Fallout from the coronavirus pandemic continues for Michigan-based companies based and companies with Michigan locations.
The latest round of closures and bleak projections includes:
Monroe-based La-Z-Boy will permenantly cut 10 percent of its work force around the world, or 850 jobs. Sixty of those jobs will be at its Michigan headquarters. (Crain's)
Detroit-founded confectionery Sanders Candy will close four of its six Metro Detroit retail locations and focus its energy on its product line and online sales. The company says in a release that the closures are the result of changing consumer habits hastened by the coronavirus pandemic. Locations in Grosse Pointe, Livonia's Laurel Park Place, Novi's Twelve Oaks Mall and St. Clair Shores are to close. The company is currently owned by Madison Heights-based Kar's Nuts. (Detroit News)
JC Penney closes more than 240 stores aross the country, including three in rural Michigan -- Alpena, Cadillac and Petoskey. (Free Press)
The auto industry is bracing for a yearslong slowdown, according to a new outlook from a consultancy, AlixPartners. It last year warned of a looming "profit desert" for the industry, but the two month coronavirus shutdown made matters worse, according to the Detroit News:
Auto sales have been on the decline since 2017, when global sales peaked at 94 million. AlixPartners projects 2020 sales will be down to 70.5 million globally. The firm projects 13.6 million in sales volume in the U.S. this year, down from 17.1 million last year. Overall, it may take until 2025 for the industry to get back to prior-peak sales volume, AlixPartners predicts.
Compared to 2019, the industry faces a cumulative volume drop of up to 36 million vehicles this year through 2022. met Auto sales have been on the decline since 2017, when global sales peaked at 94 million. AlixPartners projects 2020 sales will be down to 70.5 million globally. The firm projects 13.6 million in sales volume in the U.S. this year, down from 17.1 million last year.
Overall, it may take until 2025 for the industry to get back to prior-peak sales volume, AlixPartners predicts. Compared to 2019, the industry faces a cumulative volume drop of up to 36 million vehicles this year through 2022.
