Trade News

BMW signed a long-term deal to secure semiconductors for in-car lighting systems after a global shortage of the components led to shutdowns at some of its factories.

The automaker has signed an agreement with Inova Semiconductors and Globalfoundries, guaranteeing the supply of "several million" chips a year.

The components will provide controls for ambient lighting systems that will first be used in the BMW iX full-electric crossover.

"We are deepening our partnership with suppliers at key points in the supplier network and synchronizing our capacity planning directly with semiconductor manufacturers and developers," Andreas Wendt, a board member responsible for purchasing, said in a statement on Wednesday.

BMW's deal is another sign that automakers are sidestepping traditional partsmakers to instead deal directly with semiconductor manufacturers to secure vital chip supplies.

Stellantis on Tuesday unveiled a nonbinding accord with Foxconn…

Asbury Automotive Group Inc. has added eight dealerships in the Denver area and $715 million in annual revenue by closing on the purchase of Stevinson Automotive.

The nation's sixth-largest new-vehicle retailer said it spent about $300 million for the dealership goodwill — or the blue sky or intangible value of the stores, plus $77 million for real estate and leasehold interests, according to a regulatory filing. The purchase price excludes vehicle inventory, parts inventory and fixed assets.

The transaction closed on Monday and was paid for using cash on hand, Asbury said.

"We are thrilled to add to our growing footprint in the dynamic and growing Denver area, especially through a well-respected and successful dealership group like Stevinson," Asbury CEO David Hult said in a statement on Tuesday.

The Stevinson group, which dates to 1962, derives 48 percent of its revenue from two Toyota dealerships, while two Lexus dealerships contribute another…

Lithia Motors Inc. has expanded its presence in Michigan and Florida, buying three Ford dealerships from Elder Automotive Group, of Troy, Mich., and the Elder family.

The nation's second-largest new-vehicle retailer said Tuesday that it bought Elder Ford of Tampa to aid its growth in Florida, while it purchased Elder Ford of Troy and Elder Ford of Romeo, both in metro Detroit, helping add scale in Michigan after Lithia bought Suburban Collection in April. A transaction date wasn't immediately disclosed.

The three Ford stores are expected to generate $425 million in annual revenue. A purchase price wasn't disclosed, but Lithia said it paid for the dealerships using capacity on its balance sheet. 

"The Elder Auto Group has an impeccable reputation for quality customer service, a passion for all things Ford and will be a seamless fit," Lithia CEO Bryan DeBoer said in a statement.

The Elder group long had been owned by Irma Elder, the first wo…

Tesla Inc.’s Elon Musk spoke out in opposition to President Joe Biden’s signature economic package, questioning the need for legislation that would support electric-car adoption due to concerns government spending is out of control.

“Honestly, I would just can this whole bill,” Tesla’s CEO said late Monday, during a remote appearance at a Wall Street Journal conference. “Don’t pass it. That’s my recommendation.”

Musk’s stance would seem to be in conflict with Tesla’s stated mission: to accelerate the world’s transition to sustainable energy. But the last several years, the company has been competing at a disadvantage to other automakers marketing EVs in the U.S. Tesla reached a limit for the number of vehicles that qualified for a $7,500 federal tax credit in mid 2018, which led the incentive to gradually shrink to zero as of January 2020.

While Biden’s Build Back Better proposal would reinstate a $7,500 credit for Tesla and do away with any limit on th…

Nissan's bestselling vehicle, the Rogue, received a top-to-bottom makeover for 2021. But there's a major under-the-hood update for 2022.

The 2.5-liter naturally aspirated four-cylinder engine is out and has been replaced by a standard 1.5-liter, turbocharged three-cylinder engine.

Nissan has paired it with a new continuously variable automatic transmission. It features a wider gear-ratio spread — increased by 17 percent to 8.2; reduced friction, down 32 percent; and a twin oil pump setup engineered to improve fuel economy and, during aggressive driving, improve shift responsiveness.

The engine is significantly smaller than its predecessor, but it delivers 201 hp and 225 pound-feet of torque, making the 2022 edition the most powerful Rogue ever.

