Trade News

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.

Toyota Motor North America said it added 1.5 million Toyota and Lexus vehicles to a large recall announced in January over a fuel pump that may stop operating, potentially causing a stall or risking a crash.

In total, about 3.34 million vehicles are now included in the recall, covering model years 2013 to 2020. The most recent recall involves vehicles manufactured between 2017 and 2020, Toyota said in a Wednesday statement.

As part of the recall, Toyota and Lexus dealers will replace the involved fuel pump with an improved one at no cost to customers, the automaker said.

"Replacement parts are available for the vehicles that were recalled in January and March," a Toyota spokesman said in an e-mail. "Customers can go to Toyota.com to inquire about their particular VIN. For vehicles that were added today, we are working closely with the supplier to prepare the replacement parts quickly."

Toyota says that if the recalled fuel pump fails, warning ligh…

Automating the credit approval process for customers with less than perfect payment histories remains a challenge even as the U.S. auto retail industry allows more of the vehicle transaction online. Lithia Motors has a possible solution — tapping into its finance and insurance talent to aid online shoppers.

The rollout of the retailer's omnichannel vehicle shopping and servicing platform, Driveway, includes what the No. 3 dealership group calls a "Virtual Center of Excellence." The backbone of these centers? In-store F&I managers.

Lithia CEO Bryan DeBoer said on an earnings call this month the centers "include our finance specialists from our existing network behind the scenes as partners with our Driveway Care Centers to provide solutions and expertise for customers who are unable to be automatically approved."

Customers who work with Lithia's F&I managers obtain financing approvals at "two to three times the rate" of the r…

The last few months have pushed forward the adoption of digital selling, lending and servicing solutions at breakneck speed — and consumers are happy with the changes. However, with great digital services comes great responsibility to ensure that fraud doesn't grow to an even bigger problem.

The shift to digital allowed car dealers and lenders to keep employees and customers safe while maintaining a semblance of business continuity amidst the crisis. At the same time, the rapid, urgent shift to digitization has meant auto fraud — a perennial problem — had a chance to proliferate. Indeed, in the digital world, bad actors can learn the digital fraud measures that are put into place and beat the system.

According to TransUnion research, the percentage of high-risk global financial interactions has jumped by 11 percent since March. Auto finance has been hit particularly hard with fraud spiking by 30 percent each week since March, despite a drop-off in originations.…

Dana Inc. said Wednesday that cost management and the restart of operations helped limit the damage from COVID-19 on sales in the third quarter.

Dana reported net income of $45 million, a 60 percent decrease from the same period last year but a major swing from a $174 million loss in the second quarter.

The Ohio-based axles and transmission supplier said sales fell nearly 8 percent to $1.99 billion in the quarter.

Dana CEO Jim Kamsickas credited the ability to keep up with consumer demand to the teamwork across the company.

Third-quarter adjusted earnings before interest, taxes, depreciation and amortization dropped 19 percent to $201 million.

"The improving business conditions across all of our global end markets have enabled us to reinstate our revised, full-year financial targets," Kamsickas said in statement. "Dana remains financially strong, and we are well-positioned to capitalize on the strengthening of our businesses through the re…

PARIS -- Longtime Valeo CEO Jacques Aschenbroich will step down from the post at the end of 2021, but will remain chairman, as the supplier moves to split the two positions.

Aschenbroich, 66, who was named CEO in 2009 and added the chairman title in 2016, will be succeeded in the chief executive role by COO Christophe Perillat, Valeo said Tuesday. Aschenbroich will remain chairman until May 2023. 

Valeo said in 2019 when Aschenbroich was reappointed to a new term that it would separate the positions of chairman and CEO. 

Aschenbroich was named an Automotive News Europe Eurostar in 2016.

Aschenbroich, who has an engineering degree from the School of Mines in Paris, held positions in the French government and with the glass maker Saint-Gobain Group before joining Valeo as CEO in 2009. He is a director at the bank BNP Paribas.

Perillat, 55, a graduate of the engineering university Ecole Polytechnique, worked in the aeronautics indus…

Fiat Chrysler Automobiles said it will idle its minivan plant in Ontario the week of Nov. 2 to “to align production with demand."

