The latest numbers on the microchip shortage: GM plants hit hardest

General Motors assembly plants in North America have been hit harder by the microchip shortage this year than any others, according to a new estimate by AutoForecast Solutions.

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Full-size trucks are easier to find after shortages as spring selling season intensifies

An easing of the pickup shortages that persisted for years could help dealers as the spring selling season heats up.

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Carvana's creditors offer to swap debt for equity, defer payment

Creditors holding about 90 percent of Carvana Co.'s bonds have been pitching the beleaguered used-car company on ways to pare down debt and improve liquidity, including a proposal for a debt-for-equity swap, according to people with knowledge of the situation.

The group, represented by White & Case and PJT Partners, recently offered to swap a substantial amount of unsecured notes for equity in Carvana, the people said, asking not to be named discussing a private matter. The bondholders also said they would allow the company to pay some of its interest with additional debt, a feature known as payment-in-kind.

The proposal isn't final and terms could change. Carvana has not formally engaged with the group's offers, the people added, asking not to be identified because the matter is private.

Bondholders had earlier signaled their interest in moving their existing unsecured positions into new first-lien debt and allowing the company to pay interest in kind for two years, the people said. The plan would save Carvana more than $1 billion in cash interest, the people added. The group also offered to provide new money to the company and asked Carvana's equity holders to inject roughly $1 billion into the business, they said.

Representatives at Carvana, one of its advisers Kirkland & Ellis, and White & Case didn't respond to requests for comment. PJT and another Carvana adviser Moelis & Co. declined to comment.

To maintain a united front, members of the bondholder group have also agreed to extend a cooperation agreement to end of November, with the ability to extend the pact to May 2024, the people said. The group, which includes Apollo Global Management Inc. and Pacific Investment Management Co., came together last year to negotiate with Carvana in preparation for a restructuring.

Led by Chief Executive Officer Ernest Garcia III and his father, Ernie Garcia II, Carvana was one of the companies that benefited from the pandemic economy. The firm raised billions of dollars during the easy-money era to buy droves of pre-owned autos and lure buyers with cheap loans. But its fortunes turned as auto production rebounded and higher interest rates crimped consumer spending.

Carvana had earlier proposed that creditors trade $1.3 billion in debt for $1 billion in notes secured with various assets while shareholders wouldn't suffer a loss. That exchange offer was quickly shot down by the group.

To drum up investor interest, Carvana sweetened terms of the exchange offer and extended the participation deadline to May 3. The company is now staring down at a $168 million interest payment on bonds due in May.

The company's 10.25 percent bond due 2030 last changed hands at around 55 cents on the dollar, according to Trace. Its shares have slumped 89 percent over the past twelve months.

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California moves to phase-out diesel-powered trucks, cut locomotive pollution

California regulators on Friday approved new rules requiring all medium- and heavy-duty vehicles sold in the state in 2036 be zero-emission, a day after the California Air Resources Board (CARB) adopted reduced emission regulations for locomotives.

"With these actions requiring all new heavy-duty truck sales to be zero emission and tackling train pollution in our state, we're one step closer to achieving healthier neighborhoods and cleaner air for all Californians," said Governor Gavin Newsom.

The rule also require transitioning existing fleets to zero-emission vehicles. Big rigs, local delivery and government fleets must transition to zero emission by 2035, garbage trucks and local buses by 2039, and sleeper cab tractors and specialty vehicles by 2042.

The board estimates the reduced pollution from the truck rules would result in $26.6 billion in health savings from fewer asthma attacks, emergency room visits and respiratory illnesses, and save $48 billion in trucking operating costs.

American Trucking Associations Chief Executive Chris Spear criticized the decision to force motor carriers to purchase zero-emission vehicles.

"California is setting unrealistic targets and unachievable timelines that will undoubtedly lead to higher prices for the goods and services delivered to the state and fewer options for consumers," Spear said.

CARB said fleet owners can receive exemptions based on available technology to ensure they can replace older polluting trucks with ones that have the cleanest engines in the nation

While trucks represent only 6 percent of vehicles on California's roads, they account for over 35 percent of the state's transportation generated nitrogen oxide emissions and about 25 percent of on-road greenhouse gas emissions.

Paul Cort, director of Earthjustice's Right to Zero campaign, said the "new truck rule will have profound health and economic benefits not just here, but in every other state that adopts these clean air protections."

On Thursday, CARB adopted new locomotive regulations requiring that by 2030 only those less than 23 years old could operate in the state.

Switch, industrial and passenger locomotives built starting in 2030 will be required to operate in zero-emissions configurations in California, and for freight line haul beginning in 2035.

