Trade News

Bob Brockman's continuation at the top of dealership management system giant Reynolds and Reynolds Co. after his lawyers raised concerns about cognitive impairment contributed to a federal judge's ruling that the former auto software titan is competent to stand trial on tax evasion charges.

The way that Brockman, who turns 81 this month, presented himself in professional settings was at odds with how he presented to his doctors and on cognitive testing, U.S. District Judge George Hanks Jr. wrote in a 42-page ruling this week. The opinion sided with prosecutors who contended that Brockman was faking his symptoms to avoid prosecution.

Hanks said those prosecutors met the burden of proof necessary to find Brockman competent.

Evidence showed "Brockman is also an extremely intelligent person with both a high cognitive reserve and history of malingering for secondary gain," Hanks wrote in his opinion.

The ruling, which came six months after an eight-d…

Kellen Walker gives you the top headlines and Rivian parts ways with its manufacturing chief, Carvana gets another chance in Illinois, and VW is shopping for sites to build Scout EVs in the U.S. And a look at whether F&I offices are shifting away from digital services.

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DETROIT-- General Motors' next vice president of global workplace safety will rejoin the automaker after 18 months at Amazon.

Marcos Purty will take on the role, effective June 1, replacing Jim Glynn, who will retire after more than 40 years with GM, effective Sept. 1, GM said in a statement Friday.

For the past 18 months, Purty has been vice president of North America Fulfillment for Amazon Robotics Sortable Operations. He spent the first 25 years of his career with GM.

In his last post with GM, from January to October 2020, Purty was executive director of global manufacturing strategy and planning. Purty "directed GM Manufacturing's footprint in cost and profitability, spearheaded new product allocation to increase manufacturing utilization, built a total utilization plan and footprint for GM's all-electric future, and implemented environmentally sustainable choices for the future," GM said in the statement.

Purty will report directly to GM CEO…

A federal judge has determined that former Reynolds and Reynolds Co. CEO Bob Brockman is competent to stand trial on multiple criminal charges related to allegations of tax evasion.

Brockman, 80, was charged in October 2020 with 39 counts, including tax evasion, wire fraud, money laundering and evidence tampering in what federal prosecutors say was a complex scheme to evade taxes on $2 billion in income.

His lawyers sought a competency hearing, which was held over eight days in November 2021 in a Houston courtroom, to determine whether Brockman could assist in his defense. Brockman's lawyers said he had been diagnosed with symptoms indicative of Parkinson's disease or Lewy body dementia that made it difficult for him to process or retain information. Prosecutors, however, argued that Brockman had faked his symptoms to avoid prosecution.

To help readers follow the developments in the case, we've compiled our ongoing coverage of the proceedings in one orga…

State-owned automaker China FAW Group Co. is considering acquiring a significant stake in the troubled ride-hailing giant Didi Global Inc., according to people familiar with the matter.

The Chinese carmaker has reached out to Didi’s top executives and expressed interest in becoming a major shareholder in the firm, said the people, who asked not to be identified as the information is private. FAW pledged to help Didi resolve issues related to data security, paving the way for a Hong Kong listing, the people said.

Discussions are at an early stage and might not lead to any transaction, the people said. Representatives for Didi and FAW didn’t immediately respond to requests for comment.

Didi became a symbol of China’s crackdown on technology companies after the ride-hailing firm proceeded with its $4.4 billion U.S. IPO despite Beijing’s objections, erasing more than $70 billion in market value since China placed it under a cybersecurity probe.

FAW is…

TOKYO -- Toyota Motor Corp. cut its global production plan for June for the second time this week and signaled its full-year output estimate could be lowered, highlighting the pain from the supply-chain crunch and China lockdown.

Global automakers' production has been hit by the microchip shortage and also by China's COVID-19 lockdowns.

The reduction by Toyota -- broadly seen as a bellwether for Japan's auto industry -- comes a day after data showed that passenger car sales in China, Europe and the United States remained weak.

The automaker said it now expected to produce about 50,000 fewer vehicles in June, for a total of about 800,000, due to the lockdown in Shanghai. It had already cut its plan for the same month by 100,000 vehicles on Tuesday, citing the chip shortage.

Toyota said there was "a possibility" that it could lower its full-year production plan of 9.7 million vehicles.

