which was rescued by Canadian billionaire Lawrence Stroll in April. The owner of Circuit Mont-Tremblant and the Racing Point F1 Team (to be rebranded as Aston Martin) invested about $350 million to gain control of the prestigious British automaker. Let’s see how Stroll will manage to boost Aston’s sales.
All Hail Lewis Hamilton
The 2020 Formula 1 season took many unexpected turns due to the pandemic, but one thing remained the same: Lewis Hamilton’s dominance. The Mercedes driver became the all-time leader in wins, surpassing Michael Schumacher. He also secured his seventh world championship, tying the German legend.
The New Speed King
Unveiled in February 2020, the SSC Tuatara set a new speed record for production cars, dethroning the Bugatti Chiron Super Sport with a mark of 508.73 km/h—the first time ever a production automobile officially exceeded 500 km/h. While SSC’s feat has since been questioned, the company promises to do another run early in 2021, though it needs to watch out for the new Hennessey Venom F5, which also targets a top speed of more than 500 km/h.