Trade News

TOKYO — CEO Tomomi Nakamura saw the COVID-19 crisis blow Subaru Corp. off course from achieving an astounding 12th year in a row of record U.S. sales in 2020.

But churning out record volume isn't the top priority for Nakamura, who chaired the Japanese carmaker's U.S. operations before taking the helm at world headquarters in 2018.

Nakamura, 61, is instead focused on overcoming the company's quality woes and steadily building market share. Despite the pandemic, Subaru has made progress on both goals over the past year, with U.S. market share now eclipsing 4 percent. Nakamura's next milestone: 5 percent.

Speaking through an interpreter, Nakamura met with Asia Editor Hans Greimel at the company's head office in Tokyo to discuss Subaru's sales goals, its partnership with Toyota and the company's outlook for electrified vehicles. Here are edited excerpts.

Q: How has the Subaru work force weathered the COVID-19 pandemic so far?

A: We've had abou…

DETROIT — Ford Motor Co.'s new Bronco Sport crossover didn't initially resemble the boxy, rugged vehicle that's now reaching dealerships.

In 2017, the program was still lacking direction, with senior management unimpressed by early sketches showing a sleeker, more athletic-looking utility.

That's when Jim Farley stepped in.

The future CEO encouraged designers to take a step back and distill their vision into two words. After the team chose "honest" and "robust," they started what's known as a sketch blitz, opening up the process to employees working on other programs in an effort to spark creativity and strike design gold.

Brian Paik, a designer for the larger Bronco SUV, joined the blitz and ultimately penned the winning drawing.

"There was a push to inject more Bronco DNA," said Paik, who later became the Bronco Sport's head exterior designer. "We really wanted to redact any kind of stylized, unnecessary features and really give it a pu…

WASHINGTON -- Kia Motors Corp. said on Saturday it is recalling 295,000 U.S. vehicles for engine fire risks.

The automaker said the recall covers some 2012-2013 model year Sorento, 2012-2015 Forte and Forte Koup, 2011-2013 Optima Hybrid, 2014-2015 Soul, and 2012 Sportage vehicles because an engine compartment fire can occur while driving.

Dealers will inspect the engine compartment for fuel or oil leaks, perform an engine test and make any repairs including engine replacement, as necessary. Kia said it is currently developing a Knock Sensor Detection System software update.

Last week, Kia and affiliate Hyundai Motor Co. agreed to a record $210 million civil penalty after U.S. auto safety regulators said they failed to recall 1.6 million vehicles for engine issues in a timely fashion.

The Korean automakers agreed to consent orders after the U.S. National Highway Traffic Safety Administration said the companies inaccurately reported some information…

SAN FRANCISCO -- Tesla Inc. said minorities and others from underrepresented communities make up more than half of its employees in the U.S. and a third of its directors and vice presidents, according to its first-ever report on Diversity, Equity and Inclusion.

Black, African-American, Hispanic, Latinx, Asian, Pacific Islander, Native American, Native Hawaiian and Alaska Native communities collectively represent 60 percent of the company’s U.S. workforce and 33 percent of its senior managers, the company said via a blog post late Friday night. In the U.S., Tesla operates an auto plant in Fremont, Calif., a battery plant near Reno, Nev., and a solar facility in Buffalo, N.Y.

“We are proud to be a majority-minority company, and we are proud to report that our business reflects the underrepresented communities that have struggled to break through the roadblocks to equal opportunity,” according to the report.

Black and African-American em…

When John Krafcik visits his mother in Southern California, he faces the same dilemma as many with elderly parents.

"I often spend the whole trip driving her around to run simple errands and visiting friends she can't easily see on her own," he wrote in a blog post.

Self-driving vehicles could someday provide transportation that unlocks mobility options for older adults who no longer drive or preserves independence for those who still do.

Krafcik knows that better than most. As Waymo CEO, he understands the potential of autonomous-driving technology. He's already given his mom, who turned 101 in September, a sneak peek.

Millions more await such a look. After handing over their keys, the average American still has seven to 10 years where transportation alternatives are essential, according to statistics kept by AARP. More than 3.5 million U.S. residents 85 or older still have a driver's license.

