Trade News

Shiloh Industries Inc. has filed for Chapter 11 bankruptcy and will be part of a stalking horse agreement auction and sale process.

Shiloh, primarily a supplier of lightweighting, noise and vibration products, has entered into a stock-and-asset purchase agreement with Grouper Holdings, a subsidiary of private equity firm MiddleGround Capital, the supplier said Sunday in a statement.

A stalking horse agreement sets the minimum acceptable bid for a sale of a bankrupt company and is arranged in advance of an auction in an attempt to maximize the value of its assets.

Through the agreement, Grouper is acquiring all of Shiloh's assets. This includes the equity interests of Shiloh's direct and indirect subsidiaries for a total consideration of $218 million in cash.

The Ohio-based supplier has also received a commitment of $123.5 million in debtor-in-possession financing from existing lenders, consisting of $23.5 million new money subfacility and a roll-u…

Nio Inc. boosted the size of its capital raising by almost 20 percent as investors rush stock sales by EV makers.

The U.S.-listed, Shanghai-based firm sold 88.5 million American depositary receipts at $17 apiece, according to an emailed statement Monday. It initially planned to sell only 75 million shares.

The some $1.5 billion raised in Nio’s latest offer will be partly used to increase the company’s interest in Nio China. Funds will also be spent on R&D into autonomous driving technologies as well as other general corporate purposes.

Investors are showing an increased interest in clean-energy car companies. Stock in Tesla Inc. has surged this year, making founder Elon Musk a centibillionaire with a net worth of $104 billion. Li Auto Inc., another Chinese EV maker, raised $1.1 billion in late July while XPeng Inc. had a stellar debut last week.

Nio’s once-shaky financial position is looking stronger. Earlier this year, it got a $1 billion inv…

TOKYO -- Mitsubishi Motors' former Chairman, Osamu Masuko, died from "cardiac insufficiency" on Aug. 27, the Japanese automaker said in a statement on Monday. He was 71.

Masuko, a veteran of the Mitsubishi conglomerate, had just weeks after he resigned as chairman, citing health reasons for his decision to step down.

Masuko joined Mitsubishi Motors in 2004 and became president in 2007. He oversaw the creation of the partnership between Mitsubishi and Nissan.

Mitsubishi Motors said he died on Aug. 27.

"He built solid relationships with the management of partners, the Alliance companies and the Mitsubishi Group through good communications by leveraging his personality and extensive connections," the company said.

The former chairman's death comes as the alliance between Mitsubishi, Nissan and French automaker Renault SA struggles to regain profitability in the aftermath of the ouster of former alliance chairman Carlos Ghosn.

Masuko was…

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New jobs, new chances to make a mark

In 2007, on his first day at Hyundai, marketing boss Joel Ewanick fired the ad agency that had previously employed him.

Last year, on his first day as Daimler CEO, Ola Källenius laid out a 20-year vision for building a carbon-free — and profitable — business.

This first week of September will mark a number of chances for executives to make strong opening moves in new positions. Among them:

The ever-optimistic Jack Hollis takes over as Toyota's senior vice president of automotive operations on Tuesday. He succeeds Bill Fay, who is retiring after 38 years at the automaker.

In Monday's issue of Automo…

The venture capital firm’s managing director discusses ground transportation opportunities, SPAC ‘mania,’ ‘Zoom dating’ and lessons learned from the rise of Lyft and the fall of Better Place.

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NAGOYA, Japan — If things had gone according to plan, a cavalcade of Toyota vehicles would have rumbled into Tokyo this month, heralding the 2020 Summer Olympics and wrapping up an unprecedented seven-year, five-continent endurance drive by the country's flagship automaker.

Instead, the COVID-19 pandemic emerged, forcing the cancellation not only of the Summer Games but also of Toyota's so-called Five Continents Drive in its highly anticipated home stretch.

It was an especially bitter pill for Toyota because, as a top sponsor of the Olympics, this was supposed to be its year to shine on the world stage. Toyota Motor Corp. had a lineup of robots, electric vehicles and other gizmos to showcase, and the conclusion of the global drive would be their drumroll.

"It's a real pity," said Hiroshi Yokoyama, group manager of brand management at Toyota's Gazoo Racing Co., the motorsports unit that oversaw the drive program. "But because of …

The COVID-19 pandemic has delayed the pivotal vehicle in McLaren Automotive's transition to a 100 percent electrified portfolio, but the British exotic automaker's future product plans are now coming into clearer focus.

Last week, McLaren released details of its newest vehicle architecture, which, in a different direction for the brand, has been specifically developed to accommodate hybrid powertrains. It's still a central monocoque carbon-fiber tub, the key component that the automaker builds its supercars around. But McLaren's previous two hybrids, the P1 and the Speedtail, have not been on dedicated hybrid platforms.

The upcoming vehicle, code-named P16, will feature a plug-in hybrid powertrain and have an electric range of roughly 19 miles, with a charge time of three to four hours, McLaren CEO Mike Flewitt told Automotive News last week. The electric motor sits between the engine and the gearbox, Flewitt said, but he declined to say which …

Volkswagen of America executives are still working with their German counterparts to lock up sufficient allocation of the ID4 — VW's new Tiguan-size battery-electric crossover — from the single German plant supplying Europe and North America.

Some 99 percent of Volkswagen's 650 U.S. dealers have signed up to sell the ID4 when it goes on sale late this year. VW is under some pressure to get the vehicle in U.S. dealerships — at least those in zero-emission vehicle states — by the end of 2020 to fully comply with the terms of its multibillion-dollar settlement over its 2015 diesel- emissions scandal. The BEV is to be revealed globally on Sept. 23 and will be available in all but a handful of U.S. dealerships next year.

"The factory [in Zwickau, Germany] is ramping up hard" since the start of production this month, said Duncan Movassaghi, executive vice president of sales and marketing for Volkswagen of America. "We believe that the demand for the …

The coronavirus pandemic has delayed the U.S. launch of Porsche's next all-electric model — the Taycan Cross Turismo wagon — to at least the end of the second quarter of 2021, Automotive News has learned.

Production was expected to begin in Germany in September, but it has been delayed until April, a source familiar with the schedule said.

A Porsche spokesman declined to comment on future product plans.

The Cross Turismo is a wagon variant of the Taycan, Porsche's first battery-electric sedan. The Taycan, billed as the electric equivalent of Porsche's iconic 911 sports car, is capable of a 0-to-60-mph sprint in 2.6 seconds.

The Cross Turismo makes the Taycan line appealing to crossover buyers, noted Sam Fiorani, vice president at AutoForecast Solutions.

"Creating a Taycan with more cargo space hits this important market," Fiorani said. "The lower center of gravity from the electric architecture should keep the Porsche-ness of the more usefu…

The coronavirus pandemic dramatically altered the automotive ecosystem this spring as plants shut down, many dealerships temporarily closed their showrooms and the two largest U.S. wholesale auction companies made a near-overnight switch to digital sales.

Since the height of the virus crisis in March and April, manufacturing has restarted and dealerships have reopened.

But Cox Automotive's Manheim and KAR Global's ADESA auction units continue to sell mostly via digital. Even where physical auctions have resumed, buyers have gravitated to buying wholesale cars and trucks online.

With the shift, condition reports on vehicles — the documentation many buyers rely on to make their bidding decisions — have become all the more crucial. And those buyers, along with some auction executives, say the reports must improve and become more reliable.

"We have to be better at condition reports, which we're working really hard at, and we're investing in," Cox Aut…