Tesla’s China-made EV sales rise 32% in Feb.

SHANGHAI -- Tesla sold 74,402 China-made electric vehicles in February, up 32 percent from a year earlier, China Passenger Car Association data showed on Friday.

That was up 13 percent from January, when the U.S. electric carmaker delivered 66,051 China-made Model 3 and Model Y vehicles.

Rival BYD with its Dynasty and Ocean series of EVs and hybrids generated sales of 191,664 last month, CPCA data showed.

Tesla had planned to run its Shanghai plant at an average weekly output rate of 20,000 units in February and March after price cuts it made in early January stoked demand.

But the latest weekly data showed its retail sales in China were still running short of the pace seen in the fourth quarter, indicating the bump from discounted prices in its biggest overseas market is waning. 

Tesla's market share in China's new energy vehicle sector, which includes both pure electric and plug-in hybrid cars, slid to 9 percent in February from 10…

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Honda CEO touts EVs, but combustion engines could last until 2040

MARYSVILLE, Ohio - Honda Motor Co. is moving rapidly to catch up with electric-vehicle competitors in global markets, but the company's top executive said combustion engines could last through 2040 and beyond.

Regarding the Japanese automaker's accelerating transition to EVs, Chief Executive Toshihiro Mibe said, “I’ve been in the engine development business for more than 30 years, so personally it’s a little threatening. But I have to separate my own feelings from what is best for the business.”

That includes the establishment next month of a standalone business unit to oversee development of Honda's EV and battery business, which eventually could include an investment in charging stations, similar to Tesla Inc.'s Supercharger network, Mibe said in Marysville, Ohio, at the hub of the company’s U.S. operations.

"The charging infrastructure is not at a place that it needs to be for our customers,” he said.Mibe added that Honda is running feasibility studies o…

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Dealer, automaker tensions emerging in the states

Growing tensions between franchised dealers and legacy automakers over evolving sales models and vehicle service work are emerging as key issues in statehouses across the U.S. this year.

Several state dealer associations are backing legislation to amend franchise laws that govern the relationship between dealerships and the automakers whose brands they sell. The issues run the spectrum.

Some states, such as Virginia, are proposing language that would prevent traditional automakers from negotiating the sale or lease of a new vehicle directly with consumers or declaring dealers to be delivery agents. Other states want to spell out dealers' role in participating in future subscription revenue that automakers may seek to activate with over-the-air software updates. Proposals to remove automakers' right of first refusal in buy-sell deals — the ability to assign an alternative buyer — also are on the table.

And the question of how much …

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Automakers’ rights to reassign buy-sell deals targeted

Franchise legislation in some states aims to eliminate automakers' ability to reassign dealership acquisition agreements to a buyer of their own choosing.

Bills to eliminate that right of first refusal on buy-sell deals have been introduced in West Virginia and California, and some dealer lawyers say they expect similar legislation will be brought forth in additional states.

Shawn Mercer, a partner with Bass Sox Mercer in Raleigh, N.C., said right of first refusal is prohibited in a minority of states today.

Dealers want the ability to select a buyer for their stores that has a connection to the community or provides assurances for employees, said Johnnie Brown, outside general counsel for the West Virginia Automobile Dealers Association, which put together bill language in that state.

"We're holding very strong on that. That's something that our membership desires greatly," Brown said.

Automakers exercised the right of first refusal in t…

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Waymo, Aurora seek joint exemption from federal rules for self-driving trucks

When big rigs pull to a highway shoulder, their drivers are required by federal regulations to place three reflective triangles behind the vehicle within 10 minutes of stopping.

In a self-driving world, there's nobody around to perform that task.

That's a problem for companies that intend to deploy driverless trucks, but self-driving tech firms Aurora and Waymo may have an answer.

The two companies are seeking a five-year exemption from Federal Motor Carrier Safety Administration regulations that address the required placement of warning devices.

Their exemption request will be made public Friday when the administration, which provides safety oversight of commercial motor vehicles, is expected to publish it in the Federal Register. A copy of the application was available online Thursday night.

Instead of triangles or flares at night, Waymo and Aurora have requested their partner motor carriers be allowed to equip truck cabs with flashing w…

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Hotwired: Lawyers not backing off their class-action suit against Hyundai, Kia

The software fix developed by Hyundai and Kia to help protect vehicles it sold without immobilizers from being easily hotwired does not solve the problem for litigants in class-action lawsuits across the U.S. whose cars have already been stolen, one of the plaintiffs' attorneys told Automotive News.

