Trade News

Visteon Corp. said Thursday that its second-quarter earnings fell into the red after revenue was cut nearly in half as the coronavirus pandemic continues to bludgeon many auto suppliers.

The cockpit electronics supplier's adjusted second-quarter earnings before interest, taxes and other adjustments dropped to a loss of $3 million from a gain of $46 million during the same quarter last year. The company reported a $45 million net loss compared with a $7 million gain in 2019.

Total revenue fell to $371 million, compared with $733 million in the second quarter last year.

"Adjusted EBITDA was impacted by lower sales volume, primarily due to COVID-19 and partially offset by strong cost-reduction actions," the company said in a statement.

"Despite the challenging environment, we launched 21 new products during the first half of the year, including all-digital clusters, a new Android-based infotainment system and large displays," Visteon CEO Sachin Lawan…

The economic toll of the coronavirus pandemic contributed to lower revenue and profit for Cars.com in the second quarter, as the company offered discounts to dealerships and cut costs to offset the revenue hit.

The Chicago company, which provides dealership technology and vehicle listings services, reported Thursday that it posted a deeper net loss in the quarter ended June 30 than a year ago — $24.6 million, compared with $6 million in the second quarter of 2019.

Revenue fell 31 percent in the second quarter to $102 million, which the company said mostly was attributed to billing discounts to its dealership listings customers worth 50 percent in April and 30 percent in May and June. National advertising revenue also fell 17 percent, Cars.com said, as restrictions meant to slow the spread of COVID-19 led to more cancellations.

The company's adjusted net income in the quarter was $8 million, down from $20 million in the second quarter last year. The adjus…

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.

Kim Stonehouse, director of automotive at Facebook, says the social media giant is focused on supporting dealers as they navigate the new digital retail landscape accelerated by the pandemic. She also shares what the company is doing to prevent the spread of disinformation and hate speech.

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Sonic Automotive Inc.'s second-quarter earnings rose despite the coronavirus pandemic, aided by lower expenses, higher new-vehicle gross profit per vehicle and a recovery in used-vehicle sales late in the quarter, including at its standalone used-only EchoPark stores.

The nation's sixth-largest new-vehicle retailer saw revenue slip 19 percent to $2.1 billion, while net income jumped 16 percent to $30.8 million. Net income from continuing operations also increased 16 percent, to $31 million. The second quarter included a $3.2 million tax benefit.

"Our second quarter results reflect not only a dramatic operating improvement since the onset of COVID-19, but also an all-time record monthly profit in June," Sonic CEO David Smith said in a statement Thursday. "The record-setting momentum we saw during the month of June has continued throughout July to date."

New-vehicle sales fell 40 percent in April but were down 15 percent in June, while used-vehicle sales a…

Power companies are loaning out Teslas in Washington, electrifying bus fleets in Virginia and lobbying for electric vehicle tax credits on Capitol Hill.

San Diego Gas & Electric Co. even went so far as to help train salespeople on how to convince consumers to buy electric cars and then paid them as much as $500 per sale. It’s all part of a $1.5 billion effort by utilities such as Exelon Corp. and Dominion Energy Inc. to promote vehicles that run on electricity.

The companies see it not just as a chance to sell more power, but to balance electricity demand and meet sustainability goals, said Max Baumhefner, a senior attorney with the Natural Resources Defense Council.

“The grid is built for the one hour of the year when electricity demand peaks,” Baumhefner said. Pushing energy consumption to after hours, when many drivers charge their cars at home, helps smooth out the swings in usage and could even reduce power costs for everyone, he said.

Bu…

DuPont reported a wider second-quarter loss on Thursday and wrote down the value of its automotive business by $2.5 billion as the industrial materials giant struggles with a prolonged weakness in one of its biggest end-markets.

DuPont, which makes materials used in products ranging from engine covers to brake fluid, is heavily exposed to the auto industry, which has been among the hardest hit after the coronavirus lockdowns emptied roads and shuttered car showrooms.

The company booked the impairment charge under its Transportation & Industrial segment, saying the business was now worth less because of continued weakness in global automotive production.

Even before the outbreak, DuPont had been grappling with lower sales in the unit, particularly due to lower prices for nylon, a stiff plastic used in making auto parts and industrial equipment.

The company said transportation unit earnings before interest, taxes and other expenses fell 86 perce…

FRANKFURT -- Volkswagen Group on Thursday moved to quash rumors that CEO Herbert Diess had been sidelined, issuing an unsolicited declaration of support for the executive, who has clashed with the company's labor leaders over deeper-than-expected cuts.

