Trade News

WASHINGTON — The pool of used electric vehicles eligible for a tax credit taking effect next year could be slim to start out, with consumer choices — at least in the near term — limited to models with shorter battery range that were built mainly to meet tougher emissions regulations, several industry experts and dealers told Automotive News.

The Inflation Reduction Act includes, for the first time, a tax credit for income-qualified buyers that's equal to 30 percent of the total cost of a used battery-electric, plug-in hybrid or fuel cell vehicle, and capped at $4,000. Vehicles must be at least two model years old and cost $25,000 or less, but they are not subject to the same stringent sourcing and assembly requirements as the revamped tax credit for new EVs.

While it sounds great in theory, in practice it could take between three and five years before the credit is used regularly by consumers, said Ivan Drury, director of insights at Edmunds.

"[It's] g…

PARIS - German air taxi developer Lilium Air Mobility plans to set up industrial capacity to make some 400 of its electrically powered Lilium Jet flying shuttles a year, while tapping schemes that provide public research support, its new chief executive said.

Lilium is competing in a crowded market for electric Vertical Take-Off and Landing (eVTOL) vehicles, hoping to replace road trips or short hops by aircraft or helicopters.

But the challenges of securing certification and funding the innovations such as fresh battery technology have weighed on the new sector. Lilium shares have fallen 73 percent so far this year.

"I am pushing hard (for) a production system for 400 aircraft. And if by good luck one day, we need 800 we will just duplicate it, not here (in Germany)...but where the big markets are," former Airbus executive Klaus Roewe told Reuters.

Roewe joined the Bavarian start-up in August after experiencing what he described to Lilium's share…

When it comes to brand loyalty, a recent study shows mainstream brand Ford and luxury brand Tesla are the most successful.

S&P Global Mobility released its quarterly loyalty insights in a webinar titled "Loyalty viewed from a broad perspective" Tuesday. Loyalty is measured by the number of households that return to the vehicle market and choose the same brand, said Tom Libby, automotive analyst for S&P Global Mobility.

The webinar drew from year-to-date data through July. The top five mainstream leaders in brand loyalty include Ford with a loyalty rate of 59.6 percent, followed by Toyota at 57.2 percent, Subaru at 55 percent, Chevrolet at 54.9 percent and Hyundai with 53.8 percent.

The top five spots for luxury leaders in brand loyalty include Tesla with 67 percent, Mercedes-Benz at 50.5 percent, BMW at 48.8 percent, Lexus at 47.7 percent and Lincoln with 47.6 percent.

Loyalty is one metric of success, "but the drawback is that you're not…

California this month established new limits on guaranteed asset protection sales with two new laws, including one an opponent predicted would reduce GAP sales to service members.

Assembly Bill 2311, signed into law Sept. 13 by California Gov. Gavin Newsom, caps the price of GAP and bans its sale in certain situations. It also requires lenders to refund charges automatically when consumers cancel the finance-and-insurance product or pay off their auto loans.

GAP coverage pays any loan balance not reimbursed by traditional auto insurers, who are only obligated to cover the vehicle's actual value, in the event of a total loss. Like other F&I products, it is often bundled and financed within auto loans rather than purchased separately.

But Senate Bill 1311 would void a lender's security interest in a vehicle if "the loan also funds the purchase of a credit insurance product or credit-related ancillary product" sold to a service member. Coverage includi…

Ford Motor Co. is redesigning the Super Duty line of its F-Series pickups with new technology and new engine options in a bid to maintain one of its most profitable nameplates and better cater to commercial customers.

The 2023 Super Duty lineup, revealed Tuesday evening and expected to go on sale early next year, will get an embedded 5G modem with over-the-air update compatibility, an on-board generator and an upfit integration system for fleet buyers. It's also adding new driver-assist technology for towing and hauling, as well as features such as a new backup camera to be used when a tailgate is down.

Ford also is adding two new engine options: a standard 6.8-liter V-8 that replaces the current 6.2-liter V-8, and a high-output 6.7-liter PowerStroke V-8 diesel. Those will join the carryover 7.3-liter V-8 and 6.7-liter PowerStroke V-8 diesel to give the trucks what Ford says will be best-in-class towing, payload, torque and horsepower figures.

"It's thi…

VANCOUVER — Bentley's new elongated version of its popular Bentayga SUV doesn't really stick out on the crowded streets of one of the most expensive cities in North America, dotted as they are with exotic supercars and luxury sedans all waiting side-by-side in traffic.

It's not necessarily supposed to. Since its introduction in late 2015, the Bentayga — the British-built-but-German-owned luxury brand's top-selling model — has consistently concentrated more on its interior refinements than on drawing stares from onlookers as it passed.

The 2023 Bentley Bentayga EWB, for extended wheelbase, doubles down on that strategy, adding 7 inches of length, all in the second row. More than just a stretch exercise, Bentley says the additional rear legroom required developing 2,500 new parts, while the addition of four-wheel steering meant that the longer version actually has a tighter turning radius than does the original Bentayga.

Virtually …

BMW's lineup is getting a new high-powered halo model for an electrified age.

The XM plug-in hybrid SUV is the first standalone vehicle from the M performance brand since the BMW M1 launched five decades ago.

It will be assembled at BMW's U.S. factory in South Carolina, with deliveries beginning early next year. Pricing starts at $159,995, including shipping.

The new model arrives as the German performance marque steps up its electrification game.

AutoPacific President Ed Kim describes the XM as a "transition model" that shows M brand customers that electrified performance is the future.

"M is a brand for hardcore performance enthusiasts, the kinds that have petrol running through their veins," Kim said.

But BMW is looking beyond gearhead customers with the XM.

The SUV is "a pinnacle of expressive luxury," says Franciscus van Meel, CEO of the M brand.

"We are really addressing target groups that we didn't address withi…

Dealership groups scrambled to close many of their Florida locations Tuesday as Category 3 Hurricane Ian bore down on the Gulf Coast.

As of 5 p.m. EDT Tuesday, a hurricane warning was in effect on the Florida mainland from the Anclote River area to Chokoloskee, Fla., a region that includes the Tampa Bay and Fort Meyers areas, according to the National Weather Service's National Hurricane Center.

Florida’s Gulf Coast from the Suwanee River all the way to Flamingo, Fla., carried a storm surge warning, signifying a risk of life-threatening surges, as did the northeastern part of the state on the Atlantic Coast, according to the agency. Widespread catastrophic flooding was expected in Central and West Florida. Tornadoes were possible through Wednesday in Central and South Florida.

Tropical storm conditions were expected to reach Florida on Tuesday evening with hurricane conditions expected Wednesday, the National Weather Service said.

Hurricane Ian w…

A recap of the 2022 Detroit auto show with an eye on the value auto shows offer automakers, dealers, and consumers going forward. Hertz partners with BP to build out an EV charging network. Vice President Kamala Harris vows to work with South Korea on its EV incentive concerns. And a Carvana executive faces criminal charges in Illinois.

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 "Dail…

Major factors are impacting the dealership buy/sell market. New pressure points and challenges are occurring both at the local and national dealership levels – creating opportunities for some and causing concern for others. While many dealers are looking to acquire and grow, others are looking to get out, as the requirements for being a dealer continue to evolve in ways that are both financially and culturally challenging. There are four key topics with the potential to significantly impact dealer decision making in the near- and long-term: The challenges driving change in the market, including the online process, evolving consumer preferences and manufacturer policy regarding the EV future. New laws and bills that will impact dealerships’ ability to remain in compliance – both small and large. Dealer sentiment about the future and how it may impact their decision to buy or sell. The data and analyses dealers need to make sound decisions.