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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Tesla’s Monterrey plant ushers in Mexico’s electric vehicle age

Tesla Inc.'s plan to build a new assembly plant in Mexico is a clear sign the country will be a center for electric-vehicle making, even as the U.S. tries to bolster domestic, union-based manufacturing with the Biden administration's Inflation Reduction Act.

The planned factory in Monterrey will be one of Mexico's first that's entirely dedicated to the expensive and complex process of making electric cars. The Latin American nation, long a supply base for makers of gasoline and diesel-powered vehicles, brings with it advantages including relatively cheap labor and free trade agreements with 50 countries. The U.S. has similar deals with just 20.

One of the key agreements is between the U.S., Canada and Mexico, making it possible for electric vehicles made south of the border to be eligible for up to $7,500 in tax credits offered in President Joe Biden's IRA. Barring big changes to the law, automakers could build even more EVs in Mexico, which drifts away from S…

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Automotive tech startups land $647.5 million from VCs, equity investors in February

Private equity investors plowed at least $647.5 million into automotive-related startups in February.

Of that, almost 71 percent, or $457.5 million, went to companies working on battery technology, one of the safer bets in the electric vehicle space thanks to the federal government's industrial policy and incentive programs.

While automakers invest billions on EV development and production, new suppliers of batteries or battery components are emerging to support their efforts, and venture capital is an important way for those companies to raise money to fund research or build out operations.

"EV batteries are a safe investment compared to, say, autonomous vehicles and robotaxis, which are kind of tenuous at this point," Mike Ramsey, a transportation and mobility analyst at Gartner Inc., told Automotive News.

The tax and funding provisions for EV batteries and chargers in the Inflation Reduction Act and Infrastructure Investment and Jobs Act have …

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Redwood recycled more than 1,000 battery packs through California program last year

Editor's note: Redwood will soon produce cathode from the recycling program. An earlier version of this story misstated that status of that production. Redwood also clarified that other packs were recycled outside of the California pilot program.

Redwood Materials recycled more than 1,000 end-of-life battery packs last year to produce high-quality battery materials through a pilot program with California.

The battery recycling company worked with Toyota Motor Corp., Ford Motor Co., Volvo Cars, Volkswagen Group of America and dismantlers to collect and recycle lithium ion and nickel metal hydride batteries in California as part of a program launched in February 2022, the company said in a statement Thursday.

Redwood recycled the batteries at its facilities in Nevada and has started to produce anode from the recycled batteries that can be used by battery cell manufacturers. Redwood will soon produce cathode from the packs, spokeswoman Alexis Georgeson to…

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