Trade News

Sending customers videos that bolster suggested repairs and maintenance revealed by multi- point inspections is a proven way to amp up service and parts revenue. But persuading technicians to videotape their inspections can be as difficult as removing rusty manifold bolts.

But at Austin Subaru and Austin Infiniti, two adjacent dealerships owned by Continental Automotive Group, service managers have cracked the code by using two different strategies. At the Infiniti store, most technicians produce their own videos. But at the Subaru rooftop, where technicians balked at playing cinematographer, three professional videographers do the heavy lifting.

While the strategies differ, the results are similar: significant increases in revenue because videos move customers to say yes to suggested maintenance and repairs, said service director at Austin Subaru, and Josh Sandoval, service manager at Austin Infiniti.

"It works because you're seeing it straight from …

Not the kind of publicity one looks for at an auto show.

A fire broke out at the booth of Beijing-based design and engineering firm IAT Automobile Technology Co. on the eve of the Guangzhou auto show last month.

Grainy video of the fire circulated on social media, as did speculation about the source of the fire, which was said to be a small concept vehicle. Attendees took photos and video but were ordered to delete the images, according to reports.

On Dec. 31, two days after the fire, the company released a statement: "After preliminary investigation, the debugging personnel disconnected the external power switch and got in the vehicle for debugging and the logistics personnel turned on the external power switch accidentally, which caused an electrical short circuit and fire. The car is a static concept exhibition vehicle. During the preparation process, the high-voltage power system was removed, and only a set of 12V low-voltage power supply system was …

LAS VEGAS — Technology that could fundamentally reshape transportation was easy to find last week at CES.

There were sensors that allowed autonomous vehicles to travel at speeds approaching 190 mph, breakthrough battery advances that could enhance the transition to electric vehicles and immersive cabin technology that alters the passenger experience in cars.

How such technology moves from the show floor into the real world remains a vexing proposition. Innovation, particularly in the automotive sector, can be plodding.

It's an age-old problem scrutinized with renewed vigor during CES. Pressing concerns over greenhouse gas emissions, energy security and geopolitical stability, and economic uncertainty have automakers seeking technology that can deliver both breakthroughs and cost reductions.

But those technologies must pass through laborious and thorough development, verification and validation processes. Sometimes pat…

Dutch startup Lightyear says its second solar-powered electric vehicle will have more than 500 miles of range and cost under $40,000. The Lightyear 2 will be the first model sold in the U.S., with output expected to start at the end of 2025. The company used CES to launch a wait list. Final specs and design will be released this summer.

Another year defined by supply chain challenges turned out to be a mixed bad for U.S. automakers.

General Motors reclaimed its crown as the top-selling U.S. automaker, while Tesla continued its dominance in the electric vehicle space even as challengers posted big gains.

Here's a look at some of the key sales races from 2022.

Lingering supply chain woes dragged 2022 U.S. light-vehicle sales to their lowest level since 2011, but many dealers are entering 2023 with fuller lots as production begins to bounce back — at least for some automakers.

Still, experts warn the industry will grapple with numerous challenges this year that could slow its recovery, including rising interest rates and sky-high transaction prices that may turn away some buyers.

"We're not seeing demand collapse; there's still strong demand, but it's certainly weaker than it was," Michelle Krebs, executive analyst at Cox Automotive, told Automotive News. "Interest rates on top of high prices are just freezing some people out of the market."

Among the companies that reported, U.S. light-vehicle sales fell roughly 8 percent to 13.4 million in 2022, according to the Automotive News Research & Data Center. Mercedes, Porsche and Jaguar Land Rover are set to report this week.

The seasonally adjusted ann…

Faulkner Subaru Harrisburg's boost committee is an extension of the company's open-door policy where all ideas are welcome.

"We use it to boost anything from profits to inclusion and diversity to brainstorming to come up with new ideas," said Doug Jones, general manager of the Pennsylvania dealership.

Committee members meet monthly — two each from every department including sales, parts, finance, management and business development. Membership rotates among employees at the dealership, which is one of 30 locations owned by the Faulkner Organization.

Store leaders launched the committee in 2020 after recognizing that the best ideas come from frontline employees, Jones said, who often know their department's workflow best.

The boost committee has solved both small issues, such as car wash wait times, and larger challenges, such as dealership parking problems, Jones said. The ideas generated by the committee have saved work time, improved customer…

LAS VEGAS — U.S. Energy Secretary Jennifer Granholm said her office is working with the Treasury Department on guidance relating to eligibility rules for revised $7,500 federal electric vehicle tax credits.

"We're working in a very interlocked way. Our folks and their folks are talking all the time," Granholm told Automotive News following an address Friday at CES. "Our policy office is working directly with Treasury to make sure that this guidance is out and it's informed by stakeholders."

The Inflation Reduction Act had required the Treasury Department to issue the proposed guidance about how the industry can meet new eligibility rules for EV tax credits on new vehicles by the end of 2022. The department, however, said it instead would offer information about the direction the rules may take.

Granholm said it was important "to send a signal about which way it's going" as Treasury delayed the release of guidance related to requirements for critical mine…

The Illinois Automobile Dealers Association will appeal a court decision last month that favors Rivian Automotive and Lucid Group in a fight over direct sales after the state government granted licenses to the EV startups over dealer objections.

Joe McMahon, the association's executive director, told Automotive News on Friday that the dealer group held a meeting a day earlier to discuss the judge's ruling, which sided with state officials who issued the licenses in 2021.

"We discussed it pretty extensively, and everyone feels that in this situation, the judge didn't really look at the law, and the law is pretty clear in Illinois that you can't be a manufacturer and a dealer, and you can't sell direct," McMahon said.

"We welcome Lucid and Tesla and Rivian, but they should play on the same playing field as car dealers," McMahon said. He said electric vehicle makers are getting special treatment from politicians, generally, because EVs are in vogue.

Read more

Automotive News Executive Editor Jamie Butters reviews the top stories from CES 2023 with tech and innovation team leader Pete Bigelow, GM reporter Lindsay VanHulle, Stellantis reporter Vince Bond Jr., and Nick Gibbs of Automotive News Europe.

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