Trade News

Automaking chiefs warned for years about effects a costly transition to electric vehicles would have on their margins. But ahead of its landmark potential listing, Porsche is telling investors it can become more profitable focusing on battery power.

The Volkswagen Group-owned sports-car maker sees more potential to raise prices of its EVs than its combustion engine models, Chief Financial Officer Lutz Meschke said during Porsche’s capital markets day early this week.

Meschke sees the manufacturer’s EV margins reaching parity with those of combustion vehicles in two years, then expanding because customers are willing to pay more for new technology.

The brand — which plans an initial public offering in the fourth quarter — mapped out a push to grow return on sales to more than 20 percent in the long term, up from 16 percent last year.

Management expects eight in ten Porsches sold by the end of this decade to run on electricity, and for EVs to acco…

BERLIN -- Nearly nine months after German supplier Eberspaecher Group fell victim to a large-scale cyberattack, the company is finally eliminating the remaining effects from its 80 sites worldwide and has made its IT systems more secure.

The attack cost the company a "mid-double-digit million amount," Eberspaecher CEO Martin Peters told journalists.

This figure is likely to be between 40 and 60 million euros ($40 million to $60 million), according to a report in Automotive News Europe sister publication Automobilwoche.

Eberspaecher produces exhaust technology, air conditioning and heating systems. It has 80 locations in 29 countries and employs nearly 10,000 people. Volkswagen Group, BMW, Stellantis are among its customers.

The supplier's IT monitoring systems first registered suspicious activity on October 24, 2021, when perpetrators deployed ransomware to gain access to company systems.

To prevent the possible spread of the attack withi…

After multiple price hikes that pushed Tesla's bestselling Model Y above $65,000 for the base version, CEO Elon Musk said the automaker's overall pricing is "at embarrassing levels" and blamed supply chain shocks and overwhelming demand for the steady march upward.

"We've raised our prices quite a few times," Musk said on the company's second-quarter earnings call Wednesday. "They're frankly at embarrassing levels. But we've also had a lot of supply chain and production shocks and we've got crazy inflation."

Musk said that inflation appears to be cooling off and he's hoping to avoid any additional increases on Tesla's four-vehicle lineup this year — and to perhaps even bring prices down.

"I think inflation will decline towards the end of the year," Musk said, adding that economic predictions should be taken with a grain of salt. "I'm hopeful — and this is not a promise — but I'm hopeful at some point we can reduce prices a little bit."

Tesla sell…

J.D Power released the results of its 2022 U.S Automotive Performance, Execution and Layout Study on Thursday and found that premium brands are, on average, more favorable to consumers and that electric vehicles are still not as appealing to consumers as gas powered ones.

The study measures owners' "emotional attachment and level of excitement" after purchasing a new vehicle and asks owners to evaluate 37 different qualities, from comfort to excitement to drive, in the survey. J.D power aggregated these responses and assigned each vehicle brand an index score measured on a 1,000-point scale.

The study found mass market brands decreased in emotional appeal as compared to premium brands, with the gap widening to 31 points from 19 points in 2021. The study also found that mass market brand satisfaction decreased by four points while premium brands increased 8 points from 2021.

The highest-ranked premium brand was Porsche with a score of 888, a six point i…

Sales of used light vehicles in China dipped 6.1 percent in June from a year earlier after shrinking at a double-digit pace the previous three months, according to the China Automobile Dealers Association. 

The trade group attributed the latest results to eased anti-pandemic measures, including the lifting of household lockdown requirements in Shanghai at the beginning of last month. 

The trade group said 1.14 million used vehicles changed hands last month. 

Sales of used sedans, multi-purpose vehicles and minibuses dropped 9.7 percent, 4.2 percent and 0.7 percent, to around 834,200, 32,700 and 89,600, respectively.

But the volume of secondhand crossovers and SUVs rebounded 9.5 percent to about 181,600. 

In the first six months, roughly 6.09 million used light vehicles were sold, a drop of 8.9 percent from the same period last year, according to CADA’s tally.

To spur the used-vehicle market, the State Council, Chi…

Volkswagen Group’s China sales fell 21 percent from a year earlier to some 1.47 million in the first six months as it halted output at plants in Changchun and Shanghai amid pandemic-triggered lockdowns from March to May. 

Deliveries at the flagship VW brand slipped 19 percent to roughly 1.08 million in the first half, according to data from the German auto giant.

Of those sales, more than 75,900 were full electric vehicles and plug-in hybrids, an increase of 107 percent from a year earlier. The surge was driven by ID.-series EV models, which generated volume of 59,400. 

In the first six months, Audi deliveries slipped 24 percent to 319,558 while Porsche sales dropped 16 percent to 40,681. 

Skoda volume plunged 44 percent to 24,700.

VW Group didn’t break down brand sales on a quarterly basis.

RecoveryAlong with a rebound in the overall Chinese light-vehicle market, which came after Changchun and Shanghai lifted city-wid…

AutoNation Inc.'s net income slipped in the second quarter as sales of new and used vehicles dropped, and the dealership giant said Thursday it struck a deal to acquire auto finance company CIG Financial for $85 million.

