Trade News

Audi CEO Markus Duesmann flew to China last week to tackle a problem that is indicative of the challenges facing Germany: how to compete with its biggest trading partner on new technology.

The head of the German luxury brand went to visit Audi's Chinese joint venture partners -- China FAW Group Co. and SAIC Motor Corp. -- to discuss ways to sell more electric vehicles in the world's largest car market. The effort is critical not just for the Volkswagen Group unit but also as a test of Germany's ability to navigate threats to its competitiveness.

Germany's vaunted automakers dominated the combustion-engine era, but the transition to electric vehicles puts their standing at the pinnacle of the auto industry at risk.

Audi, Mercedes-Benz and BMW are ramping up their range of battery-powered models in a critical bid to compete with Tesla and upstarts from China, including BYD and Nio.

"The transition to electric vehicles in China is naturally a challe…

Many wheels of change in auto retail

There's been a lot going on in auto retail, as you'll see in this week's Automotive News.

Bryan DeBoer's ambitious growth plans for Lithia Motors Inc. have the company, based in Medford, Ore., (pop. 86,000) finding its way to London (pop. 9 million) about 5,1000 miles away. That's a long road trip!

Last week's purchase of Jardine Motors Group, Jack Walsworth and Julie Walker report, adds more than 40 new-vehicle dealerships in the U.K. to Lithia's portfolio, including stores selling luxury brands Aston Martin, Porsche, Mercedes-Benz and BMW. And by entering the U.K., Lithia gains direct exposure to the agency model of retail, in which each brand’s dealers sell new vehicles at factory-set prices with a more fixed profit schedule.

It also gets Lithia more than $2 billion dollars closer to goal of $50 billion in annual revenue. In 2022, it booked $28.2 billion.

Lithia isn't the only one looking for big gr…

There's been a lot going on in auto retail, as you'll see in this week's Automotive News.

Bryan DeBoer's ambitious growth plans for Lithia Motors Inc. have the company, based in Medford, Ore., (pop. 86,000) finding its way to London (pop. 9 million) about 5,1000 miles away. That's a long road trip!

Last week's purchase of Jardine Motors Group, Jack Walsworth and Julie Walker report, adds more than 40 new-vehicle dealerships in the U.K. to Lithia's portfolio, including stores selling luxury brands Aston Martin, Porsche, Mercedes-Benz and BMW. And by entering the U.K., Lithia gains direct exposure to the agency model of retail, in which each brand’s dealers sell new vehicles at factory-set prices with a more fixed profit schedule.

It also gets Lithia more than $2 billion dollars closer to goal of $50 billion in annual revenue. In 2022, it booked $28.2 billion.

Lithia isn't the only one looking for big growth. Ford aims to dramatically grow its elect…

The president and CEO of the Center for Automotive Research (CAR), discusses a recent report on the state of advanced driver-assistance systems, autonomous vehicles and connectivity. Among the barriers to more widespread adoption, he says, is consumer skepticism.

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Several years ago, Corina Diehl — owner of Diehl Automotive Group — decided to roll the dice and build a 26,000-square-foot standalone collision center in Pittsburgh.

The final cost: About $2.5 million.

The calculated gamble has turned into a smashing success. Since the Diehl Collision Center opened in October 2019, annual revenue has increased by double-digit percentages, despite the pandemic, which hit full force soon after its opening, Diehl said.

In 2020, the first full year of operation, the center generated an average of $243,000 in sales per month. In 2021, average monthly revenue rose to $326,000 — a 34 percent increase compared with 2020. In 2022, average monthly revenue increased to $412,000 — about a 26 percent jump over the 2021 figure, Diehl said.

The center already is booked out for repairs through midsummer, she added, as are six other collision-repair facilities owned by the auto group, which operates 21 stores in Pennsylvania an…

Long the next big advancement in green transportation, hydrogen may have missed its chance to become a major fuel for light vehicles.

Even as technology advances, battery-electric vehicles have quickly become the green vehicle of choice for most U.S. consumers.

