Trade News

It was five years in the making and struggled at times to make it out of the engineering bay and development labs at one of the auto industry's most venerable and esteemed automakers.

And now that this hypercar has finally arrived, it is being billed as a street-legal monster for the ages.

The production version of the Mercedes-AMG One hypercar packs a Formula 1 inspired hybrid drivetrain to produce 1,049 hp (1,063 PS) from a 1.6-liter gasoline engine paired with four electric motors. 

The One was first shown as a concept called the Project One at the 2017 Frankfurt auto show, and since then Mercedes has reportedly sold all 275 units planned for production at a price of $2.7 million. 

Mercedes said it faced daunting technical challenges to bring the midengine, all-wheel-drive One to production, and hinted that the project was not certain to be completed.

"The immense technical challenges of making a modern Formula 1 powertrain s…

Rimac Group has raised another 500 million euros ($536.6 million) to help it build future Porsches, Bugattis, and Koenigseggs.

SoftBank Vision Fund 2 and Goldman Sachs Asset Management led the latest round of funding, which also included Rimac shareholders Investindustrial and Porsche.

Mate Rimac, who founded his eponymous company in a garage in 2009, remains the largest shareholder.

“It’s great to have Porsche on board, but also, you know, we do not want to be fully dependent on them,” Rimac said during a call with reporters on May 31. Porsche holds a 45 percent stake in Bugatti Rimac, the company formed in 2021 between Bugatti, Porsche, and Rimac.

Formed in January, Rimac Group is an umbrella company holding a 55 percent stake in Bugatti Rimac and 100 percent of Rimac Technology, an independent subsidiary formed in January. (Bugatti Rimac owns 100 percent of Rimac Automobili, the group’s hypercar division.) Porsche owns the remaining 45 percen…

TOKYO — The next-generation Lexus RX, the top-selling family hauler that crushes the midsize premium crossover segment, leads Lexus deeper into electrification with a complete redesign that brings the nameplate's first plug-in as well as a fire-breathing F Sport turbocharged hybrid.

The fifth-generation overhaul, unveiled in Japan and at Toyota Motor North America's headquarters in Plano, Texas, repackages the nameplate on a new platform with new drivetrains that Lexus says will make the RX as fun as it is practical to drive.

For starters, the new GA-K architecture delivers a lower center of gravity for more nimble handling while providing a longer wheelbase and tread for more legroom and cargo space.

And when it lands in the U.S. this year, the 2023 Lexus RX will debut with four new powertrains as well as a new direction for Lexus design, deemphasizing the spindle grille.

"Nothing exemplifies our commitment to the tr…

Data integration service provider Authenticom's antitrust lawsuit against dealership management system company Reynolds and Reynolds Co. was dismissed Friday after the parties settled their differences.

The dismissal came five years after Authenticom accused Reynolds and CDK Global, another DMS giant, of creating a duopoly in the dealership data integration market. A countersuit filed in 2018 by Reynolds was also dismissed, according to a May 27 filing in U.S. District Court for the Northern District of Illinois.

That filing said Authenticom and Reynolds had "settled their claims and counterclaims against each other." Details of the settlement weren't available, but the court document said both parties would be responsible for their own legal fees.

Both the Authenticom suit and Reynolds' counterclaim were dismissed with prejudice, which means the cases are over and can't be refiled.

Last week's dismissals are the final step in yearslong litigati…

BMW's most petite crossover is getting a plus-size upgrade.

The redesigned X1 is roomier and features updated technology and a beefier powertrain.

The 2023 BMW X1 arrives at U.S. stores in the fourth quarter. Pricing starts at $39,595, including shipping.

Launched in 2009, the entry-level crossover opened the door to a new vehicle category in the premium segment. Last year, BMW sold 18,253 X1 models. It was last redesigned in 2016.

Previously among the smallest in the class, the larger X1 will be better positioned against the competition, which includes the Audi Q3, Mercedes-Benz GLA and Volvo XC40.

BMW's focus has always been the pleasure of driving, and the X1 is the brand's chance to lure young buyers into the family, said Sam Fiorani, vice president at AutoForecast Solutions.

"While most vehicles provide transportation, BMW wants buyers looking to be entertained by the vehicle," Fiorani said.…

A defective battery pack caught fire over the weekend at the Rivian Automotive Inc. plant in Normal, Ill., leading to the evacuation of the portion of the plant where battery packs are tested for the automaker's electric vehicles, Electrek reported Tuesday. The cause was under investigation.

According to the Normal Fire Department, firefighters arrived at the plant at 10:38 a.m. Saturday, where they found a battery pack in thermal runaway — meaning it had overheated and caught fire.

