CDK’s big bet: Digital transformation

CDK Global Inc. is in conversations with multiple automakers about how CDK could enable a "Tesla-like" buying experience that incorporates franchised dealerships, an executive said this month.

Joe Tautges, COO of the Hoffman Estates, Ill., dealership management system giant, declined to share specific details about the talks in an interview with Automotive News but said CDK is "in several discussions with various OEMs around how we enable that improved digital experience."

CDK has spent more than $1 billion over the past few years to bolster its own digital capabilities and build a portfolio of products aimed at delivering an end-to-end digital sales experience that extends from lead generation through vehicle ownership.

Tesla sells its electric vehicles directly to consumers in the U.S. without franchised dealerships. But with the ongoing industry shifts toward electrification and digitization, Tautges said, dealerships will be a k…

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Chelsey Colbert on new ‘gold standard’ for transportation data privacy (Episode 120)

The policy counsel for the Future of Privacy Forum discusses the potential risks of sharing information from dockless scooter rides, the emerging debate over AI and driver monitoring cameras, and the words that "make privacy nerds bristle."

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Rivian setting a high bar for electric pickups

The most interesting part of the Rivian saga — for me — is the engineering and manufacturing of the R1T pickup, R1S SUV and Amazon delivery van.

Launching three new-from-the-wheels-up vehicles in close succession is a major challenge for an established automaker. It's far beyond difficult for a startup whose vehicles use proprietary technology and in-house-developed electronics, and when the tens of millions of lines of code for all the computers were written in-house, too.

This is the automotive equivalent of a moonshot. Yet Rivian, born in Florida within earshot of where Apollo rockets launched for the moon, just may pull it off.

I recently got a close look at Rivian's futuristic Amazon van at work in a suburban Detroit neighborhood. And last week, I spent around 45 minutes test driving an early-production R1T around the Detroit area.

Here's what I can tell you: Rivian has set the bar high for all competitors. The R…

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Amid industry crisis, Rolls-Royce soars as rich clients get younger

Despite the pandemic, despite the global irritation of microchip shortages and supply chain snarls for the rest of the industry, it's been a very good year for Rolls-Royce.

CEO Torsten Müller-Ötvös says that since September 2020, orders and production have been "flying." The BMW Group subsidiary has been unaffected by the semiconductor shortage because its parent has given the low-volume British brand's high-margin models priority when it comes to chips. As a result, Rolls-Royce is on pace to top its global sales record of 5,152 vehicles set in 2019.

Müller-Ötvös, 61, says Rolls-Royce has increased revenue per vehicle by emphasizing personalization. In addition, Rolls this year added a bespoke program called Coachbuild that will offer limited-edition multimillion-dollar models every other year.

But another way Rolls-Royce is maintaining its strong balance sheet is by declining to expand the brand into nonautomotive areas. The aim is to protect Rolls-Ro…

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Ghosn ‘still in the game,’ looking to rebuild rep

The most nerve-racking moment of Carlos Ghosn's daring getaway from Japan came as airport security in Osaka debated whether to X-ray the trunk in which he was hiding.

Ghosn, scrunched up inside, could hear the officials deliberating but couldn't tell which way the decision would go. They were speaking Japanese.

If they scanned that trunk, he'd be sunk.

Ghosn took a deep breath. The talking stopped, and the trunk resumed its rolling. Only then did he realize he finally made it. Ghosn was loaded onto a private jet and spirited to freedom.

"This is the single most important decision that had an impact on my life," Ghosn told Automotive News of that make-or-break moment to wave his box through. Because of that decision, the international fugitive says he is now free to start rehabilitating his reputation.

In a wide-ranging video interview from Lebanon last week, the ousted Nissan Motor Co. chairman said he is…

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Musk dials into Volkswagen executive conference

FRANKFURT -- Tesla boss Elon Musk has addressed 200 Volkswagen executives via a video call after an invitation from the German carmaker's CEO Herbert Diess, who wants to galvanize VW's top brass for a faster pivot to electric vehicles.

The comments on Thursday by Musk to a VW managers gathering in Alpbach, Austria, confirmed by Diess via Twitter on Saturday after a report in Handelsblatt daily, included praise of VW for being an "icon" and Tesla's greatest challenger, Handelsblatt said.

The paper said that when asked by Diess why Tesla was more nimble than its rivals, Musk said it came down to his management style and that he is an engineer, first of all, and has an eye for supply chains, logistics and production.

