Trade News

PARIS – Renault Group has announced a new corporate structure pegged to four brands rather than geographic regions, in the first move by new CEO Luca de Meo to turn around the struggling automaker.

Alongside Renault, Dacia and Alpine, a fourth business unit will be formed for new mobility, according to a statement Thursday. Top executives will run each operation, with de Meo heading up the flagship Renault brand.

Renault, which took aid in the form of a 5 billion euro ($5.9 billion) state-backed loan from the French government this year, is trying to recover from the coronavirus pandemic while also patching up a strained relationship with its Japanese partner Nissan. Renault reported a record 7.29 billion-euro first-half loss due to the pandemic and losses at Nissan. 

De Meo, who had led Volkswagen's Spanish brand Seat to record sales, joined Renault in July to try to reboot the French group, which had already embarked on cost cuts and a j…

BERLIN -- Tesla Inc. CEO Elon Musk met with three German ministers and other senior politicians Wednesday to discuss the progress of a collaboration between the automaker and a German biotech company and a planned electric vehicle factory.

Ralph Brinkhaus, leader of Chancellor Angela Merkel's CDU/CSU conservative parliamentary bloc, said Musk was satisfied with the progress of Tesla's alliance with vaccine developer CureVac.

On the sidelines of a conference of the parliamentary bloc in Berlin, the Silicon Valley entrepreneur also met economy minister Peter Altmaier, health minister Jens Spahn and research minister Anja Karliczek, but not Merkel.

Tesla is helping to build mobile molecule printers to make the potential COVID-19 vaccine under development by CureVac.

Last November, the U.S. electric vehicle maker announced plans to build an assembly plant in Gruenheide in the eastern state of Brandenburg that surrounds Berlin.

Musk checked on t…

Mercedes-Benz wants its lineup of battery-powered cars to extend all the way up to ultraluxury vehicles to help defend its high-end market position, where electric offerings remain scarce.

To underline its ambition, the Daimler subsidiary could make use of the Maybach brand -- for now reserved only for its most exclusive vehicles -- and add the name to variants of the EQS sedan debuting next year, CEO Ola Kallenius said in an interview.

“There’s room to do more with the Maybach brand name,” Kallenius said. “The electric platform offers some opportunities.”

Focusing on larger luxury cars in the shift toward electric vehicles is a cornerstone of Kallenius’ strategy to revive margins at Mercedes. Bigger vehicles generate higher profits that are critical to fund large outlays for new technology, expand software operations and foot the bill for restructuring costs.

In a sign that efficiency measures introduced last year are beginning to bear fruit, cap…

F&I product and training company JM&A Group is expanding its virtual F&I pilot program to its largest partner yet.

Hall Automotive Group, a division of 80-store MileOne Autogroup, will pilot the program in which JM&A employees sell F&I products via Skype to consumers in dealerships, starting with an initial 90-day phase.

Bill Baker, president for Hall Automotive Group, said the process supports dealership employees overburdened from staffing shortages resulting from the coronavirus pandemic. F&I office staffing fluctuates within the group depending on a store's volume, Baker said. Some dealerships have up to six managers, while others operate with just one.

"You could have absenteeism brought on by potential exposure to COVID. This is another way for us to be prepared for that and be able to backfill when absences occur," Baker said. "This is able to help us in busy stores that get backed up and small stores…

Consumers impacted by the coronavirus have a lot to worry about — paying bills, possibly finding a new job and, of course, staying healthy. But chief among those concerns for many is the potential long-term impacts that pandemic conditions may be having on their credit — and whether the process of determining that score is fair.

A recent study by Finicity, a personal finance and software company headquartered in Salt Lake City, shows many consumers are questioning the credibility of the credit scoring process as a whole.

In a survey conducted in June of nearly 2,000 consumers, 82 percent of respondents said the current credit review process should make it easier for responsible borrowers to demonstrate creditworthiness.

Andy Sheehan, president and COO at Finicity, said most automotive lending decisions aren't incorporating alternative data, such as consumer banking data or utility payments. Perhaps it should, borrowers argue.

NHTSA has launched an online tracking tool that allows the public to view certain information submitted by states and companies that are testing vehicles equipped with automated driving systems on U.S. roadways.

U.S. safety regulators announced the online mapping tool during a virtual event Wednesday with supporters including Rep. Fred Upton of Michigan and Sen. John Thune of South Dakota, both Republicans.

The interactive tool shows information on automated vehicle testing locations, vehicle and AV technology manufacturers, vehicle type and activity, operational speed and how the vehicle is monitored for safe operation, among other data elements. Participating companies can choose what information they submit to NHTSA.

The tool currently has data for on-road testing activities in 17 cities, including Austin, Texas; Columbus, Ohio; Pittsburgh; Phoenix; San Francisco; and Washington.

"The department is addressing legitimate public concerns regardin…

FRANKFURT -- Elon Musk appears to be opening a new front in the European battle for electric-car supremacy: providing power for EVs.

Musk's Tesla has recently acquired a license that will enable the automaker to trade electricity across western Europe and the company has also been surveying customers in Germany about potentially using Tesla electricity in their cars.

Such moves, consultants and energy industry executives say, could set the stage for the company - possibly with one or more partners - to take on established utilities in Germany, Europe's biggest power market and autos heartland.

Generating and trading power could help Tesla lower the running costs of its cars at a time rival automakers, including Volkswagen Group, BMW, Audi, Porsche and Mercedes, are producing new electric models.

Tesla declined to comment about its energy market plans.

It could also step up competition to utilities such as Vattenfall and EnBW, which are inve…

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.

JM&A Group President Forrest Heathcott and his successor, Dan Chait, discuss what's next for the F&I services provider as Heathcott prepares to retire. The pair also weigh in on how dealers are adapting to virtual finance and insurance solutions amid the pandemic. 

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DETROIT -- Ford Motor Co. said on Wednesday is targeting the elimination of 1,400 U.S. salaried jobs by year end as part of its ongoing, multiyear $11 billion restructuring.

The layoffs will be achieved through voluntary buyouts, the U.S. automaker said in an email sent to employees. The buyouts will be offered to employees who are eligible for retirement.

"We’re in a multiyear process of making Ford more fit and effective around the world," Ford's Americas President Kumar Galhotra said in the email. "We have reprioritized certain products and services and are adjusting our staffing to better align with our new work statement."

Ford has said it was targeting a 10 percent operating margin in North America. Last year, before the coronavirus pandemic hit operations, Ford's North American operating margin was 6.7 percent.

The company previously said it expects a full-year loss because of the pandemic's impact. It expects a pre-tax profit of between $5…

After 13 years as president, Forrest Heathcott said Tuesday he will retire in early 2021 from JM&A Group, one of the largest providers of finance and insurance products in the U.S.

He will be succeeded by Dan Chait, 53, president of sibling company Southeast Toyota Finance. The company is the captive lender to Southeast Toyota Distributors, the independent distributor of the automaker's vehicles to 177 dealers in five states.

Heathcott, 63, joined JM Family Enterprises in 1993, holding positions at JM&A Group as well as Southeast Toyota Distributors and its finance arm.

He said he began discussing succession plans with JM Family executives more than a year ago.

"I have been in this business for 42 years, since I graduated from college, and it is time for me to enjoy my family and interests and allow someone else to bring new ideas and energy to the position," he said in an email to Automotive News.

Heathcott most recently navigate…