"With the new regulation, we are moving toward a future where all transportation operations in the state will be zero emissions," CARB Chair Liane Randolph said.

CARB in August voted to require all new vehicles sold in the state by 2035 to be either electric or plug-in electric hybrids. The Biden administration must still approve waivers for California to implement the new regulations.

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GM to build $200M parts plant for Silverado EV

The project would create about 1,000 jobs on the site of the former Detroit Pistons arena to support assembly of electric pickups starting in 2024.

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Vroom reduces employee headcount by about 120

The reduction is included as part of an "organizational restructuring" that Vroom has implemented amid a reexamination of "all facets of the business," the company said in a regulatory filing.

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Stellantis, GM, Mazda and Ford dealerships sell across 4 states

Domestic and import dealerships in Massachusetts, Virginia, Wisconsin and Indiana traded hands in three first-quarter deals and a third-quarter 2022 transaction.

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Continental manager admits involvement in diesel scandal and incriminates others, prosecutors say

The unnamed technical project manager is one of a total of 60 people under investigation for aiding and abetting fraud and breach of trust over the illegal use of defeat devices in VW diesel vehicles.

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Charging issues, pricing prompt more shoppers to avoid EVs

The share of new-vehicle shoppers who say they are very unlikely to purchase an EV has ticked up over the past three months.

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Mercedes more upbeat on signs U.S., China picking up

Demand in Europe was still sluggish, but the automaker expects that to improve in the coming months as consumer confidence rebuilds.

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Auto retail giant Lithia Motors says it cut about 1,000 jobs

Auto retail giant Lithia Motors Inc. told analysts last week that it cut about 1,000 positions.

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Musk meets with Schumer as Senate looks into artificial intelligence

Artificial intelligence has been a focus of research for years, from Silicon Valley to the Pentagon and globally. Now, Senate Majority Leader Chuck Schumer, a New York Democrat, is considering legislation to regulate AI. 

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Tesla price cuts threaten image as a tech leader

CEO Elon Musk says the EV maker is trading profit for volume, a common tactic in the auto industry. But the deep price cuts are undermining claims that Tesla is primarily a tech firm.

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Sonic Automotive Q1 net income drops 51%

Sales at Sonic Automotive's EchoPark brand rose 34 percent in the first quarter, but the auto retailer saw lower gross profits per new and used retail vehicles, as well as lower sales volume from its franchised dealerships.

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Tesla price cuts threaten image as a tech firm

CEO Elon Musk says the EV maker is trading profit for volume, a common tactic in the auto industry. But the deep price cuts are undermining claims that Tesla is primarily a tech firm.

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Volvo sees no need for Tesla-like cost cuts for its EVs

Volvo has seen robust demand for its models, with unit sales up 10 percent in the first quarter.

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Aurora, Continental to deliver autonomous systems for big trucks

The two companies expect the systems to be installed on Class 8 trucks that reach U.S. roads in 2027.
 

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Group 1 Automotive improves first-quarter revenue as net income drops

Acquisitions, service business growth and elevated vehicle pricing helped the Houston dealership giant improve its revenue numbers in a tough market.

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Battery startup Sparkz strikes partnership with auto workers union

Sparkz and the UAW said they had signed a memorandum of understanding establishing a national labor-management agreement and statement of neutrality.

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Tesla drops Model Y starting price below the average U.S. vehicle

At $46,990, the base Model Y now costs $759 less than the average amount paid for a car or truck in the U.S.

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VinFast announces a $2.5 billion infusion from founder, Vingroup

Vuong, Vingroup’s founder who in 2019 said he would commit $2 billion of his wealth to VinFast, will personally give $1 billion to VinFast within the next year. 

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Honda CEO pledges to 'fight back' from behind in EV race

Honda's radical revamp will move into high gear from 2025 and hinges on new models, better batteries, powerful software and a transformed driver interface, along with dedicated EV factories and a completely overhauled production.

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McLaren sharpens its benchmark 720S with new 750S

The new 750S is McLaren's lightest and most powerful production model.

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Stellantis to cut 3,500 hourly U.S. jobs through buyout, retirement offers, UAW local says

Retirement-eligible workers hired before ratification of Chrysler's 2007 contract with the UAW can get $50,000 to leave their job, while those with at least one year of service can receive a lesser payment.

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Asbury net income, revenue down in Q1 after stores dropped in 2022

Asbury sold 16 dealerships in 2022: Four in the first quarter, three in the second, and nine in the fourth.

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NAMAD seeks president after Hugene Fields departure

Hugene Fields, a newcomer to retailing who joined the minority auto dealers association last fall, departed March 31.

