Trade News

Capital One has laid off a small number of its 3,300 auto finance employees.

The layoffs occurred last week in response to the company's decision to cut back on writing new loans, according to a spokesperson for the lender.

"We continually assess our business to ensure we are well-positioned to offer innovative and competitive products and services to all of our customers," the spokesperson wrote in an email. "Rising interest rates, used vehicle prices and moves by competitors have created unique headwinds and compressed margins in the auto lending industry. Based on our assessment of the environment and our auto business, we pulled back on originations. To better align teams to match our current originations volume and ensure our organization remains strong and resilient, we announced changes that impacted some associates in our auto business."

Capital One took on $8.29 billion worth of new auto loans in the third quarter, down 28 …

SAN DIEGO — Used-vehicle prices are unlikely to crater in the coming months partly because of the strength of lingering new-vehicle demand, a J.D. Power expert said.

Approaching a "cliff edge" in used-vehicle prices likely won't happen because pent-up consumer demand on the new-vehicle side equates to probable sales of more than 4 million vehicles, said Tyson Jominy, vice president of data and analytics at J.D. Power, who spoke Monday at the Used Car Week conference in San Diego.

If automakers could produce vehicles at 2018 levels, they would "clear this [backlog of sales] quite quickly" and "be back to a more moderate price environment," Jominy said.

Used-car market trackers report that wholesale prices peaked in November and December 2021, Jominy said. In the lead-up to that, prices for the average used vehicle went from hovering around $15,000 all the way to $28,000, he said. Since then, prices have trended about $3,000 lower, Jominy said.

But …

Ford Motor Co. CEO Jim Farley said insourcing work from suppliers will be crucial to keeping jobs at the automaker as the industry shifts to electric vehicles composed of far fewer parts.

As Ford undergoes "the biggest change to our industrial system since the '20s there are also some storm clouds," Farley said Tuesday at the Rainbow PUSH Global Automotive Summit in Detroit.

"It takes 40 percent less labor to make an electric car. So as a family company, we have to insource so that everyone has a role. We have a whole new supply chain to fill out, and diversity has to play an even greater role in that than we've had."

Jobs, minority inclusion and union representation were among the key points in a discussion between Farley and the Rev. Jesse Jackson at the event.

The transition to EVs is especially important for Black-owned businesses whose primary role in the industry is to supply automakers, event Chairman John Graves said.

With EVs made …

Auto dealerships have another six months to beef up their consumer information security following a Federal Trade Commission Safeguards Rule extension announced Tuesday.

The last-minute reprieve moves the date for dealerships and other financial institutions to comply with the revamped Safeguards Rule, from Dec. 9, 2022, to June 9, 2023. The Safeguards Rule is part of the Gramm-Leach-Bliley Act regulating business customer information practices.

FTC commissioners voted 4-0 in favor of the extension. FTC Commissioner Christine Wilson on Monday issued a separate statement noting that she still opposes the FTC's 2021 decision to change the rule in the first place.

The agency cited reports — including from the Small Business Administration Office of Advocacy — of a lack of qualified personnel to oversee the changes and businesses having difficulty sourcing necessary technology.

"These difficulties were exacerbated by the COVID-19 pandemic," the FTC wr…

WASHINGTON — Two fatal crashes, both involving Tesla Model 3 sedans with driver-assist technology, were reported during the Sept. 16 to Oct. 15 period, according to federal data released Tuesday.

Both crash deaths happened in California, though many of the details are redacted or considered confidential, NHTSA data shows.

Tesla's Autopilot driver-assist system has been under escalated scrutiny by the federal regulators after a series of crashes in the U.S. that resulted in more than a dozen injuries and one death.

Through Oct. 15, NHTSA has received reports of 18 fatal crashes involving vehicles equipped with advanced driver-assistance systems since it began forcing automakers, suppliers and tech companies to disclose the data last year.

The agency's order applies to vehicles equipped with Level 2 systems — those with driver-assist features such as lane-centering and adaptive cruise control — and Level 3 to Level 5 systems, which are not yet avail…

Automatic emergency braking and forward-collision warning technology is taking a bite out of front-to-rear crashes. The FTC refunds millions of dollars to consumers in a case against Napleton Automotive. Electric truck stops of the future will need as much energy as a small town. Plus, a preview of this week’s LA Auto Show with VP of Marketing David Fortin.

