Trade News

CarMax said Tuesday that a solid gain in net earnings for its fiscal third quarter was the result of "strong execution in a dynamic environment."

The environment remains dynamic, as seen by the company's same-store sales, which began the period up by mid-single digits but finished the quarter down by 0.8 percent.

CarMax said demand softened and sales trended downward near the end of the quarter, constrained in part by spreading cases of COVID-19, the disease caused by the coronavirus, as well as by uncertainty surrounding the election and future stimulus programs.

The retailer's net earnings rose 36 percent to $235.3 million in its fiscal third quarter ended Nov. 30 on total revenue that grew 8.2 percent to $5.18 billion.

Used-vehicle sales were up just 1.0 percent to 194,576, while wholesale vehicle sales increased 11 percent to 126,317. The rise in wholesale vehicle sales was driven by a record third-quarter buy rate, the company said in a relea…

Joining the growing field of exotic and ultraluxury utility vehicles is the 2021 Mercedes-Maybach GLS 600. The Maybach SUV, based on the redesigned third-generation GLS platform, is powered by a specially developed 550-hp V-8 engine. The engine is combined with a 48-volt electrical system paired with an integrated starter generator, known as EQ Boost, that can add up to 21 hp for short periods. The GLS 600 starts at $161,550, including shipping. Fully loaded, the SUV will top out at nearly $200,000. Here's a roundup of initial GLS 600 reviews from automotive journalists.

"The powerplant is long on low-end grunt, almost freakishly quiet, the steering is precise but has a nondisclosure agreement with road surfaces and the brakes could stop a crashing stock market. Road noise is muffled until it stops squirming, wind noise is slight and melodic and the double-paned glass shushes anyone yelling about the injustices of capitalism.

"Performance? When the masses aris…

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

In these excerpts from Jim Farley's two stops on Daily Drive, the future Ford CEO reflected on his plans to fast-track the company's growth, what type of leader he wants to be, the pace of decision-making at the automaker and an array of other topics. 

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WASHINGTON -- The U.S. International Trade Commission (ITC) said on Monday it is opening in investigation into whether Volkswagen Group infringed on patents held by Jaguar Land Rover for a system used for off-road driving.

In November, Jaguar Land Rover filed a complaint with the ITC seeking to prevent the import of some VW, Porsche, Lamborghini and Audi models with "certain vehicle control systems" that allegedly infringe on its patents.

The models include the Lamborghini Urus, Porsche Cayenne and Audi's Q8, Q7, Q5, A6 Allroad, and e-tron vehicles and the VW Tiguan. The ITC said it has made no decision on the merits.

VW said in a statement it was examining the action and determining its next steps.

"We will of course cooperate with investigating authorities. While we cannot comment on any details of the proceedings, we strongly believe that the claims have no merit and will robustly defend our position," VW said.

Jaguar Land Rover said the…

Legislation in Michigan that would have removed an exemption for Tesla Inc. from the state's ban on direct vehicle sales will not pass this year.

The Michigan Senate did not vote on the amended legislation, which passed out of the state House this month, before it wrapped up its two-year legislative term late last week. Any bills not passed before the end of the term are considered dead and must be reintroduced in the new year.

House Bill 6233 was introduced in September and backed by Michigan's franchised auto dealers. As originally written, the bill would have codified into law an agreement between Tesla and the state of Michigan in January that resolves a federal lawsuit the company filed in 2016 against the state's direct-sales ban.

The stipulation allows Tesla to operate its galleries in Michigan, though vehicle titles must be transferred in another state. It also allows Tesla to operate service centers indirectly through a subsidiary.

The or…

Apple Inc. is moving forward with self-driving car technology and is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology, people familiar with the matter told Reuters.

The iPhone maker's automotive efforts, known as Project Titan, have proceeded unevenly since 2014 when it first started to design its own vehicle from scratch. At one point, Apple drew back the effort to focus on software and reassessed its goals. Doug Field, an Apple veteran who had worked at Tesla Inc., returned to oversee the project in 2018 and laid off 190 people from the team in 2019.

Since then, Apple has progressed enough that it now aims to build a vehicle for consumers, two people familiar with the effort said, asking not to be named because Apple's plans are not public. Apple's goal of building a personal vehicle for the mass market contrasts with rivals such as Google affiliate Waymo, which has built autonomous taxis to carry passen…

Shares of Tesla dropped in their S&P 500 debut on Monday, pulling back from record-highs as worries over a fast-spreading new coronavirus strain in Britain weighed on markets.