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Meta's revised auto listing restrictions have mixed effect on dealers

Meta as of Jan. 30 stopped letting dealerships create used-vehicle listings using a Facebook business page.

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Hyundai readies U.S. battery plant as Q1 profit more than doubles

Hyundai reported that its first-quarter profit had more than doubled, as it finalized a $5 billion EV battery joint venture in the U.S., boosting electrification efforts in its largest market.

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GM, Samsung SDI to build $3B EV battery plant in U.S.

The plant, which is targeted to begin output in 2026, will have an annual production capacity of 30 gigawatt hours, Samsung SDI said in a regulatory filing.

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U.S. Auto Sales institutes furloughs

LinkedIn posts Monday by a store manager and assistance compliance manager announced they were let go and looking for work.

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2022 U.S. traffic deaths drop, NHTSA data shows

NHTSA estimated 42,795 people died in vehicle crashes on U.S. roads last year, down about 0.3 percent from the 42,939 fatalities reported for 2021.

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Tesla readies export of Model Y to Canada from China

Tesla has begun producing in Shanghai a version of the Model Y for sale in Canada this year, the first time it will ship cars to North America from China.

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Don't fear failure: Shoichiro Toyoda memorial spotlights Toyota's urgent reboot

The memorial of legendary former Toyota Chairman Shoichiro Toyoda serves as a well-timed inspiration for rekindling Toyota's killer instinct.

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Dealerships with strong used focus land on top

Dealership groups on Automotive News' annual ranking focused strongly on used-vehicle operations in 2022, seeking trade-ins and buying directly from consumers to pad used inventories and sustain sales.

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CarMax offers its customers financing info at the start

CarMax is prequalifying customers online so shoppers know which cars they can afford from the start.

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Tesla wins bellwether Calif. trial over Autopilot car crash

California jury finds that Tesla's Autopilot did not fail in what appeared to be the first trial related to a crash involving partially automated driving software.

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Transport technology startup funding plunged 43 percent in March

Private equity and other investors funneled $394 million into U.S. transportation technology startups in March, about a 43 percent decline from the previous month.

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Supply chain event features top executives

Three top North American purchasing executives and two top supplier CEOs are scheduled to speak during a June 12 roundtable discussion as part of a longtime charity golf outing in suburban Detroit.

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Kia, Nissan, Ford, Stellantis and GM dealerships sell across 5 states

A West Coast auto retailer bought and sold dealerships, a dealer acquired his first Ford store, a group grew to three stores and two brothers expanded their holdings, all in transactions that closed in the second and fourth quarters of 2022 and the first quarter this year.

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Polestar will use site of former Saab plant to extend R&D footprint

The EV maker will carry out powertrain development for the Polestar 5, a Tesla Model S rival, and the Polestar 6 roadster in Trollhattan, Sweden.

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Maserati aims for growth with varied lineup of EVs, hybrids and ICE

The Stellantis brand, which was hampered by a lineup that grew stale over the past decade, is looking to rebound by offering a broader selection of powertrains and more utility vehicles.

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Dowlais to target U.S. rare earth magnets for electric vehicles

The company aims to launch production within 12 to 18 months and is talking to a wide range of carmakers and top tier suppliers about providing rare earth magnets for electric vehicles. 

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New Toyota CEO Sato touts three-step plan to big EV profitability: ‘We've just started'

New Toyota CEO Koji Sato, who took office April 1 with the task of speeding up the Japanese carmaker's slow start in the global EV race, outlines a three-step plan to achieving "significantly enhanced" productivity and profitability in Toyota's coming line of electric vehicles.

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Calif., 17 other states seek recall of Hyundai, Kia vehicles over theft

U.S. theft claims were nearly twice as common for Hyundai and Kia vehicles compared with all other automakers among 2015-19 models, IIHS data shows.

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Supply chain morphs into supply 'triangle' as importance of software grows

The development of a new, nonlinear supply chain will be key to unlocking hundreds of billions of dollars in potential annual revenue from software, industry executives said on a panel here at SAE's World Congress.

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AutoNation Q1 results: Declines in net income, revenue and vehicle sales

The auto retailing giant partially offset its declines with gains in new-vehicle and after-sales revenue.

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Field techs, industry collaboration critical to EV charging infrastructure, SAE panelists say

Charging infrastructure requires workforce development and industry collaboration.

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Tesla will sacrifice profit for higher volume — CEO Elon Musk

Elon Musk has taken the view that pushing for higher volumes and a larger fleet is the right choice for Tesla, versus a lower volume and higher margin.

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Tesla profits, gross margin fall in Q1

Tesla CEO Elon Musk's plan to ride out a possible recession with price cuts and lower production costs was not enough to make up for strained consumer spending on big-ticket items.

