Trade News

Volkswagen Group, the largest carmaker in China, is adopting a new management structure to create more autonomy and direct oversight, while accelerating decision-making in the key country. 

The changes, effective Aug. 1, are intended to give company executives “greater autonomy to further strengthen its leading position in the dynamic automotive market,” the German group said on June 17.

VW Group has started to convert its broad global car and light-truck lineup across multiple brands to electric-only and faces increased competition from Tesla Inc. and other EV startups, as well as global giants such as General Motors, and China’s traditional carmakers who have made important strides in styling and quality in recent years. 

The core of the new organization will be a China management board, chaired by Ralf Brandstätter, now CEO of the VW brand globally. 

Other members of the board will include the CEOs of the Audi and VW brands in Ch…

Honda Motor Co. has started building an electric-vehicle factory at its joint venture with local partner GAC Motor Co. in the south China city of Guangzhou.

The project is part of the Japanese automaker’s plan to ramp up EV production in China by adding one dedicated EV plant at each of its two local joint ventures. 

The 3.49 billion-yuan ($520 million) plant is slated to begin output in 2024 with initial annual capacity of 120,000 EVs, Honda’s China office said this week.

In January, Honda signed an agreement with local partner Dongfeng Motor Group to construct a similar EV plant in the central China city of Wuhan. 

The Wuhan factory is also scheduled to start production in 2024 with initial annual capacity of 120,000 EVs.

Honda recently launched China sales of the first two locally produced models developed on a new EV platform known as the e:N Architecture F. Both vehicles are compact crossovers.

In April, the e:NS1, ass…

American Honda Motor Co. is recalling 112,060 vehicles in the U.S. after the discovery of a frame defect that could increase the risk of fire.

The recall affects 2006-14 Honda Ridgeline models sold or registered in the "salt-belt" region of the country, locations where de-icing agents are applied to roads during the winter.

Honda said an investigation revealed that accumulation of de-icing agents and other debris on the rear frame, where the fuel tank is mounted, could cause the mounting bands to corrode and separate. This could result in fuel leakage and fire risk if the fuel tank is damaged.

Honda said in a statement Tuesday that the company is not aware of any fuel leaks, accidents or injuries related to the defect.

Remedies will be determined based on the corrosion level of the frame, and Honda will "explore repurchase of vehicles on a case-by-case basis."

Honda notified dealers on June 17 and will begin notifying owners on August 1. Read more

WASHINGTON — The U.S. Government Accountability Office in the coming months will examine "right to repair" issues involving the auto industry, the congressional watchdog confirmed Wednesday.

In an email to Automotive News, spokesman Chuck Young said the office accepted a request last week to study the topic and plans to begin the effort in about six months "when relevant staff complete other work and become available."

The action comes after Rep. Jan Schakowsky urged the GAO to examine "federal agencies' efforts to ensure consumers' right to repair" with respect to light-duty cars and trucks.

The Illinois Democrat asked the GAO to study how federal agencies might balance considerations such as "addressing cybersecurity risks that may be associated with greater access to vehicle data and whether technology exists to ensure both data access and cybersecurity protections," according to a letter sent June 6 to GAO Comptroller General Gene Dodaro.

Scha…

Spitzer Management Inc., which does business as Spitzer Autoworld, on June 1 acquired two dealerships in northern Pennsylvania, according to the stores' seller Brian Wasko.

Spitzer of Elyria, Ohio, bought St. Marys Ford and St. Marys Chevrolet-GMC in St. Marys, Pa., from Wasko of St. Marys Auto Group.

St. Marys is northeast of Pittsburgh.

Wasko told Automotive News in an email that Spitzer also is slated to buy his St. Marys Chrysler-Dodge-Jeep-Ram-Fiat dealership.

The two dealerships were renamed Spitzer Ford St. Marys and Spitzer Chevrolet-GMC of St. Marys.

