For 2023, AutoForecast Solutions estimates more than 2.7 million vehicles will be cut from automakers’ productions schedules because of the global semiconductor shortage.
2022 finished with nearly 4.4 million production cuts related to the chip shortage. In 2021, more than 10.5 million vehicles were lost. The bulk of cuts so far this year were in Asia outside China.
Source: AutoForecast Solutions Inc. autoforecastsolutions.com
Pro football coaching legend Vince Lombardi once famously shouted from the sidelines, "What the hell is going on out here?" Watching what has unfolded in Washington over the last couple of weeks, we're wondering the same thing.
A new era of electric vehicle tax credits following passage of the Inflation Reduction Act was supposed to begin when the calendar flipped to 2023, but the federal government has taken an already complicated situation and made it flat-out confounding for many automakers, dealers and consumers.
Late last month, the Treasury Department said it missed its year-end deadline to issue proposed guidance on critical mineral and battery component requirements, delaying it until at least March.
Then Treasury, citing "long-standing tax principles," said EVs leased by regular consumers could qualify for commercial tax credits intended for businesses. Sen. Joe Manchin, the catalyst behind the Inflation Reduction Act, has accused Treasury of k…
Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, Jan. 2-5, hosted by Jamie Butters with Kellen Walker.
"There's no question that — whether you love it or hate it — you have to be there. And I think it's an important place where business takes place, fundraising occurs, all of the things that are central to making the mobility industry go right now."--Pete Bigelow, director of the tech and innovation team at Automotive News, on CES in Las Vegas
"I think it's going to be one of those things that people will just expect to have soon in their vehicles."--Danny Shapiro, vice president of automotive at Nvidia, on the future of in-car gaming
"We've decided … that we will no more participate [in] the other automotive shows — Paris, Frankfurt, Detroit and so on. We are concentrated on CES."--Patrick Koller, CEO of supplier Forvia
"For all the companies that have been making all of these investments over the…
Sending customers videos that bolster suggested repairs and maintenance revealed by multi- point inspections is a proven way to amp up service and parts revenue. But persuading technicians to videotape their inspections can be as difficult as removing rusty manifold bolts.
But at Austin Subaru and Austin Infiniti, two adjacent dealerships owned by Continental Automotive Group, service managers have cracked the code by using two different strategies. At the Infiniti store, most technicians produce their own videos. But at the Subaru rooftop, where technicians balked at playing cinematographer, three professional videographers do the heavy lifting.
While the strategies differ, the results are similar: significant increases in revenue because videos move customers to say yes to suggested maintenance and repairs, said service director at Austin Subaru, and Josh Sandoval, service manager at Austin Infiniti.
"It works because you're seeing it straight from …
Not the kind of publicity one looks for at an auto show.
A fire broke out at the booth of Beijing-based design and engineering firm IAT Automobile Technology Co. on the eve of the Guangzhou auto show last month.
Grainy video of the fire circulated on social media, as did speculation about the source of the fire, which was said to be a small concept vehicle. Attendees took photos and video but were ordered to delete the images, according to reports.
On Dec. 31, two days after the fire, the company released a statement: "After preliminary investigation, the debugging personnel disconnected the external power switch and got in the vehicle for debugging and the logistics personnel turned on the external power switch accidentally, which caused an electrical short circuit and fire. The car is a static concept exhibition vehicle. During the preparation process, the high-voltage power system was removed, and only a set of 12V low-voltage power supply system was …
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, verification and validation processes. Sometimes pat…
Dutch startup Lightyear says its second solar-powered electric vehicle will have more than 500 miles of range and cost under $40,000. The Lightyear 2 will be the first model sold in the U.S., with output expected to start at the end of 2025. The company used CES to launch a wait list. Final specs and design will be released this summer.
In a market where used cars are a precious commodity for dealers, sellers looking to squeeze every penny out of them are getting more brazen.
Carfax reported in December that more than 1.9 million vehicles on the road had rolled-back odometers, a 7 percent increase from the previous year.
The largest rate increases were seen in Texas, Florida and Arizona, which each had double-digit jumps.
"Many people think odometer fraud disappeared with the invention of digital odometers," Emilie Voss, public relations director for Carfax, said. "But that couldn't be further from the truth. We're still seeing the number of vehicles on the road with a rolled-back odometer rise year-over-year."
Carfax estimates consumers lose an average of $4,000 in value from unknowingly buying a car with a rolled-back odometer, and that doesn't include unexpected maintenance costs.
"It takes con artists a matter of minutes to wipe thous…
Another year defined by supply chain challenges turned out to be a mixed bad for U.S. automakers.
General Motors reclaimed its crown as the top-selling U.S. automaker, while Tesla continued its dominance in the electric vehicle space even as challengers posted big gains.
Here's a look at some of the key sales races from 2022.
Lingering supply chain woes dragged 2022 U.S. light-vehicle sales to their lowest level since 2011, but many dealers are entering 2023 with fuller lots as production begins to bounce back — at least for some automakers.
Still, experts warn the industry will grapple with numerous challenges this year that could slow its recovery, including rising interest rates and sky-high transaction prices that may turn away some buyers.
"We're not seeing demand collapse; there's still strong demand, but it's certainly weaker than it was," Michelle Krebs, executive analyst at Cox Automotive, told Automotive News. "Interest rates on top of high prices are just freezing some people out of the market."
Among the companies that reported, U.S. light-vehicle sales fell roughly 8 percent to 13.4 million in 2022, according to the Automotive News Research & Data Center. Mercedes, Porsche and Jaguar Land Rover are set to report this week.
The seasonally adjusted ann…
Faulkner Subaru Harrisburg's boost committee is an extension of the company's open-door policy where all ideas are welcome.
"We use it to boost anything from profits to inclusion and diversity to brainstorming to come up with new ideas," said Doug Jones, general manager of the Pennsylvania dealership.
Committee members meet monthly — two each from every department including sales, parts, finance, management and business development. Membership rotates among employees at the dealership, which is one of 30 locations owned by the Faulkner Organization.
Store leaders launched the committee in 2020 after recognizing that the best ideas come from frontline employees, Jones said, who often know their department's workflow best.
The boost committee has solved both small issues, such as car wash wait times, and larger challenges, such as dealership parking problems, Jones said. The ideas generated by the committee have saved work time, improved customer…
LAS VEGAS — U.S. Energy Secretary Jennifer Granholm said her office is working with the Treasury Department on guidance relating to eligibility rules for revised $7,500 federal electric vehicle tax credits.
"We're working in a very interlocked way. Our folks and their folks are talking all the time," Granholm told Automotive News following an address Friday at CES. "Our policy office is working directly with Treasury to make sure that this guidance is out and it's informed by stakeholders."
The Inflation Reduction Act had required the Treasury Department to issue the proposed guidance about how the industry can meet new eligibility rules for EV tax credits on new vehicles by the end of 2022. The department, however, said it instead would offer information about the direction the rules may take.
Granholm said it was important "to send a signal about which way it's going" as Treasury delayed the release of guidance related to requirements for critical mine…