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Stellantis hires new CFO, replacing merger architect Richard Palmer

Natalie Knight, who will work out of Stellantis' U.S. offices in Michigan, previously spent 17 years with apparel retailer Adidas.

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Toyota concepts preview new crossover, SUV for bZ EV lineup

Toyota is evaluating whether to bring the bZ Sport Crossover Concept and the bZ FlexSpace Concept SUV to Europe.

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Tesla cuts prices for 6th time this year on eve of Q1 earnings

Tesla reduced prices Tuesday on the Model Y crossover by $3,000 and the base Model 3 sedan by $2,000. The EVs also qualify for a federal tax incentive.

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Bill that aimed to block automaker ability to reassign buy-sell deals fails in West Virginia

A bill that aimed to block automakers' use of right of first refusal on dealership buy-sell deals in West Virginia failed to move in the House of Delegates before the state's legislative session ended last month.

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Tesla profits after price cuts the focus of Q1 earnings

Tesla is expected to report lower vehicle gross margins after juicing deliveries this year with multiple rounds of price reductions.

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China's EV leader BYD is looking for new markets

Under the direction of CEO Wang Chuanfu and backed by Berkshire Hathaway, BYD has global expansion plans.

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Porsche Cayenne gets V-8 power, again, and style upgrade

The updated Cayenne, with a revived V-8 engine, arrives in U.S. stores this summer.

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Polestar 4's lack of rear window helps safety, EV maker says

The premium midsize crossover is expected to be Polestar's No. 2-seller globally by 2025, with volume of 79,000.

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2024 Lincoln Nautilus to be made in China, sold in U.S.

The redesigned midsize crossover will start at $51,810 and go on sale early next year.

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Hyundai speeds up software fix for easy-to-steal vehicles

Hyundai is speeding up its rollout of a software upgrade for its vehicles without engine immobilizers as part of its response to increasing thefts of its vehicles.

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Here are the EVs that qualify for Inflation Reduction Act's tax credits

These electric vehicles are eligible for either a full $7,500 credit or a partial credit of $3,750 under the tougher eligibility rules. Nine previously eligible models would no longer qualify, according to an updated list released Monday.

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Lancia Pu+Ra concept looks to historic models to set brand's design direction

Lancia turned to the Stratos and Beta for styling cues, as it prepares to join Alfa Romeo and DS in Stellantis' premium brand group.

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Former Toyota-GM exec Mark Hogan, longtime bridge between U.S. and Japan, dies

Mark Hogan helped lead General Motors, Toyota and supplier Magna over a career spanning more than four decades.

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Ineos taps Magna Steyr to build off-road EV starting in 2026

The British chemicals company, which recently entered the automotive market with its BMW-powered Grenadier SUV, will lean on the Canadian supplier for its engineering and manufacturing expertise.

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The latest numbers on the microchip shortage: New toll in China

Almost 1 million vehicles have been removed from automakers' production plans so far this year, according to the latest estimate by AutoForecast Solutions.

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Suppliers are more vulnerable to a UAW strike now than in 2019

The 2019 UAW strike at GM led to hundreds of millions of dollars in lost revenue. For many suppliers, a strike in 2023 would be worse.

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Are EVs too heavy for aging parking garages?

A report from the British Parking Association warns that garages built decades ago for smaller cars might not be able to handle EVs.

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Column: Cruise might actually figure out the robotaxi business

Cruise’s ambitions to build a viable robotaxi business has similar undertones as something else that once seemed impossible: A GM bankruptcy.

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Inflation Reduction Act's EV tax credits explained

The Inflation Reduction Act has three incentive programs for electric vehicle purchases. Here's a brief explainer on the eligibility requirements and how each credit works.

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Magna says human trafficking suit filed against it is ‘without merit’

The lawsuit, filed in Ontario Superior Court, alleges that the supplier "chose to illegally recruit and hire foreign workers and violate" the Employment Standards Act.

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Appeals court affirms bundling GAP coverage exempts lenders from Military Lending Act

The plaintiff could appeal and ask the full 4th Circuit to revision the decision, or take the case to the U.S. Supreme Court. In both cases, however, those requests are rarely granted.

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CarMax prioritizes per-vehicle profits, seeks more efficiencies

CarMax CEO Bill Nash says the used-car retailer aims to improve both efficiency and the experiences of customers and employees.

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Hyundai leans on EV tax credit lease provision

Hyundai is making use of the leasing provision in the EV tax credit rules to keep its electric models in the fight.

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Tesla launches new round of price cuts in Europe

Tesla slashed prices in Europe, extending a global discount drive to help boost demand for its EVs.

