Trade News

A general manager and a family running a used-car store each bought their first new-vehicle dealerships while two regional auto retailers continued expansions in separate third-quarter transactions.

Here's a look at the deals involving domestic, import and luxury dealerships in Vermont, New York and Pennsylvania.

General manager buys first store, dealership group expands in Vermont

A general manager said he achieved his "American dream" and a company nearly doubled its franchised dealership count when retiring Stephan Maeder of Rutland Auto Group, formerly known as Kinney Motors, sold his three Rutland, Vt., stores to two buyers Sept. 29.

Maeder, in one transaction, sold Audi Rutland/Rutland Volkswagen and Rutland Dodge-Ram to brothers Barry and Patrick Lundgren of Lundgren Automotive Group, a family-owned business in Auburn, Mass. Rutland is east of the New York state line.

The Audi-Volkswagen store kept its name, while the Stellantis sto…

Mercedes-Benz and auto supplier Robert Bosch agreed to pay about $6 million to resolve Arizona's lawsuit over diesel advertising claims, the state said on Friday.

Under the proposed settlement, Mercedes will pay $2.8 million in consumer restitution, and each qualifying Arizona consumer will receive up to $625 per vehicle, Arizona Attorney General Mark Brnovich said. The German automaker will pay $2.7 million in penalties, and Bosch will pay $525,000 in penalties, the state said.

"Arizona demands truth in advertising to assist consumers in making the most informed decisions for themselves," Brnovich said.

Mercedes denied the allegations and made no admissions but said "with the settlement, the company takes another step toward resolution of various diesel proceedings... and avoids further costs of litigation and lengthy court actions."

In 2020, the German automaker agreed to pay $2.2 billion to resolve a U.S. government diesel emissions cheating in…

Photos of a next-generation Lincoln Nautilus for China appear to have leaked ahead of the crossover's debut there.

Images posted by the Chinese Ministry of Industry and Information show the exterior of the crossover with new styling that more closely mirrors the China-only Zephyr sedan, according to the website Ford Authority. Most notably, the Nautilus features a chrome strip across the grille, a similar design cue found on the Zephyr.

The vehicle is also expected to be slightly longer, wider and taller than the current version, according to Ford Authority, which cites specs posted by the Ministry of Industry and Information. The specs say the vehicle will feature a 2.0-liter I4 EcoBoost engine, while Ford Authority also says it's expected to include a hybrid variant.

A Lincoln spokeswoman declined to comment on the report.

"The Lincoln Nautilus plays an important role in Lincoln's global portfolio, but we are not going to speculate on future p…

General Motors said it will invest $45 million at a parts plant in Indiana to expand production of drive unit castings for the forthcoming electric versions of the Chevrolet Silverado and GMC Sierra full-size pickups.

The automaker said Friday that the investment at its aluminum die casting plant in Bedford, Ind., will add capacity to support what GM anticipates will be strong demand for the electric trucks.

The latest expansion follows an investment there of more than $51 million in 2021, which was used to support production of drive unit castings for the Silverado EV and other applications. The Bedford plant also produces electric drive unit castings for the 2022 GMC Hummer EV pickup.

"Our Bedford operation is one of the leading aluminum die casting facilities in the world and this additional investment is really an investment in the Bedford team and their commitment to excellence," Phil Kienle, GM's vice president of North America manufacturing and la…

Used-car retailer Carvana Co. is cutting 1,500 jobs, or 8 percent of its workforce, the company said on Friday, amid waning demand for used cars on the back of sky-high prices and supply shortages.

Demand for used cars has been negatively impacted by hybrid-working models and higher costs caused by rising interest rates, as consumers rethink personal mobility options to try and trim their daily expenses.

CNBC, which first reported the layoffs, cited an internal memo, that the company faced economic headwinds from higher financing costs and it "failed to accurately predict how this would all play out and the impact it would have on our business."

The weak demand has forced Carvana to sell many used cars at lower prices after having acquired them at a higher cost due to strong demand for personal transportation.

It is now faced with soaring expenses that have led to dour results in the last five quarters, raising investor concerns and sending its sh…

<!--*/ */ /*-->*/ Costly battery research in search of holy grail

Automakers and battery suppliers are in search of a vehicular holy grail — a battery chemistry for electric vehicles that sharply reduces charging times and greatly increases range while remaining cheap and easy to mass produce.

Unprecedented sums of money are being poured into battery research to find such a solution, and battery performance has improved over time as companies tinker with chemistries and packaging. But so far, that breakthrough, one that could push EVs into the mainstream once and for all, is proving elusive.

"We have hit a chemical plateau in terms of lithium battery cathode composition," said Conrad Layson, senior alternative propulsion analyst at AutoForecast Solutions LLC.

