Trade News

BEIJING -- The Wuhan Economic Development Investment Co. plans to invest 50 billion yuan ($7.30 billion) to build an innovative automobile corridor in the city that will focus on new energy vehicles, automotive electronics, automotive chips and the automotive aftermarket.

In a statement on Thursday, the state-owned company said in cooperation with several major banks it aims to create an industrial hub, or "China Auto Valley," that will have industrial parks and high-tech enterprises.

Wuhan, the biggest city in central China, is the second-largest auto production center in the country behind Shanghai. Dongfeng Motor Group Co., a major state-owned automaker, is based in the city.

In addition, private Chinese automaker Zhejiang Geely Holding Group Co., Nissan Motor Co., Honda Motor Co., General Motors and Stellantis operate major vehicle assembly plants in the city.

Paul Napleton and stepson Danny Randolph of Napleton Auto Group acquired five dealerships in three transactions last year to grow their partnership. Paul Napleton is the brother of Edward Napleton, CEO of Napleton Automotive Group, based in Oakbrook Terrace, Ill.

Napleton and Randolph on Aug. 29 acquired Don McCue Chevrolet in St. Charles, Ill., from Tim McCue, Don McCue's son, Randolph told Automotive News. That dealership was renamed Napleton Chevrolet St. Charles. St. Charles is west of Chicago.

"We love the Chevrolet brand, we absolutely love the market out here in St. Charles," Randolph said. "The store just has a ton of opportunity and untapped potential."

Paul Napleton and Randolph, in the fourth quarter, went north to Wisconsin to expand their presence in the Badger state, buying Countryside Ford in Columbus and Countryside Chevrolet-Buick-GMC in Beaver Dam, from Keith Ghanian and Ted Naegeli. The transaction closed on Nov. 14, Randolph said. Read more

The auto industry is in recovery, but vehicle inventories and retail sales will remain at modest levels throughout the year, according to Eric Watson, vice president of sales operations for Kia America.

"Some manufacturers are producing vehicles and are growing pretty significant dealer stocks, while others continue to struggle to supply their dealers with product," Watson said.

Kia is maintaining its position in the middle of the two extremes.

"We're seeing an improvement of the commodities [needed] to build vehicles, but that doesn't mean that there still aren't disruptions," he said.

Kia expects to close March with a 15-day dealer supply, Watson said, which is low compared with historical averages but almost triple the supply from March and April of last year when it dipped to just five days.

"As inventory pressures rise, we're likely to see incentives increase," Watson said, adding that Kia's incentive spending is among the lowest in …

Farizon Auto, Zhejiang Geely Holding Group Co.’s new-energy commercial vehicle brand, is considering raising as much as $300 million in fresh funds ahead of a potential U.S. initial public offering, according to people familiar with the matter.

The company is seeking a valuation of about $4.5 billion in the new round of funding, up from about $3 billion from its fundraising last year, the people said. Farizon is studying the possibility of listing in the U.S. as soon as the end of this year, though no final decision has been made, the people said.

Considerations are at an early stage and details of the new funding round and IPO could still change, said the people, who asked not to be identified discussing private information. A representative for Geely declined to comment.

Founded in 2016, Farizon manufactures electric commercial vehicles, buses and coaches, according to Geely Holding’s website. The company in October raised more than $300 million in a p…

Used-vehicle retailer Canada Drives has filed for and been granted creditor protection as the company seeks to restructure its business and abandon online sales amid escalating inventory costs and weakening used-vehicle prices.

The Vancouver-based company said March 21 that its business model, based on a fully online purchasing and trade-in experience, has proved popular among car buyers, but is “no longer viable in the long-term.”

In a March 19 affidavit, submitted in support of the company’s filing under the Companies’ Creditors Arrangement Act (CCAA), CEO Cody Green said that Canada Drives’ ecommerce business, established in 2020, was “a challenge from the outset,” but began to encounter sustained losses last year.

“In the latter half of 2022, the cost of debt to own the vehicles purchased and sold increased at an unprecedented rate due to rising interest rates. The difficulties brought on by these increased carrying obligations were compounded by we…

Dealer Randy Dye had something a little more conventional in mind for a potential Ram midsize pickup, but an early concept he saw this week surpassed his expectations.

