Trade News

Efforts to restart the automotive industry accelerated last month as automakers and suppliers gradually reopened more factories and ramped up production of vehicles and parts. But "a high degree of uncertainty" stemming from supply chain challenges, consumer confidence and a weakened economy remain concerns, said John Bozzella of the Alliance for Automotive Innovation.

Bozzella, CEO of the auto lobbying group representing most major automakers, spoke Wednesday at a hearing held by the Senate Committee on Commerce, Science and Transportation to discuss the impact of the COVID-19 pandemic on transportation and critical infrastructure. Witnesses included national trade groups representing various transportation sectors such as trucking and freight railroads.

"As automakers, suppliers and others absorb COVID-related losses, the industry will have less capital to invest in future technology development," he said in written testimony. "In this highly competitive, cap…

Auto retail giant AutoNation Inc. is permanently cutting about 3,500 jobs across the company — or about half the number of workers it furloughed in early April amid the coronavirus pandemic.

The nation's largest new-vehicle retailer brought back more than 3,500 furloughed workers, including 2,300 since May 11, after furloughing 7,000 employees following a sharp drop in vehicle sales and service business.

Marc Cannon, AutoNation's chief customer experience officer, said AutoNation was able to bring back many employees as vehicle sales have improved over the last several weeks.

"The business environment continues to change and AutoNation is adapting by restructuring and reducing the work force," Cannon said in an emailed statement to Automotive News.

"At AutoNation we have adjusted to the new normal, which focuses on digital and store efficiencies. We have made strategic adjustments to capitalize on the digital marketin…

DETROIT — Former UAW President Gary Jones on Wednesday pleaded guilty to federal embezzlement and racketeering charges, a landmark development in the yearslong corruption investigation into one of the country's leading labor unions.

Jones, appearing in U.S. District Court by video conference wearing a dark suit and navy blue tie, admitted to stealing money from the membership he was elected to lead.

"I recognize that my actions violated the law as well as my sworn obligation to my fellow union members," Jones, 63, said in a prepared statement. "I apologize to my UAW family for this betrayal of trust and pray that they will forgive me."

In pleading guilty, Jones promised to cooperate with investigators as they continue to probe the union for financial impropriety.

He could receive up to 10 years in prison, although the two parties said Wednesday they had agreed to a sentence of 46 to 57 months, or a little less than half of the maximum. If Jones p…

After four vehicles were stolen Saturday from Dolan Auto Group's Lexus dealership in Reno, Nev., while a protest was happening nearby, CEO Ryan Dolan is taking more precautions.

The five-store dealership group has heightened lot security, added more cameras and changed internal processes such as where keys are kept, he said."We hope that we can stay safe and protect our businesses and give people the rights to protest peacefully," Dolan said.

The changes at Dolan Auto mirror actions numerous dealerships across the nation are taking in the wake of protests following last week's death of George Floyd in Minneapolis. While many of the protests have been peaceful, some have turned violent and led to property damage, vehicle theft and arson of nearby businesses.

More than 20 U.S. dealerships have faced damage and theft and/or were forced to close their doors because of violence that sometimes escalated. Numerous others have temporarily…

DETROIT -- Detroit 3 executives Wednesday vowed to continue to take a stand against injustice and to be leaders in creating more inclusive workplaces and communities.

General Motors CEO Mary Barra, Ford Motor Co. Executive Chairman Bill Ford and Fiat Chrysler Automobiles North America COO Mark Stewart were part of a group of nine leaders from some of Detroit's largest companies who spoke against racism and injustice during a media event here.

GM, Ford and FCA's messages at the event follow letters sent to employees in recent days in which each company committed to creating awareness and taking action on racism and discrimination following nationwide protests over the death of George Floyd.

"These CEOs are here not only because they have chosen to respond to the pain and the anguish of injustice in the African American community today. They will remain committed to the roadway of justice and equity tomorrow," the Rev. Wendell Anthony, president of the Det…

DETROIT — Union leaders at one of Ford Motor Co.'s largest U.S. assembly plants say the automaker has not consistently followed the protocols it created to keep workers safe since restarting production last month.