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Daily Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Daily Drive"

Android

“Daily Drive” is available on the Google Play store. Click here to subscribe to "Daily Drive"

Spotify

"Daily Drive" is available on Spotify. Click here …

WASHINGTON — Automatic emergency braking systems can reduce rear-end crashes in pickups, but few are equipped with the safety feature as standard technology, according to a study released Tuesday by the Insurance Institute for Highway Safety.

The study used data gathered from police-reported crashes in 25 states from 2017 to 2020 and looked at the rate at which pickups rear-ended other vehicles per year.

The rear-end crash rate was 43 percent lower for pickups equipped with the technology than for those without it, the findings showed. Rear-end injury crash rates were 42 percent lower.

"These numbers confirm that [automatic emergency braking] is reducing crashes for pickups, just as it is cars, SUVs and large trucks," said study author Jessica Cicchino, vice president at the insurer-funded institute. "The faster automakers can make sure that every pickup they sell has this important safety feature, the better."

Automatic emergency braking aimed at…

Porsche is accelerating toward a greener future with the arrival of its first electric crossover — a battery-powered Macan that will pack a big battery and output.

The more than 600 hp electric Macan will be the "sportiest model in its segment," Porsche says.

Software supplier-related issues have delayed the compact luxury crossover by about a year. Production of the electric Macan will begin at a plant in Leipzig, Germany, in early fall 2023, analysts say, with U.S. deliveries expected in the first quarter of 2024.

The Macan EV — the sports car maker's second all-electric model, after the Taycan — is critical to Porsche's aims to generate more than 80 percent of new-vehicle sales globally from EVs by 2030.

The combustion engine variant is Porsche's best-selling U.S. model, accounting for nearly a third of sales in the first nine months.

Porsche expects to build as many units of the electric Macan EV compact crossover as the combustion en…

Die casting manufacturer Pace Industries LLC plans to close a plant in Michigan and lay off 244 employees due to "financial trouble."

The permanent layoffs at the factory in Muskegon, Mich., will start Dec. 20 and be complete by the end of the year, according to a WARN notice filed to the state. Employees are not represented by a union.

The notice does not expound on the financial trouble leading to the closure. Crain's Detroit Business, an affiliate of Automotive News, could not immediately reach the company for comment Monday.

Pace has four manufacturing locations in the Muskegon area, according to its website.

The layoffs are the latest for a manufacturing sector that has been hit hard by inflation and supply chain troubles over the past two years. Several small manufacturers and local tool-and-die shops have filed for bankruptcy protection amid the pressure.

Last year, Pace moved its headquarters from Arkansas to suburban Detroit, whe…

The Federal Trade Commission is sending payments totaling more than $9.8 million to the thousands of consumers affected by a discrimination lawsuit against Napleton Automotive Group.

The agency is distributing 66,355 checks averaging $147 each to car buyers it says were affected by unlawful practices at group stores. Consumers should cash the checks within 90 days, the FTC said in a statement Monday.

Napleton Automotive, of Oakbrook Terrace, Ill., in March was the subject of a suit the FTC and the State of Illinois filedalleging that employees were adding illegal junk fees for unwanted add-ons to vehicle purchases and charging more in financing for Black consumers.

The joint complaint cited eight Napleton dealerships in Illinois, Florida, Pennsylvania and Missouri and a general manager of two Illinois dealerships accused of adding junk fees and other products illegally, such as paint protection, in contracts as long as 60 pages.

In April, the de…

CEO Mary Barra plans to tell investors this week that GM expects its EVs to be profitable in 2025. Stellantis locks in a new chip supplier. Toyota is set to unveil its fifth-generation Prius. Plus, Nauto Founder and CEO Stefan Heck talks about how his company’s AI cloud data platform can be used to crack down on drowsy driving for fleets.

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Daily Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Daily Drive"

Android

“Daily Drive” is available on the Google Play store. Click here to subscribe to "Daily Drive"

Spotify

"Daily Drive" is available on Spotify. Click here to subscribe to "Da…

Introducing Kelley Blue Book's newest eBook that highlights ways for dealerships to turn their service centers into profit centers. Combining best practices, alongside proven solutions to some of today’s problems, it offers practical and successful ways dealers can maximize their efficiency, increase service customer loyalty and drive revenue through their service drive now. As the #1 most trusted third-party automotive brand, Kelley Blue Book is focused on helping you grow your business. From acquiring inventory, to generating new service and sales opportunities, we drive trust so you can close deals.