Trade News

DETROIT — General Motors is retooling more than just cars and trucks as it plots a path toward cleaner skies.

GM envisions its batteries finding their way into other forms of transportation and possibly homes or businesses in the coming years as it seeks to maximize the profit potential and environmental benefits of the costly technologies it's developing.

"We came into this transformation of electrification as an automaker," said Charlie Freese, executive director in GM's hydrogen fuel cell and battery businesses. "We can come out as a provider of propulsion systems for other types of vehicles in different industries."

The tens of billions of dollars that GM is investing in electrification will go beyond its legacy auto portfolio. The automaker plans to implement its Ultium batteries and Hydrotec fuel cell technology in the locomotive and aviation industries — segments of the transportation landscape it abandoned decades ago. Recent partnerships and el…

WASHINGTON — With the White House outlining a voluntary, industry-supported goal for electrifying the nation's vehicle fleet alongside stricter federal emissions targets, it's up to carmakers and states to work out the details.

President Joe Biden's executive order signed last week establishes a nonbinding target for zero- emission vehicles — battery-electrics, plug-in hybrids and fuel cells — to make up half of all new passenger vehicles sold in 2030. It also directs the EPA and NHTSA to work on longer-term fuel economy and emissions standards for vehicles produced after the 2026 model year.

The ZEV goal props up the president's climate and energy ambitions. It also puts the onus back on states to set their own rules on ZEV sales and on automakers to carve out sales and manufacturing strategies so they can meet the more stringent auto pollution standards proposed last week by the EPA and NHTSA.

The EPA's proposed emissions standa…

Carvana Co. CEO Ernie Garcia called it a "landmark" quarter.

It was certainly one that could hush naysayers, at least for now.

The online used-vehicle upstart achieved its first profit — $45 million in net income — as it continued rapid revenue and volume growth.

Carvana executives didn't talk about how sustainable that bottom-line profit would be. But they did credit 2021's second-quarter performance in part to topping $2,000 in gross profit per vehicle retailed for the first time.

And they made it clear that higher profitability long term is linked to continued success in two initiatives Carvana has been focused on of late: buying cars from customers to buoy inventory levels and improving its reconditioning capacity and speed.

Carvana's total per-vehicle gross profit was $5,120 in the second quarter, compared with $2,726 in the year-ago period and $3,656 in the first quarter of 2021. Gross profit per vehicle retailed was $2,022 vs. $1,1…

I'm going to spend a f**king billion dollars to overturn the dealer franchise laws in America," Elon Musk told the esteemed representative of Texas auto dealers, according to the new book Power Play: Tesla, Elon Musk, and the Bet of the Century.

Musk has said the book, by Tim Higgins, is both false and boring. I'm dubious of the former: Higgins is a friend of mine — we worked together at the Detroit Free Press and at Bloomberg News. He's also a meticulous reporter and careful writer. Most certainly, it is not boring.

It chronicles Musk's amazing rise, his unbelievable tolerance for risk, his arrogance, his success against the odds and his own poor choices. Having lived through so many years of the Tesla roller coaster, it helps to have someone write it all down so it can all be sorted out.

Much of the attention in the general business press is about another F-bomb anecdote, in which Apple contemplated buying Tesla, but Musk insisted on being CEO of the c…

Lear Corp. is planning to set up a new manufacturing plant and create hundreds of new jobs on Detroit's east side after landing a contract to supply seats for General Motors' electric vehicles.

The seating and electronics supplier said the just-in-time seating manufacturing plant is planned for the site of the former Cadillac Stamping Plant. It will support the company's supply to GM's battery electric vehicles that will be built at Factory Zero, Lear confirmed.

"We are excited to be supporting GM's vision of moving to an all-electric future, and even more excited to be supporting that vision here in Detroit," the company said in an emailed statement to Crain's Detroit Business, a sister publication to Automotive News. "The facility will be one of our most energy-efficient plants in North America, and not only create hundreds of new jobs, but will be another important step forward in the redevelopment of Detroit's eastside neighborhood."

Lear CEO Ray S…

NHTSA has opened an investigation into how Ford Motor Co. proceeded with issuing a September 2020 recall of several of its newer-model vehicles.

Ford ended up recalling more than 700,000 vehicles, including 620,246 in the U.S., from the 2020 model year for poor electrical connections that could have caused vehicles' rearview cameras to intermittently show blank or distorted images.

NHTSA's Office of Defects Investigation now wants to examine "both the timeliness and scope of Ford's rearview camera recall," according to a document outlining the investigation. The agency indicated it will also look into Ford's compliance with reporting requirements.