Matt Van Fleet, a senior trial attorney with MLG Attorneys at Law in California, who represents clients in a class-action lawsuit on the issue, called the move "commendable" but not enough to stop the litigation across the country.

"We're thankful that Hyundai and Kia are recognizing that there's a problem, but the bell's already been rung," Van Fleet said.

"The fix does nothing to address the thousands of dollars that our clients have had to dole out to repair the damage caused to these vehicles after they've been stolen, if they're able to recover their cars at all," he said.

Litigants are claiming Kia and Hyundai must p…

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Drive a Better Automotive CX

Automotive CX is shifting gears. The rapid rise of EV disruptors and mobile/connected innovation is dramatically changing customer expectations of how they buy and service their vehicles. Automotive brands are being pressured to transform the automotive buying and ownership experience, but where does the rubber meet the road in improving the CX automotive journey? To find out, Concentrix Catalyst and Salesforce surveyed leading OEMs and dealers for their perceptions on delivering compelling customer experiences. Download the report and then take our Automotive Maturity Assessment to see how you stack up to the industry compared to your peers.
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Competition for Sales Is Back — But Is Your Sales Staff Ready to Sell Again?

Empower your team with daily defection-based training.

The sharp rise of U.S. new-vehicle inventory levels at the close of 2022 is being tempered with an affordability crisis, high dealership turnover rates, and the fact that many of today’s salespeople only started working at their dealerships during the pandemic. The path to dealership profitability is evolving and it starts with one thing – smarter, daily defection-based training.

Unlock the full potential of your dealership through the three benefits of daily defection data.

Support salespeople with near real-time feedback on what’s working and what isn’t. Train salespeople on known lost opportunities when a lead defects. Help salespeople pivot messaging to nurture relationships with defected customers and encourage repeat business with customers who defected within the same brand. Using in-market leads can save time, save money and retain more salespeople – and having access to daily-defection data is where…
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CarGurus’ Q4 hurt by digital wholesale business CarOffer

Executives at vehicle listings company CarGurus Inc. remain bullish about its wholesale digital trading platform CarOffer, despite a fourth-quarter loss in the newly called out reporting segment of digital wholesale.

CarGurus' digital wholesale segment, which includes dealer-to-dealer and Instant Max Cash Offer services and products sold via CarOffer, booked a $2.6 million operating loss in the fourth quarter, down from $16.7 million in operating income in the fourth quarter of 2021. Digital wholesale revenue in the fourth quarter plunged 33 percent to $120.5 million vs. $178.6 million a year earlier.

"I don't think there's a long-term change," CarGurus President Sam Zales said of CarOffer during the company's earnings call. "We think the biggest opportunity here … is to put CarOffer and CarGurus together to create dealer opportunity to source market and sell their vehicles in the most efficient way possible."

CarGurus acquired a 51 percent interest in…

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Overheard: Reframe what automotive industry is about to attract more women

"The reason why women aren't drawn to our industry is because they think we're selling cars. If they knew that it was so much more about the people, this would be one of the No. 1 industries that women were flocking to. So I think we have to reframe what this industry is about." — Kerri Wise, chief marketing officer at AutoFi and president of Women Of Color Automotive Network, speaking to content creators Automotive State of the Union at the NADA Show in Dallas

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One Thing We’re Talking About: Workshops to help parts departments deal with latest issues

Parts sourcing and management software provider PartsEdge is hosting a seven-week workshop on inventory control, pricing and management strategies for parts departments.

The hour-long workshops, which begin March 16 and continue for the next six Thursdays, will focus on a variety of topics.

These are:

• Inventory management and planning tools

• Inventory control

• Sales vs. receipts

• Daily, weekly and monthly checklists for success

• Auditing your ordering process, fill rates and lost sales

• Sourcing and control

• Ideal pricing formulas

• Wholesale business

Additionally, PartsEdge will offer individual consultations for attendees interested in the extra help. Go here to register.

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Service tip: If a customer says a friend will do the repairs, sell them the parts

When service advisers make recommendations for repairs or maintenance, sometimes the customer will decline, saying they have a friend who can do the work. But instead of giving in to defeat, service adviser and coach Coralee Zueff has a different suggestion.

"I recommend selling the parts," she said.

Zueff, author of "Five Star Service Advisor," reasons if the customer really has someone else to do the work, they will appreciate saving time having the parts available.

"If the person ends up not doing the work, the customer is more likely to bring the vehicle back to you for the work," said Zueff, who sees about 40 percent of customers return to have the work done. "At the end of the day, would you prefer to sell the parts or nothing?"

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