The shutdown, announced Wednesday, comes shortly after a three-week shutdown that ran from Sept. 28 through Oct. 18.

About 4,500 members of Unifor Local 444 assemble the Chrysler Pacifica, Voyager and Grand Caravan at the Windsor Assembly Plant.

Unifor on Oct. 19 ratified a new three-year contract that includes up to C$1.58 billion ($1.2 billion) in planned investments in Canada, including up to C$1.5 billion to retool the Windsor plant to produce electric “and/or” plug-in hybrid vehicles.

Total Canadian minivan sales were down 31.4 percent to 49,725 units during the first three quarters of 2020. By model, Grand Caravan sales slipped 17.3 percent while Pacifica sales plunged 41.2 percent.

Total U.S. minivan sales during the same time frame declined 35.8 percent to 205,891 deliveries.…

With the XE compact sedan exiled from Jaguar's 2021 North American lineup, a freshened version of the E-Pace compact crossover arriving early next year becomes the luxury brand's entry-level vehicle.

The E-Pace, which competes with the Cadillac XT4, Lincoln Corsair, Porsche Macan and other upscale models in the segment, has been given new bodywork, an upgraded infotainment system and better handling performance.

Julian Thompson, Jaguar's design director, says the goal of the 2021 E-Pace was to bring it in line with recent changes to other Jaguars.

"The overall result is a more grown-up feel for the compact performance SUV," Thompson said.

The freshening includes a new grille with a blade element that gives the vehicle a more assertive look, according to Jaguar.

The roofline and side windows take their styling cues from the F-Type sports car. The headlights contain the Jaguar double J-blade design used on t…

The latest attraction at Yellowstone National Park will have nothing to do with majestic mountains or gushing geysers.

Beep, a Florida-based mobility-services operator, says it will deploy two autonomous shuttles at the park starting in May 2021. The pilot program will be operated in conjunction with the National Park Service and help provide transit in the park's Canyon Village.

Exact routes and stops remain in the planning stages, and human safety drivers remain on board. The service will do more than ferry visitors around the area –- it will likely be the first experience many people have with an autonomous vehicle.

"This is really smart," says innovation strategist Grayson Brulte, a co-founder of consulting company Brulte and Co. "Beep is going in and operating in a controlled environment within a national park, you're exposing the public to that technology in a low-risk environment, all while reducing congestion and CO2 emissions in the park."

WASHINGTON -- The Federal Communications Commision will vote Nov. 18 to split a key spectrum block set aside for auto safety to accommodate the growing number of wireless devices, even as the Transportation Secretary warned of "thousands more deaths" in traffic accidents.

The FCC will vote to finalize a plan announced last year to divide a block of the 5.9 GHz spectrum band that was reserved in 1999 for automakers to develop technology to allow vehicles to talk to each other, but has so far gone largely unused.

Automakers have opposed the split on safety grounds, while many internet providers say the spectrum is essential to support growing wireless use.

FCC Chairman Ajit Pai said on Tuesday that "making more spectrum available for Wi-Fi is critical to meeting America's growing connectivity needs."

The FCC gave initial approval to the plan in December in a 5-0 vote. U.S. Transportation Secretary Elaine Chao previously warned the FCC decision could…

Volkswagen of America will move its headquarters, currently in a suburban Washington office park, to a larger high-rise facility under construction a few miles away in late 2023.

The automaker will lease just less than 200,000 square feet covering several floors in a new 14-story office building that is part of Reston Town Center, a commercial and residential complex in Reston, Va., the company said Tuesday. The new location is 3 miles east of the automaker's current six-story building in Herndon.

Audi of America also will move to the new location, as will other subsidiaries including Lamborghini of America, Bentley, Bugatti and Volkswagen Credit. In all, the move will involve about 1,000 workers in or near the headquarters, a spokesman said, and would increase "work force efficiencies and cooperation."

Unlike its existing headquarters, the new building, being developed by Boston Properties, will have in-building parking with provisions for 300 electric …