Trade News

Nemak posted a net loss of $125 million in the second quarter compared with a gain of $42 million a year earlier as the supplier halted production for about eight weeks amid the coronavirus pandemic.

But Nemak said that its earnings before interest, taxes and other adjustments would have remained stable at $1 million if adjusted for nonrecurring severance expenses, crediting "additional operational efficiencies."

The powertrain and body structure components supplier said it still managed to win about $150 million in new business to produce e-mobility, structural and powertrain applications.

Nemak is one of several auto suppliers that are releasing second-quarter earnings in the coming weeks. Industry insiders will be watching to assess the full impact of the crisis on the automotive supply chain, which has largely remained financially viable so far.

Nemak said revenue for the quarter plunged 60 percent to $403 million due to light-vehicle producti…

Net income fell nearly 60 percent for Ally Financial Inc., one of the largest U.S. auto lenders, in the second quarter as the lender absorbed further impact from the coronavirus pandemic. Volatile used-vehicle values, record-high unemployment and more than a million consumers exiting forbearance protections were among the reasons the bank allocated more funds to shield from potential auto loan losses for the second half of the year.

Ally reported net income of $241 million Friday, down from $582 million in the second of quarter 2019, though an improvement from the $319 million net loss it suffered in the first quarter. Adjusted revenue slid 1.9 percent to $1.53 billion in the second quarter.

The Detroit lender is bracing for losses in the back half of the year as expansive payment deferral programs are set to expire. Thirty percent of the auto customers Ally granted payment deferrals were slated to come out of forbearance in the second quarter, with the r…

Public trust and engagement from stakeholders are critical to developing safe autonomous vehicles, several government transportation agencies said Thursday in an online discussion.

The discussion hosted by NHTSA comes after the U.S. Department of Transportation launched its AV Test Initiative to improve the "safety and testing transparency" of automated driving systems.

King Gee, director of safety and mobility at the American Association of State Highway and Transportation Officials, said state departments of transportation have been working with other organizations to test automated driving technology and gain public support for it. He added that some states have an interagency task force that guides autonomous vehicle testing and deployment.

"We believe that sharing and cooperative development is the fastest way to advance a technology like ADS across the country," he said.

Jane Williams, acting administrator of the Federal Transit Administrati…

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.

Kia Motors America marketing chief Russell Wager on the automaker's move away from its bargain origins to a more-affordable alternative to premium brands -- and why it's sticking with sedans.

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LOS ANGELES — Honda remains committed to its core car models in the U.S. but can no longer make an economic case for the Fit subcompact, Civic coupe and six-speed manual version of the Accord sedan, all of which are being discontinued after the 2020 model year.

The HR-V subcompact crossover will become Honda's entry-level vehicle along with lower trims of the Civic. The Civic hatchback has grown in popularity at the expense of the Fit and the Civic coupe, and production of the hatch will move to the U.S. from the U.K. next year.

"We are discontinuing one car, but for us the real story is how committed we are to our core car products," said Gary Robinson, assistant vice president of product planning. "We're going to be very much focused on the Civic and the Accord, which effectively created the image of the Honda brand in the U.S."

Robinson said important changes are coming for Civic — which helped establish the Honda brand in the U.S. during the early 19…

STOCKHOLM -- Sweden's Autoliv , the world's largest producer of airbags, said Friday it was seeing signs of recovery after running a deeper-than-expected quarterly loss as lockdowns due to the pandemic slammed car production and demand.

The company, which moved quickly to slash spending and boost its cash position as auto production in Europe and North America ground to a halt early in the second quarter, said it would continue to cut costs to adapt to the situation.

But the company, which competes with ZF TRW as well as Joyson Safety Systems, also said it had seen a recovery taking hold from the middle of the quarter.

"We must balance the cost reduction responses against the need for capacity to manage the recovery that started mid-quarter and continues in the first weeks of July," CEO Mikael Bratt said in a statement.

"I am also pleased that order intake for the first half year was in line with last year," he added.

The group reported a s…

BEIJING -- Volkswagen Group said Friday it expects its China sales to fall a single-digit percent this year as new SUVs and premium models help it recover from a sales slide in the world's biggest auto market.

The automaker sold 1.59 million vehicles in China in the first six months of 2020, down 17 percent from 1.92 million units in the same period last year. For all of 2019, VW sold around 4.23 million vehicles in the country.

