Trade News

LOS ANGELES — California's plan to end sales of gasoline-burning vehicles in 2035 could have a ripple effect nationwide if history is any guide. The Golden State's unique ability to set its emission standards has been shaping the U.S. auto industry for five decades.

But the initial effects will be felt inside the state, the nation's biggest auto market, and will start well before its 15-year deadline that all new vehicles be zero-emission.

Tesla is already climbing the sales charts in California, and its electric vehicles are threatening bestsellers such as the Honda Civic and Toyota Camry.

Automakers that have been dragging their feet on battery-electric vehicles, which include state market leaders Toyota and Honda, are likely rethinking their strategies, analysts said. And EV-friendly brands such as Volkswagen, Hyundai, Ford and Cadillac could add share.

A shift toward EVs is already taking place in China and Europe — the executive order last …

Polestar is recalling the Polestar 2, its first mass market full-electric car, to repair a software glitch.

The call back of 2,189 vehicles delivered to customers in Europe and China is being made after three of the cars lost power to the wheels while driving, causing them to come to a stop.

"We take this problem very seriously, which is why we took action so quickly," a spokesman for the Volvo Cars subsidiary told Automotive News Europe on Saturday.

The problem does not affect any cars in Switzerland, the United States and Canada because there have been no customer deliveries to those markets so far, the spokesman added.

He said that there have been no accidents or injuries caused by the problem, which is a fault in the company's software in the battery-energy control module.

Polestar started informing customers on Friday that they need to go their nearest service points to get the problem fixed.

If a customer experiences the prob…

Subaru of America finds its Crosstrek in a suddenly crowded segment, and it's adding a little muscle to protect its turf.

Following the 2018 introduction of the largest Subaru, the three-row Ascent, and redesigns of its most critical models, the Outback in 2019 and the Forester in 2018, Subaru's biggest product update in 2020 is a midcycle freshen of its smallest crossover.

It's a timely update for the subcompact model that has become a crucial contributor of U.S. sales during the brand's rapid growth over the last decade.

The Crosstrek, launched in 2012 as the XV Crosstrek, was just one of two models in the new subcompact crossover segment at the time, the other being the Nissan Juke.

Today, there are 19 nameplates, each fighting for sales and, oftentimes, a chance to bring a new customer into the brand.

"For a lot of people, their first or second new car would be in a segment like this," Jeff Walters, Su…

In one of the most unusual used-vehicle selling years ever, dealers often have had to switch up the way they get inventory and — in some cases — throw out their valuation playbook altogether.

Used-vehicle sales were set for another strong year, but just a few months into 2020, the market was unexpectedly sent spiraling downward.

"Since the [coronavirus pandemic] hit back in March, April, it has really changed everything we know about the used-car market and the new-car market, for that matter, as well," said Majd Saboura, Manheim's senior director of offsite solutions.

When the pandemic shut down automaker plants in the spring, new-vehicle inventory became tight — and has remained so. New-vehicle inventories nationwide were down to 2.3 million vehicles as of August, according to figures from Cox Automotive, marking the lowest level since November 2011.

While automakers stopped making cars and trucks in March and April, consumers also were mostl…

When it comes to the emerging electric vehicle market, "range anxiety" is evolving into "charger anxiety."

Most EVs now being pumped into the future product pipeline have hundreds of miles of rated range, more than enough for daily driving. But extended or extensive use demands ample and widespread availability of charging.

Research firm Guidehouse Insights estimates there are 1.1 million battery-electric vehicles on the road in North America and 1.7 million chargers. It says there still will be more chargers than BEVs in North America in 10 years. By this standard, there isn't much for consumers to worry about on the charging front.

But there's a catch: Most of the chargers cited by Guidehouse are home chargers.

For suburban homeowners with access to a garage and a plug, it is simple to own an EV for regular use since it can easily be charged overnight.

But for those doing highway driving for a road tr…

A strike deadline in negotiations between Fiat Chrysler Automobiles and Unifor has been set for Oct. 14 at 11:59 p.m. EDT, according to union chief Jerry Dias.

The negotiations cover FCA’s Brampton and Windsor assembly plants in Ontario, which typically combine to build more than 500,000 vehicles annually, as well as a casting plant in Toronto. Talks between Unifor and FCA follow those between the union and Ford Motor Co., which ended after a three-year contract was ratified on Monday with 81 percent support from voting workers.