Tesla's stock closed Monday's trading down 6.5 percent to $649.86 in its first session in the S&P 500. The shares were the biggest drag on the S&P 500, accounting for 0.07 percentage point of the index's 0.46 percent decline, according to Refinitiv data.

Wall Street was down broadly after a more-virulent strain of the coronavirus in Britain sparked fears of fresh disruptions.

Other electric-vehicle companies, whose shares have gained significantly over the past month after Tesla’s S&P 500 inclusion was announced, were also weak on Monday. Some of the biggest declines came from Nikola Corp. and Workhorse Group Inc.

The electric vehicle maker, headed by billionaire Elon Musk, becomes the most valuable ever admitted to Wall Street's main benchmark and accounted …

NextCar, a startup aimed at helping vehicle subscription providers achieve scale and profitability, said it has signed a letter of intent to partner with auto lender Westlake Financial as it builds out its platform.

The partnership between NextCar — started this year by Scott Painter, the founder and former CEO of used-vehicle subscription platform Fair — and Westlake will include a $400 million debt facility and an agreement by Westlake to handle origination and servicing, according to the two companies.

Painter said the debt facility is not an equity investment into NextCar, but rather financing from Westlake that will help NextCar acquire vehicles from dealerships participating in a subscription program. NextCar will hold vehicles on its balance sheet on behalf of a customer-facing subscription provider once a consumer selects one from a participating dealership. When the subscription period ends, the vehicle would come off NextCar's balance sheet, he said.<…

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

In this special installment of Daily Drive, we revisit highlights from our exclusive July conversation with Tesla CEO Elon Musk, who discussed manufacturing woes, Autopilot criticism, the Cybertruck and much more.

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Can't wait to hear the next episode of "Weekend Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

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“Weekend Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Weekend Drive"

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“Weekend Drive” is available on the Google Play store. …

In marketing, it’s really easy to fixate on one piece of your strategy. Maybe it’s the piece you find the most fun, or the one that has always performed well, or the one that needs the most help in the moment. There is no problem with occasionally focusing on one area that needs a little push, but thinking of your marketing as separate pieces over the long term can sabotage a cohesive strategy.

In dealership terms, think of how your sales floor, service drive, F&I office, and business offices are often treated like their own separate worlds. However, they affect one another’s day-to-day operations constantly, and they should all work towards the same goal: the success of the whole dealership.

For marketers, working toward that goal means diversity in the methods, services, and solutions we prescribe to help dealers maximize their success. And we need to help the dealer see the connections. It’s understandable that someone could look at two areas as differe…

BRUSSELS -- Fiat Chrysler Automobiles and PSA Group gained European Union antitrust approval for their $38 billion merger after overcoming regulators' concerns about competition in Europe's market for light commercial vehicles.

The European Commission said PSA will extend its van agreement with Toyota by increasing capacity for Toyota and cutting transfer prices for the vehicles, spare parts and accessories.

"Access to a competitive market for small commercial vans is important for many self-employed and small and medium companies throughout Europe," European Competition Commissioner Margrethe Vestager said in a statement on Monday.

The EU had concerns that FCA and PSA would dominate Europe's van market with a combined share of 34 percent, heavily outgunning Renault and Ford, each with a 16 percent share, Volkswagen with 12 percent and Daimler with 10 percent.

This dominance could mean higher prices for customers, the Commission said.

In Se…

When Christenson Chevrolet went away last year, so did Santa Claus.

The dealership in Highland, Ind., near Chicago, had put up a 20-foot fiberglass Santa every year for decades. It even started bringing him out of storage for an annual "Christmas in July" sale.

But that stopped after the Christenson family sold their store to Garber Automotive Group. The new owner wanted to buy Santa, too, but the Christensons held onto it as a memento of their longtime business.

"People were interested in what happened to it and upset on Facebook," Craig Blacklidge, general manager of the store, now called Garber Chevrolet Highland, told The Times of Northwest Indiana. "I figured it was my civic duty to get it back."

Blacklidge discovered that the previous Santa came from Bronner's Christmas Wonderland, which calls itself the world's largest Christmas store, in Frankenmuth, Mich. He bought a new one that's almost identical, except with green gloves instead of bl…