Trade News

One Ford, two Fords, e-fords, Blue Fords

Alan Mulally's called his plan to unify Ford Motor Co.'s longtime factions and silos One Ford.

Now, Jim Farley is creating two Fords: Ford Blue for the F-150s, Broncos and other gasoline vehicles the company sells today; and Ford Model e, the electric vehicle side. The head of Model e — that definitely won't be confusing for a company with a vehicle called the Mach-E — is none other than Farley himself.

It's not as drastic as a complete spinoff of the EV business, which some on Wall Street had been hoping for to unlock value. But it sure looks like a reversal of the Mulally doctrine that everyone at Ford should act and feel like they're on the same team, even as Farley encourages collaboration between the two sides.

It will mean some big changes for dealers and is the kind of move that could ultimately define Farley's legacy, as Automotive News' Ford reporter, Michael Martinez, highlights in two stories …

The Argonne National Lab materials scientist outlines how batteries can be recycled without sacrificing profits, how technology borrowed from mining can be used to extract value from old cells, the promise of solid-state, and why the U.S. is on track to meet its goal of net-zero greenhouse gas emissions by 2050.

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KAR Global Inc. will focus on honing and growing its slate of digital assets as it prepares to sell its massive ADESA U.S. auto auction business to online used-vehicle retailer Carvana — a move that some wary dealers are watching closely.

The sale came out of KAR Global's recognition that its digital dealer-to-dealer tools were picking up traction with customers, CEO Peter Kelly said. It's part of an ongoing digital shift for the company.

"These are our customers' preferences, not necessarily changes we're driving," Kelly told Automotive News last week.

Kelly said that 92 percent of the vehicles KAR Global sold in 2021 were sold to online buyers, up from less than 50 percent five years ago.

While KAR Global had been moving in a more digital direction before the coronavirus pandemic, with executives citing safety concerns about cars and trucks running through auction lanes, it should be noted that the pandemic accelerated that shift. KAR Global w…

Lucid made big promises for its launch vehicle, the sleek and luxurious Air sedan. And the California electric vehicle startup delivered, with a record 520 miles of EPA range, blistering performance and futuristic styling. Now, the Saudi-backed automaker is struggling to push enough Air models out the door of its Arizona factory to meet the initial wave of demand. Lucid also postponed the launch of its highly anticipated Gravity SUV.

Help is coming with the expansion of its Phoenix-area factory, construction of an assembly plant in Saudi Arabia and improvements to Lucid's fledgling supply chain.

But in the short term, Lucid faces its version of "production hell" — a term coined by Tesla CEO Elon Musk when his California EV startup was struggling with mass production of the Model 3 sedan a few years ago.

"There's no doubt Lucid has a great product and seems to have healthy demand, with reservations increasing from 17,000 in November 2021 to 25,000 at th…

Dealers in West Virginia are pushing for major changes to the state's franchise law that would define their role in vehicle reservations and when a dealership should be compensated after over-the-air updates are performed by an automaker.

West Virginia's House of Delegates last week unanimously passed the bipartisan bill known as HB 4560, which is spearheaded by the West Virginia Automobile Dealers Association. It now heads to the Senate Judiciary Committee for consideration.

The dealer association and automakers represented by the Alliance for Automotive Innovation are still negotiating the bill's language, which is likely to change as it advances in the West Virginia legislature.

An earlier version of the bill would have banned automakers from performing some over-the-air updates and potentially blocked them from bypassing their dealers and accepting orders or reservations for new vehicles directly from consumers.

…

The vehicles and auto parts endangered by the Russian invasion of Ukraine may seem thousands of miles away from being a real problem.

But the war could bring new worries to an issue that's already bedeviling automakers: the global microchip shortage.

Ukraine is the source for 70 percent of the world's output of neon. Neon is the critical gas that runs the lasers that are needed to manufacture semiconductor chips, according to market research firm TrendForce.

Both Russia and Ukraine are home to key gases and raw materials needed for the production of semiconductors around the world. And the ripple effects of the war could exacerbate the microchip crisis as raw materials become harder to come by.

U.S. chipmakers rely "almost entirely" on laser gas from Russia and Ukraine, according to market research company Techcet.

