Trade News

Automakers will cut 68,000 more vehicles out of their worldwide factory schedules this week because of the microchip shortage, according to the latest estimate from AutoForecast Solutions.

North American plants expect no cuts, for a change. Most of the latest disruption is occurring in Europe and at Asian assembly plants outside China.

While more modest than many other production schedule modifications this year, the latest cuts bring the global industry to a loss of nearly 4.2 million cars and trucks in 2022 to date, according to AutoForecast Solutions. 

Automakers have been inching back to more normal supplies of chips all year, but they still have a long way to go. AutoForecast now warns that 200,000 more vehicles likely will be eliminated this month because of insufficient chip supplies. But its projection for the end-of-year total has been trimmed back by nearly 92,000 vehicles from the full-year forecast just one week ago.

Source: Aut…

I have always believed that finance and insurance is a critical linchpin in connecting car buyers back to the selling dealership. As a dealer, you can either practice hope — meaning, you hope the customer returns to your store — or you can create a contractual link with a customer.

A contractual link increases the odds of a customer returning to your store. For example, 70 percent of customers who purchase a vehicle service contract return to the selling dealership for service, paving the way for long-term customer relationships.

The contractual link is created in the F&I office. However, F&I managers are currently paid through a commission-based structure that incentivizes them to sell products with the highest margin without regard to whether a contractual link is created.

Take guaranteed asset protection and appearance products, for example. These products have a high upfront profit margin for the dealership and thus the …

Although the electric motor has only a few moving parts, it is not a simple machine. Because the rotor spins at high speeds, the internal windings and other components must be strong. The temperature also has to be managed. If the motor gets too hot, the magnets will lose their strength. Here's a look inside the motor and it's controller, the inverter. AC, or alternating current Generated by power stations, the battery flow of electricity switches constantly, 60 times per second — in a smooth, continuous wave Air gap Distance between the rotor and the stator Armature The component in the electric motor in which the current passes to generate torque Brushed motor A type of motor that uses carbon brushes pressed against the rotor to pass electricity. This type of motor does not drive a vehicle, but is used elsewhere on vehicles, such as in power mirrors, seats and sunroofs. Brushless motor A motor that has a rotor made of magnets, not coil windings Commutator Used …

Group 1 Automotive Inc. has expanded its U.S. luxury portfolio with the purchase of Mercedes-Benz of Anaheim in California.

The store appears to have been owned by Caliber Motors, according to California dealership license records, and was founded in 1984, according to the store's website. A Group 1 spokeswoman confirmed the transaction happened Thursday.

The dealership, which includes a Sprinter franchise, is expected to generate $200 million in annual revenue, Group 1 said.

The dealership group is "extremely pleased to expand our existing operations in Southern California with this great brand," Group 1 CEO Earl Hesterberg said in a statement. "Our strong relationship with Mercedes-Benz and experience in this market area make this dealership an excellent addition to our portfolio."

Group 1 in July added another Mercedes-Benz dealership, in Louisiana, along with Jaguar-Land Rover and Volvo dealerships.

The company said it has acquired dea…

As Stellantis prepares to unleash a flood of battery-electric vehicles that will redefine its portfolio, its dealers are getting crash courses on fast-charging stations and the electrical infrastructure they'll need to sell those EVs.

Instead of talking about moving metal, stores are dipping into a new world involving power companies and energy sourcing, said Randy Dye, chairman of the Stellantis National Dealer Council. These are different topics than Dye is used to, he said, but he is learning on the fly.

Dye said he's installing three fast chargers at his stores — two at Daytona Dodge-Chrysler-Jeep-Ram and another at Maserati-Alfa Romeo of Daytona.

"One of the most important pieces of this is the power company that you're using has to have the right amount of power, the right transformer for you to tie into," Dye said. "The problem with that is that's something the dealer has zero control over. If you have it, great. If you d…

Ford Motor Co. is facing legal challenges to its dealer certification program for electric vehicles from retailers in three states who argue that the plan violates franchise laws.

A group of 27 dealerships in Illinois filed a protest with the state's motor vehicle review board Friday, and four dealers in New York filed suit against the automaker earlier this week. Those actions come after the Arkansas Automobile Dealers Association in October filed a formal complaint against the manufacturer with that state's motor vehicle commission.

