Trade News

Carvana posted an operating profit in the third quarter -- its first since becoming a public company in April 2017 -- and record gross profit per unit.

Top-line growth at the online used-vehicle retailer, like its peers and competitors, remained strong but below the pace of prior quarters, largely because of inventory shortages.

Revenue rose 41 percent in the third quarter to $1.54 billion. Retail unit sales grew 39 percent to 64,414.

Carvana reported a net loss of $17.7 million in the period, versus a net loss of $92.2 million in the third quarter of 2019.

"As in Q2, inventory constraints impacted growth in retail units sold, and we are continuing to focus on growing inventory to meet demand," the company said in a letter to investors Thursday. "We ended the quarter with 26,897 website units and 11,900 available for immediate purchase, up from 5,914 at the end of Q2 but still only half as many as pre-pandemic levels.…

WASHINGTON -- The U.S. Transportation and Treasury departments raised strong objections to a plan proposed by the Federal Communications Commission to shift much of a key spectrum block set aside for auto safety to accommodate the burgeoning number of wireless devices.

Documents reviewed by Reuters show strong pushback against the plan. The Transportation Department said the FCC plan is "a particularly dangerous regulatory approach when public safety is at stake."

FCC Chairman Ajit Pai said this week the commission will vote Nov. 18 to finalize a plan to divide the 5.9 GHz spectrum block reserved in 1999 for automakers to develop technology to allow vehicles to talk to each other and traffic infrastructure, but has so far gone largely unused.

Pai would shift 30 megahertz of the 75 megahertz reserved for Dedicated Short-Range Communications to enable a different automotive communications technology called Cellular Vehicle-to-Everything, or C-V2X, while sh…

Continental CEO Elmar Degenhart is stepping down, citing health reasons, amid a push by the supplier to overhaul management and speed up structural changes.

Degenhart, 61, is resigning his post as of Nov. 30 "for reasons of immediately necessary preventive health care," Continental said in a statement on Thursday.

The company did not name Degenhart's successor. It said its supervisory board will meet shortly to decide on the appointment of a new CEO.

Degenhart is likely to be succeeded by the head of the supplier's core automotive operations, Nikolai Setzer, Bloomberg reported, citing people familiar with the matter.

Degenhart, who has been Continental's CEO since 2009, has a contract through 2024. He has faced criticism for several missteps including communication around the closure of a German tire plant in Aachen as well as an unusually harsh letter to employees in September 2018.

Those actions have undermined some supervisory board mem…

The pandemic forced many dealership service departments across the country to implement or accelerate new amenities for customers such as mobile service vans and scheduling and payments by phone. Here's which of these new amenities will become staples in the service lane and why. 

Speakers:David Bergamotto, Service Manager, Park Avenue BMWJim Henne, General Manager, Performance Toyota/Performance Volvo CarsLarry Hourcle, NADA Academy Instructor, NADAEd Roberts, Fixed Operations Director, Bozard FordDan Shine, Editor, Fixed Ops Journal

This conversation was originally broadcast on October 29, 2020, as the fourth of five conversations in the Fixed Ops Journal Forum series. The series runs through November 5. Learn more and register for future broadcasts here.

Visteon Corp. said Thursday that cost management and product launches helped the company post higher adjusted profits and sales in the third quarter.

The cockpit electronics supplier reported third-quarter net income of $6 million, a 57 percent drop from the same period last year but up from a loss of $45 million in the second quarter, when many auto plants were shuttered because of the COVID-19 pandemic. Net income included restructuring charges of $32 million.

Adjusted net income more than doubled to $38 million in the quarter, while adjusted earnings before interest, taxes, depreciation and amortization rose 40 percent to $87 million.

Sales were up 2.2 percent to $747 million compared with the year-ago period.

Visteon CEO Sachin Lawande said in a call with media and analysts that resilient employees and product launches helped the company outperform the overall market.

The supplier said it launched a record 23 products in the third quart…

BOSTON -- A federal judge on Thursday granted a last-minute request to stop the U.S. government from turning over to Japan two Massachusetts men to face charges that they helped smuggle former Nissan Motor Co. Chairman Carlos Ghosn out of the country while he was awaiting trial on financial crimes.

U.S. District Judge Indira Talwani in Boston granted a request by lawyers for U.S. Army Special Forces veteran Michael Taylor and his son, Peter Taylor, to delay the transfer shortly before the two men were scheduled to be placed on a flight to Japan.

Their lawyers sought the delay after the State Department approved handing over the men, who in September lost a court challenge to their potential extradition. They were arrested in May at the request of Japanese authorities.