"It is very difficult to estimate the current…

Lucid Group CEO Peter Rawlinson reveals some key engineering secrets that allow its midsize Air sedan to compete with full-size rivals for interior space — while housing enough battery modules to travel more than 500 miles on a single charge — in a new video presentation.

Silicon Valley-based Lucid, which is ramping up production of the Air EV at its Arizona factory, released the "Lucid Space Concept" presentation Thursday on YouTube. In it, Rawlinson walks through the development of the body structure to accommodate the EV's 1,000-horsepower mechanicals while providing seating for five full-size adults.

Lucid, which has highlighted its proprietary technology and in-house manufacturing in promotional material, has achieved a series of industry firsts. They include the longest-range EV ever tested in the U.S. and the biggest front-trunk, or "frunk."

The latest video is the second in a 10-part series led by Lucid executives and experts. In the debut March…

Two quickly expanding dealership groups added to their store counts in the first and second quarters, while two other groups made single-store acquisitions in March and May.

Here's a look at deals involving domestic, luxury and import dealerships and stores in Illinois, Nevada, New York and West Virginia.

Lou Fusz Automotive Network acquired its second Ford dealership with a purchase this month.

Lou Fusz Automotive Network, of St. Louis, on May 10 bought Tri Ford Inc. in Highland, Ill., from Monica Rehkemper.

The dealership was renamed Lou Fusz Ford of Highland. Highland is northeast of St. Louis.

Randy Fusz, the group's CEO, said the Ford acquisition follows the group buying a powersports store, also in Illinois, about six months ago.

It had been more than 20 years since the group's last new-vehicle dealership acquisition, Fusz estimated. But the group, which Fusz runs with his four siblings, is looking to expand.

The group…

BERLIN – Tesla Inc. has submitted an application to build on a further 247 acres east of its plant in Germany, expanding the site's area by a third, a local media outlet reported, citing the local mayor.

The automaker, which already has 740 acres of land for its auto factory and battery plant under construction, planned to build a freight station, logistics areas and parking spaces on the additional space, Gruenheide mayor Arne Christiani told RBB.

The municipality's main committee will discuss the matter on June 2. If it makes a recommendation, the municipal council could decide on it on June 23, Automobilwoche, a sibling publication of Automotive News, also reported.

Tesla did not immediately respond to a request for comment.

The Gruenheide plant, which at full capacity will produce 500,000 electric cars a year, began production in March 2022 after a series of licensing delays that CEO Elon Musk said ran counter to the urgency needed to tackle…

<!--*/ */ /*-->*/ Cities explore potential benefits of micromobility

DENVER — On Earth Day, Denver city officials commenced a $9 million program which offered residents rebates for purchasing e-bikes. Less than three weeks later, on May 11, the program crossed an improbable threshold.

"The funding has been exhausted already," Denver Mayor Michael Hancock said this week at the ARPA-E Energy Innovation Summit. The city received 3,250 applications in 20 days.

At first glance, e-bikes were perhaps a curious topic at a technology showcase centered on moving transformational energy technology from laboratories into the market. But Hancock provided a reminder that not all efforts to reduce fossil-fuel emissions and reach climate goals need an advanced-technology solution.

Whether Denver's appetite for e-bikes can be explained by the city's 300-plus days of sunshine in addition to climbing gasoline prices, it is an example at a time when cities w…

WASHINGTON -- The U.S. Senate on Thursday confirmed by voice vote President Joe Biden's nominee to serve as the top auto safety regulator, the first to win approval since January 2017.

Steven Cliff has been serving as deputy administrator of the National Highway Traffic Safety Administration since 2021 and was nominated by President Joe Biden for the top job last year. His approval by the Senate comes amid soaring U.S. traffic deaths.

The Illinois Secretary of State's office on Thursday implemented a stay on its May 10 order that Carvana Co. suspend vehicle sales in the state.

The stay will allow Carvana to sell vehicles in Illinois as long as it follows "strict guidelines."

But the online used-vehicle giant still has limitations. Carvana won't be allowed to issue temporary registration permits or license plates, according to an email from Henry Haupt, spokesman for the Illinois Secretary of State's office.

Carvana is now required to register titles through Illinois remitters — third-party entities licensed in the state to process title transactions. The retailer also must post a $250,000 bond "to guarantee payment of any fines or fees incurred by customers that resulted from Carvana's failure to follow the law," Haupt said in the email.

"My top commitment is protecting the interests and well-being of Illinois consumers," Illinois Secretary of State Jesse White said in a state…