Trade News

Ford Credit posted a $500 million profit for the second quarter, down 38 percent from $800 million in the second quarter of 2019, the lender said last week, thanks in part to lower value projections for active leases. Ford Motor Co.'s finance arm, at the same time, says it is encouraged by positive developments in consumer finances and spending habits.

The result marks a departure from a plunge in first-quarter profits, which the company attributed to efforts to bolster credit-loss reserves — funds set aside for auto loans it doesn't expect will be repaid — during the coronavirus pandemic.

Ford CFO Tim Stone told investors last week that the captive lender provided payment extensions to an unprecedented 361,000 customers, representing11 percent of its customer base, through May. As of July 28, 84 percent made their scheduled payment by the due date, 12 percent made payments and opted to extend the relief period, and 1 percent received an addi…

Finance-and-insurance profit per vehicle rose for all six publicly traded dealership groups in the second quarter as the industry absorbed the continuing impact of the coronavirus pandemic on operations.

Earnings at the public dealership groups took a hit from the pandemic, though many reported better-than-expected figures for the quarter thanks in large part to early adoption of digital tools. After a swift transition in a challenging environment, retailers say hurdles remain in digitizing the F&I component in particular.

AutoNation Inc., the retailer with the highest same-store F&I profit per vehicle, said its digital F&I product penetration is not yet on par with in-store metrics.

"We have it, I would say, perfected in the stores," AutoNation CEO Mike Jackson said on a call with investors last month. "There is still work to do in the digital world on those products."

Jackson said last quarter that the ret…

Big incentives from General Motors helped GM Financial increase auto loan originations by double digits in the second quarter, even as many dealerships had to temporarily close or limit operations because of the coronavirus pandemic.

GM's captive finance arm said in a statement last week that auto loan originations rose 22 percent from the same period of 2019 to $8.7 billion. Generous incentive programs geared toward prime credit buyers, including 0 percent financing for 84 months and 120-day payment deferrals, drove much of the growth.

"That attracted very strong traffic into the showroom," CEO Dan Berce told Automotive News. Many customers who didn't qualify for the 0-for-84 offer took advantage of other promotions through GM Financial, he said.

GM Financial provided floorplan financing for 30 percent of GM dealers in the quarter, up from 27 percent a year earlier. Floorplan dealers are more likely to finance auto loans through G…

FRANKFURT – Daimler says it is deepening an alliance with the Chinese battery maker CATL to deliver battery packs capable of giving Mercedes-Benz cars 430 miles of range at higher recharging speeds.

Daimler already has battery cell supply deals with Korea's SK Innovation, LG Chem and Farasis in addition to Contemporary Amperex Technology, which is known as CATL, as it plans to ramp up production of electric and hybrid vehicles.

Mercedes will launch the EQS luxury electric sedan with CATL cell modules in 2021, with a range of more than 430 miles on the Worldwide harmonized Light vehicle Test Procedure (WLTP) scale.

Wednesday's agreement with CATL said the partnership will include supplying cells and entire battery systems as well as combining research.

"We intend to lead in battery technologies, so we are now combining our own research and development expertise with bold partners," Daimler said in a statement.

"The agreement covers the full …

Amid economic uncertainty from COVID-19, American consumers are more hesitant to buy or lease a vehicle since the outbreak began. Used-vehicle consideration remains down compared with pre-pandemic levels, but it is stabilizing, while new-vehicle intent is decreasing, according to a study by McKinsey & Co.

The consulting firm's COVID-19 Auto & Mobility Consumer Insights study, conducted in seven global markets including theU.S., surveyed approximately 1,200 consumers in the U.S. four times in May through July, of which approximately 400 respondents had intent to purchase or lease a vehicle. It asked them:

1. Before COVID-19, whether they were "not likely, likely or very likely" to buy/lease a new or used vehicle in the next 12 months.

2. Given the current COVID-19 situation, whether they were "not likely, likely or very likely" to buy/lease a new or used vehicle in the next 12 months.

In the latest survey, conducted July 15-17, 70 percent o…

BEIJING -- China sales at Japan's three biggest automakers grew by more than 12 percent in July as the world's biggest auto market continued to recover from the coronavirus outbreak.

Nissan Motor Co. said on Wednesday sales in China rose 12 percent last month from a year earlier to 120,945.

China is a market that Nissan is focusing on as the embattled carmaker struggles to fix problems from ousted leader Carlos Ghosn's aggressive expansion drive.

