Trade News

SHANGHAI – Xiaomi Corp., a major Chinese smartphone maker, went public this week with bold plans to develop intelligent electric vehicles. 

The announcement came as no surprise. A late entrant to the EV sector, Xiaomi has the potential to develop into a force that few other players could ignore. 

As a computer software engineer, Xiaomi’s co-founder and CEO, Lei Jun, displayed keen interest in connected EVs early on. He visited Tesla’s Elon Musk twice in 2013 and his private equity firm has invested in domestic EV startups Nio and Xpeng. 

After extensive market research over the past few months, Xiaomi’s board decided to move forward into the EV market, Lei said Tuesday when unveiling the company’s new smartphone. 

He will directly lead Xiaomi’s EV unit and “this will be the last startup project in my career,” Lei, 52, said at the event.  

The strong commitment Lei and Xiaomi have demonstrated to EV development is in…

Toyota Motor Corp. plans to produce fuel cell systems for commercial vehicles in the Chinese capital of Beijing with local fuel cell system developer SinoHytec Co. 

Under an agreement signed this week, the two companies will establish a 50-50 joint venture later this year, Toyota said. 

The 8 billion Japanese yen ($721 million) partnership will launch production in Beijing’s economic and technology zone in 2023. 

The joint venture will adopt the same fuel cell technology as the Toyota Mirai sedan with its first product, but will enhance power output for application in commercial vehicles, according to Toyota. 

Toyota and SinoHytec formed an r&d partnership in August 2020 for fuel cell system development with four major state-owned Chinese automakers – China FAW Group, Dongfeng Motor Group, GAC Motor Group and BAIC Group.

The deal has made the four state-owned companies potential customers for the fuel cell systems th…

Chinese electric-vehicle startup Aiways aims to boost annual exports to 10,000 vehicles in 2021, ten times the number registered last year, further expanding its global sales footprint.

The company disclosed the goal Wednesday after it delivered more than 1,000 vehicles overseas in the first quarter alone.

In May 2020, Aiways started to ship its first product, the U5 compact crossover, to Europe -- its first export market. By the end of last year, it was delivering the U5 in France, Germany and the Netherlands. 

In the first quarter, it began exports to Belgium, Denmark and Israel. 

For the remainder of 2021, it will focus on further developing markets in Europe and the Middle East, Aiways said. 

The U5, similar to the Audi Q5 in size, is powered by a 140-kilowatt electric motor and has a range of more than 400 kilometers. 

The company plans to roll out its second product, the U6 ion, a coupe-like compact crossove…

Nissan has kicked off 2021 with a modest rebound as demand for new vehicles in the U.S. economy mends from the pandemic.

Nissan Motor Co. sales rose 11 percent to 285,553 units during the first quarter.

Nissan Division sold 266,482 vehicles in the January-to-March period, up 15 percent from a year earlier. Infiniti volume slid 25 percent to 19,071 vehicles.

Nissan sales and market share have risen every month since the start of the year, said Judy Wheeler, Nissan Division vice president of sales and regional operations in the U.S.

"Our Nissan Next path is coming home to roost," Wheeler said, referring to the company's strategy to simplify the product lineup, reduce dealer inventory and steer away from rental-fleet business.

Sales were also buoyed by a two-year product offensive that will have landed six new or redesigned vehicles in dealerships by the end of 2021. The updated vehicles, including the Rogue compact crossover and compact Sentr…

Toyota and Lexus sales recovered strongly in March compared with a year earlier, when the COVID-19 pandemic took hold, despite some of the tightest inventory constraints in the industry.

Collectively, Toyota Motor North America sold 253,783 vehicles in the U.S. in March, up 87 percent over a year ago.

The Toyota brand sold 220,597 vehicles in March, up 84 percent. Car sales rose 57 percent, as all nameplates but the Yaris — which has been discontinued in the U.S. — posted double-digit gains. Crossover volume more than doubled, and combined sales of its two pickups rose 49 percent.

Lexus sales more than doubled to 33,186. The luxury division's car sales rose 89 percent, while its crossovers more than doubled.

Brands: Toyota up 84%; Lexus up 113%.

Notable nameplates: Toyota Camry up 41%, Corolla up 61%, RAV4 up 89%, Tacoma up 70%, Tundra up 0.5%; Lexus ES up 63%, RX up 134%, NX up 104%.

Incentives:…

Severe weather, the coronavirus pandemic, lower sellable inventory than a year ago and calendar shifts all had an impact on CarMax's fiscal fourth quarter, as the nation's largest used-vehicle retailer reported higher sales and lower profits.

