Trade News – Page 349

Shift puts 2022 focus on improving its liquidity

Leaders at Shift Technologies Inc. say 2022 was going to be "a year of balanced growth and profitability" even before market conditions tightened amid rising inflation and continued supply constraints.

And while the online used-vehicle retailer based in San Francisco said it more than doubled revenue and sold more vehicles in the first three months of this year, those macro constraints are adding pressure to the business.

Last week, the company said it cut about 10 percent of its corporate staff in April. It paused its expansion into Las Vegas. And, perhaps most alarming, Shift said in a quarterly regulatory filing that "substantial doubt" exists about its ability to continue as a going concern.

Still, leaders say they are confident in the cash position for this year and are taking steps to improve liquidity. Executives last week said they were working toward a plan to achieve profitability in 2025.

"We're putting in the fundamentals to get ther…

Genesis is a cornerstone in Hyundai’s EV strategy

Following its U.S. debut in 2016, Genesis Motor, the luxury division of Hyundai Motor, struggled to gain brand recognition as a premium nameplate among American vehicle shoppers.

But Genesis is now capitalizing on U.S. consumers' thirst for larger, high-riding crossovers with two stylish, well-appointed and tech-forward crossovers — the GV70 and GV80.

That newfound cachet will help Genesis make an even more radical transition at a time when stringent government policies, concern for the environment and rising gasoline prices put electric vehicles in the spotlight, and as automakers are promising all-electric lineups by the end of the decade.

The young brand is going all-electric.

"Starting in 2025, the only vehicles we launch will be EVs," Claudia Marquez, Genesis' COO told Automotive News. "Our goal is to achieve 100 percent electrification by 2030."

Marquez said the transformation was part of the brand's…

Austin Russell envisions lidar as a ‘21st century seatbelt’ (Episode 148)

The founder and CEO of Luminar Technologies lays out lidar’s role in dramatically reducing traffic deaths, the company’s march toward industrialization and a new deal with Nissan that brings lidar to the mass market.

How do I subscribe?

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Spotify: "Shift: A podcast about mobility" can be streamed through Spotify on your desktop, tablet or mobile device. Click here to subscribe.

Google Play: "Shift: A podcast about mobility" is available on Android devices through the Google Play store. Click here to subscribe.

ACT Expo: Shell-Penske truck EV charging deal, battery price surge cools ‘a little bit’

LOS ANGELES — A subsidiary of oil and gas giant Shell will soon support charging for Penske Truck Leasing's light-duty electric vehicles.

Shell Recharge Solutions will provide Level 2 charging stations to support Penske's electric truck fleet in five states by the end of the year, the companies said last week at the Advanced Clean Transportation Expo in Long Beach, Calif. Chargers will be added in other markets starting in 2023, the companies said.

"It's increasingly important that we help fleets make the transition to electric vehicles," said Andreas Lips, CEO of Shell Recharge Solutions. "We want to enable, with our technology and knowledge, that transition in an efficient way without compromising their operational capabilities."

Shell said it would "deliver design, installation and charging network support" through a software platform it developed as well as maintenance support.

The company said 33 Penske Truck Leasin…

Study warns of tight schedule to switch to EVs

A brisk transition to zero-emission vehicles is underway, but it's still unclear whether the global transportation sector's makeover is enough to stave off the worst consequences of climate change.

Cars and trucks account for three-quarters of all transportation-related greenhouse gas emissions, including planes, trains and ships, according to McKinsey & Co., and automakers and commercial truck manufacturers will have to accelerate their push to reach net-zero targets by the middle of the century.

Those goals are firm, but the path to achieving them is less so.

"How we get there is not written in stone," Eric Hannon, partner in McKinsey's Center for Future Mobility, told Automotive News. "Frankly, we're moving too slow. We aren't on a trajectory that gets us there yet."

Hannon is co-author of "Mobility's Net-Zero Transition: A Look at Opportunities and Risks," a new report that assesses the state of electrificatio…

Penske backs off sales goal for CarShop used-vehicle stores

Penske Automotive Group Inc. is pausing on its goal to have its standalone used-vehicle CarShop locations sell 150,000 vehicles annually by the end of 2023, as it deals with higher costs of sales and vehicle acquisition woes.

Penske announced in February 2021 that it planned to expand its CarShop locations in the U.S. and U.K. to 40 by the end of 2023, up from 17 at the time, and nearly triple the unit's annual sales to 150,000 during the same period. It also aimed for the CarShop business by that time to generate annual revenue of between $2.5 billion and $3 billion and pretax earnings of about $100 million.

But the industry's vehicle shortage and increased competition to source used cars has disrupted Penske's ability to reach those goals. CarShop vehicle sales of 110,000 may be more realistic for 2023, CEO Roger Penske told Automotive News last month.

"Acquisition pricing is significantly higher, [and] our cost of sale is highe…

GM’s Red Hat tie-up and battery startups garner attention at EcoMotion, Israeli auto-tech’s annual showcase

EcoMotion highlights GM tie-up, battery tech

TEL AVIV, Israel — When General Motors opened its Israeli R&D center in 2008, it was a lonely outpost on the automotive landscape.

