Trade News

The FTC wants to hear from you, the dealers at home

Citing repeated complaints from consumers, the Federal Trade Commission last month proposed 14 pages of new regulatory language targeting car dealership bait-and-switch advertising and certain finance and insurance business practices.

The pejorative language and prospect for additional regulatory obligations was not appreciated by the National Automobile Dealers Association.

"The FTC's proposed rule would impose a vast array of new, completely unwarranted, redundant and ineffectual requirements that will cause great harm to consumers by increasing prices, extending transaction times, and making the customer experience much more complex and inefficient," NADA CEO Mike Stanton said in a statement Thursday.

It seems unlikely the agency will accept this argument and retreat.

The FTC said in its notice of rulemaking June 27 it received more than 100,000 complaints each of the past three years…

Elon Musk and four of his sons met with Pope Francis at the Vatican last week and the Tesla Inc. CEO then broke 10 days of silence on Twitter to share a photo of the audience.

Musk, the world's richest individual, who is in the midst of a $44 billion takeover of Twitter Inc., wrote Friday: "Honored to meet @Pontifex yesterday."

The Vatican did not issue a public statement about the meeting, according to The Associated Press. Pope Francis often meets with corporate leaders to urge them to use their wealth and technology to aid the poor, the AP reported.

Over the years, the Holy See has made public appearances with auto executives to take delivery of popemobiles. Last year Pope Francis met with Fisker Inc. CEO Henrik Fisker to see the design for an all-electric papal vehicle. Fisker said it will covert its all-electric Ocean SUV for use by the pope, providing a retractable glass cupola and sustainable interior materials, such as the carpets.

Pope …

A quarter of the way through the '20s, it seemed like a good time to step back and look at the efforts to shift the U.S. auto industry to half zero-emission vehicles by 2030.

At this stage of the road trip, the team at Automotive News took a company-by-company look at the transition to electric vehicles as well as key government efforts on the matter. Check out the coverage on Pages 16-21.

The destination is pretty clear: Replacing millions of gasoline-burning vehicles with battery-powered ones every year. If half of the market is electric, it will be a big proof point that the industry is doing its part to address global warming and leave a livable planet for future generations. (Reducing pollution in the manufacturing process is also important, but separate, and harder to measure.)

EV share needs to grow tenfold by the end of the decade, and challenges abound: cost, quality, charging infrastructure.

Mining and mineral refining operations — suc…

Advanced driver-assistance systems are touted as today's answer to road safety. The technology is mandated across Europe, as "technical progress in the area of advanced vehicle safety systems [like ADAS] offers new possibilities for reducing [pedestrian and driver] casualty numbers." Meanwhile, regulators in the U.S. plan to address road safety issues with similar advances that prevent distracted driving in privately owned vehicles.

Such regulation could be met with resistance from the average driver. A report assessing drivers' attitudes toward advanced driver-assistance systems found that 70 percent of drivers disable "bothersome" lane-keeping assist and lane-centering systems. Furthermore, a staggering 84 percent of drivers feel that driver-assistance features don't promote safe driving at all and could actually lead to a preventable collision.

Though regulators understand the potential of this technology, drivers haven't bought in — yet. I…

After 11 years of running our 40 Under 40 recognition program honoring talented young people working in dealerships — and asking them about their early careers — we had some questions of a different sort.

What are they seeking from their employers in the area of professional development? What factors are most important to them in creating job satisfaction? How important is diversity, equity and inclusion to them and their employers?

And how good is the auto retail sector in general in laying out defined career paths and offering professional development opportunities for younger employees working in dealerships?

We'll be writing about our findings in the next week and talking about these topics Wednesday, July 6, with a couple of past 40 Under 40 honorees in a LinkedIn Live session in advance of next week's announcement of the 2022 honorees.

The vast majority of respondents to our survey so far are still working in dealerships.

And most o…

The journalist and author delves into the details of her new book, There Are No Accidents, and explains how the word protects the status quo and hinders us in taking pragmatic steps to thwart preventable crashes.

How do I subscribe?

Apple Podcasts: “Shift: A podcast about mobility” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe.

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European auto plants are cutting 68,000 vehicles from their production schedules this week and North American factories 36,000 because of the ongoing microchip shortage, according to the latest report from AutoForecast Solutions.

Those plan changes and others around the world have caused AFS to raise its projection for total lost 2022 auto production related to chip shortages by almost 167,000 vehicles. AFS now forecasts that automakers will cut a total of 3.3 million vehicles from their schedules worldwide by year end.

But trimmed factory plans do not tell the whole story of the chip shortage at the moment. Last week, General Motors said in a regulatory filing that it had built 95,000 vehicles in the second quarter that were incomplete because of missing components. Most of the incomplete GM vehicles were produced in June.

The filing said that GM expects to get the vehicles finished and delivered to retailers by the end of this year.

Source: Au…

Bring your questions to a conversation with past 40 Under 40 honorees about professional development, mentorship and employee satisfaction.

Ashlee Church, general manager of Volkswagen of Marion in southern Illinois, and Erikka Wells, the store's sales manager, will share insights with Automotive News reporter Lindsay VanHulle and Executive Editor Jamie Butters on a video chat. Audience questions are encouraged.

Church was a 40 Under 40 honoree in 2020; Wells in 2021. They bring different experience sets to the discussion.

Church came from an auto retail family and earned an MBA before opening the VW store — right before the Dieselgate scandal blew up. Wells got into the industry as a young, single mom taking on a second job to get her transmission fixed. She went on to help found WOCAN, the Women of Color Automotive Network.

The conversation will be Wednesday, July 6, at noon Eastern.

Go to the Automotive News LinkedIn page or autonews.com…

Tesla Inc. said on Saturday its global deliveries fell to 254,695 in the second quarter, snapping a two-year streak of gains, as a COVID-related shutdown in Shanghai hit production and supply lines.

In the preceding quarter, the U.S. electric vehicle maker delivered 310,048 vehicles globally. Sales totaled 201,250 in the second quarter a year ago.

Analysts expected Tesla to report deliveries of 295,078 vehicles during the April-June period, according to Refinitiv data. Several analysts had slashed their estimates further to about 250,000 due to China's prolonged lockdown.

Tesla said it delivered 238,533 Model 3 compact cars and Model Y crossovers, as well as 16,162 Model S and Model X vehicles to customers in the quarter.

Total production fell 15 percent to 258,580 vehicles from the first quarter. Still, June 2022 marked a monthly high for vehicle production in Tesla's history, the company said Saturday.

Deliveries are one of the most clos…

Toyota Motor Corp. has used up a key U.S. tax credit for hybrid and electric vehicles, a milestone that the automaker says will raise its costs and hinder adoption of climate-friendly cars.

The company said Friday that it sold 3,876 plug-in hybrid and electric cars in June. The U.S. allows automakers to offer a $7,500 tax credit to buyers of fully or partly electric cars, but only up to 200,000 per company. Toyota’s cumulative sales of eligible vehicles have now surpassed that threshold, according to data compiled by Bloomberg and confirmed with the company.

The Japanese manufacturer becomes the third automaker to hit the limit, joining General Motors and Tesla Inc. Demand for EVs has steadily grown in the U.S. over the last few years.

Toyota and its rivals have lobbied Congress for an extension of the tax credits, but they disagree on who should be eligible. Toyota and Tesla oppose a proposal by the Biden administration to offer an additional $4,500 in …