Electric-truck maker Nikola has rough first earnings report

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…

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Auto sector facing tough timing on trade plans

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…

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Saab drops a four-cylinder, four-stroke engine in 96 for 1967

The Saab 96, with a four-cylinder, four-stroke engine, was introduced on Aug. 2, 1967.

Saab's technically advanced and long-lived 96 was introduced in 1960, replacing the 93, and featured a two-stroke, three-cylinder engine, bigger and more easily accessible storage space and a larger rear window.

The strong, aerodynamic body featured reinforced crash pillars and pioneered the use of many safety features, including a dual circuit-braking system and collapsible steering column.

The car sold well initially, but shortcomings with the two-stroke technology led to a steady decline in the 96's popularity. Owners had to mix gasoline with oil. In 1967, Saab retooled the car using a Ford V-4.

The small V-4 motor, built in Europe, produced 65 hp and boosted the 96's top speed to an impressive 90 mph, with a 0 to 60 time of 16.6 seconds.

The 96's interior was simple and functional, with a column-change manual gearbox.…

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Fans to International: Build a modern Scout

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…

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Lear posts $294 million net loss in Q2

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…

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T50 is alternative to overly complex supercars, designer says

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.

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Lithia buys 4 import brand stores in Texas

Lithia Motors Inc. has purchased four import brand John Eagle Dealerships in Dallas and Austin, Texas, that will bring in a combined $500 million in annual revenue as it continues to grow its dealership portfolio.

The nation's third-largest new-vehicle retailer said it purchased John Eagle Honda of Dallas, Honda Cars of Rockwall, Howdy Honda in Austin and Sport City Toyota in Dallas. The deal was completed over the weekend.

"We're delighted to announce our network expansion in two of the largest markets in our logistically key South-Central region," Lithia CEO Bryan DeBoer said in a statement Tuesday. "We're excited to welcome these high-performing teams to the Lithia family. Their reputation in their communities and extraordinary volume reflect a commitment to an exceptional customer experience."

Lithia, which owns domestic brand stores in Texas, did not disclose the purchase price for the dealerships but said it funded the acquisi…

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As dealers restart marketing, some are returning to listings sites

In June, I wrote about the impact of the coronavirus pandemic on vehicle listings sites — namely, how dealerships' pullback on marketing spending affected those marketplace companies' bottom lines.

Some dealerships paused or canceled their subscriptions to online shopping sites such as Cars.com, CarGurus and TrueCar starting in March when some states began requiring showrooms to close. The financial toll of the pandemic was still unclear then. The companies said declines in the number of dealerships that subscribe to their listings services continued into the second quarter.

We're getting a better idea of the second-quarter impact now that the public listings sites are starting to release earnings.

Cars.com was first to report its second-quarter financial results last week. CarGurus and TrueCar will follow this week.

From April through June, Cars.com lost 905 dealership customers from the first quarter, dropping its count to 18,033 franchised and …

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DAILY DRIVE PODCAST: August 4, 2020 | One-on-one with Elon Musk (Part 3): Autopilot criticism is 'idiotic'

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.

In the final segment of an exclusive interview, Tesla CEO Elon Musk defends the name of Tesla's Autopilot driver-assistance system. He also weighs in on his management style, Tesla's lawsuit against EV rival Rivian, and restructuring the company as it looks to build more cars in the future.

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2021 Toyota Venza: A near-Lexus clone with green cred

The 2021 Venza midsize crossover, arriving at dealerships this month, is an Americanized version of the Japan-built Harrier. The two-row hybrid, slotted between the RAV4 and the Highlander, will boast up to 40 mpg in combined fuel economy with a hybrid-only powertrain, Toyota says. The Venza is equipped with a 2.5-liter inline-four engine mated to three electric motors, delivering 219 hp. Here's a roundup of select early Venza reviews from the automotive media.

"Considering how long Toyota's been refining its hybrids, it shouldn't come as a surprise that the 2021 Venza is one smooth operator. I can never tell when the rear axle is putting in work, and the whole system blends together so well it's impressive. Just apply some throttle and let the computers figure out whether it's launching under electricity alone (smooth and quiet) or relying more on the gas engine and the continuously variable transmission (a little less quiet, no less smooth). The net power output mi…

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Jim Hackett to retire as CEO of Ford; Jim Farley named successor

DETROIT — Jim Hackett plans to retire Oct. 1 as CEO of Ford Motor Co., after a three-year tenure in which he empowered workers to make quicker decisions and started a broad restructuring effort that hasn’t yet bolstered profits.

Jim Farley, a former Toyota Motor Corp. executive and lifelong car enthusiast who was promoted to COO in February, will become Ford’s third CEO since Alan Mulally left six years ago, the company said Tuesday.

Hackett, 65, said the changes he instituted have taken root and he felt now was the right time to leave the company to what Executive Chairman Bill Ford called “the next generation.” Hackett will work with Farley over the next two months to ensure a smooth transition, the company said.

Hackett, a former CEO of furniture-maker Steelcase, implemented sweeping redesigns of Ford’s business after he was named CEO in May 2017 in an effort to improve what he called Ford’s “competitive fitness.” But Ford’s share price continued to …

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Hyundai names new global head of Genesis

Hyundai Motor Co. on Friday appointed Jay Chang as the new global head of its Genesis brand.

He replaced William Lee, who left Genesis to become CEO of marketing communications company Innocean.

Innocean is Hyundai's global advertising division that has also worked with sister company Kia and clients outside the parent company. Lee, who was a founding executive of Innocean, will "lead that business forward," Genesis said in a statement.Both Chang and Lee assumed their new roles Saturday.

Chang previously was executive vice president of Hyundai and has held roles in various departments such as customer experience and production development planning.

"His focus on customer experience, quality and corporate growth strategy uniquely positions him to lead Genesis through its next phase of growth," Genesis said.

The company also said Chang will lead Genesis' global expansion in the luxury car market by "increasing…

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