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Jeep dominating plug-in hybrid market with 4xe strategy

U.S. sales of the 4xe surged to more than 43,000 last year, representing nearly a quarter of all Wranglers.

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Rivian shifts to in-house motors to boost production

The Rivian-made Enduro motor replaces units made by Bosch in most configurations of the R1T pickup and R1S crossover. Rivian says it will save money and speed up production.

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Location, location, location: U.S. manufacturing boom has a real estate problem

The factory renaissance could soon hit a barrier because of the scarcity of ready-to-go megasites, according to 25 economic development groups, state and local officials, utilities, and companies interviewed by Reuters. 

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Lack of electric vans opens door for Chinese, other EV makers

Legacy automakers got off to a late start with their commercial electric vans, opening the door for other electric commercial vehicle makers to gain a foothold, as the Maxus brand from China's SAIC Motor Corp. has done in Europe.

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Specialty auto insurer Hagerty trims 83 more jobs to cut costs

The cuts come after Michigan-based Hagerty reduced its workforce in December by about 6 percent, or 103 employees.

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Rising debt costs crimp cash flow at automotive suppliers

Just as the supply chain is smoothing out and the cadence of production improves, automotive suppliers are now seeing red where balance sheets had long been stable.

The soaring cost of money and tightening credit conditions are hurting liquidity, and in some cases, tipping financially distressed companies into insolvency.

Small- and mid-size suppliers that are heavily leveraged with a large amount of variable interest debt are the most vulnerable. That applies to many manufacturers in Michigan, said Steven Wybo, senior restructuring and management consultant at Detroit area firm Riveron.

"For the first time in over a decade, we're actually talking about interest rates significantly impacting businesses' ability to grow and survive," he said.

While automakers took in record profits over the past couple of years, their suppliers absorbed most of the impact of supply chain snarls by cutting costs, trying to renegotiate contracts and often taking on more debt — a decision that has proved to be costly.

When North Carolina-based Stanadyne LLC, whose creditors include Ford Motor Co. and Autocam Corp., filed for Chapter 11 bankruptcy protection in February, it cited interest rates as the driving force.

"The debtors filed these Chapter 11 cases because they will not be able to outrun their current interest rates, which have crippled the debtors and drained liquidity since the rapid rise in their variable rates," according to the bankruptcy declaration from the company.

Others are facing a similar liquidity crunch. Plastics, rubber and foam supplier Unique Fabricating Inc. is running low on cash while its lender runs short on patience.

After more than half a dozen forbearance agreements and a default last month, Citizens Bank NA notched up the interest rate on its loan to the company and stopped automatic advances under its revolving line of credit, according to a filing with the U.S. Securities and Exchange Commission.

"The days of kicking the can on covenants or waivers on defaults and being friendly, I think, are mostly over for now," Wybo said of lending practices in general. "The banks can't afford to be too lenient. They were very lenient during COVID."

Unique Fabricating's predicament is not unusual. The profile of the company, which had an estimated revenue of $136 million last year, mirrors many other small and mid-size suppliers. But its publicly traded status in a space dominated by private companies offers a glimpse into the financial turmoil that turnaround experts have said is prevalent at this part of the supply chain.

Wybo said he has a couple dozen financially distressed clients, and most of them have pointed to rising interest rates as a major factor. While bankruptcy is the result only in the most severe cases, daunting debt service levels are impacting nearly all companies with variable debt on the books.

Cooper-Standard Automotive Inc.'s debt increased just slightly year-over-year to about $1 billion in 2022, as detailed in its annual earnings report in February. At the same time, its net interest expense jumped $6 million due to higher interest rates.

The elevated debt service level, it warned investors, is burning cash that could otherwise be used for working capital, capital expenditures or research and development.

The same dynamic is at play with Stoneridge Inc. The supplier's interest expenses increased about $2 million from 2021 to 2022 primarily because of higher credit facility interest rates, it said in its annual financial report filed last month.

"It can be a major hurdle for suppliers," said Sean Pattison, principal at Plante Moran who specializes in restructuring. "When you have less cash, then every decision becomes that much more important."

At Superior Industries International Inc., most of its $647 million of debt was at a floating rate at the end of 2022, though it did execute a swap for fixed rate debt to hedge against volatility in the future, the company said in its annual report filed last month.

The interest rate on its $400 million term loan facility jumped more than 8 points to 12.3 percent, amounting to an annual interest expense of $46.3 million, or $4.5 million more than what it paid the previous year.

"A significant portion of our cash flow from operations will be used to pay our interest expense and will not be available for other business purposes," the company said in the filing.

