Trade News

WASHINGTON -- U.S. Senate leaders are preparing to introduce legislation on semiconductors, President Joe Biden said on Wednesday as the nation wrestles with an ongoing shortage of the critical technology used in a range of devices from cars to computers.

"We're working on that. (Senate Majority Leader) Chuck Schumer and, I think, (Senate Republican Leader Mitch) McConnell are about to introduce a bill along those lines," Biden said during remarks about his own plan to boost the nation's infrastructure.

Schumer and McConnell's offices did not immediately comment.

The White House is set to hold a virtual summit on the issue on Monday that is expected to include senior U.S. auto executives, including Ford Motor Co. CEO Jim Farley and GM CEO Mary Barra, and White House officials Brian Deese and Jake Sullivan, officials said.

On Monday, a U.S. auto industry group urged the government to help as it warned that the global semiconductor shortage could re…

Pennsylvania-based Kelly Auto Group has added two brands to its portfolio with the acquisition of a Toyota dealership and a Hyundai dealership.

The group bought Freedom Toyota of Hamburg and Freedom Hyundai, both in Hamburg, Pa., on April 1 from Eric Savage and Greg Gagorik.

Terms of the transactions weren't disclosed. The stores have been renamed Kelly Toyota of Hamburg and Kelly Hyundai of Hamburg.

"Our goal has been to expand in the Greater Lehigh Valley and eastern Pennsylvania and we've been watching the steady retail growth along Route 61 in Hamburg since Cabela's opened," said Greg Kelly, president of Kelly Auto Group, in a statement. "Toyota and Hyundai are sought-after brands with large owner bases and impressive product lineups. That combination of great product and great people working at the dealerships made it the perfect time for us to expand to Hamburg."

With the acquisition, Kelly Auto now has eight rooftops.

The group's o…

Nikola Corp., the troubled electric-truck startup, lost a key member of its executive team with the departure of the former head of its fuel cell development program.

The company said Jesse Schneider, executive vice president of technology, hydrogen and fuel cells, left the company as of April 1. He had led its engineering teams working on fuel cell systems, a planned hydrogen fueling station network and storage technology.

“Jesse Schneider departed on April 1 on very good terms and we wish him well,” Colleen Robar, a Nikola spokeswoman, said Wednesday in a text message.

Hydrogen-powered vehicles and the fueling network to support them is at the core of the Phoenix, Arizona-based company’s business model after it abandoned a planned pickup project with General Motors and development of powersports vehicles.

Shares of Nikola fell 7 percent to close at $12.29 Wednesday in New York.

Nikola is one of a number of companies looking…

Industry inventory shortages are wreaking havoc on new- and used-vehicle auto finance trends, which show the average cost of vehicles dropped last month even while the average interest charged on auto loans rose.

The rise in the average interest rate on new vehicles amid declining monthly payments is explained by the inventory constraints hampering truck and SUV sales, said Edmunds senior analyst Ivan Drury. March sales favored Asian automakers, whose product mix tends to transact at lower price points than those of the Detroit 3.

"With the mix changing so drastically year over year, it's not too surprising," Drury told Automotive News. "Because of the shortage, we've seen a reduction in what's out there for consumers, even though credit's cheap."

The average interest rate charged on new-vehicle loans last month rose slightly to 4.6 percent, though it remained down from March 2020's average of 5.8 percent, according to Edmunds. The …

Uber Technologies Inc. said U.S. drivers on their ride-hail platforms should take advantage of pay hikes as trip demand temporarily outstrips driver supply, but warned the windfall will not last.

Uber on Wednesday said it would invest an additional $250 million to further boost driver earnings and offer payment guarantees in an effort to incentivize new and existing drivers.

Dennis Cinelli, Uber's vice president of U.S. & Canada mobility, in a blog post told drivers to take advantage of higher earnings before pay returns to pre-COVID-19 levels as more drivers return to the platform.

Lyft Inc. on Tuesday also said drivers in the company's top-25 markets were earning an average of $36 per hour compared to $20 per hour pre-pandemic. Those numbers include tips, but Lyft did not disclose the share of tips in earnings. Lyft is also offering additional incentives and promotions in select markets.

