Trade News

Despite concerns about overextension, most credit unions are willing to approve lengthy auto loans and finance 125 percent of vehicle value on used models, a new study by Credit Union Leasing of America has found.

"It was no surprise to us that over-extension on used vehicle loans is generating significant worry for credit unions, as is overall used vehicle affordability," Mark Chandler, Credit Union Leasing of America business development vice president, said in a statement. "[But] the results also uncovered a troubling disconnect: credit unions continue to offer car buyers a significant percentage of longer-term loans, with low down payments, on high mileage older vehicles and increased [loan-to-value ratio]."

Credit Union Leasing of America connects credit unions and dealerships seeking to offer consumer auto leases. Its polling ran April 4 through May 5 and involved 415 credit union professionals.

The study found that 64 percent of credit union pers…

At this year's New York International Auto Show, in-car apps and entertainment, efficient charging stations and over-the-air updates grabbed as much attention as oversize tires and third-row seats. The show sent a clear signal that the industry is committed to an electrified, software-defined future.

The software experience will become automotive's great leveling force between companies that are still new to making cars but are good at software (Tesla) and companies that have made great cars for years (BMW) but are new to building software. If established carmakers begin to make strides — whether through internal efforts or partnerships — on the software architecture side, they can quickly close the gap as they roll out an improved infrastructure to millions of vehicles.

The foundation for this next evolution will be built on edge computing, an emerging model that places computing power at or near where the data originates. In contrast to centr…

Rivian Automotive Inc. sees continued strong demand for its electric R1T pickup and R1S crossover and will not join EV rivals such as Tesla Inc. and Lucid Motors in cutting prices to stimulate sales, CEO RJ Scaringe said on the startup's second-quarter earnings call Tuesday.

"We take a very methodical and thoughtful approach to how we look at our vehicle pricing," Scaringe said, pointing to vehicle configurations that can significantly raise or lower the price, creating a broad price band for the R1 products.

"As we think about the positioning of the product, the capabilities of the product — on-road, off-road, dynamically — and the feature set that's in the vehicles, we feel quite comfortable with the positioning of what we've done," Scaringe said in response to an analyst question about price-cutting.

The base R1T starts at $74,800, with shipping, and the base R1S starts at $79,800, with shipping. Higher trims with larger battery packs, four motors a…

UAW President Shawn Fain on Tuesday criticized early bargaining proposals from Stellantis as a "slap in the face" to members before throwing a copy of the document in a trash can during a livestream on Facebook.

Fain, who last week detailed the union's "audacious and ambitious" economic demands, including more than 40 percent raises, said the response from Stellantis doesn't address the union's concerns. The two sides started bargaining last month on contracts that expire Sept. 14.

The company, Fain said, is seeking cuts to medical coverage, threatening profit-sharing payouts, refusing to reopen the idled Belvidere Assembly Plant and insisting on keeping a two-tier wage system.

Fain said Stellantis also wants to eliminate a cap on the use of temporary workers, make members work longer before receiving their full allotment of paid vacation time, increase absenteeism penalties and gain the ability to "demand further concessions during the life of the cont…

Rivian Automotive Inc. on Tuesday raised its full-year production forecast after it posted a narrower second-quarter loss and significantly improved revenue.

The company reported a net loss of $1.2 billion compared with red ink of $1.7 billion during the same quarter last year. Revenue tripled to $1.1 billion.

The company also said it expects a smaller operating loss in 2023, but shares fell about 2.5 percent in trading after the bell.

Rivian now expects to make 52,000 vehicles this year, up from its previous forecast of 50,000.

The Irvine, California-based company cited “progress we have seen to date on our production lines, the ramp of our in-house motor line and the supply-chain outlook” for its revised expectations.

The higher production forecast comes after the EV maker delivered 12,640 vehicles in the April-June period, beating analysts' estimates of 11,000, a positive sign for the company that had struggled to ram…

As America becomes a nation of older cars, technicians and the aftermarket may see boom times, according to analysis by S&P Global Mobility.

The average light-vehicle age currently stands at a record-high 12.5 years, surpassing what S&P Global Mobility considers the "repair business sweet spot" of 6 to 11 years old. Vehicles 12 and 13 years old are now becoming a bigger part of the automotive repair business.

Because of this, the aftermarket is likely to see growth in repair and maintenance work as older cars will see more miles driven than traditionally expected.

The surging new-vehicle supply, after two-plus years of diminished inventory, could further boost expansion of the used-vehicle fleet and bring more high-mileage vehicles into service bays. While new-vehicle production is expected to grow, inflation and high interest rates are keeping many car buyers away from showroom floors and toward the used-car lot instead.

The share of 7-…

Group 1 Automotive Inc., which has been active on both sides of the U.S. dealership buy-sell market in 2023, divested four dealerships in three transactions, including a pair of Maine stores it sold to New England dealer David Rosenberg and partners.