As automakers spend billions rolling out EVs and governments boost public adoption of zero-emission vehicles, finding ways to increase battery performance is becoming increasingly im…

SAN DIEGO – Carvana Co. CEO Ernie Garcia reflected Thursday on the online used-car retailer’s tough year.

“Right around this time last year, I think a number of things started to break against us, and it’s definitely been much tougher sledding since then,” Garcia acknowledged in a video teleconference Thursday at Used Car Week in San Diego.

Carvana’s tumultuous journey in 2022 highlighted by mounting financial losses and a more challenging used-car market is being closely watched. The online giant has been pressed in recent months by waning used-car demand, cash burn, a crashing stock price and regulatory challenges in several states.

One year ago, it felt like Carvana could do no wrong, Garcia said on the teleconference, but it's a different story these days.

The used market was in a good spot a year ago, and people seemed focused on Carvana’s positives, Garcia said. Today, it's the opposite — market conditions have worsened, and people are look…

Coverage of the Los Angeles Auto Show begins with Porsche unveiling its 911 Dakar. Subaru shows a new Impreza even as it gets rid of another. Polestar gets a big loan to help tackle its goals in 2023. Plus, Automotive News reporter CJ Moore joins the show from Used Car Week in San Diego.

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General Motors on Thursday said its electric vehicles would be "solidly profitable" by 2025, when it expects to be building 1 million of them a year in North America and 1.2 million battery cells daily in the U.S.

GM CFO Paul Jacobson told reporters ahead of the company's investor day in New York that the automaker will maintain North American profit margins of 8 to 10 percent in the coming years and that EV margins will nearly match those of internal combustion vehicles with the benefit of additional scale and forthcoming federal tax credits.

The company is projecting low- to mid-single-digit margins on EVs in 2025, including emissions credits and software and aftersales revenue. GM expects to generate more than $50 billion in revenue from EVs and $225 billion in total revenue in 2025. Its global revenue last year was $127 billion.

"This is really just the start for us," Jacobson said. "And when you think about the EV tax credits on top of it — we will…

LOS ANGELES — Kia revealed the freshened 2024 Seltos subcompact crossover Thursday at the Los Angeles Auto Show, with sharper styling, a new X-Line trim and more power from its turbo engine.

The Seltos, the brand's entry point, joins the ranks of its larger siblings — the Sorento and Telluride — in offering the more rugged-looking X-Line trim.

Its reworked front fascia features a larger tiger nose grille and new bumper design that creates a wider appearance. New vertical fog lights are incorporated into the daytime running lights, which reduces clutter and gives the small crossover a more commanding presence.

The restyled rear is cleaner, with a new tailgate lighting design and new backup lamps and rear reflector on the bumper.

The ruggedness of the X-Line is enhanced by 18-inch wheels, black roof rails and gloss black door trim.

For 2024, the vehicle is offered in LX, S, X-Line, EX and SX trims. The X-Lin…

LOS ANGELES — The Toyota Prius is a nerd mobile no more.

In the quarter century since the pioneering gasoline-electric fuel sipper was born, it has gone from a frumpy, dumpy subcompact sedan to a weird origami-styled hatchback with bizarre zigzag taillights.

The 2004-10 second-generation car, a nicely proportioned hatchback with a smoothly integrated front end, almost turned the corner onto Hip Street, but for a leisurely 11-second 0-to-60 mph run.

The fifth-generation car that debuted here at the Los Angeles Auto Show is a different animal. For one thing, it's now a slick five-door hatchback that looks very much like a sedan. For another, it's faster. Toyota engineers found a way to dramatically increase performance without sacrificing fuel economy. The new car, which arrives in January, will have an estimated 57 mpg combined city-highway fuel economy, and the top model can hit 60 mph in 6.7 seconds.

The styling of the new car is bound to be no…

LOS ANGELES — The X Convertible, the third in a trio of Genesis concepts, previews some key styling cues that will adorn the luxury automaker's electric vehicles.

It was unwrapped late Tuesday against the backdrop of a spectacular West Coast sunset in Malibu, Calif., ahead of the Los Angeles Auto Show.

The sleek open-roof, four-door concept follows the Genesis X Concept two-door grand tourer and Genesis X Speedium Coupe, which showcased a new, lighted version of the crest grille and what the brand calls its "athletic elegance" design language.

The new grille, also featured on the X Convertible, is a cleaner take on the mesh design found across Genesis' lineup. A spokesperson for the brand said it serves as a blueprint for the front-end designs that will be featured on future Genesis EVs.

Some of the concept's styling cues can already be found on Genesis models. The horizontal quad rear lights closely resemble the tail…