Trade News

Volkswagen of America has parted ways with its chief marketing officer, Saad Chehab, nine months after hiring him.

In a brief statement announcing the separation today, Volkswagen said Chehab had left the company, effective immediately. The German brand named sales head Duncan Movassaghi to assume Chehab's duties on an interim basis.

Chehab's role had been confined to North America, and his departure was unrelated to a controversy this week over a Volkswagen ad with racial-discrimination overtones that ran in some European markets before being pulled.

Chehab, 53, a native of Lebanon who had previously been vice president, marketing communications for Kia Motors America from April 2017 to June 2019, joined VW in August, where he reported directly to Volkswagen of America CEO Scott Keogh. The two-time Automotive News All-Star — he won in 2012 for his work with Chrysler and again in 2019 for the work he had done with Kia — had been tasked to reposition Volk…

Car-sharing platforms, which have suffered during the COVID-19 lockdown, see an opportunity emerging: an increase in short-distance, local trips as U.S. consumers look for a different way of getting to work and running errands.

Executives from Turo, Getaround and Zipcar are hoping their pitch to customers — a means of travel that is cheaper than car ownership and sanitary — will also win business from public transit users and Uber and Lyft riders.

In addition to the uptick in shorter trips, the companies also report increased use by essential workers and health care staff. “Customer confidence in travel safety can change their booking habits,” said Preeti Wadhwani, a research analyst with Global Market Insights. “Health-care providers or first responders are relying on car-sharing companies such as Turo to commute to work.”

Getaround says overall trip volume in the U.S. has declined by almost 50 percent since states began shutting down their economi…

Used vehicle sales kept shrinking in April in the wake of the coronavirus outbreak, albeit at a slower pace compared to the first three months.  

Last month, used-vehicle deliveries across the country dropped 7.3 percent to some 1.1 million, the China Automobile Dealers Association said. 

In the first four months, cumulative used-vehicle volume totaled 3.1 million, a slump of 30 percent from the same period last year. 

By contrast, China’s new-vehicle sales rebounded in April, ending a 21-month decline, according to the China Association of Automobile Manufacturers. 

During the month, nearly 2.1 million new vehicles were delivered in the country, an increase of 4.4 percent from a year earlier. 

Through April, China’s new-vehicle sales fell 31 percent to below 5.8 million. 

Overall, used-vehicle sales are expected to fall in 2020 after steady, robust growth over the past two decades.

In 2019, volu…

Americans still apprehensive of AVs, study says, but education could help

Americans remain apprehensive about automated vehicles, but according to one study, education and hands-on experience with AVs could spark greater trust.

The study was released Monday by Partners for Automated Vehicle Education, a coalition of industry leaders and driverless-vehicle advocates. Several automakers, technology companies and other industry entities are members of the group, which aims to educate the public on the benefits of automated vehicles.

The group surveyed 1,200 U.S. adults between Feb. 27 and March 5.

According to the group, wary attitudes about AVs aren't just a result of high-profile AV mishaps — such as the 2018 Uber ATG crash in Tempe, Ariz., that killed pedestrian Elaine Herzberg. They also stem from a lack of education about these technologies.

The survey found that 51 percent of Americans know "nothing at all" and 37 percent only kn…

SHANGHAI – China’s major annual auto show, initially slated for late April in Beijing, has been rescheduled to begin in late September because of the coronavirus outbreak. The Guangzhou auto show, another leading industry event, is still scheduled for November. 

Cluster virus infections are still popping up sporadically in China, so how will these major events be organized?

The Chinese government's handling of its two most important annual political meetings in Beijing this week may offer some clues. 

The Chinese People’s Political Consultative Conference, an advisory body to the Chinese government, kicked off its annual session Thursday. The National People’s Congress, China’s top legislature, will open its annual meeting Friday. 

Some 5,200 delegates, including 111 from the central province of Hubei -- the epicenter of the COVID-19 outbreak -- arrived in Beijing in the past few days for the two meetings, according to officia…

Geely Automobile Holdings has launched direct vehicle sales through an upstart third-party digital channel.

The largest domestic Chinese car manufacturer this week began selling a compact crossover on Souche, an ecommerce website focusing on new and used vehicles.

The vehicle, the Geely-badged Binyue, is offered at a fixed price of 97,800 yuan ($13,770) on the website. 

The move is part of a partnership signed with Souche.com to allow Geely to tap the website’s customer data and digital sales channels to enable direct sales, the automaker said.