The faulty images could have reduced drivers' visibility and led to crashes. Magna Electronics supplied the cameras.

The extensive recall included certain Ford Edge, Escape, Expedition, Explorer, F-150, F-250 SD, F-350 SD, F-450 SD, F-550 SD, Mustang, Ranger and Transit vehicles. The 2020 Lincoln Corsai…

Lear Corp. swung to net income of $175 million in its second quarter despite a $1 billion sales hit from production and supply issues that are hurting the business more than executives had anticipated.

The Southfield-based automotive seating and electronics supplier reported $4.8 billion in sales in the quarter, up 95 percent from the same quarter last year, which was marred by COVID-19 shutdowns.

However, revenue fell significantly from the $5.4 billion Lear recorded in the first quarter, due primarily to major customers such as General Motors halting production because of the microchip shortage.

The company lowered its full-year guidance range to $19.7 billion to $20.5 billion in net sales, compared with the $20.35 billion to $21.15 billion it predicted in May.

“Our customers experienced significant production disruptions, which reduced Lear’s second quarter revenue by approximately one billion dollars,” senior vice president and CFO Jason Car…

Volkswagen of America has issued a stop-sale on the all-wheel-drive versions of its new Taos compact crossover, telling dealers this week to halt sales of the models because "an issue may cause the vehicle to shut off while in use."

U.S. dealers were informed of the unidentified problem Monday, Mark Gillies, a spokesman for VW, confirmed, adding that the German company "is now following the required NHTSA reporting time frame." He said he was unaware of any injuries related to the unexpected shutdowns.

The notice sent to dealers said customers with Taos vehicles equipped with VW's 4Motion awd system alleged that their vehicle's engine "has shut off unexpectedly when coming to a stop." The notice said that VW was "working on a repair to address the issue; at this time a repair is not available."

VW launched the 2022 Taos in the second quarter and sold 4,939 in its first months on dealer lots. The Taos is one of two VW compact crossovers, along with t…

Two dealership groups have expanded their presence in Colorado, while a relatively new group owned by the founder of Bad Boy Mowers made its second dealership acquisition in the central U.S.

Here's a look at three transactions involving import-brand stores. One deal involved an Automotive News top 150 dealership group.

Schomp Automotive Group bolstered its Denver-area presence on Monday when it bought its first Nissan dealership.

Schomp of Highlands Ranch, Colo., acquired Empire Littleton Nissan from Chris Lenckosz and renamed the store Schomp Nissan.

"It's in Denver, so we see it as sort of a tuck-in to our existing operations," said Michael Dunlap, Schomp's vice president of business development.

Dunlap said Schomp has seven other dealerships in the Denver area.

"We already have sort of the headquarters and the scale to be able to absorb it. It's in the south side of Denver where our home base is; where we already have three store…

The EV revolution is closer than it appears, with automakers rapidly developing a slew of new vehicles that will wow consumers. But anxiety around charging and range is likely to hold buyers back until private and public stakeholders ramp up infrastructure, according to panelists at an automotive forum Thursday.

Within a few short years, automakers and suppliers will improve battery technology, and range could eventually become a nonissue as ultrafast chargers add 500 miles worth of electrons in minutes. But current conditions are not yet ideal for broad electric vehicle ownership, said speakers at the Management Briefing Seminars.

"The way we look at that is if you are going to make the transition from internal combustion to EV, it comes without compromise," said Mark Hanchett, CEO of EV startup Atlis Motor Vehicles. Standing in the way is charge time, range, the impact of towing on EV driving distance, and charging infrastructure, he said.

"Overcoming …

Vehicle listings company CarGurus has rebounded from the early months of the coronavirus pandemic, with both revenue and profit soaring in the second quarter.

The Cambridge, Mass., company on Thursday reported revenue of $217.7 million in the quarter ended June 30, up 130 percent from the same quarter a year earlier. Subscription revenue generated by its listings marketplace rose 80 percent to $144.2 million — $134.1 million of that in the U.S.

The company said consolidated net income more than tripled to $27.4 million from $7.1 million a year earlier. That came as CarGurus restored some of its operating expenses, particularly around sales and marketing — spending the company had cut back in recent quarters.

"Our core listings business demonstrated durability and resiliency, despite industrywide macroeconomic headwinds, while growth accelerated in digital wholesale with our CarOffer platform," CEO Jason Trevisan said in a statement. "Now, more than ever,…