Trade News

Tesla Inc. will start using cheaper lithium iron phosphate batteries globally, a move away from the chemistry used to power most electric vehicles as prices for key materials soar.

The switch to LFP batteries will apply to Tesla's standard-range vehicles, the company said in its third-quarter-earnings release, confirming a strategy flagged last year to use the budget components to deliver lower-cost models.

Most of the auto industry relies on nickel and cobalt in lithium ion batteries to boost EV performance. Yet supplies of both materials are constrained, and ethical issues have long dogged cobalt mines in the Democratic Republic of the Congo, the top supplier. Nickel, which helps provide power and range, is also prone to fire, a risk the industry is spending billions to control.

Higher prices of nickel are currently having an impact on battery cells, according to Tesla's Chief Financial Officer Zach Kirkhorn. "Some of those costs have been flowing thr…

Tesla Inc. posted a second consecutive record quarterly profit, earning $1.62 billion in the third quarter despite the ongoing global semiconductor shortage and other supply-chain challenges.

Revenue jumped 57 percent to $13.8 billion, and automotive gross margins rose to 30.5 percent.

Executives expect strong demand for Tesla’s electric vehicles to propel growth futher even as it works to ramp up production at new assembly plants in Texas and Germany.

Tesla was aided by $279 million in sales of regulatory credits to rivals, although that number fell for the second straight quarter.

The automaker generated record global deliveries of 241,391 in the latest quarter, 73 percent more than a year earlier. Tesla said its average selling price decreased by 6 percent year over year as the lower-priced Model 3 sedan and Model Y crossover accounted for nearly all volume.

“Overall I’m very proud of what the team has accomplishe…

DETROIT — NBA legend Isiah Thomas believes hemp can be a key piece in helping auto manufacturers and other industries reduce their carbon footprints.

Thomas, the former Detroit Pistons star, is the CEO and largest shareholder in One World Pharma. The company has built a hemp-growing operation in Colombia that's ready to supply various sectors when they're ready to make the transition to materials based on the plant.

The company works with indigenous farmers in the region. Thomas said automakers such as BMW have already used hemp-based components in their vehicles.

"The reason why we chose to grow in Colombia is because we can turn our soil over three times a year," Thomas told Automotive News. "When we talk about the industries, the demand that most industries will have, you have to have the supply to meet the demand. Again, from a growing standpoint and a seasonal standpoint, that was the best place that we found to grow and to cultivate."

Thomas…

Representatives of the top dealerships gather for a group photo at the 2021 Automotive News Best Dealerships To Work For event Tuesday night in Chicago.

Audi Turnersville General Manager Jimmy Magee accepts the dealership’s trophy. His New Jersey store ranked No. 1. Automotive News Publisher KC Crain stands behind Magee.

From left: Crain; Bud Denker, president of Penske Corp.; Magee; and Alex Vetter, CEO of Cars.com, one of the program's exclusive lead sponsors. Penske Automotive had 35 dealerships on this year's list, including Audi Turnersville.

Vetter, left, stands with Rick Trinkl, general manager of Larry H. Miller Hyundai Peoria in Arizona, who is congratulated by Crain. The dealership was No. 2 on the overall list and topped the large dealership category, for stores with 100 or more employees. 

Garth Brown, general manager of Jaguar-Land Rover Englewood in New Jersey, left, with Jeff Beals, CDK Global senior vice preside…

Lithia Motors Inc.'s revenue hit a third-quarter record driven largely by increased new- and used-vehicle sales, higher average vehicle selling prices and strong gross profits per vehicle.

Net income totaled $307.9 million, nearly double the $158.8 million a year earlier.

Revenue for the Medford, Ore., retailer climbed 70 percent to $6.17 billion.

Adjusted net income more than doubled to $342 million, from $160 million in the third quarter last year.

Lithia continued its dealership acquisition tear in the third quarter with purchases in Alabama, California, Texas and Georgia. It also expanded into Canada -- the group's first international acquisition -- when it bought Pfaff Automotive Partners on Aug. 30.

Lithia's third-quarter dealership acquisitions combined are expected to generate annual revenue of $1.7 billion, the company noted.

"Year-to-date we have acquired $6.2 billion in annualized revenue and are pacing ahead of schedule …

Electric cars and other new-energy vehicles will be subject to increased safety checks in China, amid driver concern over issues ranging from battery fires to brake failures.

NEV makers will be required to strengthen safety monitoring and management systems, according to draft guidelines issued Wednesday by the Ministry of Industry and Information Technology. They will also be required to improve quality defects, from vehicle design and testing to upstream supply chains.

Under the proposed changes, automakers will have to set up a 24-hour emergency response system for major accidents. Companies whose cars are involved in accidents or defy regular checks may face penalties including being removed from government subsidies or production suspensions.   

