Ford reports most U.S. vehicle recalls for second year, partial NHTSA data shows

WASHINGTON — For the second consecutive year, Ford Motor Co. has reported the most U.S. vehicle recalls of any automaker, partial NHTSA data shows.

Through Dec. 19, Ford had issued 65 recalls affecting more than 8.6 million vehicles in 2022. In 2021, the automaker issued 53 recalls covering nearly 5.4 million vehicles.

The U.S. recall data comes as Ford continues to work on improving manufacturing operations and combating quality issues, particularly on its high-profile vehicles.

In November, Ford recalled nearly 634,000 Bronco Sport and Escape crossovers globally for fire risks. Months before, the automaker had issued a stop-sale to dealers as part of its recall of nearly 50,000 Mustang Mach-E crossovers for potential power loss. Federal investigators also launched an investigation last year into "catastrophic engine failures" in the popular 2021 Bronco SUV.

"While we don't ever want customers inconvenienced by pro…

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Cox’s Dealer Sentiment Index: A pulse check on auto retailers

What it is: A pulse check of the franchised, independent and overall auto retail industry. Each quarter, Cox conveys dealers' sense of the market today and what they expect in three months. It also inquires about other topics, including store profits, inventory and business challenges.

Where it comes from: Cox surveys hundreds of franchised and independent dealers to produce an index each quarter. The answers typically come from department managers or highly ranked staff, and are weighted by dealership type and sales. Most responses are scored between 0 and 100, with higher numbers signifying strength or increases. A 50 signifies stable or average.

How it's used: Dealerships can compare their own situation and market to national sentiments expressed by peers, both on a quarterly basis and over time. The survey allows comparisons between the current market, the pandemic years, and conditions before the COVID-19 pandemic.

How it might…

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Plante Moran: Who’s happy, who’s not

What it is: A key annual survey gauging the health of the working relationships between suppliers and major automakers in North America — from the perspective of suppliers. The study, released each spring, rates those relationships on a 500-point scale, with a higher score indicating more supplier satisfaction in areas such as communication and the effective resolution of issues that arise.

Where it comes from: Consulting firm Plante Moran surveys hundreds of Tier 1 automotive supplier executives. The 2022 iteration surveyed 673 executives from 436 suppliers, revealing findings on six major automakers: General Motors, Honda, Ford, Nissan, Stellantis and Toyota.

How it's used: The study provides the industry with a quantitative measure of something that's inherently qualitative. Automaker-supplier relationships have been particularly relevant in recent years as both sides manage unprecedented supply chain challenges and supplier financial press…

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Kerrigan index: How healthy are the publics

What it is: An index that tracks the stock price and market capitalization of each of the seven major public dealership groups: AutoNation Inc., Asbury Automotive Group Inc., Group 1 Automotive Inc., Lithia Motors Inc., Penske Automotive Group Inc. and Sonic Automotive Inc., plus CarMax Inc., the nation's largest used-vehicle retailer. The Kerrigan Index is weighted by the market capitalization of each company, benchmarked at 100, as of Jan. 3, 2000. Data is generated daily and the report is typically published monthly, said Ryan Kerrigan, managing director of Kerrigan Advisors.

Where it comes from: Kerrigan Advisors, a dealership sell-side firm in Incline Village, Nev. The company started publishing the Kerrigan Index more than four years ago, Kerrigan said.

How it's used: To measure the financial health of seven of the largest U.S. auto retailers. Kerrigan said that while a majority of dealerships are private, the trends seen within the publi…

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NHTSA: Closely watching automated-driving tech since 2022

What it is: Since July 2021, the federal government has been collecting data on crashes involving vehicles that have advanced driver-assistance systems and automated-driving systems. Crash reports include the name of the reporting company, the type of vehicle involved and details such as collision severity and damage and whether injuries or deaths occurred. New data is released on or around the 15th of each month.

Where it comes from: The data is collected through a NHTSA order issued last year requiring vehicle, equipment and software manufacturers of advanced driver-assistance systems and automated-driving systems to report crashes where the system was engaged within 30 seconds of the crash and damage or injury ensued. Companies subject to the order must report to the agency within 24 hours of learning of the incident and provide additional updates by certain time frames.

How it's used: The data helps NHTSA identify potential defect trends an…

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Editorial: EV tax credits sound simple, but they’re not

The failure of the IRS to establish rules for electric vehicle tax credits by the end of 2022 as ordered by the Inflation Reduction Act is disappointing and raises questions about the execution of Congress' many-layered scheme.

The old EV tax credit was a bit convoluted, but the system crafted by Senate Democrats to meet the demands of Sen. Joe Manchin of West Virginia is a regulatory puzzle to say the least.