They are believed to be the first legal actions taken against Ford as opposition to the certification program mounts. Dealer associations in at least 14 states have written letters to Ford calling for changes, and earlier this week the plans drew rebukes from U.S. Sen. Richard Blumenthal, D-Conn., and some state lawmakers.

Ford had set a Friday deadline for dealers across the U.S. to decide whether they will invest up to $1…

Stellantis CEO Carlos Tavares will give a keynote address and reveal two concept vehicles at the CES technology show in Las Vegas on Jan. 5.

Tavares will show the Peugeot Inception and the Ram 1500 Revolution electric pickup concept at the show.

The Inception concept “will give a taste of the next generation of models,” Peugeot has said. The brand’s future models will be headlined by the next-generation 3008 compact SUV, which will be revealed next year. 

Peugeot has not shown any images of the Inception. It said the concept would show how Peugeot is “taking advantage of ‘BEV-by-design’ next-generation electric platforms.” Those platforms include STLA Small, STLA Medium, STLA Large and STLA Frame, with the first vehicles on the architecture expected to debut in early 2024. 

Peugeot will become a full-electric only brand in Europe by 2030.

Ram has released a few teaser images of the concept. It will be on the STLA Frame…

General Motors and LG Energy Solution on Friday said they are increasing their investment in a joint-venture battery cell plant in Spring Hill, Tenn., by $275 million.

The additional spending will create 400 more jobs and raise annual production capacity of the Ultium Cells LLC plant from 35 gigawatt-hours to 50 when completed and operational, the companies said. Cells made there will be used in the Cadillac Lyriq midsize crossover and other electric vehicles built on the Ultium platform at GM's nearby Spring Hill Assembly plant.

The companies originally had planned to spend $2.3 billion building the 2.8 million-square-foot battery plant, which is slated to open late next year.

"This investment will allow us to provide our customer GM more battery cells faster and support GM's aggressive EV launch plan in the coming years," Tom Gallagher, Ultium Cells' vice president of operations, said in a statement. "Ultium Cells is taking the appropriate steps to sup…

Legislation to avert a crippling U.S. rail strike goes to President Biden's desk. Ford and Honda sales drop in November while competitors enjoy double-digit gains. Ford’s EV certification program for dealers is under fire in Connecticut. Plus, a CDK Global cybersecurity study finds a big decrease from 2021 in dealership readiness for a cyberattack.

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Software security researchers and engineers used a flaw in a SiriusXM service to hack into Honda, Nissan and Toyota vehicles using only their VINs, which provides wider access to account information.

But for Hyundai and its sibling Genesis models, one only needs the email address, they said.

The researchers discovered the coding flaw in a hybrid 2022 Hyundai Sonata in September and found they could remotely unlock, start, locate, flash and honk the horn in the car. They used the same methodology to crack into Honda, Nissan and Toyota models.

As these researchers and engineers explored the back end of these smartphone applications, they kept seeing SiriusXM, a company known for its satellite and online radio services, referenced in the code and documentation related to these vehicles' onboard systems.

During their research, they found that the domain "http://telematics.net" handled the services for enrolling cars in SiriusXM Connected Vehicle Serv…

<!--*/ */ /*-->*/ Report: Toyota, Honda losing to rivals that are ahead on EVs

Toyota and Honda are losing loyal owners to rival brands further ahead in the electric vehicle transition, including Tesla, Ford, Hyundai and Chevrolet, according to a new report from S&P Global Mobility.

"Early S&P Global Mobility data suggests consumers moving to electric vehicles in 2022 are largely doing so from Toyota and Honda — brands which have been unable to keep their internal combustion owners loyal until their own brands begin to participate more significantly in the EV transition," the data firm said Tuesday.

Sales of Toyota's mass-market EV, the bZ4x crossover, were stopped for months shortly after its launch earlier this year due to a risk that its wheels could fall off. Honda discontinued its Clarity EV in 2020 after offering the sedan, with 89 miles of range, as lease-only in California and Oregon. Honda's coming Prologue EV crossover is expec…