Group 1, in its most recent sale, sold Nissan of Mobile to Tameron Gulf Coast on July 31, according to Ryan Mayer, the group's owner and president. The dealership was renamed Tameron Nissan, Mayer noted.

It marks the first Nissan store for Tameron Gulf Coast, which is based in nearby Daphne. The group now has six dealerships across Alabama and Mississippi, Mayer said.

In March, Tameron Gulf Coast bought a Subaru store, also in Mobile, from Lithia Motors Inc.

"It's a market that we're in and we like the brand," Mayer said of the Nissan dealership. "We think it'll be an asset to our portfolio along the Gulf Coast here."

The acquisition marked the second dealership Tameron Gulf Coast had purchas…

TOKYO – Mazda Motoro Corp. returned to profit in the latest quarter, as booming U.S. deliveries of crossovers such as the CX-50 and CX-90 helped the automaker reverse a loss from the year before and put the brand on pace to nearly notch a new U.S. sales record.

Operating profit rang up at 30.0 billion yen ($207.5 million) in the company’s fiscal first quarter ended June 30, wiping out an operating loss of 19.5 billion yen ($134.9 million) a year earlier, the company said in a statement.

Net income more than doubled to 37.2 billion yen ($257.3 million), from 15.0 billion yen ($103.8 million), as revenue climbed 72 percent to 286.0 billion ($1.98 billion) in the three-month period.

Global sales expanded 32 percent to 309,000 vehicles in the quarter, soaring on the wings of a 61 percent jump in North American shipments to 128,000 vehicles.

North America accounted for nearly half of Mazda’s global volume in the April-June period.

Sales in Eur…

ANN ARBOR, Mich. — What if a battery could be more than a power supply?

This question inspired researchers Kang Shin and Liang He to create Battery Sleuth, an anti-car-theft device that uses a vehicle's battery to control access.

Battery Sleuth is the researchers' answer to what Shin describes as an "arms race" of vehicle security between automakers and hackers. The war is primarily being fought on two fronts — the vehicle's wireless communication system and its internal communication system.

Intended to be "disruptive," Battery Sleuth bypasses those systems entirely, Shin said.

There are two parts to the device, one that attaches to a car's battery and the other that plugs into its auxiliary power outlet, the cigarette lighter. Using the electrical wiring to communicate, the device turns the vehicle's battery into both a sensor and a controller, allowing the vehicle to start only if the correct PIN is input into the keypad, Shin said.

Sh…

Lucid Motors expects better sales in the second half through price cuts, deliveries to Saudi Arabia and the launch of new versions of its sole vehicle, the Air sedan, executives said Monday.

CEO Peter Rawlinson said Lucid will soon begin delivering Air models to the Saudi market as part of an agreement with the government there to buy 50,000 vehicles over 10 years. Cars will also be sold to consumers there, he said.

The Public Investment Fund of Saudi Arabia is the majority shareholder of Lucid Group, of Newark, Calif., and recently purchased an additional $1.8 billion in shares as part of a $3 billion stock offering to boost Lucid's cash position.

Lucid reported a second-quarter net loss of $764.2 million on Monday compared with a loss of $553.3 million in the same quarter last year. Revenue grew 55 percent to $150.9 million on deliveries of 1,404 vehicles.

"Looking into the second half of the year, we have many exciting events and announcement…

General Motors said it will sell its BrightDrop electric delivery vans in Mexico.

The BrightDrop electric commercial vehicle unit, already in the U.S. and Canada, will enter its third market later this year, when customers can order its Zevo vans, BrightDrop said Monday.

"Bringing BrightDrop's products to Mexico is a key move in our mission to decarbonize delivery globally, while helping customers take advantage of the economic benefits of going electric," Steve Hornyak, BrightDrop's chief commercial officer, said in a statement.

"Electrifying vehicle fleets can positively impact the environment and companies' bottom line. By bringing BrightDrop solutions closer to our customers throughout North America, we can help make the EV transition as seamless as possible."

BrightDrop, which started in 2021, began building the Zevo 600 van in December at GM's CAMI plant in Ingersoll, Ontario. A smaller Zevo 400 van is expected to enter production this yea…

Luxury electric vehicle maker Lucid Motors said its second-quarter net loss widened to $764.2 million as it took a hit on sales from a price war sparked by market leader Tesla Inc.

The California-based EV maker lost $555.3 million during the same quarter last year. Revenue grew 55 percent to $150.9 million.

Lucid's deliveries in the second quarter were unchanged from the previous three months at 1,404 vehicles, while its production fell 6 percent from the first quarter as it struggled to ramp up.

Competition from Tesla's Model S, whose prices were cut earlier this year, and rising borrowing costs threaten the EV firm's growth. In response, Lucid slashed prices for its Air luxury sedan as part of an offer on Saturday.

Lucid has also been struggling with rapid cash burn, prompting it to raise $3 billion through a stock offering, nearly two-thirds of which came from majority-owner Saudi Arabia's Public Investment Fund.

The company's cash bal…