Global surge in EV sales adds to pressure on supply chains, energy agency says

Sales of electrified vehicles – full-electric and plug-in hybrids -- doubled globally in 2021 to 6.6 million, but that rapid growth has further stretched supply chains already threatened by the pandemic and Russia’s war in Ukraine, the International Energy Agency said in its annual electric vehicle outlook report.

Essential materials such as lithium, nickel and cobalt are particularly at risk, the IEA said, noting that prices for lithium – an essential component of EV batteries – were seven times higher in May than they were at the start of 2021. Cobalt prices more than doubled, and nickel prices almost doubled.

That surge was a result of "unprecedented" battery demand and "a lack of structural investment in new supply capacity," the report said.

That has had a direct impact on the price of batteries, which make up about one-third of the cost of new EVs. Battery prices fell by 6 percent to $132 per kilowatt in 2021, a slower rate of decline than 2020’s …

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DAILY DRIVE PODCAST: May 24, 2022

Executive Editor Jamie Butters and Kellen Walker give you the top headlines and a new EV battery plant is coming to the Hoosier state. Shanghai’s COVID lockdown is causing more problems for Toyota. And a federal judge says Bob Brockman must stand trial for tax evasion. Plus, more on Stellantis' tanking supplier relations with Automotive News' Lindsay Chappell.

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Hyundai to recall 281,000 North American vehicles over exploding seat belt pretensioner

WASHINGTON -- Hyundai Motor America said it will recall 281,000 vehicles in North America over seat belt pretensioners that could explode and project metal fragments, causing injuries.

The recall, which comes after three injury reports, covers some 2019-2022 Accent, 2021-2023 Elantra, and 2021-2022 Elantra hybrid vehicles. In the event of a crash, front driver or passenger-side seat-belt pretensioners could explode upon deployment. Dealers will secure seat-belt pretensioners with a cap.

Seat-belt pretensioners are part of the a system that locks the seatbelt in place during a crash to provide additional protection to occupants.

This recall expands and replaces four earlier recalls. All Accent, Elantra, and Elantra HEV vehicles already repaired under the previous recalls will need to have the new recall fix completed, the National Highway Traffic Safety Administration said Tuesday.

The new recall includes 239,000 vehicles in the U.S. and about 42,0…

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Stellantis replaces North American purchasing chief amid supplier relations woes

DETROIT — Stellantis has appointed a new head of purchasing and supply chain in North America amid deteriorating relations with its suppliers.

Marlo Vitous, 45, the company's supply chain vice president, is replacing Martin Horneck, who is retiring, two sources with knowledge of the matter told Automotive News. Horneck, 59, had been hired by Fiat Chrysler Automobiles in 2020 ahead of the merger with PSA Group that formed Stellantis.

Stellantis confirmed Horneck's departure Tuesday but did not comment further.

The change comes shortly after Stellantis created controversy among its suppliers with new purchasing terms and conditions that it later rescinded — and one day after a prominent study gauging suppliers' relationship with major automakers ranked the company lowest for a second consecutive year.

In Plante Moran's annual Working Relations Index released Monday, Stellantis dropped to the study's lowest ranking for any North American automaker i…

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2023 Honda CR-V redesign previewed

Editor's note: An earlier version of this story misstated when the CR-V was last redesigned, and then freshened under a midcycle update.

Honda is calling the redesigned 2023 CR-V compact crossover rugged, sophisticated and more versatile. It was previewed Tuesday with the release of several teaser images and will go on sale in September.

The current, fifth-generation CR-V was redesigned for the 2017 model year, and freshened for 2020, including a hybrid variant, and has been a top seller for the brand. Last year, U.S. sales of the CR-V topped 361,000, making it the fifth most popular nameplate across all segments. Toyota's rival RAV4 snagged the No. 4 slot.

In addition to revised styling, the CR-V also will have an advanced hybrid system that adds a "sportier driving experience and more capability."

Hybrids currently represent about 25 percent of CR-V sales, according to Honda. The company has said it will increase the mix of hybrid production fo…

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Ford to pay U.S. states $19.2 million over false advertising claims

WASHINGTON -- Ford Motor Co. has agreed to pay $19.2 million to resolve allegations it falsely advertised real-world fuel economy and payload capacity for some hybrids and pickup trucks, the Iowa Attorney General's Office said Tuesday.

The multi-state settlement covers 2013–2014 C-Max hybrids and 2011–2014 Super Duty pickups. In 2013, Ford lowered the advertised fuel economy ratings on its C-Max hybrid by up to 7 mpg and sent checks to owners of $550 to make up the difference in fuel costs.

"For years, Ford advertised impressive fuel economy and payload capacity for its cars and trucks,” Iowa Attorney General Tom Miller said. "Unfortunately, these figures were not based in reality, leaving customers with vehicles that did not meet their standards."

The settlement, with 40 states and the District of Columbia, prohibits Ford from making false or misleading advertising claims concerning the estimated fuel economy or payload capacity of a new motor vehicle…

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GM’s STEVE CARLISLE: Aiming for No. 1 in U.S. again with EVs

General Motors is angling to get back on top.