"Of course, people will look for alternative sources of neon as quickly as they can — but that's not something t…

DETROIT -- Piston Group LLC will maintain its certification as a minority business as its legal fight with the Michigan Minority Supplier Development Council plays out in court, judges decided Thursday.

The Michigan Court of Appeals issued an opinion blocking the minority council's attempt to appeal a preliminary injunction granted to Piston Group in June that allowed the Southfield, Mich.-based automotive supplier to keep the lucrative certification for now.

It's an interim win for the Piston Group, which said losing its minority business enterprise certification puts the company at risk, especially during contract negotiations with major customer Stellantis, whose contract with Piston Group is contingent on that certification.

Thursday's opinion is the latest development in a bitter dispute that began last March when the council stripped its certification from the company owned by former Detroit Pistons guard Vinnie Johnson — and the largest Black-owne…

Adam Chamberlain, Aston Martin's new president of the Americas, has not been seen much around the office since he arrived at the ultraluxury British automaker just more than 100 days ago.

Chamberlain, 48, left his job in November at Mercedes-Benz USA, where he was vice president of sales and product management and joined Aston Martin, filling the role vacated by Laura Schwab in late 2020. He was in South Florida on Friday visiting the home of one of the company's most important customers, and meeting with dealers.

Chamberlain, driving a Vantage in the Miami area, pulled over and spoke for a few minutes with Staff Writer Richard Truett. Here are edited excerpts.

Q: It's not often the president of a car company visits his customers. How often do you do that?

A: I've been to few customers' homes, and I've seen some wonderful cars. If customers want to meet me, I am delighted to meet them. It's a privilege to do that. It comes from the fact that I am …

WASHINGTON -- The National Highway Traffic Safety Administration said on Friday it denied a General Motors  request that would have allowed the automaker to avoid fixing headlight glare problems on about 725,000 U.S. sport utility vehicles.

If the agency had agreed to declare the problem inconsequential, GM would not have been required to notify customers of the problem and provide a free fix.

The automaker argued the issue did not impact vehicle safety and petitioned NHTSA in 2019 to declare the issue inconsequential for GMC Terrain vehicles from the 2010 through 2017 model years. GM said the issue has been corrected in replacement parts and does not affect current generation vehicles.

NHTSA said in certain weather conditions such as snow and fog the headlight issue could cause "glare to other motorists driving in proximity."

GM said Friday it was aware of the agency's ruling and "will review NHTSA’s decision and explore potential next steps…

Karl Malone Auto Group, Jerry Seiner Dealerships, a brother and sister ownership team and another duo bought dealerships in the fourth quarter of 2021 and first quarter of 2022.

Here's a look at deals involving domestic and import brands and dealerships in Idaho, Utah, Nevada, Connecticut and Georgia. One of the transactions involved a group ranked on Automotive News' top 150 dealership groups list.

Karl Malone expands Ford dealership lineup

Basketball Hall of Famer Karl Malone's dealership group expanded in the fourth quarter with two separate acquisitions, including one in a new state.

Karl Malone Auto Group, of Draper, Utah, bought Silver Creek Ford in Hailey, Idaho, on Oct. 31 from Matt Cook of Goode Motor Auto Group, said David Hicks, operations manager at Karl Malone Auto Group.

It marks the first franchised dealership for the group in Idaho, Hicks said. The store was renamed Karl Malone Ford Hailey. Hailey is east of Boise, Idaho. Read more

Russian self-driving tech company Yandex has placed its operations in the U.S. on hiatus.

The company said Friday it has paused testing of its robotaxi fleet in Ann Arbor, Mich., and is no longer making restaurant deliveries with its six-wheeled sidewalk Rover bots on college campuses across the country.

"Our AV test fleet in Ann Arbor is grounded at the moment, but we hope to resume operations in the future," a spokesperson told Automotive News.

Yandex stopped its operations as Russia's invasion of Ukraine entered its second week, a conflict which has sparked international outcry and compelled businesses across the globe to cut ties with Russian companies.

One of those was food delivery service Grubhub, which said Thursday it would end its partnership with Yandex. The two companies had worked together on the Ohio State University and University of Arizona campuses.

"We're working with our campus partners on alternate service options as we…