VW is China's biggest foreign automaker, followed by U.S. rival General Motors.

The country's overall auto sales, which include passenger cars and commercial vehicles, dropped 17 percent in the January-June period. The China Association of Automobile Manufacturers has forecast full-year sales to fall 10 percent to 20 percent.

VW China chief Stephan Woellenstein said the automaker's sales in the second half this year will likely be level with same period last year, though a possible second wave of the novel coronavirus outb…

BEIJING -- Volkswagen Group said Friday it expects its China sales to fall a single-digit percent this year as new SUVs and premium models help it recover from a sales slide in the world's biggest auto market.

The automaker sold 1.59 million vehicles in China in the first six months of 2020, down 17 percent from 1.92 million units in the same period last year. For all of 2019, VW sold around 4.23 million vehicles in the country.

VW is China's biggest foreign automaker, followed by U.S. rival General Motors.

The country's overall auto sales, which include passenger cars and commercial vehicles, dropped 17 percent in the January-June period. The China Association of Automobile Manufacturers has forecast full-year sales to fall 10 percent to 20 percent.

VW China chief Stephan Woellenstein said the automaker's sales in the second half this year will likely be level with same period last year, though a possible second wave of the novel coronavirus outb…

Tesla Inc.’s march to a $275 billion market capitalization has been pretty galling for Germany, the birthplace of the automobile. But the pain is felt most acutely at Daimler AG, which used to be a large Tesla shareholder.

Had the owner of the luxury Mercedes-Benz brand held the almost 5 million shares it offloaded in 2014, they would now be worth about $7.3 billion by my calculation -- a sum that’s equivalent to two-thirds of Daimler’s current net industrial cash position.

In the annals of ill-timed investment decisions, that stake sale doesn’t quite match the U.K.’s flogging off a big chunk of its gold reserves when prices bottomed out around the turn of the millennium. It still hurts, particularly at a time when industrial companies are counting every last cent.

Fortunately there’s some good news to console Daimler’s long suffering shareholders.

The company’s performance in the most recent quarter was a lot better than expected. Instead of burn…

NEW YORK -- Gov. Andrew Cuomo on Thursday said an investment program that would allocate $750 million to build charging stations and other electric-vehicle infrastructure as part of the state's long-term goal to reduce emissions.

The measure is set to create more than 50,000 charging stations and will largely be funded by the state's investor-owned utility companies, with the total budget capped at $701 million through 2025.

An additional $48.8 million is allocated from a 2017 settlement with German carmaker Volkswagen Group over its diesel emissions cheating scandal to fund electric school and transit buses, as well as charging stations.

New York's announcement comes on the heels of a similar measure by Florida, which on July 10 announced an $8.6 million investment to expand charging stations.

While electric vehicle sales have gradually increased over the past few years, they still made up less than 2 percent of all U.S. vehicle sales in 2019, ac…

Lyft Inc. said Friday it would distribute some 60,000 vehicle partition shields to its most active drivers as a protection against the coronavirus and begin selling the custom-made protective barriers to other drivers later this summer.

The ride-hailing company began in May to require both passengers and drivers to wear a mask during trips and said it had provided North American drivers with more than 150,000 sanitizing products and masks since the outbreak of the pandemic.

Lyft began designing the semi-rigid partition shields, made out of a polycarbonate material, several months ago and has since piloted it with a group of ride-hail drivers to solicit feedback, a spokeswoman said.

"It was critical to us that the design met the needs of rideshare drivers specifically, accommodated a wide range of vehicle models, could be self-installed and easily removed, and could be produced at a price point far lower than what is currently available in the market," th…

WASHINGTON -- Carlos Ghosn insists his wife and four adult children played no part in his dramatic escape from Japan in a crate that was smuggled aboard a private plane.

"I alone arranged for my departure," the former Nissan chairman said in January. "My family had no role whatsoever."

But according to evidence gathered by Japanese prosecutors, Ghosn spent some of his final hours in Tokyo with at least one family member -- his daughter Maya, 27, who works in California. The two had lunch together the day he fled, before she delivered luggage to a hotel where she met with one of Ghosn's alleged accomplices.

Those details were included among hundreds of pages of travel documents, witness statements and security-camera images in Japan's formal request to the U.S. government for the extradition of the two Americans accused of engineering the escape: former Green Beret Michael Taylor and his son Peter.

The previously undisclosed documents include refe…