CarMax's net sales and operating revenue grew 4.1 percent to $5.16 billion in the period ended Feb. 28, while net earnings fell 2.3 percent to $209.9 million.

The company separately on Thursday announced the acquisition of Edmunds for $404 million. CarMax had bought a minority stake in the automotive-listings and research company for $50 million last year. The full acquisition, expected to be completed in June, will help CarMax with its omnichannel retail efforts while giving Edmunds CarMax's national scale and infrastructure.

In an earnings call Thursday, CarMax CEO Bill Nash said a key piece of the partnership has led to both CarMax and Edmunds offering an instant-offer tool on their websites. Nash said CarMax is …

DETROIT — Ford Motor Co. is again cutting production of the nation's bestselling vehicle due to an ongoing shortage of semiconductors roiling the auto industry.

The automaker said Wednesday that F-150 production at its truck plant in Dearborn, Mich., will be down the weeks of April 5 and 12 and it will cancel overtime there the weeks of April 26, May 10, May 31 and June 21. The truck side of its other F-150 plant, Kansas City Assembly, will go down the week of April 5. Overtime for the truck side of the plant will be canceled the weeks of April 12, April 19, April 26, May 3, May 10, May 17, June 7 and June 14.

The van side of Kansas City Assembly, where workers build the Transit, will slash overtime the weeks of April 5, 12 and 19.

Additionally, Ford said its Louisville Assembly Plant, where workers make the Escape and Lincoln Corsair crossovers, will be down the weeks of April 12 and 19. Oakville Assembly in Ontario, Canada, home to the Edge and Lincoln…

WASHINGTON -- U.S. banking regulators announced on Monday they were soliciting public input on the growing use of artificial intelligence by financial institutions.

In a joint statement, the regulators said they wanted feedback on the use of the technology by banks to police fraud, underwrite loans and for other purposes, and what perks and challenges it presents.

The query was not connected to any specific regulatory project, but rather regulators said they were soliciting public comment to identify any areas where it may be helpful for agencies to clarify existing rules to address the use of AI.

“The agencies support responsible innovation by financial institutions,” the regulators said in the solicitation. “With appropriate governance, risk management, and compliance management, financial institutions’ use of innovative technologies and techniques, such as those involving AI, has the potential to augment business decision-making, and enhance services …

More pieces of Rivian's puzzle are being snapped into place as the June launch of the company's first vehicle, the $67,500 R1T electric pickup, approaches. The company published the warranty information Wednesday for its vehicles, including the one part of electric vehicles consumers are most concerned about: the battery pack.

Rivian's warranty coverage of the battery pack is eight years/175,000 miles, whichever comes first, and includes all of the components inside the battery pack module, such as the cooling system. Beyond that, the company is covering the degradation of the pack. If the pack's capacity falls below 70 percent, Rivian will repair or replace it.

The rest of the warranty for the R1T and R1S looks like this:

Each vehicle comes with a five-year/60,000-mile bumper-to-bumper warranty that covers all parts and labor to fix any defective materials.The drivetrain, electric motors, transmission and axles are covered for eight years/17…

Leasing took a dive in 2020 as customers opted to extend contracts or return vehicles without leasing a new model. Tight new-vehicle inventories could be enough to delay a strong leasing rebound, as savvy customers opt to purchase their off-lease vehicle rather than wait out production delays, economists at Cox Automotive and Edmunds said.

Cox estimates 4 million leases will mature in 2021. The shift in retention values means the value of those vehicles will be much higher than initially forecast, providing returning customers with an incentive to buy out their lease, says Charlie Chesbrough, Cox Automotive senior economist.

"It's too soon to declare a permanent shift in the retention values of vehicles, but more value does appear to be the normal for now," Chesbrough said this week during a virtual sales presentation. "Lease maturities are going to be a big opportunity in the market this year for both consumers, dealers and the whole industry…

The vast majority of customers want and expect to work with dealerships to buy their vehicle. But less than half plan to discuss how to finance their car at the store.

In a recent Capital One survey of about 1,000 consumers, just 6 percent of respondents indicated they plan to purchase their next vehicle without the assistance of a dealership. When finances enter the conversation, however, deals tend to fall apart.

Nearly 7 out of 10 customers said car deals break down when discussing financing. Negotiations on the car price had the most issues and was cited by 34 percent of customers. Discussions over finances came in second with 20 percent, and negotiations on the vehicle trade-in price was the third most-cited reason customers said they walked away from a car deal.

Part of the problem is transparency. Slightly more than 8 out of 10 respondents said dealerships should provide more details about financing up front in their buying j…