Toyota Motor Corp. sold around 165,600 cars and light trucks under the Toyota and Lexus brands last month in China, up 19 percent year-on-year. Toyota said deliveries at Lexus rose 38 percent to 22,300 in July.

Honda Motor Co said on Wednesday it sold 136,646 vehicles in China in July, up 18 percent.

The first earnings report for electric-truck maker Nikola was a bumpy one, with executives and analysts trading barbs and investors sending the company’s shares plunging.

The stock fell 18 percent in late trading on Tuesday after Nikola, which is developing big rigs that run on batteries and fuel cells, said it lost $86.64 million in the second quarter, compared with $17.2 million in the same period last year.

Within minutes of Nikola releasing its statement, its founder Trevor Milton posted on Twitter that the Phoenix, Ariz.-based company had provided analysts with figures on its share count. He wrote that taking those figures into account, Nikola beat expectations, contrary to some who said it fell short.

“We actually beat our earnings by 20 percent,” he wrote. “They had the share count wrong. I have zero control as we can’t give out info prior to earnings.”

Analysts responded by pressing CEO Mark Russell on Nikola’s earnings call for more infor…

The outlook for auto sector imports and exports remains uncertain as the industry sorts out the rules of the new North American trade deal, analyzes looming tariff threats and copes with disruption from the coronavirus pandemic, industry experts said Tuesday during a virtual version of the annual CAR Management Briefing Seminars.

Automakers are working closely with the Trump administration to comply with the United States-Mexico-Canada Agreement, but the COVID-19 pandemic has introduced additional timing challenges. The industry was just starting to ramp up production when the deal entered into force July 1.

"The administration has provided us with a 12-month transition period in order for us to fully comply with the new rules of origin, which are significantly different for autos," said Jennifer Safavian, CEO of Autos Drive America, a trade association representing major international automakers. The group, formerly known as Here For America, r…

In a quiet backwater of the new-vehicle market during the 1960s and much of the '70s, four rugged off-road vehicles battled annually for the few thousand sales available: Land Rover's Series II (precursor to the Defender), the Jeep CJ (today's Wrangler), the original soft-top Ford Bronco and the International Scout.

Two of those are once again available. The new Land Rover Defender arrived at U.S. dealers this spring, and an all-new Bronco arrives in less than a year. The Wrangler, of course, never went away and for decades has been uncontested in many ways.

Only one of those original off-road 4X4s is missing from showrooms today: The Scout, which arrived in 1961 — five years before the Bronco — and can legitimately lay claim as one of America's first true SUVs.

It isn't really clear who made America's first SUV. Chevrolet claims the Suburban, which has been in production since 1935, owns the title. But for most of its existence, t…

DETROIT — Lear Corp.'s second-quarter net income swung to a loss of about $294 million compared with a gain of about $183 million the year before as industrywide production shutdowns slashed sales and profits.

The producer of automotive seating and electronics is one of several auto suppliers — including BorgWarner and Tenneco — scheduled to release second-quarter earnings this week. Numerous auto suppliers already have reported a plunge in second-quarter results.

Lear said revenue for the quarter slipped 51 percent to $2.4 billion because of production declines.

Shares of Lear fell 1 percent to $110.95 in midday trading on Wall Street.

During the second quarter, global vehicle production fell 46 percent, with China up 7 percent, North America down 69 percent and Europe down 63 percent, Lear said. Global production weighted by Lear's sales declined by 55 percent.

Lear said in a Tuesday call with analysts that it expects global production to…

Gordon Murray, the race car designer and engineer best known for the McLaren F1 supercar, says his new T50 will offer a driving experience "to surpass any supercar ever built."

The three-seat T50 was revealed on Tuesday via webcast, with customer deliveries set to start in January 2022. It will be built in the UK by Murray’s company, Gordon Murray Automotive.

The T50 closely follows the blueprint of the F1 from 1992, down to a V-12 engine and a three-seat cockpit layout with the driver occupying the central seat. It will improve on the F1 “in every conceivable way,” Murray said in a statement.

The biggest difference is in the inclusion of a 400mm ground-effects fan that dominates the rear of the car and aids aerodynamics.

The T50 will cost 2.8 million pounds ($3.6 million) in the UK and is limited to 100 units. The car will be sold globally and more than two-thirds of the production run have been spoken for already, the company said.

…