Trade News

Volvo Car Corp. has reached an agreement with its Chinese parent Zhejiang Geely Holding Group to establish a joint venture to take over its powertrain operations.

The deal will allow it to concentrate on developing a new range of EVs, Volvo said in statement Thursday.

In the coming month, it will merge all its powertrain operations -- including engine plants in Sweden and China -- into the new company, the Swedish automaker said.

The JV company, named Aurobay, will initially develop powertrains within the Volvo and Geely groups, but expects also to supply customers outside the group in the future.

"The new stand-alone business also has the ambition to supply customers outside of the Geely Holding Group, and aims to be a leading player in the supply of high-quality, low emission, cost-efficient powertrain solutions," the Volvo statement said.

Volvo is targeting half of its global sales volume to come from EVs in 2025, with the other half fro…

Carla Bailo, CEO of the Center for Automotive Research, discusses NHTSA's new order requiring companies to report crashes involving certain automated-driving technology.

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Three court-appointed experts determined that billionaire Robert Brockman is competent to stand trial in the largest tax-evasion case in U.S. history, despite his claims of dementia, prosecutors said in a court filing.

If the findings are confirmed by a judge in Houston, the 80-year-old former CEO of dealership management systems vendor Reynolds & Reynolds would be tried on charges that he evaded taxes on $2 billion in income and laundered money. Brockman’s lawyers say dementia has left him unable to aid in his defense.

Prosecutors disclosed the findings of the experts in response to a Brockman filing, which sought an eight-week extension to an Aug. 6 deadline for defense lawyers to file expert reports. Brockman’s lawyers said a geriatric psychiatrist advised that they need time for more medical examinations relating to his competency because of his “recent hospitalizations and current health condition.”

Brockman’s June 30 filing redacted sections,…

Automotive supplier Magna International is partnering with work force education provider InStride to launch a pilot program that will provide qualified employees access to undergraduate degree programs free of debt.

The initiative, Educational Pathways for Innovative Careers (EPIC), will be available for U.S.-based employees beginning this month.

The program will provide coursework that lets employees address the skills they'll need to keep up with continued advances in the auto industry. The goal is for employees to expand their knowledge and skills so that more advanced vehicles can be designed and built.

"The mobility industry is transforming rapidly and in need of ever-changing skill sets to meet new demands. As vehicles change, the way we design and build them will be drastically different, requiring employees to expand their knowledge in order to maintain our company's competitive advantage," Magna Chief Human Resources Office…

Renault CEO Luca de Meo said the effects of the global semiconductor shortage will be felt through next year, a warning that doesn’t bode well for a recovery in auto production.

Major suppliers have cautioned Renault that the shortage is "a structural thing that will be with us through 2022," de Meo said Wednesday on the sidelines of a French parliamentary hearing. "There will be tension in the system even if production capacity is improving," he said.

"We have managed in the first half, but of course we have lost volumes," de Meo said. What is frustrating for the industry is that visibility on supplies "changes every week," he said.

De Meo's comments indicate the supply crunch, which many automakers including Renault expected to peak during the second quarter, could continue to weigh on auto output for longer.

Daimler and Jaguar Land Rover this week said that sales will be further hit on chip supply shortfalls.

Jaguar Land Rover said deliv…

While subprime shares shrink in the auto-lending marketplace, new research from the Federal Reserve Bank of Chicago suggests the performance of these loans exceeded lender expectations because of steps taken by the government and auto lenders early in the coronavirus pandemic.

Many auto lenders set aside hefty reserves to insulate themselves from future losses, anticipating a jump in delinquencies and repossessions amid historic unemployment from mandatory stay-at-home orders during the crisis.

Yet those losses never materialized. According to a blog post on June 30, the Chicago Federal Reserve posits that subprime auto loan performance was assisted greatly by the extension of government assistance through the Coronavirus Aid, Relief and Economic Security Act; temporary moratoriums on vehicle repossession in many states; and proactive moves by auto lenders to extend forbearance programs. In short, the steps taken to protect vulnerable populati…

DETROIT — Ford Motor Co. on Wednesday said it will hire Steven Croley, a former U.S. federal lawyer and aide to former President Barack Obama, to become its chief policy officer and general counsel effective July 12.

John Mellen, Ford's current general counsel who postponed his retirement a year ago, will step down effective Sept. 1 following a transition period, the company said.

Croley, 55, will report to CEO Jim Farley and work closely with Jon Huntsman, a Ford board member who in April was named to the new senior advisory position of vice chairman, policy.

"Steve has deep leadership experience at the intersection of law and policy and will add strength to our terrific legal, government relations and sustainability teams," Farley said in a statement. "His background will be invaluable as we partner with governments and others to speed development of breakthrough products and services that help give more people the freedom to move and pursue their drea…

LOS ANGELES — Genesis Motor North America CEO Mark Del Rosso has taken a leave of absence as of July 1, the automaker told Automotive News.

Jose Muñoz, CEO of Hyundai Motor North America, will serve as the interim Genesis chief during Del Rosso's absence.

Genesis did not provide details about Del Rosso's leave, other than saying it is for a personal matter. The company did not give a time frame for the length of his absence.

The Genesis executive took over the North America helm in October 2019. He previously held senior positions at Audi of America and Bentley's Americas division.

Genesis has been on a roll under Del Rosso.

The brand reported its best-ever U.S. sales in June on the recent launches of its first two crossovers, the GV70 and GV80. Sales at the luxury line nearly tripled compared with June 2020. In the first half of the year, deliveries more than doubled to 19,298.

Tedros Mengiste, e…

BMW is giving the second-generation 2 Series a muscular makeover, bigger footprint and punchier powertrain.

The two-door coupe will arrive in U.S. stores in November and start at $37,345, including shipping.

As part of a major overhaul, the 2022 BMW 2 Series Coupe features a more athletic exterior design and roomier interior.

The rear-wheel-drive 230i Coupe is 4.3 inches longer, 2.6 inches wider, 1 inch lower and has a 2-inch longer wheelbase than the outgoing model. The all-wheel-drive M240i xDrive model is 3.5 inches longer, 2.6 inches wider, 0.1 inch lower and has a 2-inch longer wheelbase than the first-gen version.

A low front bumper, headlights now pushed to the outer edges of the front end and a new, turbine-style BMW kidney grille give the car a wide, low-slung stance. Flared fenders and a muscular power dome at the center of the hood hint at the vehicle's beefier powertrain.

The redesign eschews BMW'…

Grubhub is turning to Russia’s leading internet company to field a fleet of robots to make sure hungry college students can get the munchies quickly regardless of the weather.

Yandex NV’s self-driving unit will deploy suitcase-sized robots that have been in use in Russia since last year as part of Grubhub’s campus delivery program, which covers over 250 colleges around the U.S., the Moscow-based company said in a statement.

The robots, which will be rolled out at some campuses during the fall semester, mark Grubhub’s first attempt to use autonomous vehicles as the restaurant business turns to drones as a novel way to eventually cut delivery times and, eventually, costs. Nuro, which operates a fleet of self-driving pods, started delivering pies for Domino’s Pizza Inc. in Houston this April, while California-based Kiwibot introduced a model this year that can bring food indoors.

Grubhub has lost more than 30 percentage points in food-delivery market share …