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Federal policy must prioritize auto workers' job quality and fair compensation for a successful transition to electrification, panelists said at the Federal Reserve Bank of Chicago's 29th annual automotive insights symposium Thursday.

"The green transition will not be possible… without strong and sustained political support," said Adam Hersh, senior economist at the Economic Policy Institute, said at the event in Detroit. "That's why it's so important that we're focusing on the quality and the quantity of the jobs that can be created."

Employers know the cost of raising wages, but they don't often measure the benefits of raising wages, said Susan Helper, senior advisor for industrial strategy in the White House office of management and budget.

"There's a real reason why you want to have a skilled workforce," she said. "In workforce, like other commodities, you get what you pay for."

Electric vehicle sales made up 5.9 percent of new light-vehicle s…

Tesla Inc. slashed prices across its four-vehicle lineup late Thursday after missing its delivery forecast for last year.On its website, Tesla listed its top-selling Model Y Long Range with all-wheel-drive — its entry version in the U.S. market — at $52,990 before shipping.

That's a reduction of $13,000, or 20 percent, over the crossover's previous price.

The price reduction put the Model Y under the $55,000 price cap for tax incentives under a rule change that took effect Jan. 1. Previously, the crossover started at $65,990. Tesla charges $1,390 for shipping and an order fee of $250.

Tesla also reduced prices significantly for the Model 3 compact sedan, Model S midsize sedan and Model X midsize crossover after coming up short of its own expectations for global 2022 deliveries.

Tesla delivered more than 1.31 million cars for the year, falling short of its 50 percent growth forecast. Vehicle deliveries rose 40 percent last year while production g…

BRUSSELS -- Mazda has revived its rotary engine a decade after discontinuing the cult powerplant by adapting it for the electrification era.

The MX-30 e-Skyactiv R-EV plug-in hybrid, which debuted at the auto show here Friday, uses a gasoline rotary engine as a power generator that along with a 17.8-kilowatt-hour lithium-ion battery helps give the small crossover an electric-only range of 85 km (53 miles).

Mazda said that amount of range should allow customers to use the car in electric mode for a most of their daily driving needs. The 85 km target was decided on by Mazda after gathering data on customers’ real-life range needs.

The MX-30 e-Skyactiv R-EV’s rollout makes good on a promise by Mazda to resurrect the rotary engine after retiring the technology in 2012 when it discontinued the RX-8 sports car.

The European deliveries of the MX-30 E-Skyactiv R-EV are expected to start in April at a base price of 38,150 euros in Italy. The car is also …

<!--*/ */ /*-->*/ Automotive innovation takes its time

LAS VEGAS — Technology that could fundamentally reshape transportation was easy to find last week at CES.

There were sensors that allowed autonomous vehicles to travel at speeds approaching 190 mph, breakthrough battery advances that could enhance the transition to electric vehicles and immersive cabin technology that alters the passenger experience in cars.

How such technology moves from the show floor into the real world remains a vexing proposition. Innovation, particularly in the automotive sector, can be plodding.

It's an age-old problem scrutinized with renewed vigor during CES. Pressing concerns over greenhouse gas emissions, energy security and geopolitical stability, and economic uncertainty have automakers seeking technology that can deliver both breakthroughs and cost reductions.

But those technologies must pass through laborious and thorough development, verificatio…

ANN ARBOR, Mich. -- Vice President Kamala Harris highlighted investments in U.S. auto production and manufacturing in a visit to Michigan for a federal environmental policy talk.

Electric vehicle and battery production is critical to “building a clean energy economy," Harris said.Energy Secretary Jennifer Granholm joined Harris in Ann Arbor for the Thursday conversation about climate policy.

As an example of clean energy economic development, Harris highlighted electric school buses, meant to replace diesel-powered vehicles.

“The great thing about it is we are making [the school buses] right here,” Harris said. Alongside this production, she said, is “the creation of jobs.”

Electric school buses have become a notable part of the EV conversation as over 250 school districts across the nation have committed to test electric buses, and manufacturers have invested in the bolstering of production, such as the Lion Electric EV bus and truck product…

An American automaker is on top of U.S. luxury sales for the first time in nearly a quarter century. EVs made in the U.S. rule the market, and the trend is accelerating. Plus, Automotive News reporter Michael Martinez talks about the departure of Ford's top labor negotiator and what it means heading into this year's contract negotiations with the UAW and Unifor.

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Automakers traded market share for profit last year as sales volumes plumbed depths not seen in more than a decade and new-vehicle prices set a record in December.

