Trade News

DETROIT -- Credit Acceptance Corp. announced this week that longtime CEO Brett Roberts will retire and the company reached a $27 million settlement with the Massachusetts attorney general tied to alleged deceptive loan practices.

Roberts, 54, will leave the top position at the subprime auto lender effective May 3, the company said in a Thursday press release. The company's board of directors named current CFO Kenneth Booth, 53, to succeed Roberts as Credit Acceptance's president and CEO. He will also join the board. The board increased the seats on the board to five and named Vinayak Hegde, president and COO of Seattle-based Blink Health, as a director.

Roberts leaves the company as it battles regulators and short sellers over its lending practices. Credit Acceptance's main business is to acquire consumer auto loans from dealerships, typically high risk loans. The company repossesses upward of 35 percent of the vehicles it finances, Plainsite reported in 2018…

Editor's note: GM posted adjusted earnings before interest and taxes (EBIT) of $9.7 billion in 2020 and $8.4 billion in 2019. An earlier version of this story misstated those figures.

DETROIT — Mary Barra remained the highest-paid CEO of the Detroit 3 in 2020. She earned $23.7 million, a 9.4 percent increase, in her seventh year leading General Motors.

Barra is the only Detroit 3 CEO who is also chairman. Her compensation, disclosed Friday in GM's annual proxy statement, includes a base salary of about $2 million, a 5 percent decline from 2019; $3.8 million in short-term incentives vs. $2.7 million in 2019; and $13.1 million in stock awards, up from $12.1 million.

Mike Manley, in his last year leading Fiat Chrysler Automobiles before merging into Stellantis, made $14.2 million in 2020. Jim Farley, who became Ford Motor Co.'s CEO in October, received $11.8 million last year, while predecessor Jim Hackett made $16.7 million.

GM also said its lead in…

Free2Move, the short-term vehicle rental operation owned by Stellantis, has been pushing its car-sharing services into the U.S. market recently following its success with the model across the globe.

Now Free2Move is bringing its Car on Demand subscription services to the U.S. after operating them in Europe since 2019.

The company has been operating a fleet for its app-based car-sharing service that can be rented by the minute, hour or day in Washington, D.C., since 2018, and recently announced plans to expand to Portland, Ore., this spring or summer, starting with a fleet of 200 Jeep Renegades.

Free2Move will now expand its subscription service to six U.S. states before the end of the year, starting in Los Angeles. The other locations were not disclosed.

Car On Demand gives customers access to vehicles on a monthly basis and includes insurance, roadside assistance, vehicle maintenance, free delivery and up to 1,000 mile…

On the same day that Ford Motor Co. said it would be able to produce only half as many cars as planned due to a global chip shortage, Apple announced blowout quarterly earnings as smartphone and computer sales soared, with the chip shortage having only a small impact on its business.

The contrasting results show how major players in the electronics industry, accustomed to the long-time horizons of chip production, have mostly avoided major disruptions from the chip shortage.

Automakers and their suppliers, with "just-in-time" production lines that can more easily be spun up or changed to produce different varieties of parts, have not.

Apple said Wednesday that it would lose $3 billion to $4 billion in sales in the current quarter due to limited supplies of certain older chips.

Still, that represents just a few percentage points of Apple's projected sales of $68.94 billion for the fiscal third quarter, according to Refinitiv revenue estimates, comp…

WASHINGTON -- The U.S. Securities and Exchange Commission has opened an inquiry into the U.S. unit of Volkswagen Group over a marketing stunt in which it falsely said it was changing its name in the United States to "Voltswagen," a person briefed on the matter confirmed to Reuters.

Spiegel first reported the inquiry and the SEC's request for information about the issue made in early April and quoted VW as confirming the investigation.

Volkswagen declined to comment on the matter to Reuters. The SEC did not respond to a request for comment.

The company in March apologized after a false statement it issued about a phony name change was widely slammed on social media.

The stunt, which came just ahead of April Fool’s Day, was meant to call attention to its EV efforts, the carmaker said.

The initial statement outlining the name change, posted on its website and accompanied by tweets, was reported by Automotive News, Reuters and other outlets glo…

Nissan will trim North American production in May because of the semiconductor shortage, the automaker said Thursday.

Frontier and Titan pickup production in Canton, Miss., will be cut for four days, and Altima sedan assembly will be reduced for eight days in May.

In Smyrna, Tenn., production of the Rogue crossover, Maxima sedan and Leaf electric vehicle will be trimmed two days next month. Murano crossover production will be cut one day next week.

