Trade News

KAR Global said Tuesday it has completed the sale of its ADESA U.S. auction unit to Carvana Co.

The deal will allow KAR to focus on its online dealer-to-dealer businesses and enable Carvana to gradually boost the number of cars and trucks it can get ready for sale each year.

Carvana purchased ADESA U.S. from KAR Global for $2.2 billion. KAR, a Carmel, Ind.-based wholesale auctions provider, agreed to sell the physical auction unit in late February.

The deal hands Carvana the keys to 56 ADESA sites across the U.S., totaling about 6.5 million square feet of buildings on more than 4,000 acres. It also gives Carvana all staff and operations at the 56 locations, plus sole use of the ADESA.com marketplace in the U.S.

"We aim to use this ADESA U.S. alignment to both improve the experiences of the ADESA U.S. physical auction customers and to focus on significant and sustainable efficiencies, and unit economic improvements, for Carvana to catapult back in…

Electric-car maker Lucid plans to launch luxury sedans in Europe later this year, as the Tesla rival aims to expand its footprint outside the U.S. amid strong global demand for EVs.

The company will launch its Lucid Air Dream Edition P and R sedans in limited numbers for customers in Germany, Netherlands, Switzerland, and Norway later this year, it said in a statement on Tuesday.

Lucid added it would price its Air Dream Edition P/R at about $230,208 in Germany.

Last week, the company said it would raise prices for most models from June as it deals with rising raw materials costs but said it would honor current reservations.

Lucid said on Tuesday it also plans to open its first European retail location in Munich on May 13, adding it aims to open additional studio and service center locations in Europe this year.

The California-headquartered company, which makes its vehicles at an Arizona plant, last week reiterated its 2022 production volu…

SHANGHAI — Aptiv stopped shipping over the weekend some parts from a Shanghai plant that supplies Tesla Inc. and General Motors Co. after COVID-19 infections were found among workers, two people familiar with the matter said on Monday.

The suspension of shipments from Aptiv could represent a setback for Tesla, which had planned to bring output in Shanghai back to the levels before the city locked down to control a wave of infections and forced a shutdown through much of April.

Aptiv, in a statement to Reuters, did not comment on the status of the Shanghai plant or whether there had been infections among workers.

"The safety of our employees is our first priority," Aptiv said. "We have been in touch with our customers and are working closely with them."

Tesla and GM did not immediately respond to a request for comment. 

Tesla restarted production at its Shanghai plant on April 19, with the help of the city government after a 22-day c…

Online used-vehicle retailer Vroom Inc. said Monday that its COO, Tom Shortt, will join its board of directors and succeed Paul Hennessy as the company's CEO.

The change is effective immediately, as Hennessy has "stepped down to pursue other opportunities," Vroom said. The company also released its first-quarter earnings on Monday, reporting ecommerce revenue of $675.4 million, up 60 percent from the year-earlier period, and a net loss of $310.5 million.

Shortt's appointment as CEO is the culmination of a planning process by the board to "ensure continuity of leadership" as it works toward several growth goals, said Robert Mylod, chairperson of Vroom's board.

"During his time as CEO, Paul oversaw Vroom's transition from a start-up to one of the largest auto retailers in the U.S.," said Mylod, who will become independent executive chair of Vroom's board. "While doing so, he recruited and cultivated an outstanding management team — including Tom Shortt — t…

Inflation and production volatility are squeezing the revenue, income and margins of major automotive suppliers that had been hoping for some relief by now from the financial headwinds of the past two years.

Quarterly earnings reports from many of those companies out this week show that those pressures have continued — and in some cases worsened.

For example, Southfield-based Lear Corp. said it has cut global headcount by 7,700 in the past year and is looking to restructure its footprint as its first-quarter adjusted net income was sliced in half from last year. Plymouth-based Adient plc took an $81 million loss, Auburn Hills-based BorgWarner Inc.'s adjusted operating income dropped 16 percent and Southfield-based Superior Industries Inc. saw net income slip by 23 percent.

All of them pointed to the same challenges.