"We're looking to put ourselves back in the No. 1 position from a share perspective," GM North America President Steve Carlisle said.

While GM plots its path toward an all-electric future, the company also will strive to retake the U.S. sales crown it lost to Toyota Motor North America last year after nine decades as the country's top seller.

GM hopes to build enough inventory to overtake Toyota and meet pent-up demand while maintaining discipline.

But new-vehicle launches and updates to existing nameplates don't equate to a plethora of vehicles on the ground. GM has been refining its dealer tools to establish a more streamlined retail and delivery process, Carlisle said.

"We're putting tools in place to optimize the flow of product through the whole pipeline and allowing our dealers and customers to see further upstream," Carlisle said. "Those are all things that…

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Brockman ruled competent to stand trial in U.S. court for tax evasion

Former Reynolds & Reynolds CEO Bob Brockman must stand trial for the largest tax evasion case against an individual in U.S. history despite asserting dementia leaves him incompetent, a judge ruled.

U.S. District Judge George C. Hanks Jr. discounted claims that dementia leaves Brockman, 80, unable to help his lawyers defend against a 39-count indictment accusing him of evading taxes on $2 billion of income and other crimes.

Brockman’s lawyers argued that his progressive dementia, caused by Alzheimer’s and Parkinson’s disease, has worsened recently. They’ve said they’ll file a new incompetency claim.

Brockman was indicted on tax evasion and money laundering charges that accused him of using a complex trust structure in the Caribbean to hide $2 billion in income over two decades.

“The court finds that despite Brockman’s recent health problems, the government has met its burden of establishing that Brockman is competent to stand trial,” Hanks rul…

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Cavender Auto Family enters Oklahoma with purchase of two Ford dealerships

Growing Cavender Auto Family has expanded out of Texas with the purchase of two Oklahoma dealerships.

Cavender Auto of San Antonio on Monday bought Reynolds Ford of Norman and Reynolds Ford of Oklahoma City from Dale Daniels. The stores date to 1952 and had been owned by Daniels for the last 48 years, Cavender Auto said.

The group renamed the dealerships Confidence Ford of Norman and Cavender Ford of Oklahoma City.

"Our plan is to take what (the two dealerships) are already doing well and then add a few additional elements for which the Cavender Auto Family is known," Cavender Auto Family CEO Stephen Cavender said in a statement.

Norman, home to the University of Oklahoma, is south of Oklahoma City, the state's capital.

Chris Teape of buy-sell firm National Business Brokers in Irvine, Calif., represented Daniels in the transaction, Stephen Cavender confirmed.

Cavender Auto Family now has three Ford stores, part of its 14 dealership…

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Stellantis, Samsung SDI to build new JV battery plant in Indiana, reports say

Stellantis and Samsung SDI plan to announce on Tuesday they will build a new battery plant in Indiana as the Chrysler-parent ramps up EV production plans, sources briefed on the matter told Reuters.

The companies in October announced they were signing a memorandum of understanding to form a joint venture for lithium ion battery production in North America and said the plant was targeted to start in 2025 and aimed to have an initial annual production capacity of 23 gigawatt hours, with the ability to increase to up to 40 gigawatt hours in the future.

The Associated Press and The Detroit News also reported the plans.

The companies did not immediately comment on the reports, but Stellantis said it would provide an update on the future of its Kokomo operations on Tuesday that would include its North American COO Mark Stewart and Indiana Gov. Eric Holcomb.

The announcement could prove a disappointment to Michigan economic development officials. Earlie…

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Horne Auto Group’s next-manager-up planning will pay dividends

Jimmy Powell knows he has big shoes to fill. At the end of the year, he'll drop the "assistant" part of his title and replace his mentor, Bob Cawley, as Horne Auto Group's corporate fixed operations director.

If everything goes as expected, this seamless transition will greatly benefit Horne, an Arizona-based group with 10 dealerships covering 13 brands. It also will be big win for succession planning.

The move has been in the making for a long time. The pair met in 2008 and immediately hit it off while working for another dealership. Powell was a young service adviser who recognized Cawley's expertise; the experienced veteran saw Powell's raw potential.

After going their separate ways, they stayed in contact at new jobs and began to develop a friendship.

"He would always take my calls and help me, even though we weren't working together," Powell remembers.

It wasn't a surprise then when Cawley recruited Powell in 2011 to join him at Horn…

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Why car dealership leaders should train their replacements

Sustained, long-term success takes careful planning, strong leadership and a committed, well-trained team with key members ready to take on more responsibilities as needed.

The problem?

"Very few dealerships have a formal strategy in place," says Kendall Rawls, director of development with the Rawls Group, an Orlando-based consulting firm that works in the automotive sector among other industries.

Too often, she says, owners and managers think they're too busy growing their business to plan for the future and put the right people in place to make it happen.

True succession planning, Rawls says, should encompass the entire dealership, defining its culture, long-term growth goals and personnel strategy. This will help create value and provide options for the leadership team to achieve desired results, she adds.

Rick Wegley, now a fixed ops instructor with NCM Associates, came to a similar conclusion early in…

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