Uber said drivers spending 20 hours online per week in…

Assurant Inc., one of the leading finance-and-insurance providers, is rolling out electric and hybrid vehicle products in the U.S. The introduction of these new products indicates the company's growing faith in EV adoption in North America.

Unlike some competitors, Assurant hasn't formally introduced F&I products specific to EVs until now. Some EV protections are included in Assurant's service contract products, said Martin Jenns, senior vice president of global transformation for the global insurance company.

"We felt the timing was appropriate, given the pivot we've seen in the market," Jenns said. "While the global distribution of electric vehicles as a percentage of the overall market today is relatively small, we think the timing is good and aligned to the core values of Assurant and our [environmental, social and corporate governance] initiatives."

Assurant launched its electric vehicle product, Assurant EV One, in the U.K.…

The growing movement to impose 36 percent interest rate caps on retail installment loans received a rousing endorsement last week from the National Association of Loan Sharks, "the preeminent trade association for illegal moneylenders."

Though an April Fools' Day joke orchestrated by the American Financial Services Association, the April 1 press release reflects serious industry concerns that interest rate caps restrict financing opportunities for customers on the lower end of the credit spectrum at a vulnerable economic time.

The tongue-in-cheek release highlights how a slate of rate cap legislation could expand opportunities for the fake loan shark association's members.

"These proposals are awful for consumers but great for our business model, ensuring tens of thousands of consumers will not have access to ethical and reliable traditional installment loans, and are now forced to turn to us," a supposed spokesperson said in the rel…

Vinay Shahani, vice president of N.A. marketing, says an onslaught of products will propel the luxury brand.

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Shares of lidar sensor startup Innoviz rose on Tuesday, its first day trading as a public company.

The Tel Aviv, Israel-based firm is developing the sensors, which help self-driving vehicles gain a 3D view of the road. The company has a partnership with BMW to sell the automaker its first generation of sensors, which cost around $1,000. Innoviz is working on a second-generation sensor which it hopes to sell for less than $500.

The shares rose 11 percent to close at $10.79 on the Nasdaq stock market in New York.

Innoviz became public on Tuesday after completing a merger with publicly listed blank-check firm Collective Growth Corp. that raised $371 million. Four other lidar firms - Velodyne Lidar Inc., Luminar Technologies Inc., Aeva Technologies Inc. and Ouster Inc. - have all become public in recent months. Rival AEye Inc. also plans to become public via a merger with CF Acquisition III Corp.

"What we need to [do…

WASHINGTON -- The Biden administration is on track to propose by the end of July new limits on the emission of greenhouse gases from automobiles that are strong enough to meet “the urgency of the climate crisis,” according to EPA Administrator Michael Regan.

“We need to go as far as we can to meet the demands of the day,” Regan said in an exclusive interview Tuesday with Bloomberg News. “The science indicates we have a short window in time to reverse the path that we’re on and mitigate against certain climate impacts.”

The EPA is now rewriting a Trump-era regulation that relaxed limits on greenhouse gas emissions from vehicles through the 2026 model year. The issue is shaping up to be an early test of President Joe Biden’s commitment to fighting climate change through ambitious greenhouse-gas controls, even when opposed by industry.

In the interview, Regan also highlighted California’s unique role in fighting pollution, the return of the U.S. to the Pari…

DETROIT – The Mustang Mach-E, by nearly all accounts, has been a home run in what Ford CEO Jim Farley has called the "first inning of electrification" as the automaker tries to wedge itself into a conversation dominated so far by Tesla, General Motors and Volkswagen.

Farley has referred to the vehicle as the "first credible mass-market competitor to Tesla" and in many respects, he's right. The Mach-E is plenty capable (a prerequisite for Bill Ford to let product planners use the iconic pony logo), has impressive range and features a slew of cool new features. Plus, it's not built in a tent.

But Tesla has a clear advantage when it comes to charging infrastructure, and that's not going to change any time soon.

I recently received a Mach-E to evaluate and experienced firsthand the small inconveniences of relying on third-party chargers.

Ford has gone to great lengths to partner with a number of companies to offer what i…