Today, more than 30 automakers and major suppliers have permanent offices and major tech centers in the country, and they are just a part of the auto-tech realm that includes hundreds of companies.

According to organizers of EcoMotion, an annual mobility event that marked its 10th anniversary last week, there are 670 transportation companies active in Israel, 27 of which have raised approximately $5.5 billion in initial public offerings over the past decade.

EcoMotion, a joint venture of the Israel Innovation Institute and government agencies, returned to its in-person roots last week after a COVID-19-related hiatus. More than 100 companies exhibited their technologies for about 3,000 people from 40 countries.

Topics ranged fro…

Driving school for teens helps build loyalty

Mercedes-Benz of Sugar Land is building customer loyalty and making roads safer at the same time.

Since 2014, the Texas dealership has sent more than 260 teenagers through a driving safety school that uses an array of Mercedes vehicles to teach various maneuvers.

The initiative started as a perk for dealership clients' children as part of a VIP benefits program, but it was expanded in 2019 to include the local Clements High School as the store made the experience available to those outside its customer base for the first time.

The training has been a hit with Mercedes-Benz of Sugar Land clients in the dealership's "First. Class. Access." program, which is built around a package of lifestyle sweeteners. Besides the teen driving school, these customers get offers through businesses such as travel concierge services, member pricing at a spa and special rates at the Grand Hyatt Baha Mar in the Bahamas, to name a few.

"We pitch it as taking care of o…

Caught off guard, VW dealers want answers on Scout

Volkswagen dealers were left angry, shocked and suspicious by surprise news last week that the brand's German parent plans to build a new company in the U.S. to sell an electric pickup and SUV under the Scout name, not least because Volkswagen AG was silent on how it intends to retail the vehicles.

The lack of information from Wolfsburg immediately after the Wednesday, May 11, announcement left some dealers wondering whether VW CEO Herbert Diess — who often speaks glowingly of Tesla and Elon Musk — might be looking to emulate Tesla's direct-sales model for Scout vehicles or set up new franchises that would bypass their stores.

"That's what it feels like to me," one VW dealer told Automotive News after the announcement, on condition of anonymity. "If we were going to have any involvement, they would have told us something. But they haven't said a word to us, either before or after the announcement."

VW Group said it will build a "separat…

VW dealers want answers on Scout EV brand after being caught off guard

Volkswagen dealers were left angry, shocked and suspicious by surprise news that the brand's German parent plans to build a new company in the U.S. to sell an electric pickup and SUV under the Scout name, not least because Volkswagen AG was silent on how it intends to retail the vehicles.

The lack of information from Wolfsburg immediately after the May 11, announcement left some dealers wondering whether VW CEO Herbert Diess — who often speaks glowingly of Tesla and Elon Musk — might be looking to emulate Tesla's direct-sales model for Scout vehicles or set up new franchises that would bypass their stores.

"That's what it feels like to me," one VW dealer told Automotive News after the announcement, on condition of anonymity. "If we were going to have any involvement, they would have told us something. But they haven't said a word to us, either before or after the announcement."

VW Group said it will build a "separate, independent company" to resurrect …

Mercedes-Benz dealership opens driving school for teens to build loyalty

Mercedes-Benz of Sugar Land is building customer loyalty and making roads safer at the same time.

Since 2014, the Texas dealership has sent more than 260 teenagers through a driving safety school that uses an array of Mercedes vehicles to teach various maneuvers.

The initiative started as a perk for dealership clients' children as part of a VIP benefits program, but it was expanded in 2019 to include the local Clements High School as the store made the experience available to those outside its customer base for the first time.

The training has been a hit with Mercedes-Benz of Sugar Land clients in the dealership's "First. Class. Access." program, which is built around a package of lifestyle sweeteners. Besides the teen driving school, these customers get offers through businesses such as travel concierge services, member pricing at a spa and special rates at the Grand Hyatt Baha Mar in the Bahamas, to name a few.

"We pitch it as taking care of o…

Wage lawsuit against Maryland dealer can proceed

Employees of Nationwide Motor Sales Corp. in Timonium, Md., will be able to sue the company and its owners in federal court and not seek an arbitrator, the 4th U.S. Circuit Court of Appeals has ruled.

The 3-0 decision April 25 came after employees at Nationwide, which retails new and used vehicles, filed a lawsuit in district court claiming "fraudulent payment practices that reduced employees' sales commissions and final paychecks." Nationwide, in response, filed to compel arbitration in accordance with its employee handbook, which contains an arbitration agreement requiring all disputes between employees and the company to be settled using an arbitrator.

According to the opinion, the employees claimed the arbitration agreement was invalid because of a modification clause in the handbook that said Nationwide "retains the right to change, abolish, or modify the Handbook's policies, procedures, and benefits." Maryland law states arbitration clauses are invalid i…