"I've been in the industry 20 years now, and it's worse than I've seen and it is sustaining," Nik Endrud, executive vice president …

DETROIT — Bollinger Motors, the startup electric vehicle manufacturer in suburban Detroit that is trying to enter the red-hot commercial EV market, moved one step closer to its goal Monday.

The company said it has inked a deal with Roush Industries to manufacture Class 3 through Class 6 commercial electric chassis cabs and the platforms it has been developing for about two years.

The platforms range in size and will underpin the chassis cabs — half-trucks that are bought by commercial customers who then outfit them with numerous bodies. Chassis cabs, for example, are used by power companies for flatbed tow trucks, to haul produce and for other work purposes.

The deal calls for Bollinger to source and provide all the materials for Roush to assemble the platform or frame and the chassis cabs in Livonia, Mich., about 20 miles from Bollinger's engineering center.

The move comes after Bollinger in January canceled two boxy EVs, the B1 SUV and B2 pick…

Electric vehicle startup Lordstown Motors Corp said Monday it needed $150 million in addition to the proceeds from its sale of assets to Taiwanese contract manufacturer Foxconn to put its Endurance pickup truck into the hands of customers.

The company's stock, down more than 12 percent, is set for its worst day in more than two months.

Supply chain woes and rising material costs are limiting the industry's capability to produce sufficient EVs to meet soaring demand.

In November last year, Lordstown said it had entered an agreement with Foxconn for the sale of its Ohio facility for $230 million excluding certain assets such as the hub motor assembly and battery pack lines.

Lordstown Motors said it needed additional capital, apart from the proceeds from the deal with Foxconn, to scale up the production of the electric pickup truck, complete testing, and purchase materials and vehicle components.

The company also reported first-quarter results…

SEOUL/DETROIT -- Hyundai Motor Co.'s highly anticipated plans to build an EV assembly plant in the U.S. appear to be focused on Georgia.

The Korean automaker has held discussions with officials in Georgia, near existing plants for the Hyundai and Kia brands, people with knowledge of its plans told Reuters.

Hyundai COO Jose Muñoz told Automotive News on April 13 of the company's U.S. plans. The company on Monday declined to comment on any details, including site negotiations.

"We are excited to announce a new EV plant plan in the United States soon, but we do not have details to share at this stage," Hyundai said in a statement to Reuters when asked about its investment plans.

Hyundai has been in advanced discussions with state officials to build a dedicated EV facility in Georgia, three people with direct knowledge of the talks told Reuters. Details of the investment, including its projected cost and the number of jobs it would be expected to cr…

Shares in Rivian Automotive Inc. fell nearly 10 percent in premarket trading after a media report that Ford Motor Co. is selling 8 million of its shares in the EV producer at a discount.

Ford’s sale is being handled by Goldman Sachs Group Inc., CNBC’s David Faber said in a tweet.  

The U.S. manufacturer owns about 12 percent of the EV startup, or just under 102 million shares after taking a stake prior to Rivian going public last year. An insider lockup period expired Sunday after the November share sale that saw the company’s market value briefly top $100 billion making the developer more valuable at the time than Ford and General Motors.

Rivian shares have since plunged after its pickup launch was slower than investors expected.

JPMorgan Chase & Co. is also selling a block of 13 million to 15 million shares in the manufacturer for an unknown seller, Faber reported, citing unidentified people. Both blocks are priced at $26.90 -- a disc…

The past two years of pandemic and supply chain disruptions as competition from startup rivals grew have forced traditional dealership groups to take a closer look at the convenience and customer experience they offer.

That has led to a shift from a linear, store-driven sales process to more of a hybrid one — in which a consumer can start or finish a car deal online and jump in and out of the digital or in-store environments as often as necessary. That approach is often referred to as omnichannel retailing.

I wrote this week about the digital retailing initiatives by the nation's public dealership groups. Several are investing in — and targeting greater revenue from — their own branded online tools. They generally aim to leverage their brick-and-mortar stores and digital platforms to create a flexible, omnichannel experience that gives them the scale to reach a wide swath of consumers.

That hybrid approach may be an advantage for the public groups over …