In a joint statement, two lawyers for the Taylors, Ty Cobb and Paul Kelly, said they were actively seeking to have the State Department and White House reconsider the decision authorizing t…

STOCKHOLM -- Electric vehicle maker Polestar, owned by Volvo Cars and its parent, China's Geely, is recalling the new Polestar 2 sedan for the second time in a month, it said on Thursday.

The company, which made its last recall on Oct. 2 after several cars had lost power and stopped running, is recalling close to 4,600 vehicles due to a faulty component.

"Polestar has initiated a voluntary safety recall and a service campaign that contains a number of updates for Polestar 2 vehicles," the company said in a statement.

"The recall involves the replacement of faulty inverters on most delivered customer vehicles," Polestar said, adding the hardware updates can be done in a single workshop visit.

The Sweden-based automaker started producing the Polestar 2 sedans this year in China and sells them in Europe and the United States, as well as China.

SHANGHAI -- Tesla Inc. will begin exporting Model 3 sedans assembled at its Shanghai plant to Europe next week, according to Chinese media. 

Some 7,000 Model 3s are due to leave the Shanghai port Tuesday for Europe, Shanghai Television Station reported this week. 

The EVs are expected to arrive at Belgium’s Zeebrugge port toward the end of November. 

Some of the vehicles will be distributed in Belgium and the rest will be shipped to other European countries, including Germany, France, Italy, Spain, Portugal and Switzerland, according to Xinhua, a state-run news agency.

By the end of September, the new factory had churned out more than 85,000 Model 3s cumulatively, with weekly output reaching 3,500 to 4,000, according to Xinhua. 

With exports underway, Tesla’s Shanghai plant is expected to boost the value of vehicle and battery exports to $450 million for 2020, the news agency said, citing Shanghai’s vice m…

DETROIT -- Ford Motor Co.reported third-quarter net income of $2.4 billion and raised its full-year forecast even as it readies for a number of major product launches in the coming months.

The automaker's adjusted earnings before interest and taxes in the quarter more than doubled from the same period a year ago to $3.6 billion, and margins jumped to 9.7 percent. Revenue increased 1 percent to $37.5 billion.

Ford generated nearly $3.2 billion in North America with a profit margin of 12.5 percent. CFO John Lawler credited higher demand than anticipated and stronger pricing on popular nameplates including F-Series pickups and Transit vans.

Ford made $72 million in its International Markets Group but lost money in China, Europe and South America.

Lawler said Ford was on track to post a profit for the quarter in Europe before a supplier issue related to battery fires in the Kuga crossover led to an overall loss. He said the issue will not affect the u…

The National Independent Automobile Dealers Association said Wednesday that it has chosen auto-retailing outsider Bob Voltmann as its next chief executive, effective immediately.

The announcement ends a more than two-month search by the NIADA board of directors to replace former CEO Steve Jordan, who resigned in August to join KAR Global as executive vice president of dealer sales. Jordan had been the association's chief executive since 2013.

Voltmann has spent the past 23 years as CEO of the Transportation Intermediaries Association, which represents the third-party logistics industry. Under his leadership, the group has more than tripled its membership, increased its annual budget and strengthened its presence in government affairs, according to the news release.

Prior to that, Voltmann was director of policy for the National Industrial Transportation League. He also served in former President George H.W. Bush's administration at …

Three factors will be pivotal in shaping the automotive industry's trajectory, according to Cox Automotive Chief Economist Jonathan Smoke: the spread of COVID-19 and a potential vaccine; the size and timing of an additional round of government stimulus; and the outcome of the 2020 election. But perhaps the most important is who will be president, because it will likely influence the continuing efforts to abate the deadly virus and provide financial support to impacted Americans.

In a Tuesday blog post that posits former Vice President Joe Biden will win the presidential race next week, Smoke outlined several ways that a new leader would impact the auto finance landscape.

Here are some key takeaways:

After months of bickering, the Senate adjourned this week without reaching a deal on another stimulus package. Major auto lenders called for more government support during earnings this month, warning that portfolio performance could…

Volkswagen Group is recalling 218,192 vehicles in the U.S. because the fuel rail bolts may loosen, allowing fuel to leak.

The recalled vehicles are 2016-18 Volkswagen Jetta sedans in the U.S.

Impacted vehicles may have fuel rail bolts that were incorrectly tightened, causing leaking fuel and increased risk of vehicle fire, according to a NHTSA document.

A spokesman for Volkswagen told Automotive News that there have been no reports of accidents or injuries

The NHTSA document said that a remedy is under development, but the fuel rail bolt tightening torque will change.

Volkswagen notified NHTSA of the recall on Oct. 21 and is expected to begin notifying dealers and owners on Dec. 20.

The supplier of the fuel rail bolt is Volkswagen de México, according to NHTSA.