Under the deal, customers place orders online for Geely vehicles, and deliveries take place offsite at a home or office. 

Geely expects the deal to boost sales by complementing its franchised dealerships, company vice president Feng Qingfeng said in a statement. 

The company’s sales in the first four months contracted 34 percent to 311,495, though volume rose 2 percent in …

The coronavirus outbreak has inspired SAIC-GM-Wuling Automobile, General Motors’ light-vehicle joint venture with SAIC Motor Corp., to find a practical new use for its two-seat electric cars. 

The EVs, rendered driverless, have been used to tow trailers since March 5 to ship parts and components for workshops at two assembly plants in the southwest China city of Liuzhou.

The company said this week 75 such vehicles have been deployed on 16 routes at both assembly plants it operates in Liuzhou. 

By providing contact-free logistics, the self-driving EVs can ward off the risk of virus transmission and cut labor costs by more than 50 percent, the company said.

Operating around the clock, the fleet has expanded SAIC-GM-Wuling’s logistics capacity and improved delivery services, it added.

SAIC-GM-Wuling markets entry-level cars under the Baojun brand and minibuses under the Wuling marque. 

The EVs deployed for the driverless…

DETROIT -- Michigan auto dealerships can resume in-person sales Tuesday, May 26, by appointment only, according to the latest executive order signed by Gov. Gretchen Whitmer, which also now allows gatherings of 10 or fewer people.

The change continues a trend of states relaxing policies on auto dealerships in a national push to reopen key factions of the economy amid the COVID-19 pandemic.

In the initial wave of coronavirus-related closures, Michigan adopted some of the strictest measures to slow the outbreak. Several other states that initially required showrooms to be closed have already rolled back policies that prevent consumers from physically entering showrooms. New Jersey announced Tuesday that it would resume in-person sales at dealerships by appointment only.

"As businesses continue to reopen, it's crucial that they adopt strict safety measures to protect their employees, customers and their families," Dr. Joneigh Khaldun, chief medical executiv…

Listen as executives from Carvana, Cox Automotive and PwC discuss the uncertainty over inventory and the digital path forward as the economy slowly reopens.

Speakers:Jason Stein, Publisher, Automotive NewsErnie Garcia, Chairman & CEO, CarvanaSandy Schwartz, Chief Executive Officer, Cox AutomotiveDoug Ekizian, Managing Director, PwC Consumer Finance Group

This conversation was originally broadcast on May 21, 2020 at 11am EDT as part of our Congress Conversations series. The series runs through June 4. Register to watch future Congress Conversations live at http://autonews.com/congress.

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.

Waymo's CEO opens up about the company netting $3 billion in funding amid the pandemic, resuming self-driving vehicle testing on public roads in Phoenix. He also weighs in on the renewed desire for personal mobility; autonomous deliveries; emerging ''smarter'' from the crisis and more.

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A group of state attorneys general, led by California's Xavier Becerra, urged automakers Wednesday to curb "unlawful and predatory" practices regarding the timely return of off-lease vehicles to franchised dealerships during the COVID-19 pandemic.

In a letter distributed Wednesday — which includes signatures from attorneys general in Connecticut, Iowa, Minnesota, Nevada, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Virginia and Puerto Rico — Becerra directly responded to media reports that consumers are having trouble returning off-lease vehicles.

USA Today reported on April 16 that some dealerships were refusing to accept vehicles with expired lease contracts unless consumers purchased a vehicle in exchange. Some consumers were reportedly told that a lease extension would be their only option.

The states are pressing automakers' finance arms and dealerships to adopt and maintain strict controls to ensure consumers ca…

Dow Inc. containment ponds were flooded early Wednesday after two dams failed in Midland, Mich. Flood levels were reported at historic highs in the area.

Dow's flood preparedness plan has been activated, the company said in a statement. Dow is a key supplier to the auto industry for various chemicals and plastics. It also manufactures adhesive bondings for vehicles and makes safety-enhanced airbag coatings.

It was too early to determine whether Dow's problems could lead to production disruptions for its automotive customers, who already were in crisis mode as they restarted some North American production amid the coronavirus pandemic.

"The material from the pond commingling with the flood waters does not create any threat to residents or environmental damage," Dow said in an updated statement Wednesday. "There has been no reported product releases."

After days of heavy rainfall led to the dam failures, Gov. Gretchen Whitmer declared a state of eme…