"The most important message is that the supervisory board and executive committee ... are in complete agreement that our CEO Herbert Diess is leading the implementation of our strategy," CFO Frank Witter said in remarks that were read out on a call with journalists on Thursday.

Witter acknowledged that "smoke emanating from Wolfsburg" was a sign of how difficult it was to balance the interests of various stakeholders at the company.

Diess has for months pushed to lower costs at the automaker's German operations, repeatedly clashing with labor representatives, who control nine of the 19 seats on VW's board of directors, known in Germany as the supervisory board.

In June, Diess was forced to apologize to …

TOKYO -- Panasonic plans to boost the energy density of the battery cells it supplies to Tesla by 20 percent in five years and commercialize a cobalt-free version "in two to three years," the head of its U.S. EV battery business said.

This is the first time Panasonic, a leading cell provider for the world's top electric vehicle maker, Tesla, has outlined these targets, putting down a marker in a highly competitive sector to stay ahead of the game.

Panasonic introduced the so-called "2170" lithium-ion cells, with the nickel-cobalt-aluminum cathode chemistry, for Tesla's Model 3 in 2017.

Researchers say it already has the highest energy density at above 700 watt-hour per liter.

With an even higher density, these cells could help increase how much an EV can run on a single charge, while also paving the way for smaller batteries and roomier car interiors.

A cobalt-free version, on the other hand, would cut reliance on a costly and controversial com…

TOKYO -- Former Nissan executive Greg Kelly, accused of helping the automaker's ex-chairman Carlos Ghosn understate his compensation, will face a rescheduled trial on financial misconduct charges starting September, Japan's NHK reported.

The Tokyo District Court will begin the case on Sept. 15, the public broadcaster reported Thursday, without saying where it got the information.

Originally planned for April, the trial was postponed, partly because of the coronavirus pandemic.

Kelly, an U.S. citizen, has denied any wrongdoing and is out on bail after being arrested in November 2018 on the same day as Ghosn.

The former head of the alliance between Nissan, Renault and Mitsubishi Motors is no longer in Japan to face trial. Ghosn fled the country in December and is now in Lebanon.

Ghosn has said he is a victim of a corporate conspiracy against him that also involves the Japanese government.

Former Nissan CEO Hiroto Saikawa, who has accuse…

The Federal Trade Commission's settlement with Bronx Honda this year marks the first time the regulator has brought an unlawful discrimination claim against a car retailer. Compliance experts believe it could be a gateway to increased enforcement actions against dealerships by the FTC.

Dealerships should work particularly hard in this exacting environment to ensure customers are being treated fairly and that discriminatory behavior is not tolerated in the finance and insurance office.

Patty Covington, a partner at Hudson Cook, said the New York dealership case is significant and potentially sets a precedent for the agency's approach.

Terry O'Loughlin, director of compliance for Reynolds and Reynolds Co.'s documents business, said dealerships should internally audit car deals on a quarterly basis and bring in an external auditor at least once a year.

"The dealership needs to demonstrate that it has not deviated from its…

FRANKFURT -- ZF Friedrichshafen is exploring options for its 40 percent stake in sensor specialist Ibeo including a possible sale, three people close to the matter said, as it seeks to cut costs after a series of takeovers.

Ibeo, working with Deloitte, is angling for new investors after receiving a large contract from an automaker, one of the people said.

ZF would be open to selling its stake if the new investor wanted to take control of the company, the person said.

ZF declined to comment, while Ibeo and Deloitte had no immediate comment.

Using a valuation metric applied to its peers, Ibeo's business as a whole would be expected to be worth 200 million to 300 million euros ($235 million to $353 million), including debt.

However, factoring in negative cash flows expected in the next three years, potential buyers are likely to value it at only 100 million to 200 million euros if ZF sells its stake, the people said.

Money-losing Ibeo, which …

Volkswagen Group asked German prosecutors to investigate the leak of audio recordings from internal meetings about a supplier dispute.

VW “has become the victim of an illegal eavesdropping attack,” the company said Wednesday in an emailed statement. The automaker filed a criminal complaint and said it doesn’t have access to the recordings that Business Insider’s German-language website first reported on last week.

The recordings captured VW officials discussing ways to end a business relationship with Prevent, a Bosnian parts supplier. The two companies agreed in August 2016 to end a six-day standoff over components deliveries, but the legal fallout continues to drag on with lawsuits pending in Germany and the U.S.

Business Insider cited excerpts of audio recordings from about 35 confidential meetings between January 2017 and February 2018 during which VW employees discussed the company’s strained business ties with Prevent. The recordings were made by a…