Tesla, which offers only electric vehicles, sold nearly 187,000 cars in California last year, trailing only Toyota's gasoline autos in market share in the state. During that same period, Toyota sold just 2,094 of its Mirai hydrogen fuel cell cars nationally.

Automakers offer just two hydrogen fuel cell options, the Mirai and the Hyundai NEXO Fuel Cell. Honda said it will sell a hydrogen fuel cell CR-V crossover starting in 2024. It would replace the poorly selling hydrogen Honda Clarity discontinued in 2021.

Contrast that with more than 50 EV models Automotive News estimates are for sale or will come on the market this year. That represents a staggering gap in…

Mercedes-Benz is giving its entry-level GLA compact crossover a light makeover for the 2024 model year. While there are no major sheet metal changes, the interior, exterior and equipment have all been revised. A mild-hybrid system is now standard.

The more SUV-like GLB compact crossover also receives refined front and rear styling for 2024, with new LED high-performance headlights, dual 10.25-inch displays and the brand's latest-generation MBUX infotainment system. It will be available late this year.

The 2024 GLA, scheduled to arrive at dealerships this year, will have a new grille with vertical louvers and a redesigned front bumper. The headlights and taillights have been changed to LED, and three new wheel designs are available. Inside, two screens with a total viewing area of more than 20 inches are standard. Also now standard are a parking assist and mirror package as well as a keyless package. Mercedes redesigned the MBUX system, which can be configured…

SUZUKA, Japan – Toyota's newly appointed CEO Koji Sato says hydrogen will be a top priority of his carbon neutral strategy, even as he redoubles his focus on electric vehicles.

Under his watch, through the end of the decade, the focus will be expanding the hydrogen infrastructure and the array of industries using the futuristic fuel, Sato said.

"We want to ensure that hydrogen stays a viable option," Sato said March 18 on the sidelines of a weekend endurance race where Toyota has planned to field a hydrogen-powered race car.

"We need a production and transport supply chain," Sato said. "Unless we see evolution there, we cannot expect a volume increase in the energy's use."

Sato, who takes over as CEO of Toyota Motor Corp. on April 1, said last month after being named to the top job that the world's biggest automaker "must drastically change" the way it does business and adopt an "EV-first" mindset. The company is now developing a new dedicated EV…

Trying to get driver's license certifications for her children in Pennsylvania was an "unbelievable" experience for Beth Beans Gilbert, vice president of Fred Beans Automotive Group.

Road tests in Pennsylvania must be taken through the state's Department of Transportation or an approved third-party business. Gilbert described signing up for the test through PennDOT as a "terrible process" where she had to often wake up in the middle of the night to attempt to schedule an appointment through the online system.

It felt like a lottery system, Gilbert said, as the number of new drivers eager for a test outnumbered the available test spots. People often pay driving instructors to navigate the system for them to secure an appointment, she said.

Then Gilbert learned of Jason Fidishun, CEO of John's Driving School — one of the small number of businesses allowed to administer driving skills exams in the state — and sought his help for her children.

She s…

Lithia Motors Inc.'s acquisition of Jardine Motors Group in the United Kingdom, similar in store count and revenue to its 2021 megadeal to buy Michigan's Suburban Collection, immediately gives the largest new-vehicle dealership group in the U.S. significant scale in an international market it long coveted.

The deal adds more than 40 new-vehicle dealerships in the U.K. to Lithia's portfolio, including stores selling luxury brands Aston Martin, Porsche, Mercedes-Benz and BMW. And by entering the U.K., Lithia gains direct exposure to the agency model of retail, in which dealers sell vehicles on behalf of some automakers, such as Mercedes, at factory-set prices.The deal, which closed Wednesday, March 15, will add more than $2 billion to Lithia's annual revenue, Lithia CEO Bryan DeBoer said.

"And more importantly, it gives us a foundation to grow more in the United Kingdom over time, which is helping us drive towards our $50 billion [annual revenue] target for 202…