In a post on LinkedIn, Diess added that he had brought in Musk as a "surprise guest" to drive home the point that VW needs faster decisions and less bureaucracy for what he called the biggest transformation in VW's history.

"Happy to he…

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In-house referrals keep turnover down at the Georgia Mini dealership

When it comes to sourcing his most important asset, John Secondo looks within.

The general manager of Mall of Georgia Mini in Buford, Ga., relies on employee referrals as his primary recruitment strategy.

"This has worked out much better than using third-party recruitment sites," Secondo said. "We have much lower turnover by hiring people we actually know, rather than strangers."

Secondo said being general manager of a dealership is like being a football coach.

"You need to be looking for five-star players every single day," he said. "And when you're looking for five-star players, the best place to start is by talking to other five-star players you know."

Employee referrals have proved effective for the Hendrick Automotive Group dealership, which sold 1,872 new and used vehicles last year.

"If our employees are willing to say, 'This guy or gal could be a great candidate,' we want an opportunity to try and talk with them," Secondo s…

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GM Financial prepares for next chapter

DETROIT — As General Motors evolves its vehicle portfolio and adds new business lines, its captive is ready to help.

GM Financial has given the automaker a boost during much of the pandemic and throughout the global microchip shortage by running promotions at the onset of the COVID-19 crisis, consistently paying dividends to GM and carefully planning remarketing strategies. The role of the 11-year-old captive will continue to expand in the next few years as GM launches its latest digital retail platform, powered by Tekion, and as the automaker elevates new business models, such as BrightDrop, its commercial electric van business, and Cruise, its majority-owned self-driving subsidiary.

"All of those initiatives within GM, we would have a seat at the table. From that seat at the table, we've taken that back to our organization to say, 'What part do we need to play as a captive?' " said GM Financial CEO Dan Berce, who also is on the automaker's s…

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Tesla Model Y, Model 3 dominate EV registrations

More than 5 out of every 8 electric vehicles registered in the U.S. this year through August were Tesla Model Y crossovers or Model 3 sedans, underscoring Tesla's increased reliance on its less expensive models as it continues to dominate the EV market.

During that time, 105,445 Model Y crossovers were registered, accounting for about 36 percent of all EV registrations, according to data gathered by Experian. Meanwhile, 80,681 Model 3 sedans were registered, making up about 27 percent.

The nameplates were the top-selling EVs in the U.S. by far and also accounted for about 96 percent of all Teslas registered nationwide. Fewer Model S sedans and Model X crossovers were registered in the U.S. through August this year than through the same point in 2020. According to Experian, 6,212 Model S sedans were registered, down from 8,200 a year earlier. Meanwhile, 1,827 Model X crossovers were registered, a sharp decline from 11,302.

Jessica Caldwell, executive di…

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Bart Reagor found guilty of making false statement to bank, reports say

Bart Reagor, co-principal of the Reagor Dykes Auto Group in Texas that went bankrupt in 2018 amid accusations of widespread floorplan fraud, was found guilty Friday by a federal jury of one count of false statement to a bank, according to local media reports.

It was one of three counts Reagor faced as part of the trial, which began earlier this week.

Reagor was indicted by a federal grand jury last spring on two counts of bank fraud and one count of making false statements to a bank insured by the FDIC.

A 12-person jury, which began deliberating Thursday, found him guilty Friday afternoon of only the count of making a false statement to a bank, but not guilty on the bank fraud charges, the Lubbock Avalanche-Journal reported. He faces up to 30 years in prison.

Reagor was accused of diverting more than $1.7 million of a $10 million commercial loan from International Bank of Commerce to his personal bank account, which was prohibited by the loan agr…

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Stellantis to cut Ontario minivan plant down to one shift in spring 2022

Stellantis will transform its Windsor, Ontario, minivan plant into a one-shift operation beginning in the spring of 2022, the automaker announced late Friday.

The company didn’t say when one of the two remaining shifts will be slashed, but it did blame the ongoing semiconductor shortage and COVID-19 pandemic for the change.

Aside from some shifts run in late May and early June, the Windsor Assembly Plant was down from March 29 to July 5, due to the global microchip shortage. It was then down again from Aug. 16 through Sept. 26, but had been running consistently this fall.

About 4,500 people, the majority of them Unifor members, build the Chrysler Pacifica, Chrysler Pacifica Hybrid and Chrysler Grand Caravan in Canada, as well as the Chrysler Voyager for the U.S. market.

The cut will affect 1,800 jobs, the company told Automotive News Canada.

“In response to these factors, Stellantis will adjust …

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