What Dye viewed during a dealer meeting in Las Vegas was "the future," he said.

Dye said the truck was an electric concept bearing an aesthetic similar to that of the 1500 Revolution concept that Ram rolled out at CES in January.

Ram CEO Mike Koval Jr. said before the dealer gathering that the midsize concept wouldn't be as developed as the Revolution. Yet Dye saw enough to be excited about Ram's vision.

Koval wasn't available to comment after the meeting.

Dye, who was Stellantis' dealer council chairman in 2022, thought the concept was "spectacular." He owns Daytona Dodge-Chrysler-Jeep-Ram and Maserati-Alfa Romeo of Daytona in Daytona Beach, Fla.

"We're going to be back in that [midsize] game," Dye told Automotive News. "Without a doubt, it looks like a Ram. I look …

The U.S. Treasury Department on Wednesday said it will release guidance next week on sourcing requirements for electric vehicle battery tax subsidies under President Joe Biden's climate change law, the first in a string of highly anticipated rules to determine how broadly the credits can be used.

The auto, battery and clean energy industries have been awaiting guidance on complex questions governing eligibility for hundreds of billions of dollars of incentives in the Inflation Reduction Act, signed into law last year.

After outlining battery sourcing rules, officials said, Treasury will follow in the next couple of months with guidance on selling tax credits and making them refundable, which allows entities without tax liability to use them.

Treasury did not specify when the future guidance announcements would be made.

Many of the rules are aimed at weaning the United States off dependence on China, which dominates the global supply chains of pro…

WASHINGTON — U.S. Rep. Darrell Issa, R-Calif., reintroduced a bill Wednesday that would amend U.S. patent law by reducing the time automakers can enforce design patents on collision repair parts to two and a half years from 14 years against aftermarket parts suppliers.

The bill — known as the Save Money on Auto Repair Transportation, or SMART, Act — would apply to automotive components, such as fenders, quarter panels and doors, and only affect aftermarket repair parts. It would not alter the 14-year period in which automakers can enforce design patents against other automakers.

The revived legislation is supported by Republican Rep. Dave Joyce of Ohio and Democratic Reps. Zoe Lofgren of California, Sheila Jackson Lee of Texas and Marie Gluesenkamp Perez of Washington.

The bill was previously introduced in 2021 by Issa, who said it will expand consumer choice for collision repair parts, reduce costs for drivers and insurers and increase competition in th…

Reconditioning is too valuable to dealership health to ignore managing it by precise numbers. Get cars sale-ready in 3 to 5 days.

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U.S. labor unions are pushing back on White House efforts to allow European Union and Japanese firms mining and processing critical minerals to tap some of the lucrative subsidies available in the Biden administration's massive climate law, fearing the move will sap American jobs.

Unions, including the UAW, worry that providing concessions to other nations would undermine the goal of bringing jobs and investment to the U.S. and detract from the Inflation Reduction Act's intent of creating a domestic electric vehicle supply chain, according to people familiar with the matter.

The resistance from some of President Joe Biden's biggest political supporters threatens to further complicate his efforts to pursue the deals with allies. It also comes as lawmakers warn against any trade deal that side-steps Congress.

The tension comes at the intersection of two seemingly unrelated pursuits by the White House — boosting America's energy transition without relying …

WASHINGTON — Hyundai Motor America is recalling nearly 568,000 pickups and crossovers in the U.S. that are potentially equipped with trailer harness modules that could catch fire.

The recall covers 2019-23 Santa Fe midsize crossovers, including 2021-23 hybrids and 2022-23 plug-in hybrids, as well as 2022-23 Santa Cruz compact pickups.

Hyundai is advising owners to park their vehicles outside and away from structures until a repair is completed.

Those vehicles might be equipped with an accessory tow hitch assembly available for purchase through Hyundai or a dealership.

"Water accumulation on the tow hitch harness module printed circuit board (PCB) may cause an electrical short, which can result in a fire," according to a recall report made public Thursday.

The automaker told NHTSA it was aware of six incidents potentially related to the faulty component in the U.S., including one report of fire and five reports of thermal damage isolated to …