Trade News

The second quarter made clear that U.S. auto sales are in recovery mode.

The question heading into the third quarter, with COVID-19 cases surging in major automotive markets in California, Florida and Texas, is whether the upward trend will continue.

The industry bounced back from a treacherous decline in March and early April, helped by particularly resilient demand for pickups, after the pandemic confined millions to their homes and cut off traffic to dealerships. On the used- vehicle side, certified pre-owned sales last month were on par with February's, analysts said.

But the market lost some momentum in late June, said Jonathan Smoke, chief economist for Cox Automotive. A rebound in coronavirus cases could cause some people to second-guess going out, Smoke said, and the big discounts that drew customers in April and May aren't as prevalent now.

That combination, Smoke said, is "probably going to produce a June that won't b…

DETROIT — Kristina Nunez is trying to land a full-time job in the auto industry — and do it without meeting her boss in person.

Many internship programs were canceled in the spring when offices across the country closed amid the COVID-19 pandemic. But some have been able to pivot and allow interns to work online, just like their full-time counterparts.

Nunez and other work-from-home interns are confronting the difficulties of working with people they know only as tiny, pixelated faces or phantom voices on the phone. It's harder than in the past for interns hoping to snag job offers to make a strong impression or develop relationships with peers and mentors. But doing an internship online keeps them in the pipeline.

Nunez, 22, started a coveted product development internship at Ford Motor Co. on June 1. The fifth-year undergraduate at the University of Michigan is at a pivotal point in her career path.

"It's kind of m…

DETROIT — Ford Motor Co. knows there's no room for error in launching its redesigned F-150 pickup. But executives are confident they won't repeat the costly mistakes that tripped up early Explorer production last year.

To roll out the Explorer, Ford tore its Chicago Assembly Plant down to the studs, rebuilt it in 30 days and tried to run three shifts of Explorers, Lincoln Aviators and Police Interceptors from the jump. It turned out to be a grave error.

The plant couldn't get line speeds moving as quickly as intended, and some early builds had to be shipped to Michigan for extra quality checks. The stumbles contributed to a dismal final quarter in 2019 and likely cost longtime executive Joe Hinrichs his job.

Hau Thai-Tang, Ford's product development and purchasing boss, told Automotive News nothing like that will happen with the F-150.

For starters, Ford doesn't have to gut its pickup assembly plants in Kansas City, …

DETROIT -- General Motors on Friday asked a U.S. appeals court to allow it to continue pursuing its civil racketeering suit against rival Fiat Chrysler Automobiles, rejecting a lower court judge's belittling of the complaint.

The automaker's filing with the Sixth U.S. Circuit Court of Appeals comes less than a week after U.S. District Court Judge Paul Borman called GM's suit against Fiat Chrysler a "waste of time and resources" at a time when both automakers should be focused on surviving the coronavirus pandemic.

Borman ordered GM CEO Mary Barra and Fiat Chrysler CEO Mike Manley to meet by July 1 to negotiate a resolution.

In its motion Friday, GM asked the appeals court to throw out Borman's order and reassign the case to a different district court judge. GM in its petition called Borman's order "unprecedented" and "a profound abuse" of judicial power.

"As we have said from the date this lawsuit was filed, it is meritless," FCA said on Friday.<…

Honda Motor Co.’s U.S. automobile division is joining a Facebook ad boycott, making it the first automaker to publicly pledge to join a movement that is gaining momentum by the hour.

“For the month of July, American Honda will withhold its advertising on Facebook and Instagram, choosing to stand with people united against hate and racism," Honda said in a statement. "This is in alignment with our company’s values, which are grounded in human respect.”

The move includes spending for the Honda brand as well as Acura, Honda's luxury brand.

Verizon, Unilever and other big consumer goods makers have pledged to halt Facebook and Instagram spending in response to civil rights groups, while calling out the social media giant for failing to prevent the spread of disinformation and hate speech.

Unilever took its pause a step further, including Twitter, and extended the suspension in the U.S. through the end of the year. An American Honda spokeswoman said th…

Burt Jordan, Ford Motor Co.'s vice president for global purchasing and supply chain sustainability, will retire effective July 1, the company said Thursday.

