Trade News

WASHINGTON — Despite bipartisan efforts in the House and Senate, new-car dealers looking to Congress for legislation on LIFO tax relief may need to wait until next year.

The nearly $1.7 trillion omnibus spending package unveiled Tuesday was seen as one of the last legislative vehicles for a bill that would have provided relief to dealerships that use the "last in, first out" inventory accounting method and have struggled to maintain inventory levels because of the global semiconductor shortage.

Congress is preparing to pass the package before a weekend deadline. The bill, which funds the federal government through Sept. 30, leaves out the much sought-after LIFO relief.

"There is strong, bipartisan, bicameral support in Congress for providing LIFO relief to dealers. However, the omnibus spending bill released Tuesday did not include any business tax provisions such as LIFO," NADA spokesman Jared Allen said in a statement to Automotive News. "NADA will co…

SHANGHAI -- As China's massive wave of COVID-19 infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating.

From its original epicenter in the north, including the capital Beijing, COVID-19 infections are spreading throughout the country and cases are impeding workforces in manufacturing belts, including the Yangtze River Delta, near Shanghai.

Retail and financial services businesses have been hard hit by a shortage of staff, with automakers and other manufacturers not far behind, according to an international business organization operating in China.

"The retail and client facing sectors are in deep trouble. Obviously, they have limited staff that are available to work because of illness, so many of our large-scale retailers are not even opening their doors," said Noah Fraser, managing director at the Canada-China Business Council.

With mass testing halted after China abruptly dropped i…

Frank Hasenfratz, 86, a Hungarian refugee to Canada who later created the auto parts powerhouse Linamar Corp., died Jan. 8.

He went into business after his boss at a previous job wouldn't consider the importance of reducing scrap waste, a quality metric that would distinguish Linamar for decades.

The 29-year-old machinist constructed his first machine shop in his backyard in 1966 and incorporated the business under the name Linamar, after daughters Linda and Nancy and his wife, Margaret. Linamar today employs 29,000 people in 17 countries and most recently reported revenues of $5.8 billion a year.

Over time, Linamar expanded from high-volume precision vehicle parts production into aerospace, defense, and agricultural and industrial equipment.

MaryEllen Green Dohrs, a pioneering automotive designer who created the interiors of high-end General Motors cars in the early 1950s, died Jan. 12 at age 92.

Dohrs was one of the first female designe…

Efforts to push and prod the U.S. Postal Service into ensuring electric vehicles make up a greater portion of its new mail truck fleet have delivered.

The agency said Tuesday it will purchase more EVs through 2028 than initially anticipated. In total, 66,000 EVs will be included in the Postal Service's overall plans to buy 106,000 vehicles between now and 2028.

There had been uncertainty surrounding the agency's willingness to further commit to electrifying the largest and oldest vehicle fleet owned by the U.S. government. But in August, Congress essentially directed the Postal Service to electrify most of its new mail truck fleet by approving $3 billion in the Inflation Reduction Act for such purchases.

With Democrats retaining control of the Senate in the 2022 midterm elections, and the Biden administration requesting the Postal Service further examine its plan to buy primarily gasoline-powered vehicles, it had appeared more EVs were on the horizon. Read more

Hyundai Motor Group elevated Genesis global COO Mike Song to executive vice president and global head of the Genesis business division.

As global head, he will oversee the luxury marque's global presence, lead its transition to an all-electric brand and develop growth and market opportunities.

"I am honored to be part of Genesis' growing momentum around the world," Song said. "Genesis is a recognized luxury car brand at the forefront of design and technology in the rapidly evolving electrification era."

Song steps into a role held by Jay Chang, who will remain CEO and president of Hyundai Motor Co.

Genesis expects Song's leadership to spur "significant gains in profitability through a clearer brand vision that places greater emphasis on customer experiences," the company said in a statement.

Song will remain global COO, responsible for leading global operations and positioning the brand as a top player in the luxury automotive space. Read more

BERLIN -- Several production lines at Volkswagen and FAW's plant in Chengdu are operating with staff on 11-hour shifts, up from eight usually, to compensate for time lost due to a closure in November, a spokesperson said on Tuesday.

Production at the plant was stopped on Nov. 21 for two weeks because of a lack of parts as suppliers struggled with rising coronavirus cases following China's loosening of its zero-COVID policy.

The carmaker has brought in extra staff at the plant from within its wider workforce to raise the number of hours worked in order to make up for production shortfalls from that timeand allow for more breaks, a spokesperson said.

The spokesperson denied an earlier report by Bloomberg that staff at Volkswagen's plant in Foshan were working 11-hour shifts because other workers were calling in sick with coronavirus.

The Foshan plant was operating as normal, the spokesperson said, adding hygiene measures were in place similar to tho…

Hackers have stolen Nio Inc. user and car-sales data and are now blackmailing the Chinese electric-vehicle maker.

Nio received an email this month in which the sender demanded $2.25 million in Bitcoin in return for not releasing the data, the automaker said Tuesday. An internal investigation revealed that part of Nio’s user and vehicle sales information prior to August 2021 had been compromised.

“The company strongly condemns such unlawful acts and will not bow down to cyber crimes,” Nio said in a statement, adding that it had reported the incident to regulators. It pledged to take responsibility for any potential damages to customers.

Data security issues have become a concern for auto manufacturers and their suppliers. Hackers stole around 40 terabytes of data from German auto-parts maker Continental during a cyberattack in August. The loot may include information connected to customers Volkswagen Group, Mercedes-Benz and BMW Group, Germany’s Handel…

Automotive News reporter Michael Martinez talks about the year Ford had in 2022. Plus, U.S. Treasury delays EV tax credit guidance until March. And Magna agrees to buy Veoneer Active Safety for $1.53 billion.

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Hyundai's Kona subcompact crossover is getting a bigger footprint and adding a gasoline-electric hybrid to the lineup.

The second-generation, 2024 Kona will feature larger dimensions, including a 5.9-inch increase in length and nearly 1 more inch of width. The wheelbase grows by 2.4 inches. The new Kona is still billed as an urban runabout but Hyundai says the bigger size will give it more living space and a bolder presence.

Hyundai said the redesign started with the EV, an unusual move for vehicles with multiple powertrains. The styling is more EV-leaning, with a lightbar that stretches across each model's front end.

The Kona EV sports the pixelated design cues found on Hyundai's electric Ioniq 5 and upcoming Ioniq 6 stablemates. The gasoline and hybrid variants have a more rugged bumper that incorporates a skid plate design as well as chunkier black wheel arch cladding. The N-Line, also gas-powered, sits lower to the ground and i…