Trade News – Page 672

Carlos Ghosn investigated by France over possible tax evasion, report says

Auto executive-turned-fugitive Carlos Ghosn is under investigation in France for possible tax evasion during his last three years heading Renault SA and Nissan Motor Co., according to a person familiar with the matter.

Ghosn and French tax authorities have been discussing since the middle of last year whether the former CEO should have been considered a French resident during 2016, 2017 and 2018, said the person, who asked not to be named because the information isn’t public. Ghosn declared in 2012 that he had moved to the Netherlands and was subsequently treated as a non-resident, the person said.

The newspaper Liberation reported Monday that a French judge allowed authorities to seize almost 13 million euros ($16 million) in assets from Ghosn and his wife, Carole, pending the outcome of the probe. Authorities are preparing a “major” tax adjustment, the paper said.

A spokeswoman for Ghosn declined to comment.

The tax probe adds to Ghosn’s legal w…

Consumers prefer riding solo but feel lonely in other aspects of life

People prefer personal transportation.

From bicycles to cars, transportation options that provide seclusion are the choice for consumers across the globe, who express reluctance to use public transportation and air travel.

Those are among the findings in the ninth annual "Further With Ford" trends report, issued Monday by Ford Motor Co. and compiled by Sheryl Connelly, the company's chief futurist.

The report underscores major developments across the transportation industry during the coronavirus pandemic. More than three-quarters of respondents agree with the statement they "can't imagine a life without having my own automobile," and 40 percent say their household needs more vehicles.

Because of the pandemic, 58 percent say they are less likely to travel by airplane; 52 percent are eschewing subways and buses; and 47 percent say they're less likely to use ride-hailing services and taxis.

Shifts in trans…

DAILY DRIVE PODCAST: December 14, 2020 | Magna’s Kotagiri on new CEO role, driving growth and Don Walker’s legacy

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.

Incoming Magna CEO Swamy Kotagiri discusses the road ahead for the Canadian supplier as Don Walker prepares to retire at the end of the year. He also shares insight on bringing new products to market and opportunities for Magna Steyr in North America.

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UAW to get independent monitor in deal with feds

DETROIT — The UAW will avoid a government takeover under a deal struck with the U.S. Justice Department that will put the union under the oversight of an independent monitor for six years and allow members to change the way leaders are elected.

The union will pay $1.5 million to resolve tax issues related to the scandal and already has contributed $15 million toward worker training to make up for money stolen by corrupt former leaders. However, prosecutors will not levy additional fines or file racketeering charges against the union.

“The UAW does not have a problem with organized crime,” U.S. Attorney Matthew Schneider said at a news conference Monday.

The deal could allow UAW members to directly elect the president and vice presidents for the first time in the union’s history. A secret-ballot referendum will determine whether to end the longtime practice of having the union’s administrative caucus choose a new slate of leaders every four years.

Dealers should be treated as partners in EVs

There's no Operation Warp Speed for national distribution of electric vehicles. Every brand is on its own, and how each goes about it says as much about the brand's relations with retailers as its commitment to cleaner personal transportation.

At issue is who should pay for facility upgrades required to sell and service EVs.

Last month, Cadillac's 880 U.S. dealers were offered a choice of spending at least $200,000 for chargers, tooling and training to be able to sell Cadillac's EVs — starting with the Lyriq in 2022 — or taking a buyout to give up the franchise. About 1 in 6 reportedly cashed in their chips.

Factors outside of electrification are at play within General Motors' halo brand. Cadillac remains over-dealered in the U.S., especially relative to other luxury lines, diluting throughput for its dealer network and squeezing profitability as a result. It's easy to understand why a low-volume Cadillac dealer, facing a large estimate for upgrades, se…

Yellen was key to leasing protection

TO THE EDITOR:

As a much acclaimed chair of the Federal Reserve Board and chief economic adviser, Janet Yellen, President-elect Joe Biden's nominee to become the next secretary of the Treasury, has received many accolades and press attention. Nevertheless, her critical role in protecting consumer vehicle leasing from a required interest rate disclosure has never been recognized.

During drafting of the 1993 Truth in Leasing Regulation M landmark revisions, the major bone of contention between consumer groups and the industry was a lease rate disclosure analogous to the APR in credit sales. At the invitation of Yellen and as managing directors of the Association of Consumer Vehicle Lessors, Randall McCathren and I met with then-Fed Gov. Yellen in 1994 to discuss the issue.

"We'd all love to have a lease rate disclosure, but here's the problem," I told Yellen. "In order to have an interest rate, we would need to have the final value, which in this case is t…

Competency hearing in Brockman case sought

In May 2017, Bob Brockman emailed a friend, who also was a doctor, asking for a physician recommendation to discuss losing his sense of smell.