Thursday's acquisition announcement follows CEO Mike Manley's previously announced vision to create a captive finance company for AutoNation. In February, Manley said the company was "aggressively looking" into restarting a finance company in part to help AutoNation as it expands its standalone used-vehicle business. In May, Manley said he would prefer to create a captive finance company out of an organization it acquired. AutoNation said the purchase of CIG Financial is expected to close within 90 days.

"This acquisition addresses a key strategic next step in the evolution and expansion of our customer relationships, particularly for our used vehicle business," Manley, who became AutoNation's CEO in November, said in a statement Thursday.

DETROIT -- Ford Motor Co. on Thursday said it will import lower-cost lithium iron batteries for North American electric pickup trucks and SUVs from Chinese battery giant CATL as it works on a broader alliance with CATL and an array of separate deals to secure battery and battery materials into the next decade.

Ford Vice President Lisa Drake said the automaker plans to secure lithium iron, or LFP, batteries from a new 40 GWh factory in North America starting in 2026. Drake would not say if that factory would be built by CATL. Reuters reported in May that CATL was looking at U.S. sites to build EV batteries to serve Ford and BMW.

Ford's decision to use lithium-iron batteries in its best-selling North American EVs is the latest sign that lithium iron's lower cost - Ford said the chemistry can cut material costs by 10-15 percent - is worth the trade-off in range. Tesla is offering LFP batteries in some lower-priced Model 3 sedans sold in the United States. Electric…

Rivian Automotive delivered its first batch of electric delivery vans on Thursday to Amazon, an early investor that has been waiting out production delays at the EV startup but can now put the futuristic vehicles to work in major U.S. cities.

"In 2019, Rivian and Amazon committed to fast-tracking a new type of delivery vehicle that would result in a significant reduction of carbon emissions," Rivian CEO RJ Scaringe said in a joint statement by the companies. "That vision is now being realized."

The move is another step forward for Rivian, which has struggled to ramp up production of its electric R1T pickup, and has only recently announced the formal launch of its R1S SUV. Rivian's consumer vehicles are built on the R1 platform at its factory in Normal, Ill., and the electric delivery vans are built on a separate line.

Amazon unveiled road-ready EDVs at a last-mile delivery center in Chicago, the companies said. Amazon has been testi…

A surge in thefts of Hyundai and Kia vehicles is plaguing cities across the country, with potential thieves being shown on social media how to bypass security features in some models.

While the U.S. is seeing an uptick of automotive thefts in general, Kia and Hyundai models are making up a majority of cases in many cities.

In St. Paul, Minn., Fox 9 reported that almost a quarter of 2022's auto thefts so far have been Hyundai or Kia vehicles. In Grand Rapids, Mich., MLive reported Hyundai and Kia models made up around 45 percent of the city's auto thefts in June.

In St. Louis, there had been a 254 percent increase in Kia thefts and a 222 percent increase in Hyundai thefts in 2022 compared with the same time period in 2021, Spectrum News reported in early June.

Reports from cities such as Memphis, Tenn., Cincinnati and Columbus, Ohio, tell similar stories.

Some city governments have blamed Hyundai and Kia for not including engine immobilizers…

Stellantis NV is planning to lay off 40 workers at its Warren Stamping Plant, effective Monday — the latest in a series of local cuts.

The layoffs include 28 production workers and 12 skilled trades workers, according to a United Auto Workers Local 869 memo posted on Facebook.

The Detroit News first reported the layoffs.

"In order to operate the plant in a more sustainable manner, Stellantis confirms that there will be indefinite layoffs at the Warren Stamping Plant in Warren, Michigan, effective July 25," spokesperson Ann Marie Fortunate said in a statement. "The company will make every effort to place the laid off hourly employees into open full-time positions as they become available based on seniority."

Last month, the automaker — whose North American headquarters is in Auburn Hills — said it was cutting an undisclosed number of jobs at its Sterling Heights stamping plant, effective June 20, for the same reason: "... to operate the plant in …

Ford Motor Co. on Thursday said it plans to add a new battery cell chemistry to its electric vehicle portfolio to increase capacity and make them cheaper to build.

The automaker plans to add lithium iron phosphate cells to standard-range versions of the Mustang Mach-E next year and to the F-150 Lightning in early 2024, a move it said will reduce material costs for those vehicles by 10 to 15 percent. The automaker currently uses nickel cobalt manganese battery packs for those vehicles and its E-Transit van.

The chemistry addition is one of a number of battery-related initiatives Ford announced Thursday as it seeks to ramp global EV production to a run rate of 600,000 vehicles next year and 2 million by 2026. Ford said it already has secured all of the battery cell capacity needed for the 2023 target and has 70 percent of what it needs to achieve its 2026 goal.

"Ford's new electric vehicle lineup has generated huge enthusiasm and demand, and now we are p…