The acquisition follows growth last year for Spitzer, which in October bought Ford-Lincoln and Honda dealerships from Greg Murray in DuBois, Pa., also northeast of Pittsburgh. In January 2021, the group acquired Rick Case Hyundai-Genesis of Cleveland and Rick Case Honda in Euclid, Ohio, from Rick Case Automotive Group.

In fall 2020, Spizer acquired Chevy-Buick-GMC-Cadillac and…

Dodge says it's going to be an electric summer.

The Stellantis performance brand plans to preview future products in August during what it calls Speed Week.

It kicks off Aug. 12 with a press preview for the MotorTrend Presents Roadkill Nights Powered by Dodge event that takes place the next day. Roadkill Nights spotlights muscle car culture with legal drag racing, vehicle displays and Hellcat thrill rides with professional drivers.

Dodge plans a series of product announcements from Aug. 15 to 17 in the lead-up to suburban Detroit's Aug. 20 Woodward Dream Cruise, where the brand will have a display for the first time since 2019.

Dodge says it will make "current muscle announcements" on Aug. 15. The next day will see "gateway muscle" updates before "future muscle" plans are unveiled on Aug. 17.

Dodge's electric muscle car concept is expected to be among the reveals. The brand is launching a battery-electric muscle car in 2024.

Dodge CE…

Toyota Motor Corp has cut its stake in Uber Technologies Inc by about half, after the ride-hailing company divested the autonomous driving unit at the center of their collaboration.

"The development of vehicles related to automated driving was one of the main objectives of Toyota's investment," Toyota spokesperson Shiori Hashimoto said in a statement, adding that the company still aims to maintain their alliance.

The world's largest car maker by volume held 5.13 million shares of Uber as of March 31, down from the 10.25 million shares it owned a year earlier, Toyota revealed in a regulatory filing on Thursday.

The Japanese automaker valued its current stake in Uber at 22.4 billion yen ($165.51 million).

"Toyota continues to hold shares as part of our goal to maintain our collaboration and good relationship with Uber," Hashimoto said.

Toyota had invested $500 million in Uber in 2018 to jointly work on develo…

TOKYO -- Toyota Motor Corp. will recall 2,700 bZ4X crossovers, its first mass-produced electric vehicle, because of a danger that wheels could come loose.

The world's largest automaker by sales submitted the recall of the bZ4X models to Japan's transportation ministry.

Of the 2,700 vehicles, 2,200 were earmarked for Europe, 260 for the United States, 20 for Canada and 110 for Japan, Toyota said.

Subaru Corp. also said Thursday it was globally recalling about 2,600 units of the Solterra, its first all-electric vehicle jointly developed with Toyota, for the same reason.

Japan's safety regulator said sharp turns and sudden braking  in the cars could cause a hub bolt to loosen, raising the risk of a wheel coming off the vehicle. The regulator said it was not aware of any accidents being caused by the defect.

The safety regulator said it was advising drivers to stop using the vehicle until a more "permanent" repair measure was in place. Read more

Victory Automotive Group, fresh off sales of two Honda stores in separate May transactions, made its first acquisition since late 2021 with the purchase of two dealerships representing four total franchises.

Victory Automotive, of Canton, Mich., on June 6 bought Nassief Honda in Austinburg, Ohio, and Nassief Ford-Toyota-Hyundai in Jefferson, Ohio, from siblings Marybeth and Todd Nassief, owners of Nassief Auto Group.

Austinburg and Jefferson are northeast of Cleveland, near the Pennsylvania border.

Nassief Auto Group was started by the siblings' parents and had been in business for 67 years, according to the Star Beacon newspaper.

Victory Automotive renamed the dealerships Victory Honda and Victory Ford-Hyundai-Toyota, the latter three of which operate out of one building.

Rodger Olson, COO at Victory Automotive, told Automotive News in an email that the group is working "with manufacturers now to develop a plan to expand and separate the …