Issues such as battery fires, brake failure, sudden loss of power or mechanical defects have become a major concern in customers’ purchasing decisions. In an incident that went viral in April, a pr…

Asbury Automotive Group Inc. has acquired Kahlo Chrysler-Dodge-Jeep-Ram in Noblesville, Ind., north of Indianapolis, the auto retailer said in a LinkedIn post.

The dealership, which was owned by the Kahlo family, is near Asbury's Hale Chevrolet dealership in Noblesville, a store it acquired in 2017 as it entered the state.

Asbury will retain the Kahlo name for the dealership, the nation's sixth-largest new-vehicle retailer said in the post. The transaction closed on Monday, an Asbury spokeswoman said.

"We are thrilled to welcome 71 hardworking team members to the Asbury family and expand in the Indiana market," according to the post.

Asbury now has eight dealerships in Indiana and the Kahlo store marks its 92nd store.

Asbury purchased a Subaru dealership in Colorado this year, while selling a BMW store in Virginia. It plans to buy more stores by the end of the year including Larry H. Miller Dealerships, the nation's eighth-largest new-veh…

Electric-car startup Fisker will develop two new, high-end, low-volume models, CEO Henrik Fisker said.

The models will slot above the upcoming Ocean SUV and the automaker's second car, a mass-market EV called Pear (Personal Electric Automotive Revolution).

The vehicles will be aimed at customers of traditional high-end brands, Fisker told Automotive News Europe in an interview.

"We have to get car enthusiasts behind us and to do that we want to have a smaller group to create some really dramatic unique car enthusiast vehicles," Fisker said of the company's planned new R&D center in the UK, which will develop the vehicles.

The center will likely be based near Oxford, England, Fisker added.

Fisker has recruited Aston Martin's director of special projects, David King, to lead the center, which will be called Magic Works, the company said.

The models will utilize lower-volume tooling and higher-grade body panel materials such as alu…

Volkswagen Group is ready to team up with peers and technology companies to boost the scale, speed and savings on software development as companies including Tesla and Intel have left the biggest automakers behind.

VW is "always open" to working with third parties on software and is exploring options regularly, CEO Officer Herbert Diess said in a statement to Bloomberg News.

The automaker doubled planned digitization spending to $31 billion as part of a five-year plan last year that’s coming up for its annual review next month. 

"Opening up our technology platforms to others is part of our strategy to leverage economies of scale," Diess said.

VW has little time to waste to get its software operations, pooled under the Cariad brand, off the ground. Envisioned as an agile, standalone unit, a number of software specialists have left and VW last year changed tack to put Audi in charge.

After electrification, turning cars into digital devi…

The past 18 months have given auto dealers unprecedented challenges. Among the side effects of the pandemic are a labor shortage and a global microchip crisis that has crimped vehicle inventory. Auto retailers are asking employees to manage structural changes to the industry while adjusting to one of the most difficult operating environments in history.

But through all this some dealers created excellent work places, resulting in amazing employee satisfaction.

Every year Automotive News honors those dealers and shows you how they’ve been able to become great employers in their communities. In our Best Dealerships to Work For features, you'll find out what your peers are doing to attract and retain talent, and help people build careers in this industry.

Read profiles on all 100 dealers.

Some of the stores on the 2021 Best Dealerships To Work For list have gone all-in on introducing four-legged companions to the showroom or sponsoring charitable initiatives to aid animal rescue causes.

Cats and cars? Several dealerships are cool with that concept. BMW of Mobile, in Alabama, adopted a cat named Beemer. Beemer doesn't close deals, but his purring and lounging throughout the store is "instant stress relief" for customers and sales associates alike, according to Scott Davis, the dealership's center operator.

Some stores dub themselves pet-friendly. Friendship Nissan in North Carolina and Friendship Hyundai in Tennessee encourage customers to bring pets with them while they shop or get their vehicles serviced, said Dustin Walters, dealer principal of both stores.

Employees at Mercedes-Benz of North Scottsdale, in Arizona, can take in their dogs on specific days, said Michael Faul, general manager. Guests are also welcome to bring in their c…

SHANGHAI -- Chinese smartphone maker Xiaomi said it plans to start mass producing its own electric cars in the first half of 2024, a company spokesperson said, citing comments from CEO Lei Jun.

The comments, which were made at an investor event, were first reported by local media and later confirmed by the company.

Zang Ziyuan, a director in Xiaomi's international marketing department, also posted the news on his verified Weibo account.

The date marks the next major target for the company's fledgling EV division, which Xiaomi formally announced earlier this year.

In March, Xiaomi said it would commit to investing $10 billion in a new EV division over the next ten years. The company completed the business registration of its new unit in late August.

The company has ramped up hiring for the unit, though it has yet to reveal if it will produce the car independently or via a partnership with an existing automaker.