Trade News

FRANKFURT -- Tesla Inc. CEO Elon Musk said on Tuesday that electricity consumption will double if the world's vehicle fleets are electrified, increasing the need to expand nuclear, solar, geothermal and wind energy generating sources.

Increasing the availability of sustainable energy is a major challenge as cars move from combustion engines to battery-driven electric motors, a shift that will take two decades, Musk said in a talk hosted by Berlin-based publisher Axel Springer.

"It will take another 20 years for cars to be fully electric. It is like with phones, you cannot replace them all at once," Musk said in a talk streamed on the Bild.de web site, adding that around 5 percent of vehicles are replaced every year.

Once EVs become the norm, electricity from intermittent generating energy sources such as wind and solar will need to be stored, probably through battery technology, he said.

"Together with large battery packs, both…

Audi of America has named a former Toyota executive who created a tech startup that sought to introduce the concept of trade-ins to the fashion industry as its new vice president for strategy and new business.

Sara Whiffen, 47, will begin immediately in the newly created role, reporting to Audi of America President Daniel Weissland, the brand said.

The strategy position was created under a management reorganization begun this year when Thiemo Rusch was named senior vice president of sales operations, and former COO Cian O'Brien moved to a different executive spot with Volkswagen Group in his native United Kingdom. In November, the brand named its chief communications officer, Tara Rush, as its new chief marketing officer. That move is effective Tuesday.

Whiffen, a former managing director with Toyota Motor North America, was the founder and CEO of Rohvi, a tech startup that sought to introduce the concept of strategic sustainability and trade-ins to fash…

As it readies its self-driving technology for operations across a wide swath of environments, Waymo will soon begin testing at two new dedicated proving grounds.

The company said Tuesday it has partnered with the Transportation Research Center in East Liberty, Ohio, to establish a physical environment where it can test edge-case scenarios in an area that models dense, urban driving. Edge cases are driving situations that are extreme or rarely occur.

Meanwhile, Waymo has leased a test track in Menlo Park, Calif., where it will focus on component testing for heavy-duty trucks. In addition to testing space, the property will house a 13,000-square-foot facility that Waymo will use to accommodate a growing number of trucking-focused engineers, product and operations employees.

Waymo already operates a closed-course test facility on the former Castle Air Force Base north of Merced, Calif., where dozens of autonomous Chrysler Pacifica minivans trundle around a …

Soon after purchasing the Duesenberg Motor Co. in 1926, Errett Cord gave founder Fred Duesenberg simple instructions when designing the Model J: Build the best flagship car in the world. It had to have enough power to move a fully loaded, multipassenger Duesenberg with luggage for a family faster than any other automobile on the road.

When Duesenberg, an engine builder in the 1910s who gained fame with his brother Augie at the Indianapolis 500, introduced the Model J on Dec. 1, 1928, at the 1929 New York Auto Salon, New York City was stunned. With 265 hp, its dual overhead camshaft, 420-cubic-inch inline eight-cylinder engine was twice as potent as the next most powerful American automobile.

It was the greatest car produced in the 1920s, Hagerty once said, with an engine bay that was a work of art with a "field of polished alloy and bright green paint."

The short wheelbase chassis measured 143.5 inches. Four wheel hydraulic brakes balanced the massive en…

WASHINGTON -- Ford Motor Co. is urging major automakers to consider backing a framework deal with California on vehicle emissions in a bid to reach industry consensus before President-elect Joe Biden takes office, according to a letter seen by Reuters on Monday.

Major automakers are set to discuss next steps at a virtual meeting of their auto trade association Tuesday, which comes a week after General Motors abruptly announced it would no longer back the Trump administration’s ongoing effort to bar California from setting its own vehicle emissions rules.

In October 2019, GM joined Toyota Motor Corp., Fiat Chrysler Automobiles and other automakers in backing President Donald Trump in the California fight.

Ford, Honda Motor Co., Volkswagen Group and BMW in July 2019 struck a voluntary agreement with California on reducing vehicle emissions through the 2026 model years that would allow them to meet a single nationwide standard. The targets would be lower th…

Groups advocating for consumer and vehicle safety on Monday released an outline for autonomous vehicle legislation that prioritizes safety, equity, accessibility and sustainability.

The diverse coalition includes Advocates for Highway and Auto Safety, Center for Disability Rights, Transportation for America, Consumer Reports and other stakeholders that are urging federal lawmakers to use the framework as a guide to ensure public safety.

In the outline for AV legislation, the coalition highlights a set of tenets for lawmakers to use as a "GPS," or a way to "guarantee public safety," according to the document.