But the new year could flip that script as inventories climb and inflation bites.

Annual U.S. light-vehicle sales ended at 13.865 million, down 8 percent from 2021, according to the Automotive News Research & Data Center. That's a significant decline from the 17.104 million sales in 2019 before COVID hit and microchip shortages jammed assembly lines.

But assembly lines are now ramping back up and dealer lots are beginning to fill. Inventories topped 1.8 million new vehicles in December for the first time since May, according to data compiled by Cox Automotive and the Automotive News Research & Data Center.

Cox put its latest industrywide inventory estimate at 1,803,717 vehicles, representing a 58-day supply based on the selling rate from the most recent 30-day period. Tradition…

The U.S. Department of Energy awarded $42 million in funding for 12 R&D projects aiming to develop advanced electric vehicle batteries.

The funding will strengthen the domestic supply chain for EV batteries, the DOE said in a statement Wednesday.

The projects selected are part of the DOE's Advanced Research Projects Agency-Energy Electric Vehicles for American Low-Carbon Living program (EVs4ALL).

Program spokesperson Molly Morrissey told Automotive News that the goal is to make EVs more accessible and sensible by removing key technology barriers. The program will yield batteries that last longer, charge faster, perform efficiently in freezing temperatures and have greater range retention, the department said.

"Electric vehicle sales in America have tripled since the start of this Administration and by addressing battery efficiency, resiliency and affordability, the projects announced today will make EVs attractive to even more drivers," U.S. S…

BERLIN -- German automotive supplier Bosch is investing about $1 billion in a new R&D and assembly center in Suzhou, China, the company said on Thursday, with the first phase of the project ready by mid-2024.

The center  will develop and assemble components for electromobility and automated driving to sell primarily to Chinese customers, it said.

Bosch already has four factories in Suzhou, employing almost 10,000 workers.

The company ranks No. 1 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $49.1 billion in its 2021 fiscal year.

New-vehicle wholesale shipments industrywide contracted 8.4 percent to 2.56 million in December as China lifted pandemic-triggered lockdowns, sparking a wave of COVID-19 infections that undermined retail activity and production. 

For 2022, vehicle shipments rose 2.1 percent to approach 26.9 million behind demand for electrified vehicles and tax incentives for gasoline cars, the China Association of Automobile Manufacturers said Thursday.

In December, combined shipments of sedans, crossovers, SUVs, multi-purpose vehicles and minibuses dropped 6.7 percent to less than 2.27 million. 

But the full-year light-vehicle deliveries jumped 9.5 percent to 23.5 million.

December demand for new commercial vehicles such as buses and trucks slipped 20 percent to around 291,000, with full-year volume tumbling 31 percent to roughly 3.3 million. 

Electrified vehiclesDemand for new electrified vehicle surged 52 percent to approach 814,000 in De…

Electric vehicles built in U.S. factories are dominating the domestic EV market, according to new-vehicle registration data from Experian, and the trend is likely to accelerate, given new tax incentives for EV and battery production in North America.

U.S.-made EVs accounted for about 75 percent of new-vehicle registrations in the first 11 months of last year, Experian data shows, and U.S.-based automakers were responsible for nearly all of the local production. The biggest exception was Nissan, with its Tennessee-built Leaf holding a 1.7 percent EV market share.

The manufacturing trend, driven by Tesla, General Motors and EV startups such as Rivian, is good news for U.S. manufacturers and supply chains as the global auto market goes electric over the coming decade, analysts say. The Inflation Reduction Act, signed into law last year, ended the $7,500 EV credit for vehicles made outside of North America.

International automakers are now accelerating plan…

Tata Group aims to accelerate Jaguar Land Rover's shift to electric cars by setting up battery cell manufacturing operations in Europe.

JLR and Tata Motors will be the anchor customers for the facility, which will also sell battery cells to the wider market, said Tata Motors Chief Financial Officer, P.B. Balaji.

“We are well covered on the production plans for batteries, but we will require some cell capacity coming into Europe,” Balaji said at the India Auto Expo taking place this week on the outskirts of New Delhi.

Tata is finalizing plans and will announce details soon, he said, declining to disclose the location of the facility and a time frame. There will be a “lot of investments,” Balaji said, without elaborating.

The “intellectual property-heavy” facility will produce two cell chemistries — lithium iron phosphate for Tata Motors’ EVs and nickel manganese cobalt for the Indian automaker as well as JLR, Balaji said.

The plan should hel…