Trade News

WASHINGTON -- Santander Consumer USA Holdings Inc. said on Tuesday it had agreed to make changes to its underwriting practices as part of a $550 million settlement with 33 states and the District of Columbia over subprime auto loans.

The states said Santander violated consumer protection laws by placing borrowers with subprime credit into auto loans it knew carried a high probability of default. Santander has agreed to pay $65 million for restitution for some customers and to waive deficiency balances on loans worth $478 million. It will also pay $7 million to the states to manage restitution claims.

Santander, the nation's largest subprime auto financing company and an arm of Spanish bank Banco Santander SA that went public in 2014, said it was pleased to resolve the investigation and "no additional charges will be taken in connection with the settlement."

"Santander profited by approving high-cost loans to disadvantaged auto buyers who were doomed from…

DETROIT -- When Ford Motor Co. hosts President Donald Trump on Thursday for a tour of its Rawsonville components operation near Detroit, the automaker will be doing so in technical violation of an executive order from Gov. Gretchen Whitmer prohibiting "nonessential" plant tours. But her office signaled it would not stand in the way of the visit.

Whitmer's new coronavirus pandemic workplace regulations for businesses laid out in Executive Order No. 2020-91 states that "manufacturing facilities must ... suspend all non-essential in-person visits, including tours."

A spokesman for Whitmer confirmed Tuesday that this provision applies to Ford, which is hosting the presidential visit Thursday to show Trump its auto parts plant that was quickly converted to assembling ventilators in partnership with GE Healthcare.

But there's no indication Michigan's governor -- and potential running mate for presumptive Democratic nominee Joe Biden -- is going to prevent the …

Nash-Kelvinator files trademarks for the Rambler and Statesman on May 22, 1950. Later that year, the Rambler, a nameplate first used in the early 1900s, became one of America's first successful compacts, and part of the beginning of the end of Detroit's one-size-fits-all approach to building and selling cars.

Nash-Kelvinator President George Mason recognized there was a glut of large and similar cars produced by larger Detroit rivals, and the company, based in Wisconsin, had to come up with alternatives.

The Rambler weighed less than competitors and sat on a 100-inch wheelbase that, even by current standards, is short. Power was delivered by a modest 173-cubic-inch, flathead six-cylinder engine that generated 82 hp.

The name Rambler was first used on a horseless carriage produced by the Thomas B. Jeffery Co. in 1902 through 1914. Charles Nash bought the Jeffery Co. in 1916, renamed the car Nash and created Nash Motors. Nash merged…

Consumer demands for health and safety will drive automaker priorities post-COVID-19, Nikolai Ardey, executive director of Volkswagen Group Innovation said Tuesday.

In a fireside chat with Automotive News publisher Jason Stein for the virtual EcoMotion conference, Ardey discussed unique demands coming from customers as a result of the pandemic. He called one of these demands "cocooning," a growing interest in individually owned vehicles that provide a safer mode of transportation given health and hygiene concerns.

"We have observed, at first, a renaissance of individual mobility," Ardey said. "All the safety and security features we have in mind or in preparation are accelerated now in development. The whole topic of health care will get a more intensive meaning now."

These customer demands might influence in-vehicle technology development, Ardey said, such as health-monitoring and biometric technologies.

Ardey also talked about the culture of sta…

Mexican auto assembly plants and parts suppliers scrambled Monday to meet government requirements for reopening their factories and synchronize with U.S. counterparts now coming back to life -- including the Detroit 3.

Mexico's reopening is seen as critical to restocking vehicle inventory in the U.S. and feeding parts into the supply chain.

After a confusing series of steps last week that suggested Mexico's auto industry could have to wait until June 1, the government published a set of rules on Sunday that allows plants to get certified for reopening within 72 hours. Each facility must submit a coronavirus safety plan starting Monday. Once approved via email, the plant can open.

The regulations allow for a quick turnaround, in some cases.

If a factory submits its plan and is approved on the same day, the facility can restart production immediately, officials said. Inspections are not needed, and will be done randomly in the future to ensure compl…

SAN FRANCISCO -- Uber Technologies Inc. eliminated an additional 3,000 jobs on Monday, is closing dozens of offices around the world and is shutting down many of its side projects in an effort to weather the coronavirus pandemic that has devastated the ride-hailing business.

Combined with the 3,700 employees in customer support and human resources Uber dismissed earlier this month, the cuts now total about 25 percent of the total workforce. A company spokesman said more job cuts could come.

Uber also plans to shutter non-core projects including its Incubator and AI Labs and a job-matching service called Uber Works, CEO Dara Khosrowshahi said in an email to staff Monday. Uber also will close or consolidate 45 of the several hundred offices it operates globally, including its Singapore office, which had served as a regional hub.