"That's …

Advanced rearview mirror technologies have made Gentex Corp. a key Tier 1 supplier in the auto industry. Now the Zeeland, Mich., company is pursuing a new mirror function that could position it for changes in the way people will drive in the future.

Gentex has formed a partnership with PayByCar Inc., a Boston provider of in-vehicle payment solutions. The partners use Gentex's Integrated Toll Module that operates via RFID transponder to let drivers pay for gas entirely contactless.

The solution allows drivers to use their smartphone and toll transponder to fuel up at certain gasoline stations without using cash or a credit card.

The module is still early to market and limited in its capabilities. PayByCar's technology is available at only seven locations — four Alltown stations in Massachusetts and three Circle K locations in North Carolina. And it works only with vehicles equipped with a compatible module. For Gentex, that means sev…

DETROIT -- Nearly 1 in 5 Cadillac dealers in the U.S. reportedly have decided to quit the brand rather than make costly upgrades to sell and service electric vehicles.

A Cadillac spokesman would not confirm how many of the brand's 880 dealers accepted the buyout offers first reported by Automotive News last month. Dealers had until Nov. 30 to decide on the offers, which generally ranged from $300,000 to more than $500,000.

About 17 percent, or roughly 150 dealers, are taking the buyouts, The Wall Street Journal reported Friday, citing sources it didn't identify.

Cadillac has prohibited dealers who accepted a buyout from discussing it publicly as a condition of the payment.

General Motors is requiring dealers who stay with Cadillac to spend at least $200,000 on chargers, tooling and training in order to sell the EVs being rolled out starting in 2022. Cadillac expects to sell only EVs by 2030 if it feels the market is ready. GM recently said it…

Ford Motor Co. is delaying the launch of the highly anticipated Bronco SUV until the summer of 2021 because of coronavirus-related supplier issues, the automaker informed its dealer network Friday.

"The all new Bronco two-door and four-door customer deliveries will begin in the summer rather than the spring due to COVID-related challenges suppliers are experiencing," Ford said in a statement. "We are committed to building Broncos with the quality our customers expect."

Ford did not specify which suppliers were experiencing problems. The Bronco is being built at the automaker’s Michigan Assembly Plant in Wayne, Mich. 

Ford said order banks, which were set to open next week, will now open in mid-January for reservation holders to complete their purchase.

They have until March 19 to finalize their dealer selection, place their order and agree to a final price. That deadline was originally set for Jan. 31.

Additionally, the Sasquatch …

WASHINGTON -- Nissan Motor Co. on Friday joined General Motors in exiting a group of automakers that had backed U.S. President Donald Trump in his bid to prevent California from imposing its own vehicle emissions rules.

GM last week reversed course in an ongoing court fight and abandoned the outgoing Republican president, winning praise from Democratic President-elect Joe Biden, who takes office on Jan. 20.

"We are confident that productive conversations among the auto industry, the Biden administration and California can deliver a common-sense set of national standards that increases efficiency and meets the needs of all American drivers," Nissan said in a statement.

GM had joined Nissan, Toyota Motor Corp., Fiat Chrysler Automobiles and other automakers in October 2019 in support of Trump effort's to bar California from setting its own fuel-efficiency rules, or zero-emission requirements, for vehicles -- separate from federal requirements.

…

Editor's note: This version of the story has updated figures from Toyota for the number of new, redesigned or refreshed vehicles along with an updated time frame.  

The Toyota and Lexus brands are engaged in an aggressive lineup overhaul that will see 25 new, redesigned or refreshed vehicles on U.S. dealer lots within the next 16 months, Toyota Motor North America executives said today. The executives also confirmed that the automaker will offer its first battery-electric vehicle in the U.S. in the "short term" — though they declined to provide further details.

Speaking to reporters via video conference, Bob Carter, head of sales for Toyota Motor North America, said the automaker's "robust" three-year product plan involves seven more vehicles than the previous three-year cycle.

Carter and other Toyota executives declined to detail the automaker's upcoming product plans. However, new Toyota Motor North America CEO Ted Ogawa told Automotive …