"Firefighters connected hoses to standpipes inside the building and extinguished the battery pack fire and then continued to flow water on the pack to keep it cool to prevent further thermal runaway from occurring," the department said in a statement.

In an email to Automotive News, a Rivian spokesperson wrote that the battery pack was already identified as faulty prior to the fire and that Rivian was actively investigating the cause of the defect.

"No injuries occurre…

Three auto retailers acquired dealerships in second-quarter transactions across Florida, Alabama and Missouri.

Here's a look at the deals involving domestic and import dealerships. One of the transactions involved a group ranked on Automotive News' top 150 dealership groups list.

Morgan Automotive Group, which this month purchased two Tampa, Fla., dealerships, has acquired a Kia dealership in Clermont, Fla.

Morgan Automotive of Tampa, bought Fuccillo Kia of Clermont on May 23 from Fuccillo Automotive Group, Morgan Automotive CEO Brett Morgan confirmed to Automotive News. Clermont is west of Orlando.

Morgan Automotive, in a May 25 Facebook post, said Kia of Clermont marked the group's 56th dealership.

"This brand new store features 45,000 square feet of state-of-the-art facilities and 19 acres of new and pre-owned inventory," according to the post.

Brett Morgan said his group was interested in the store because they are "bullish on …

Hitchcock Automotive sold its remaining three Toyota dealerships in February 2022 after the passing of its legendary founder, Frederick “Fritz” Hitchcock. Toyota of Santa Barbara and Northridge sold to Van Tuyl Companies and Puente Hills Toyota sold to Kaminsky Automotive. Kerrigan Advisors represented Hitchcock Automotive in the sale and had the opportunity to interview Ted Hitchcock, son of founder Fritz Hitchcock, and Howard Hakes, President of Hitchcock Automotive, after the sale.

Why did you decide to sell Hitchcock Automotive?

Howard Hakes: At the beginning of 2021, we had no intention of selling Hitchcock Automotive. Fritz, Ted, and I were enjoying the business and believed the next few years would be incredible for auto retail. But tragically Fritz passed away unexpectedly last August and that changed everything. His estate plan stated we should sell the stores in the event of his passing, so we proceeded down that road.

Ted Hitchcock: This was a very…

Stellantis will build a large commercial van for Toyota Motor Corp. in its factories in Poland and Italy starting in mid-2024, including a full-electric version.

The collaboration will give Toyota a large van to sell in Europe for the first time.

Stellantis currently builds compact and midsize vans for Toyota, in both commercial and passenger versions. No name was announced for the new van, but Toyota’s compact van is called the Proace City and the midsize van the Proace.

The Proace has been built at Stellantis’ factory in Hordain, France, since 2012, and the Proace City in Vigo, Spain, since 2019.

The new model will be built at Stellantis’ Sevel factory in Atessa, Italy, and Gliwice, Poland. The move will give Stellantis five brands on common van platforms: Citroen, Fiat, Opel, Peugeot, Toyota and Vauxhall.

The large Toyota-branded van will join the Citroen Jumper, the Fiat Ducato, the Opel/Vauxhall Movano and the Peugeot Boxer. Stellant…

BENGALURU, India -- Tata Motors has signed an agreement to potentially buy a Ford manufacturing facility in the western Indian state of Gujarat as it looks to ramp up its production of electric vehicles.

The owner of Jaguar Land Rover already dominates India's fledgling electric car market, which the government is trying to grow by offering companies billions of dollars in incentives.

The memorandum of understanding announced on Monday covers the land, assets and all eligible employees working at the Sanand facility. The financial details of the agreement were not disclosed.

Tata said it would invest in new machinery and equipment at the plant through its electric mobility unit and expects the facility to have a production capacity of 300,000 units each year after the works complete. The capacity can be increased to more than 400,000 units.

"Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fol…

The nation's largest new-vehicle retailer has begun a multimillion-dollar advertising campaign aimed not at car shoppers, but at potential employees.

AutoNation's "Go Be Great" campaign began airing on TV networks including ESPN, CNBC and NBC last week, ahead of the Indianapolis 500 race on Sunday, May 29. AutoNation is a sponsor of Indy 500 driver Helio Castroneves. The race aired on NBC.

The campaign, which also appears in radio, print, online and social media, was developed by AutoNation, I Think Studios and Zimmerman Advertising.

Marc Cannon, AutoNation's chief customer experience officer, in an email to Automotive News did not specify how much the retailer plans to spend on the campaign.

Cannon said the ads highlight AutoNation employees, "the people who make us a great place to purchase, sell or service a vehicle."

AutoNation's jobs page last week showed 1,263 results for positions ranging from sales associate, finance and insurance…