As a result of the changes, Uber will incur $175 million to $220 million of charges, mostly in the second quarter, according to a…

DETROIT -- The Detroit 3 automakers and their suppliers began restarting assembly lines on Monday after a two-month coronavirus lockdown in a slow revival of a sector that employs nearly 1 million people in the United States.

On a chilly and damp Monday morning, hundreds of workers at Fiat Chrysler Automobiles' truck plant in Warren, Mich., began lining up before 4 a.m. to start the 5 a.m. shift. Signs overhead read: "Let's restart."

"I'm a little nervous," said Larry Smith, 53, of New Baltimore, who works on wheel alignment away from the assembly line. "They made all the precautions (and) they've done everything they can to prepare us ... I'm trusting in God."

Detroit automakers on Monday said there were no issues with absenteeism as the plants opened. A UAW spokesman said staffing levels were "at or above expectations."

FCA reopened four U.S. assembly plants on Monday, including Warren Truck, on a single shift, as well as four parts plants.

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Toyota National Dealer Advisory Council chairman on all-new Venza, all-new Sienna, digital retailing acceleration

In this video Q&A, Robby Findlay, director of operations at Findlay Automotive Group in the Southwest, discusses with Automotive News publisher Jason Stein where Venza and Sienna fit into the lineup, Toyota's leadership in hybrid powertrain innovation and how his dealership uses SmartPath as a tool to sustain sales activity amid the pandemic.

Robby Findlay is director of operations at Findlay Automotive Group in the Southwest, which has 22 brands and crossed $2 billion in revenue in 2019. In this video Q&A with Automotive News publisher Jason Stein, Findlay discusses where Venza and Sienna fit into the lineup already on his lot, Toyota's leadership in hybrid powertrain innovation and how his dealership uses SmartPath as a tool to sustain sales activity amid the pandemic.

Read the transcript of the interview

Jason: Hi there, I'm Jason Stein, publisher of Automotive News. It's a pleasure to be here with you today, and I am joined by Robby Findlay. Robby Findlay is the chairman of the Toyota National Dealer Advisory Council, and he is in Flagstaff, Arizona today...also Director of Operations for Findlay Automotive. Robby nice to be with you. 

Robby: Hey, thanks for having me. 

On how Findlay Automotive Group is navigating the challenges of the…

Running in fourth place in one of the auto industry's least sexy segments is not traditional real estate for Toyota.

But the Japanese automaker hopes to change that with the introduction this year of a redesigned Sienna minivan that will boast much improved creature comforts and a standard hybrid powertrain with estimated fuel economy of 33 mpg combined — a 57 percent gain over the current, nonhybridized model.

The 2021 Toyota Sienna, due in dealer showrooms late this year, was scheduled to be revealed at the New York auto show last month before the event was postponed because of the COVID-19 crisis. Instead, the fourth-generation Toyota minivan, along with the all-new Toyota Venza hybrid crossover, debuted Monday in an online live event.

Redesigned onto Toyota's flexible TNGA-K platform — which underpins vehicles as diverse as the Camry, RAV4 and Highlander — the newest Sienna receives much-needed styling and interior updates, as well as extra safety e…

Toyota is filling some remaining white space in its crossover lineup with a new Japanese import that resurrects an old U.S. nameplate on a vehicle designed to plug the gap between the compact RAV4 and the three-row Highlander.

The 2021 Toyota Venza is a two-row, hybrid-only midsize crossover built on the same TNGA-K platform as the Highlander and RAV4 and known as the Harrier in Japan. Larger than the RAV4, but shorter and with a lower roofline than the Highlander, the Venza will come standard with both an electronic all-wheel-drive system and a hybrid powertrain capable of an estimated 40 mpg in combined fuel economy, Toyota says.

It is expected to arrive in Toyota dealerships in the U.S. this summer, giving the brand a seventh crossover or SUV when Americans are increasingly shifting out of cars to light trucks.

Toyota is following other automakers — think the Ford Edge, Chevrolet Blazer, Hyundai Santa Fe and Nissan Murano — in fielding a premium, mid…

Hertz Global Holdings Inc. promoted the head of its North American car-rental operations to lead the company as its CEO leaves in the midst of efforts to ward off bankruptcy.

Paul Stone, a Hertz executive vice president and chief retail operations officer, becomes CEO immediately after the resignation of Kathryn Marinello, according to a statement. The company has until May 22 to restructure lease payments with bondholders and has cast doubt on its ability to pay debt obligations and continue as a going concern.

Marinello, 63, was in the top job for just under three-and-a-half years, and Stone, 50, will be Hertz’s fifth CEO since 2014. He spent almost three decades at Walmart Inc. and was chief retail officer at outdoor-gear retailer Cabela’s Inc. before joining Hertz in March 2018.

Hertz shares surged as much as 17 percent and were up 15 percent to $3.04 in Monday morning trading. The stock has plunged more than 80 percent this year.

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