Combined fuel economy is an estimated 33 mpg — up 3 mpg from the 2021 model, and more than some of the Rogue's main rivals, such as the Toyota RAV4 and Ford Escape.

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DETROIT — Robert Bollinger hears the clock ticking on his EV startup.

The founder and CEO of Bollinger Motors sees the smoking-hot market right now for electric trucks and utility vehicles, and he knows that if his boxy, retro-looking electric B1 off-road utility and B2 pickup were in production today, he'd likely sell every one of the $125,000 vehicles he could build.

But he can't build them — yet. There is still a lot of engineering work to do before the trucks will be ready for production. There's the not-so-insignificant matter of lining up financing to pay the bills, and then there's a contract manufacturer to hire.

Now, with two electric pickups — the GMC Hummer EV and Rivian R1T — rolling off assembly lines and the Ford F-150 Lightning coming in the spring, some of Bollinger's first customers have asked for and received refunds of their deposits.

To a consumer, it probably seems like a hundred years ago since the …

Intel Corp. plans to list shares of its Mobileye self-driving car business by the middle of next year, letting the chipmaker capitalize on its investment in a burgeoning industry.

Intel will remain the majority owner after the transaction, which involves an initial public offering of newly issued Mobileye stock, the company said in a statement Monday. Mobileye's executive team, led by Amnon Shashua, also will stay on board.

News of the move, first reported earlier Monday, sent shares of Intel up about 8 percent in early trading in New York on Tuesday. The stock had previously gained just 2.3 percent this year, trailing the performance of Intel's chip peers and broader indexes.

The company planned to give more details on the IPO on Tuesday morning.

Analysts at Morgan Stanley said the news was a "significant positive," noting that Intel can generate some value from the business, as it will remain the majority owner, and the move will free up additio…

DETROIT — Ford Motor Co., in partnership with Salesforce, is launching a field service tool for businesses that it hopes will help differentiate its new Ford Pro commercial unit and help generate recurring revenue.

The new tool, called Viizr, is meant to provide business owners with software to do everything from digitize work quotes and invoices to schedule, dispatch and coordinate field technicians.

While such customer relationship management tools exist today, Ford cited a study showing just 10 percent of small and medium businesses are happy with those services, and feels its tool can appeal directly to those unimpressed with today's offerings.

"We realized very quickly that this market was being underserved," Jian Wei Hoh, head of the Viizr team, told Automotive News. "That's where the focus has been. We've gone out there and tested it and have talked with a lot of small businesses and know that it's something that will really drive value."

V…

Honda's Passport gets a styling refresh for 2022, along with a $5,080 price increase for the most inexpensive model.

The automaker said Monday that it is discontinuing the budget Sport trim when the 2022 model goes on sale sometime this winter. The 2021 Passport Sport starts at $34,015 with shipping, while the 2022 entry point is the EX-L trim with a starting price of $39,095 with shipping.

Honda didn't give specifics on why the Sport trim is being discontinued on the midsize crossover.

The bigger 2022 Pilot crossover retains the Sport trim, starting at $38,055 with shipping.

"Reflecting customer demand, the Passport EX-L is now the new entry point for Honda's largest 5-passenger SUV," Honda said in a press release.

The Passport does get significant styling upgrades for a more rugged, upright look. The new light-truck design language first made an appearance on the Ridgeline pickup this year.

"Pass…

DETROIT — Ford Motor Co. is again delaying its return-to-office plans amid the rise of the omicron variant of COVID-19.

The automaker most recently planned to bring back salaried employees with a new hybrid work model beginning in January. The company told employees Monday that it will begin phasing in certain groups of salaried workers in February, with the bulk of the work force not returning until March.

"The state of COVID-19 remains fluid, and despite the success of our ongoing safety protocols and increased vaccination rates, we are shifting the start date of the hybrid work model to March," Ford said in a statement. "We will begin with a pilot phase for select non-site-dependent employees in February and in March, we expect remaining team members to begin working flexibly between Ford campuses and remote options."

The new hybrid work model will allow workers to go into offices only when necessary. Ford said it was redesigning its office space to b…