Auto suppliers are starting to look to customers for recoveries related to elevated interest expenses, Pattison said. But those negotiations differ from the price increases many customers have reluctantly given to help suppliers weather rising costs for material and labor, as well as production shutdowns.

"The OEMs view that separately from operational challenges," Pattison said of rising interest rates. "They would view it as outside of their control or outside of their effect on the suppliers, so I think they're trying to avoid having to compensate or reimburse suppliers for that increase in cost."

However, for many companies, the turbulent financial situation has only worsened.

"Suppliers, more so now than even 24 months ago or 12 months ago, are trying to include any cost increase they can that's making their contribution and profit margin erode away," Pattison said.

Suppliers have only two options to mitigate losses: cut costs and improve efficiencies, Wybo added. After that, they fall back on their customers for help.

"For a lot of these distressed companies, it's been a buildup of three years of depressed volumes, volatility in releases, increased labor, etcetera," he said. "This massive rise in interest rates hit these borrowers quickly."

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2024 Acura Integra Type S delivers 320 hp, sporty styling

Acura's 2024 Integra Type S will go on sale in June with 320 hp, aggressive styling and significant performance enhancements.

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Legislators OK $410 million for Ford, Our Next Energy plants; Gotion project still waits

LANSING — Michigan will give companies $410 million to open two electric vehicle battery plants following approval of transfers by a legislative panel on Wednesday.

The Democratic-led Senate Appropriations Committee authorized the subsidies for Ford Motor Co. ($210 million) and Novi-based Our Next Energy Inc. ($200 million) on 15-4 votes.

They did not vote on a $175 million package for Gotion Inc., a Chinese company with a U.S. headquarters in Silicon Valley, and The Right Place, a Grand Rapids-based economic development organization supporting the Gotion project.

Ford's factory will be in Marshall, Mich., ONE's in Wayne County's Van Buren Township.

The Michigan Strategic Fund board previously approved the aid, part of broader incentives packages for the multibillion-dollar plants, but final legislative authorization was needed to transfer money within the Strategic Outreach and Attraction Reserve Fund. The House budget panel gave its blessing, including for the Gotion aid, in March.

Ford plans to build a $3.5 billion, 2,500-job EV battery plant, a project getting significant taxpayer support. The state has also awarded the automaker a 15-year tax break worth $772 million and authorized a $36 million loan for the Marshall Area Economic Development Alliance to buy, improve and transfer land. Gov. Gretchen Whitmer has signed a bill with $630 million to prepare the megasite for Ford, and an additional $120 million is expected to be sought at a later date.

ONE plans to open a $1.6 billion, 2,100-job EV battery factory. The state has also OK'd a $21.7 million tax exemption and a $15 million loan.

Gotion plans to build a nearly $2.4 billion, 2,350-job EV battery plant. The state has also awarded a 30-year tax break worth $540 million.

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Mini previews next-gen 2-door hardtop EV

The next-generation electric Mini Cooper will be shorter and lighter than the current model and built on a dedicated EV platform.

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Polestar 4 crossover to get Shanghai show debut

The premium midsize crossover will join a segment led by the Tesla Model Y.

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Ford moves lead social media agency account

Vayner loses its social AOR duties for the Ford main brand, duties it took away from VMLY&R a little over a year ago

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Former MLB players Brian Dorsett and Dorian Boyland buy and sell dealerships in Q1

Two dealerships trading hands involved former Major League Baseball players Dorian Boyland and Brian Dorsett, and a group bought its second Long Island store, all in the first quarter, while another dealer purchased his second store in fourth-quarter 2022.

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EPA proposes its strictest-ever vehicle emissions limits for 2027-32

The plan could lead to EVs making up 67 percent of new light-duty vehicle sales and 46 percent of medium-duty vehicle sales in the 2032 model year, according to EPA projections.

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VW brand CEO Thomas Schaefer eyes strong profits from small EV

One of Thomas Schäfer's first moves as VW brand boss was to commission a concept previewing a small electric car that he wants to cost less than 25,000 euros ($27,300).

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Capital One exits floorplan lending business

Capital One decided to exit floorplan lending on March 29, but will stay in the auto finance business.

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Union opposes driverless trucks exemption for Waymo, Aurora

A major transport union opposed a request filed by Alphabet's self-driving unit Waymo and autonomous driving technology company Aurora for an exemption from rules on warning devices for large semi-trucks, citing safety issues.

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Ford's Oakville plant in Canada will build EVs starting in 2024

The site, to be renamed the Oakville Electric Vehicle Complex, will include a 407,000-square-foot battery pack assembly plant.

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CarMax quarterly net income, used-car sales plunge

CarMax said net income plunged 57 percent to $69 million in the quarter ended Feb. 28.