UAW Local 249, which represents more than 7,000 workers who make the F-150 pickup and Transit van at the Kansas City Assembly Plant, said on Facebook that it planned to file safety complaints over "failures of the company to follow COVID-19 protocols and to provide safe working conditions for our members." The local said plant management has failed to properly screen workers for symptoms of the virus and to adequately clean work equipment.

"The return to work from the layoff created by the COVID-19 pandemic has brought with it a significant amount of challenges to KCAP," Local 249 leaders wrote. "These challenges have also revealed the unfortunate reality that the company is backsliding on its public commitment to put people over production and profit…

Aggressive incentives bolstered the new-vehicle market in May, dragging down the average interest rate on a loan to its lowest level since 2013, Edmunds said. But as the parade of finance deals marched through Memorial Day, fewer buyers took the bait.

The economic pressure caused by measures to slow the spread of the coronavirus, along with affordability concerns, inventory constraints and low consumer confidence curbed the typical seasonal bounce, according to Jessica Caldwell, Edmunds' executive director of industry analysis.

"The deals started dropping as demand was picking up," Caldwell said, adding that May's final weekend was impacted by the protests sparked by the death of George Floyd in Minneapolis last week.

The average interest rate on new-car loans fell to 4 percent last month, compared with 6.1 percent in May 2019.

Though 0 percent interest, seven-year loans remain at near-record levels, the deals started…

Hyundai Motor Co. is launching license plate reader technology through a website for owners to access open safety recalls and service campaigns on their vehicles.

The website, when used on a smartphone, allows vehicle owners to take a photo of their license plate. It then links the license plate number to the VIN and displays all open safety campaigns for that vehicle. Owners can then schedule an appointment through the site for the necessary repairs at a Hyundai dealership.

Brian Latouf, chief safety officer of Hyundai Motor North America, said the technology fits into the company's vehicular designs that aim to address "the before, during and after" of a crash.

"This is kind of one step of many different things we're doing holistically for automotive safety," he said.

Latouf said the new technology is meant to get vehicles fixed as quickly and conveniently as possible. He said the technology, like the SmartSense sui…

A lawsuit filed in Delaware by a group of Carvana shareholders accuses the company's leadership of insider trading in the wake of the coronavirus pandemic.

The online used-vehicle retailer issued two stock offerings — first a private one in late March and early April at $45 per share, followed by a public one last month at $92 per share, according to the lawsuit.

Filed on behalf of a group of pension funds based in St. Paul, Minn., the suit, first reported by Bloomberg Law, alleges that the controlling Garcia family and company directors issued millions of shares at "bargain-basement" prices in the first offering, enriching themselves in the process, despite knowing that the company was on solid footing and that Carvana's stock would rebound.

On March 30, Carvana announced a private offering of 13.3 million shares at $45 per share. Ernest Garcia II and Ernest Garcia III each purchased $25 million worth of stock.

The $…

Dealerships across the country continue to be targets of vandalism and theft amid sometimes violent protests sparked by the death of George Floyd in Minneapolis last week.

Stores from the Los Angeles area to St. Louis to Philadelphia were impacted by incidents Monday, bringing the total number of dealerships damaged or that have experienced looting to more than 20, according to Automotive News estimates and news reports.

More protests were planned in cities across the country Tuesday.

Toyota spokesman Scott Vazin said Tuesday that six Toyota and Lexus dealerships have suffered damage and/or are closed because of the protests, including stores in Philadelphia and Los Angeles. That was up from four stores impacted as of Monday.

The stores are Toyota Santa Monica and Lexus Santa Monica in California, Central City Toyota in Philadelphia, Toyota on Western in Chicago, McGrath Lexus of Chicago and Dolan Lexus in Reno, Nev. A Herb Chambers processing cen…

A shipping yard employee was hit by a vehicle stolen from Fiat Chrysler Automobiles' Jeep assembly complex in Toledo, Ohio, on Tuesday. The vehicle was one of six Ram trucks stolen from a shipping yard near the complex.

The employee, Becky Huston, 60, was taken to a medical center with non-life-threatening injuries.

Police told The Toledo Blade that there were no suspects yet. Investigators were attempting to obtain surveillance footage.

In an email statement to Automotive News, FCA said that five of the trucks were recovered. The company also said it was "actively working" with Toledo police in the investigation.