The tenets include:

Requiring all levels of automated vehicles to be "subject to comprehensive and strong federal standards" that address known and foreseeable safety issues. Making sure safety and performance data is made available to key stakeholders. Guaranteeing accessibility for all, especially older adults and those with disabilities. Prese…

Automotive seating supplier Adient posted a fiscal fourth-quarter net loss of $36 million compared with a $4 million net loss in the same quarter of 2019.

Despite a deeper net loss from the year before, the results still marked a significant improvement from Adient's third-quarter net loss of $325 million.

The company on Monday said it expects increased volume and industry growth to create positive momentum going into fiscal year 2021.

Revenue during the most recent quarter fell 8 percent to $3.59 million while adjusted net income nearly doubled to $109 million compared with the same quarter last year.

In the fourth quarter, Adient also repaid nearly $100 million in debt.

For its 2020 fiscal year, Adient reported a net loss of $547 million compared with a net loss of $491 million in 2019. Adjusted earnings before interest, taxes and other adjustments fell 14 percent to $673 million.

"We expect several factors will influence Adient's …

Vehicle listings company TrueCar Inc. said Monday it completed the sale of its ALG subsidiary to J.D. Power for $135 million.

The Santa Monica, Calif., company said the purchase price includes $112.5 million in cash at closing and up to $22.5 million in deferred payments on achieving specific financial results. TrueCar announced the sale agreement in August.

TrueCar said the transaction will boost the company's cash balance and the proceeds will support an ongoing share repurchase program worth up to $75 million.

"We are very pleased to reach today's milestone, which reinforces our commitment to creating shareholder value," TrueCar CEO Mike Darrow said in a statement. "With over $270 million of cash on the balance sheet and no outstanding debt, we are in a strong financial position to accelerate toward our vision of building the most flexible and convenient digital car buying marketplace."

TrueCar bought ALG, which provid…

CDK Global Inc. plans to sell its international business to private equity firm Francisco Partners in a deal valued at $1.45 billion.

The Hoffman Estates, Ill., dealership management system giant said Monday the sale is expected to close in the third quarter of its 2021 fiscal year, the three-month period ending March 31, pending regulatory approval.

The company said in a regulatory filing it will use the proceeds to focus on its North American operations, which include DMS and other software for automotive dealerships and adjacent businesses in the U.S. and Canada, and repay debt.

"With this transaction, we can now focus on executing the next phase of our growth journey and spotlight our attention on our North America business," CDK CEO Brian Krzanich said in a statement.

"CDK has made significant progress over the last two years in strengthening and expanding our core business to be customer-centric and a leader in technology for our dealers, OE…

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.

This year's Automotive News All-Stars have shown their ability to adapt, innovate and persevere in what has been one of the most turbulent years for the auto industry in recent memory. KPMG's Gary Silberg discusses their accomplishments and what the industry has learned from the COVID-19 pandemic.

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Data giant S&P Global Inc has agreed to buy IHS Markit -- a major player in the automotive data segment -- in a deal worth $44 billion that will be 2020’s biggest merger, creating a heavyweight in the increasingly competitive market in financial information.

The mega deal, which includes $4.8 billion of debt, is a sign that deal-making activity is accelerating as breakthroughs in developing COVID-19 vaccines improve the economic outlook.

Deals touched a record high in the September quarter, with more than $1 trillion worth of transactions, mostly focused on coronavirus-resilient sectors such as technology and healthcare, according to Refinitiv data.

Under the terms of the deal, each share of IHS Markit will be exchanged for a fixed ratio of 0.2838 shares of S&P Global stock, the two companies said in a statement.

Once the deal is completed, S&P Global shareholders will own roughly 67.75% of the combined company on a fully diluted basis…

DETROIT -- General Motors and Nikola Corp. on Monday announced a reworked, smaller agreement that keeps the fuel-cell partnership intact but eliminates an equity stake in the startup for the Detroit automaker as well as plans for building Nikola's electric pickup truck.

In September, the companies announced a deal under which GM would supply batteries, a chassis architecture, fuel cell systems and a factory to build the startup's proposed Badger electric pickup in return for an 11 percent stake and $700 million. However, the deal came into question after a short seller attacked Nikola as a fraud, something the company denied.

The new deal, a non-binding memorandum of understanding, is subject to negotiation and a definitive deal, Nikola and GM said in separate statements.

Under the new agreement, GM will not take an equity stake in Nikola as originally planned. GM will supply its fuel-cell system for Nikola's Class 7 and Class 8 commercial semi-trucks, N…