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Maryland nonprofit trains former inmates to be auto technicians

Vehicles for Change has trained 220 people to become technicians so far. It has an 89 percent completion rate, and 95 percent of program graduates are placed in an auto service job.

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Russia's GAZ Group files $348M suit against VW

VW is seeking to sell its Russian operations but amid legal wrangles.

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New Apple CarPlay integration helps improve Domino's pizza ordering — from customer dashboards

The new Apple CarPlay technology allows motorists to order a pizza with a few taps on the screen.

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CX-90 begins Mazda's shift upmarket

Mazda's new CX-90 large crossover is the beginning of a brand shift to move further upmarket.

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3 in 4 vehicles could be electric by 2050 if certain states follow California gasoline vehicle ban

If the 17 states that follow the U.S. Clean Air Act adopt California's rule, three in four vehicles could be EVs by 2050, according to Energy Innovation.

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Selling over sticker price can backfire on car dealer, automaker

Survey: 29% of customers charged above MSRP told GfK they would never buy that brand of vehicle again.

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Tesla plans new Shanghai plant to build megapack batteries

Tesla is leveraging China's world leading battery supply chain to ramp up output and lower costs of Megapack lithium ion battery units to meet rising demand of energy storage as the world shifts to more renewable energy.

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Work Truck helps dealers grow commercial vehicle sales

Work Truck Solutions, founded by Kathryn Schifferle, helps dealers better manage their commercial inventory and connect with buyers.

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CULA: Credit unions write more leases in record 2022

CULA, a platform connecting credit unions and dealerships for leases, facilitated a record $2.7 billion in leasing in 2022 — despite leasing being down overall industrywide that year.

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Column: Why the Pentagon cares about EV battery materials

The U.S. auto industry and the Department of Defense are in the same boat when it comes to sourcing critical metals.

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U.S. opens safety probe into Tesla that struck student in North Carolina

NHTSA is probing an incident in which the driver of a 2022 Tesla Model Y reportedly failed to stop for a school bus displaying warning lights and struck a student.

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Dealerships' EV charging cost savings may be found in solar panels

Dealerships are paying for expensive EV charging stations and hoping solar panels cover some of the costs.

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Ram readies for EV shift, but costs are ‘elephant in the room'

Stellantis executives at the New York International Auto Show talked about the need to fund the shift to EVs by boosting profitability, cutting costs and confronting sliding sales of today's combustion lineup.

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Wholesale used-vehicle prices rose through Q1, but may be at a turning point

Cox Automotive's Manheim Used Vehicle Value Index rose 1.5% in March from February.

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Q1 sales get boost from fleet business

Demand for new vehicles remained strong despite rising transaction prices, and the selling rate jumped to 15.3 million a year.

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Iconic Felix Chevrolet dealership among stores sold in 4 states

L.A.'s iconic Felix Chevrolet changed hands, a group added another Kia store to its mix, and dealerships selling General Motors and Stellantis brands traded hands in fourth-quarter and second-quarter transactions.

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EV tax credit rulebook clearer, but Treasury's work is not done

How strictly the U.S. Treasury Department defines and enforces the law's "foreign entity of concern" provision could affect the Biden administration's objectives to drive EV adoption and build a domestic supply chain.

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New Toyota CEO targets 1.5M EV sales in 2026, plans U.S.-built crossover EV

Koji Sato, in his first news conference after replacing Akio Toyoda, said Toyota and Lexus will launch 10 new EVs in the next three years.

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Stellantis pressed by Illinois to revive Belvidere plant for Ram EV

Illinois has put on a major push for Stellantis to build an electric version of its Ram pickup at the recently-idled Belvidere plant, sources told Crain's Chicago Business, an affiliate of Automotive News.

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2023 Forbes World's Billionaires List includes auto industry giants

The 2023 World's Billionaires List features six U.S. auto retailers, including Roger Penske, Norman Braman and Herb Chambers.

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Walmart plans own EV charger network at U.S. stores by 2030

Walmart plans to have its own network of electric vehicle charging stations for public use by 2030, to tap into growing adoption of EVs in the United States.

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Startup's electric supercars to be shown at Miami Grand Prix

GFG Style, founded by Giorgetto and Fabrizio Giugiaro, has designed the cars for Bruno Laffitte, the grandson of French Formula One driver Jacques Laffite.

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Gregg Young expands dealership count in Iowa

The Gregg Young Automotive Group, with stores in Iowa and Nebraska, added four dealerships in three transactions late last year to add to its presence in the Hawkeye state.