The automaker has not determined whether the role will be filled or the responsibilities distributed among other employees, according to a Ford spokesperson.

Jordan, 53, has reported to Hau Thai-Tang, Ford's chief product development and purchasing officer.

Before coming to Ford, Jordan spent 10 years working for General Motors, Toyota Motor Corp. and United Technologies.

He joined Ford in 1999 and has held several corporate officer positions in purchasing since 2013.

He was named 2020 CPO of the Year by the National Minority Supplier Development Council in recognition of impactful leadership. He has also been "a driving force behind Ford's supplier diversity and inclusion activities," Ford said in a statement.

Rising cases of COVID-19 are prompting Manheim to delay reintroducing in-lane bidders at three auction sites in Florida.

The Cox Automotive-owned auction operator planned to allow bidders to return to Manheim Central Florida, Manheim Lakeland and Manheim Orlando next week, after doing so at five pilot locations in Missouri, Oklahoma, South Carolina and Texas this week.

Florida has record daily increases in reported cases of the virus this week.

"As safety is our top priority, we delayed the pilot of in-lane bidding at those three Florida locations due to rising pandemic levels in the area," Alan Lang, Manheim division vice president, said in an emailed statement.

Manheim and KAR Global's ADESA said on March 16 they would switch to digital-only auctions, as the virus outbreak began triggering stay-at-home orders in some parts of the U.S.

Some independent auctions continued to operate with buyers in lanes t…

MILAN -- The COVID-19 crisis has not delayed plans to finalize a merger between Fiat Chrysler Automobiles and PSA Group by the first quarter of next year, FCA Chairman John Elkann said.

"In spite of the huge challenges that have materialized with the COVID-19 emergency, I can confirm that the work of our teams towards the completion of the merger has continued apace and we expect to meet our objective of combining as a single company by the first quarter of next year," Elkann said during the automaker's shareholders' meeting on Friday.

"The COVID-19 crisis has further underlined the compelling logic of this merger," he added.

PSA CEO Carlos Tavares told his company's shareholders on Thursday that he was confident that it would be finalized by the first quarter of 2021 "at the latest." Tavares also pushed back against suggestions that the terms of its merger agreement with FCA should be revised because of the impact of the coronavirus crisis.

There's going to be a new track-only hypercar this summer.

Lamborghini this week released teaser photos of the SCV12, developed with Lamborghini Squadra Corse, the Italian exotic's racing division.

Decked out with orange, black and white camouflage in a unique pattern, the SCV12 features wild styling with sharp angles and a large carbon fiber rear wing.

Lamborghini says the model has its most powerful naturally aspirated V-12 engine ever and is capable of over 830 hp.

In the front, there's a double air intake as well as what Lamborghini calls a "central rib." Lamborghini says the setup directs air to the intake scoop on the roof and in turn creates greater airflow to the engine, increasing power.

To further boost the car's track chops, it has a carbon fiber chassis, a sequential six-speed transmission and racing slick tires.

Lamborghini will build the SCV12 at its Squadra Corse factory in S…

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.

AlixPartners' Mark Wakefield provides insight on the firm's latest Global Automotive Outlook report. He discusses the impact of COVID-19 on the industry and why automakers and suppliers need to rethink investment strategies in new technologies.

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Amazon.com Inc. is buying autonomous vehicle startup Zoox Inc., a move that could potentially help the e-commerce giant slash delivery costs and create a formidable opponent to ride-hailing and food-delivery companies.

Terms of the deal were not announced in a statement Friday, but The Information reported that Amazon agreed to pay more than $1 billion for the firm.

Aicha Evans, Zoox’s CEO, and Jesse Levinson, co-founder and chief technology officer, will continue to lead the company as a standalone business.

“Zoox is working to imagine, invent, and design a world-class autonomous ride-hailing experience,” said Jeff Wilke, the head of Amazon’s worldwide retail business.

Shipping costs are one of Amazon’s largest expenses, and Zoox could help the company shave off more than $20 billion annually, Morgan Stanley analysts have estimated.

Still, autonomous vehicles have been a target of Silicon Valley giants and venture capital investors for yea…