In Mexico, production at a factory in Aguascalientes, where Nissan builds the subcompact Versa sedan and compact Kicks crossover, will be halted for seven days in May.

"We continue to work closely with our supplier partners to assess the impact of supply chain issues and minimize disruption for vehicle deliveries to our dealers and customers," Nissan spokeswoman Lloryn Love-Carter said in an email.

Visteon Corp., an auto supplier whose top customer is Ford Motor Co., flagged to investors that unidentified carmakers may seek compensation for computer chip shortages crimping vehicle production.

The automotive cockpit electronics supplier said in a quarterly filing Thursday that semiconductor suppliers have at times been unable to deliver sufficient chips.

“This has led certain customers to allege that the company has contributed to production reductions,” Visteon said, referring to itself. “As a result, these customers have communicated that they expect the company to absorb some of the financial impact of those reductions and are reserving their rights to claim damages arising from the supply shortages.”

Ford, which spun off Visteon in 2000, is still Visteon’s largest customer by far, according to data compiled by Bloomberg. The automaker accounted for 22 percent of the supplier’s revenue last year, followed by 11 percent apiece for Mazda Motor Corp…

General Motors plans to invest more than $1 billion to retool its Ramos Arizpe, Mexico, plant for electric vehicle production, making Ramos GM's fifth EV facility in North America, GM Mexico said Thursday.

GM plans to begin building EVs at the plant in 2023 and make batteries and electrical components for drive units starting in the second half of this year, GM Mexico said in a statement.

Ramos will join Orion Assembly and Factory Zero in Michigan, CAMI in Ingersoll, Ontario, and Spring Hill Assembly in Tennessee as GM's EV plants.

The plant will continue to build the Chevrolet Equinox and Blazer, in addition to new EVs.

The renovations also include a new paint shop, which will begin operations in June.

"I'm sure this investment will contribute to continue boosting Mexican manufacturing while bringing development to the region, the industry and the country," said Francisco Garza, president of GM's Mexican unit, during a webcast announcement…

A federal judge has agreed to delay a competency hearing to determine whether former Reynolds and Reynolds Co. CEO Bob Brockman can assist in his defense against tax evasion charges.

U.S. District Judge George Hanks Jr. on Wednesday signed an order moving the scheduled competency hearing in Brockman's case from June 29 to Sept. 13, according to court filings in the U.S. District Court for the Southern District of Texas, where the case is pending.

Hanks' decision follows a request from Brockman's attorneys to postpone the hearing and extend deadlines for other competency proceedings after Brockman was hospitalized in March for an undisclosed medical condition. Defense attorneys originally asked Hanks to push the competency hearing to August but later sought to move it to September to provide more time to submit expert reports to the court.

Prosecutors do not oppose the request, Brockman's attorneys noted in the filing.

Brockman, 79, was taken to th…

Despite a storm in the U.S. and mandated pandemic-related shutdowns in the U.K., Group 1 Automotive Inc. was able to boost sales and report record profit for the first quarter.

The dealership group reported Thursday that net profit more than tripled to a record $101.9 million in the quarter as revenue rose 12 percent to a record $3.01 billion, driven by new- and used-vehicle revenue growth of more than 20 percent in the U.S. The first quarter presented the first comparison with a year-earlier period affected by the coronavirus pandemic.

In March in the U.S., customers returned to Group 1's dealerships "in droves," Daryl Kenningham, Group 1's president of U.S. and Brazil operations, said in a statement.

Customer lead traffic rose 43 percent year over year in March, service appointments increased 25 percent and customer-pay repair order count jumped 23 percent, Kenningham said. It's a stark change from March 2020, when traffic dried up early in the pandemi…

NEW DELHI -- Ford Motor Co. expects to firm up capital allocation plans for India in the second half of 2021, a senior executive said in an email to staff, as the automaker overhauls its strategy in a loss-making market.

The automaker has tasked senior executive Steven Armstrong with evaluating investment plans for India in his new role as transformation officer, South America and India, the automaker said in a separate statement this week.

"We have a lot of work to do as we continue to assess our capital allocations in the market," Dianne Craig, president of Ford's International Markets Group (IMG), said in an email to staff on Wednesday, referring to India.

"While we expect to have an answer in the second half of this year, the appointment of Steven...will help focus our efforts and speed up the process," she said.

IMG includes India, where the company employs more than 16,000, and other markets.

Ford India head Anurag Mehrotra will repor…