His wife and son, Brockman wrote, according to a court document his attorneys filed last week, "are afraid that it is an early sign of alzheimer's or dementia. I am feeling good but am having increasing memory problems."

In 2018 and 2019, Brockman — who until last month was chairman and CEO of dealership technology giant Reynolds and Reynolds Co. — consulted with physicians and specialists, who ultimately diagnosed him with symptoms indicative of Parkinson's disease or Lewy body dementia, according to a court filing. Doctors assessed Brockman's dementia as mild to moderate, according to the filing.

But his illness is progressive, his lawyers wrote in a motion filed last week in federal court in California, where Brockman, 79, faces charges of tax evasion and wire fraud. They are seeking a c…

Profits, cash boost dealership M&A this year

"Red hot" is how George Karolis describes the current dealership buy-sell market.

Karolis is president of Presidio Group, an investment banking and dealership advisory firm in San Francisco, which has sold 37 dealerships this year worth more than $2 billion.

"We expect to exceed that number of dealerships-sold pace next year," he said. "It's just on fire. It's busier than we've ever seen," he said of the merger and acquisition market.

Dealership buy-sell activity soared in the third quarter as two public auto retailers spent more than $1.2 billion on acquisitions, and it is likely to continue at high — perhaps record — levels into 2021, buy-sell experts say.

"We think 2021's going to be more active than 2020, which says a lot, since 2020 is tracking to be a record year," said Erin Kerrigan, managing director of Kerrigan Advisors, a sell-side firm in Irvine, Calif.

Kerrigan Advisors' quarterly Blue Sky Repo…

Tools, tech ease omnichannel transition

Before the pandemic, Qvale Automotive Group had a digital retailing tool and the ability to allow customers to electronically sign documents from inside the showroom.

When the coronavirus began to surge across the U.S. this spring, Qvale discovered that its showroom could be anywhere.

With the help of videoconferencing software and remote e-signing tools, which allow the customer to electronically sign documents from outside the dealership, the retailer offered customers wary of doing business in person a virtual option — and helped generate sales amid lower volume.

"I can go to Starbucks and sign somebody up," said Geno Walsh, executive manager of retail operations for Qvale Automotive Group, which has 10 dealerships in California and Florida. "The whole Bay Area is my showroom. The whole South Florida is my showroom."

Dealers across the country — fighting for survival as the pandemic shut down showrooms in many states and sent vehicle sales pl…

Now, chip shortage threatens industry

Like canaries in a coal mine, carmakers and suppliers in China are warning that a shortage of automotive microchips is threatening to slow down the global industry's pandemic recovery.

The alarm was sounded this month by Volkswagen and German suppliers Bosch and Continental, which cited tightening supplies of semiconductors and said bottlenecks could run into 2021.

The industry is beginning to brace for impact as microchip prices rise and inventories dwindle.

Li Shaohua, deputy secretary-general of the China Association of Automobile Manufacturers, said last week that auto production in China could take a "relatively big" hit in the first quarter of 2021 as a result.

Some automotive companies around the world are still recuperating from the hit they took when China's market crashed because of COVID-19 in the first quarter of 2020.

Still unknown is how bad the chip situation will be or whether the shortage might spread to other markets.

…

Some dealers ditch F&I office in digital shift

The coronavirus shuttered in-person retail sales in some states this year, and where in-store sales were allowed, some customers still were wary of face-to-face transactions. To adapt, dealers switched to digital transactions and, in some cases, eliminated the store's F&I office.

Brian McCafferty, owner of Avondale Toyota in Arizona, said his elimination of the finance-and-insurance office is partly why the virtual sales process has been a success.

McCafferty said his sales managers are trained to handle the sales process from start to finish, including F&I. This is beneficial for online sales because customers deal with only one dealership staff member for the entire transaction.

"We feel that this is something the customer has been asking for for 30 years," McCafferty said.

Avondale Toyota is a "one price, one person" store that eliminates negotiations and competition among salespeople. The ability to work …

Hyundai fuel cells for rail, auto, air cargo

Sound out the name of Hyundai's latest venture —a brand it is calling HTWO ("H-2") — and it reveals the automaker's new solution to cut carbon emissions.

HTWO will promote the use of the H2 hydrogen molecule in developing and promoting hydrogen fuel cell systems for various transportation applications, Hyundai said last week.

Hyundai Motor Co. is one of only a few global players pursuing fuel cell technology. The initiative is part of what CEO Wonhee Lee said is the company's plan to spend some $55.3 billion on new technologies through 2025.

"The launch of the new fuel cell system brand will help facilitate Hyundai's global fuel cell business and grow the hydrogen ecosystem," Hyundai said in a release.

The idea is to expand applications beyond passenger vehicles to trucks, ships, trains and even urban air mobility, a new area of focus for Hyundai. The company will develop a next-generation fuel cell system under the H…