The negotiations affect about 9,000 hourly workers, according to Unifor.

Dias said it remained “awfully early” in talks to draw any conclusions about how they might go. Bargaining between the company and union formally resumed this week in Toronto after being put on pause for the Ford talks.

“We’re spending a lot of time on the local issues,” Dias told Automotive News Canada Friday. “FCA has yet to tell us that they’re ac…

DETROIT -- LaFontaine Automotive Group, in a deal between two high visibility Detroit area auto dealers, has acquired Shuman Chrysler Dodge Jeep Ram in suburban Detroit.

Terms of the acquisition were not disclosed.

Bob Shuman, CEO and 2013 Detroit auto show chairman, sold the remaining family stake in the company his grandfather founded in 1955.

Shuman said he also has stepped down from his roles at the National Automobile Dealers Association as a board member and 2020 treasurer. He also represented Metro Detroit dealers on the NADA board.

Shuman's 64 employees at the dealership in Walled Lake, Mich., will remain with the dealership under LaFontaine, which is now called LaFontaine Chrysler Dodge Jeep Ram of Walled Lake, according to a Thursday statement.

However, LaFontaine is moving John Rossi, general sales manager of LaFontaine's Fenton dealership, to lead the newly acquired Walled Lake store. Joe Zeigler, general manager under Shuman, w…

ZT Motors, the automotive dealership unit of private equity and wealth management firm ZT Corporate, of Houston, has purchased three Ron Carter Autoland dealerships in Texas as ZT looks to expands in the Southeast.

ZT Motors bought the stores from one of the country's largest dealership groups, Prime Automotive Group. Prime told Automotive News last month that it wanted to sell dealerships that were not in its core Northeast region.

The purchased stores in Alvin, Texas, near Houston, are Ron Carter Chevrolet-Buick-GMC, Ron Carter Chrysler-Dodge-Jeep-Ram and Ron Carter Ford. ZT said it will retain the Ron Carter names.

"To say we're excited to deliver the ZT Motors experience to our hometown of Houston would be an understatement," Taseer Badar, CEO of ZT Corporate, said in a statement. "Our team has evaluated dealerships in the area for many years and we're confident that a highly respected and reputable brand like Ron Carter Autoland is the right opport…

Tesla Inc. has agreed to acquire German ATW Automation, a supplier assembling battery modules and packs for the auto industry, a person familiar with the transaction said Friday.

ATW, a subsidiary of Canadian ATS Automation Tooling Systems Inc., was on the brink of liquidation due to a slump in orders, German media reported in September.

ATS on Sept. 25 announced that certain assets and employees at one of its Germany-based units would be sold and transferred to a third party, without disclosing the name of the company.

ATS and ATW did not immediately respond to a request for comment.

German outlets TheEuropean and WirtschaftsKurier first reported the planned acquisition.

ATW, based in western Germany, has about 120 employees and has completed more than 20 battery production lines for international automakers, according to ATS' website.

Tesla plans to ramp up battery production significantly in the coming years and during a recent ev…

DETROIT — Ford Motor Co.'s U.S. light-vehicle sales fell 4.7 percent in the third quarter despite strong performances for its Ranger and F-Series pickups.

The automaker sold 549,134 light vehicles in the quarter. It said retail sales fell 2 percent and that fleet accounted for 14 percent of total sales, which indicates fleet volume declined 20 percent amid the ongoing coronavirus pandemic.

F-Series sales rose 3.5 percent in the quarter to 221,647. The strong F-Series volume came as Ford dealerships prepare to start receiving the next-generation F-150 in November.

Brands: Ford, down 4.8%; Lincoln, down 1.4%

Notable nameplates: F-Series, up 3.5%; Mustang, down 18%; Ranger, up 8.2%; Explorer, up 74%; Escape, down 23%; Transit, down 11%; Lincoln Aviator, up 222%; Navigator, down 16%

Incentives: $4,325 per vehicle in September, down 6.1% from a year earlier, ALG says.

Average transaction price: $43,469 in September, up 7.4% from a year ea…

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.

Kumar Galhotra, Ford's president of the Americas, says the automaker has to speed up its profitability and growth plans under new CEO Jim Farley. Galhotra also talks about Ford's labor deal with Canada's Unifor and the pros and cons of employees working from home.

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