The Manchin compromise with Senate Majority Leader Chuck Schumer relieved automakers of volume-related limits on zero-emission vehicle tax credits, which General Motors and Tesla had exceeded, in exchange for no fewer than five limits based on vehicle price, buyer income, source of battery minerals, source of battery components and where the vehicles undergo final assembly.

Some rules are easy to enforce, such as the prohibition on federal support for vehicles assembled outside North America. Others are more complicated, such as documenting what per…

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Acura, dealers working to develop digital shopping tool

Acura is working with a small group of dealers to develop an online shopping platform that will roll out when its first electric vehicle, the ZDX crossover, goes on sale this fall.

Honda Motor Co.'s luxury brand is adjusting to the digital car-shopping habits increasingly adopted by consumers in the wake of the pandemic. But Acura said it will not try to deploy a so-called agency model, where a customer orders a vehicle from an auto manufacturer then chooses a delivery dealer.

To the contrary, Acura's dealer network will serve as the nucleus of the equation, leveraging a tool being developed with the automotive retail platform Tekion to create a sales experience that fits a customer's needs.

"The dealers are really the center," Emile Korkor, Acura's assistant vice president of sales, told Automotive News. "They're the ones that create that bespoke experience and, of course, they're going to help us make it simple and frictionless."<…

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McLaren’s U.S. dealers seeing high profitability, freshened facilities

LAS VEGAS — McLaren Automotive's retail operations in the U.S. are relatively young, with the first vehicle sales here starting in 2011. With only 25 stores, McLaren's dealership footprint is the smallest amongst major exotic and ultraluxury brands.

Now, as it enters a new vehicle cycle with the launch of the Artura plug-in hybrid, McLaren's U.S. retailers are reaching new levels of profitability while also investing in new or freshened dealerships, according to Nicolas Brown, president of the company's Americas region.

2022 will go down as the most profitable year for McLaren dealers in North America, Brown said at a media event here in December. The rise has been driven by a shift in more customers ordering bespoke vehicles and growing margins on pre-owned vehicles.

"It's been pretty consistent, going back to, let's say, 2018," Brown said, speaking with Automotive News for the first time in his current role. "Especially when you…

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Breaking language barrier for sales success

Audi Dominion in San Antonio is one of the top-performing Audi dealerships in the country, averaging more than 100 new vehicles and 170 used vehicles sold a month.

Martin Silva, the dealership's general manager, attributes that success to building a staff that reflects the Alamo City's diverse population and cultural backgrounds.

"When you live in a community like that and decide to go into any kind of retail business, the easiest decision is to provide opportunities to anyone who wants to put their head down and hustle and grind in an industry that's competitive — but also to make sure that our customer has someone they can relate to at the dealership level when it comes to sales, technicians and service advisers."

San Antonio is one of the fastest growing areas in the U.S., and Latino residents account for much of it.

According to the U.S. Census Bureau, two-thirds of San Antonio's 1.45 million residents in 2021 were Latino or Hispanic, and ab…

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Baidu, Pony.ai begin driverless taxi tests in Beijing

Baidu Inc. and Toyota Motor Corp.-backed startup Pony. ai said on Friday they been granted the first licences to test fully autonomous vehicles without safety operators as a backup in Beijing.

Baidu and Pony.ai said they would begin testing 10 driverless vehicles each in a technology park developed by the Beijing government as a step toward commercial robotaxi services in China’s capital.

Beijing-headquartered Baidu, which generates most of its revenue from its internet search engine, has focused on self-driving technologies over the last five years as it looks to diversify.

It started to charge fees for its robotaxi service Apollo Go last year. It has predicted a robotaxi ride would eventually cost about half as much as one in a commercial car with a driver. The company said it would add another 200 robotaxis to its network across China in the coming year.

Apollo Go, which operates in Wuhan and Chongqing without a safety driver, delivered a tota…

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China Evergrande EV unit lays off staff, trims salaries

China Evergrande Group's electric vehicle unit said on Friday it was laying off workers and cutting the salaries of some employees as a part of cost-reduction measures.

The unit, China Evergrande New Energy Vehicle Group, also said it was arranging for some employees to take a break from work.

The statement comes after Reuters reported that the unit was planning to lay off 10 percent of its workers and suspend salary payments to 25 percent of workers for between one and three months. 

The unit also said that it is continuing mass production of the Hengchi 5 electric crossover and has delivered 324 units to customers.

Reuters reported earlier this month that the company had suspended mass production of the model because of a lack of new orders.

The EV unit is key for the transformation plans of Evergrande, once China's top-selling property developer and now at the center of a deepening debt crisis.

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DAILY DRIVE PODCAST: December 30, 2022

A year-end conversation about the biggest stories in 2022 for auto dealers with Automotive News director of retail coverage Amy Wilson.

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