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Plastics supplier to Rivian, Bosch faces insolvency

Unique Fabricating is facing insolvency after failing to make loan payments and dealing with allegations of improperly reporting finances, on top of being investigated for alleged labor rights violations in Mexico.

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Lucid's customer experience chief leaves amid layoffs

Lucid employees, from the assembly line to software engineers, announced their departures online after the EV startup said it was laying off about 1,300 workers.

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2024 Chevy Silverado, GMC Sierra full-size pickups get engine updates

The Silverado and Sierra will receive other updates for the 2024 model year, including new exterior paint colors.

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Subaru Crosstrek Wilderness adds off-road chops for 2024

The Wilderness package has been a major hit for Subaru, accounting for just under 20 percent of Outback and Forester volume, while attracting new customers to the brand who seek to go deeper into the woods, mountains or desert.

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2024 VW Atlas Peak Edition gives the appearance of off-road prowess

The Volkswagen Atlas Peak Edition is inspired by a concept off-roader the automaker showed at the New York auto show in 2019, but is largely an appearance boost to make the three-row crossover look more rugged.

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Stellantis CEO Tavares' compensation generates conflict

Tavares' total compensation for 2022 was almost $26 million, including long-term compensation.

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Auto industry outlook is both under pressure and historically great

At New York Auto Forum, 2023 is still seen as healthy, but less spectacular than last year.

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U.S. warns 143,000 VW Atlas owners to keep front passenger seats empty pending fix

The passenger occupant detection systems may experience a wiring fault, which could deactivate the front passenger airbags even when the seat is occupied.

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As infotainment systems integrate Zoom and TikTok, the question remains: Why?

Third-party app stores will bring TikTok and Zoom to cars. Are the risks worth the rewards? Safety advocates are questioning the logic behind these integrations.

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2024 Toyota Tacoma hybrid previewed in teaser shot

Toyota released a teaser image of its redesigned 2024 Toyota Tacoma midsize pickup showing it will feature an iForce hybrid powertrain tuned for added power and towing capability, following its earlier strategy for Tundra.

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Tesla’s ‘staggering’ $137 million tab for racism suit slashed by 98%

The award that Owen Diaz won two years ago was among the highest ever for an individual suing over discrimination in the U.S. Diaz elected for a retrial on damages after a judge said the amount was too high.

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Genesis hints at GV80 Coupe with concept

The four-seat coupe is billed as a more athletic version of the GV80 crossover. "It is a statement of intent for more emotional, performance-oriented models and a preview of Genesis' future programs," the automaker said.

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Goodyear wins reversal of $64M loss in tire trade-secret case

U.S. District Judge Sara Lioi said most of the trade secrets that Czech company Coda Development SRO accused Goodyear of stealing were too vague to be legally protected.

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Rivian produced 9,395 vehicles in Q1, delivered 7,946

The output was above the average 8,752 estimated by analysts,

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Ford Credit debuts first-ever consumer ad campaign as auto lending market undergoes rapid change

With more people shopping online, lenders such as Ford Credit must shift strategies.

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Honda sales rebound; Hyundai, Kia rack up double-digit gains

The U.S. auto market, driven by fleet sales, is forecast to rise 1 to 7 percent in March, capping a first-quarter rebound, as inventories steadily rebound and discounts, while still low, rise across much of the industry.

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Manchin steps up clash with Biden over electric-car tax credits

Senator Joe Manchin stepped up his fight with the Biden administration over its implementation of the president's signature climate bill in a way Manchin says over-emphasizes clean energy technology, turns away from fossil-fuel production and spends too much.

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VW will phase out combustion engine Golf, brand boss Schaefer says

The current, eighth-generation Golf will get a comprehensive update next year but after that it will not be replaced with a combustion engine model.

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2023 Automotive News list of the top U.S. dealership groups shows many shifts

The groups on the annual Automotive News list commanded a bigger percentage of the U.S. industry's new light-vehicle sales in 2022 and held a growing share of the U.S. dealership count.

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The latest numbers on the microchip shortage: North America hit hardest

The ongoing global supply shortage of semiconductors is mostly cutting schedules in North America and Europe.

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Acquisitions propel Lithia to list’s top spot

Lithia Motors, once the smallest publicly traded dealership group before embarking on a multiple-year dealership buying spree, passed longtime No. 1 AutoNation in new vehicles sold in 2022.

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Want a sunroof on your Dodge Demon? That'll be nearly $10,000, please

A sunroof doesn't fit the muscle car's 'ethos,' Dodge says. But customers who really, really, really want one will pay a hefty price.

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Hyundai, Kia rack up double-digit gains

The U.S. auto market, driven by fleet sales, is forecast to rise 1 to 7 percent in March, capping a first-quarter rebound.

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