Trade News

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…

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.

Outgoing Cox Automotive boss Sandy Schwartz says his successor is a "car guy" who has the chops to move the dealership services giant forward. But the 67-year-old Schwartz won't be too far away from the auto action as he takes on a new post with the goal of keeping all Cox businesses "in the family."

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Daily Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Daily Drive"

An…

ATLANTA — Frederick Schwab, a Detroiter who helped bring Porsche back from collapse in the early 1990s, died July 9 following a brief battle with cancer. He was 81.

Schwab was CEO of Porsche Cars North America for more than a decade, during which he steered the fabled sports car brand out of the pits of the early 1990's recession, when sales fell to a fraction of what they had been in the status-conscious '80s and when many dealers dropped the franchise.

He steered a management overhaul by hiring former Toyota managers to instill the Japanese automaker's vaunted lean operating methods and help improve Porsche product quality.

Under his watch, Porsche introduced key new models in North America, including the midengine Boxster roadster, which gave new buyers a sub-$40,000 MSRP entry to the brand, as well as the Cayenne, Porsche's daring entry in the SUV and crossover segment.

The product expansion fueled a new era of sales for Porsche, with volume …

Compliance experts believe the Federal Trade Commission's handling of a New York dealership case, in which the store agreed to pay $1.5 million for a slew of illegal and unethical practices in the finance and insurance office, may have far-reaching implications. Federal regulators in particular cited dealership-arranged financing, also called indirect financing, as a business practice considered deceptive by nature.

In May, Bronx Honda settled FTC charges that it discriminated against African American and Hispanic car buyers. The store was accused of charging well above the legal cap on document fees and adding fees and markups. The FTC also alleged Bronx Honda management instructed employees to target these groups "due to their limited education" but not attempt the same practices with white customers.

FTC Commissioners Rebecca Kelly Slaughter and Rohit Chopra argued that the commission should exercise its rule-making authority to crack down o…

SEOUL --  Tesla Inc. CEO Elon Musk said Tuesday that the company is open to licensing software and supplying powertrains and batteries.

Tesla had previously supplied batteries to Mercedes and Toyota Motor under separate partnership deals. Battery manufacturing is an area that analysts and industry officials say the U.S. electric car maker has a competitive edge compared with legacy automakers.

"Tesla is open to licensing software and supplying powertrains & batteries. We’re just trying to accelerate sustainable energy, not crush competitors!" Musk said in a tweet. 

Tesla currently runs a battery joint venture with Panasonic Corp and also sources batteries from China’s Contemporary Amperex Technology and South Korea's LG Chem .

Tesla is also planning to expand its own battery facility at its Fremont, Calif., plant.

Batteries are the most expensive and important component of electric vehicles.

"The supply could lower th…

DETROIT — General Motors reported a $758 million second-quarter loss as the coronavirus pandemic sharply cut production and revenue by more than half.

GM said cost cutting and strong pricing allowed the automaker to nearly break even in North America despite its plants being closed for eight weeks.

GM lost $101 million in North America, compared with a gain of $3 billion in the second quarter of 2019.

"These results illustrate the resiliency and earnings power of the business as we make the critical investments necessary for our future," CFO Dhivya Suryadevara said in a statement Wednesday.

Global revenue fell 53 percent to $16.8 billion, and its adjusted loss before interest and taxes was $536 million, compared with $3 billion a year earlier. The company burned through $8 billion in automotive operating cash but said it still had "strong" liquidity of $30.6 billion after borrowing $16 billion in March to help weather the crisis.

GM's inter…

Honda's Odyssey minivan is getting a mild freshening for 2021 with a restyled grille and front bumper along with additional standard safety equipment.

Also new is a rear-seat reminder that can be paired with an optional camera system for checking the back seats from the infotainment screen.

While the segment continues to shrink, Honda and select remaining brands view minivans as key vehicles to draw and retain customers, notably young families, even as prices for some high-end models near $50,000.

The Odyssey was the No. 2 seller among minivans in 2019, behind the Dodge Grand Caravan and ahead of the Chrysler Pacifica and Toyota Sienna. Fiat Chrysler Automobiles is dropping the Grand Caravan, which launched the segment in the early 1980s, while Toyota has overhauled the Sienna for 2021.

The updated Odyssey, which goes on sale Monday, now is equipped with second-row seats that fold nearly flat, which creates more cargo space and makes removing the…

SEOUL -- South Korea said it is investigating suspected safety issues with vehicles made by Tesla Inc., which competes strongly with Hyundai Motor Co. in the country's electric vehicle market.

Braking and steering systems including the Autopilot function are part of the investigation, a transport ministry official said Wednesday.

The ministry declined to elaborate but South Korean media said Tesla's Model 3 was under investigation, and the probe might take anywhere from six months to a year.

Tesla would cooperate with the investigation, an official at its South Korean unit said.

In the  U.S. the National Transportation Safety Board last year cited driver errors and Tesla’s Autopilot design as the probable cause of a January 2018 crash of a Model S in California.

In South Korea, Tesla had its best month in June with its Model 3 beating Hyundai’s Kona EV, as well as premium models from BMW and Audi.