Automakers, suppliers, China Inc. struggle as COVID cases spike

SHANGHAI -- As China's massive wave of COVID-19 infections begins its march across a country roughly the size of Europe, the ripple effect on business is accelerating.

From its original epicenter in the north, including the capital Beijing, COVID-19 infections are spreading throughout the country and cases are impeding workforces in manufacturing belts, including the Yangtze River Delta, near Shanghai.

Retail and financial services businesses have been hard hit by a shortage of staff, with automakers and other manufacturers not far behind, according to an international business organization operating in China.

"The retail and client facing sectors are in deep trouble. Obviously, they have limited staff that are available to work because of illness, so many of our large-scale retailers are not even opening their doors," said Noah Fraser, managing director at the Canada-China Business Council.

With mass testing halted after China abruptly dropped i…

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Remembering those we lost this year

Frank Hasenfratz, 86, a Hungarian refugee to Canada who later created the auto parts powerhouse Linamar Corp., died Jan. 8.

He went into business after his boss at a previous job wouldn't consider the importance of reducing scrap waste, a quality metric that would distinguish Linamar for decades.

The 29-year-old machinist constructed his first machine shop in his backyard in 1966 and incorporated the business under the name Linamar, after daughters Linda and Nancy and his wife, Margaret. Linamar today employs 29,000 people in 17 countries and most recently reported revenues of $5.8 billion a year.

Over time, Linamar expanded from high-volume precision vehicle parts production into aerospace, defense, and agricultural and industrial equipment.

MaryEllen Green Dohrs, a pioneering automotive designer who created the interiors of high-end General Motors cars in the early 1950s, died Jan. 12 at age 92.

Dohrs was one of the first female designe…

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BMO Real Financial Progress Index: Nearly 8 in 10 Americans making big changes to holiday spending due to inflation, sharp decline in financial confidence

CHICAGO, Dec. 15, 2022 /PRNewswire/ - The latest BMO Real Financial Progress Index found that 77 percent of Americans said inflation is impacting their holiday spending decisions. The finding is part of a sharp drop in financial confidence this quarter, with of the number of U.S. adults who say they feel financially confident declining from 79 percent one year ago to 68 percent this quarter.

As Americans continue to feel the pinch of inflation on their finances, they reported turning to a variety of financial changes to offset the impact of an inflationary economic climate this holiday season. BMO's survey found that 37 percent said they would purchase less expensive gifts, 30 percent will reduce big purchases, 27 percent will spread purchases over several months, and 29 percent will trim their gift recipient list to save money. Additionally, nearly half of Americans (45 percent) plan to purchase gifts using a credit card this year, despite credit card debt being a hi…

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Lendbuzz secures $135 million credit facility from Regions Bank to expand dealership floor planning and consumer loan originations

December 15, 2022 09:00 AM Eastern Standard Time

BOSTON -- (BUSINESS WIRE) -- Lendbuzz, the AI-based fintech company that is revolutionizing the auto finance market, announced today that it closed a $135 million credit facility with Regions Bank.

Lendbuzz intends to use the funds to fuel the continued growth of its dealership floor planning portfolio—which doubled with the recent acquisition of Shamrock Finance—and to increase the number of borrowers its proprietary, AI based auto finance platform serves. The platform enables Lendbuzz to quickly and accurately assess the creditworthiness of consumers with credit scores ranging from good to non-existent. This group includes those with no credit, thin credit, and near prime, totaling 100 million people in the US, who are underserved by the traditional credit system.

“Our ability to grow originations and maintain strong loan portfolio performance provides our capital markets partners confidence in our team …

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U.S. Postal Service fleet gets greener, with 66,000 EVs arriving through 2028

Efforts to push and prod the U.S. Postal Service into ensuring electric vehicles make up a greater portion of its new mail truck fleet have delivered.

The agency said Tuesday it will purchase more EVs through 2028 than initially anticipated. In total, 66,000 EVs will be included in the Postal Service's overall plans to buy 106,000 vehicles between now and 2028.

There had been uncertainty surrounding the agency's willingness to further commit to electrifying the largest and oldest vehicle fleet owned by the U.S. government. But in August, Congress essentially directed the Postal Service to electrify most of its new mail truck fleet by approving $3 billion in the Inflation Reduction Act for such purchases.

With Democrats retaining control of the Senate in the 2022 midterm elections, and the Biden administration requesting the Postal Service further examine its plan to buy primarily gasoline-powered vehicles, it had appeared more EVs were on the horizon. Read more

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Genesis COO Mike Song elevated to brand’s global head

Hyundai Motor Group elevated Genesis global COO Mike Song to executive vice president and global head of the Genesis business division.

As global head, he will oversee the luxury marque's global presence, lead its transition to an all-electric brand and develop growth and market opportunities.

"I am honored to be part of Genesis' growing momentum around the world," Song said. "Genesis is a recognized luxury car brand at the forefront of design and technology in the rapidly evolving electrification era."

Song steps into a role held by Jay Chang, who will remain CEO and president of Hyundai Motor Co.

Genesis expects Song's leadership to spur "significant gains in profitability through a clearer brand vision that places greater emphasis on customer experiences," the company said in a statement.

Song will remain global COO, responsible for leading global operations and positioning the brand as a top player in the luxury automotive space. Read more

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VW-FAW adds extra hours at Chengdu plant to make up for 2-week shutdown

BERLIN -- Several production lines at Volkswagen and FAW's plant in Chengdu are operating with staff on 11-hour shifts, up from eight usually, to compensate for time lost due to a closure in November, a spokesperson said on Tuesday.

Production at the plant was stopped on Nov. 21 for two weeks because of a lack of parts as suppliers struggled with rising coronavirus cases following China's loosening of its zero-COVID policy.

The carmaker has brought in extra staff at the plant from within its wider workforce to raise the number of hours worked in order to make up for production shortfalls from that timeand allow for more breaks, a spokesperson said.

The spokesperson denied an earlier report by Bloomberg that staff at Volkswagen's plant in Foshan were working 11-hour shifts because other workers were calling in sick with coronavirus.

The Foshan plant was operating as normal, the spokesperson said, adding hygiene measures were in place similar to tho…

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Nio blackmailed for millions in Bitcoin by data-stealing hackers

Hackers have stolen Nio Inc. user and car-sales data and are now blackmailing the Chinese electric-vehicle maker.

Nio received an email this month in which the sender demanded $2.25 million in Bitcoin in return for not releasing the data, the automaker said Tuesday. An internal investigation revealed that part of Nio’s user and vehicle sales information prior to August 2021 had been compromised.

“The company strongly condemns such unlawful acts and will not bow down to cyber crimes,” Nio said in a statement, adding that it had reported the incident to regulators. It pledged to take responsibility for any potential damages to customers.

Data security issues have become a concern for auto manufacturers and their suppliers. Hackers stole around 40 terabytes of data from German auto-parts maker Continental during a cyberattack in August. The loot may include information connected to customers Volkswagen Group, Mercedes-Benz and BMW Group, Germany’s Handel…

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DAILY DRIVE PODCAST: December 20, 2022

Automotive News reporter Michael Martinez talks about the year Ford had in 2022. Plus, U.S. Treasury delays EV tax credit guidance until March. And Magna agrees to buy Veoneer Active Safety for $1.53 billion.

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5 Ways to Master Declined Service Follow-ups

Declined service follow-ups are a great opportunity to increase revenue, customer retention, and customer experience in your Service Department. While it is a tricky concept to work through, once mastered, it can be your strongest tool and competitive advantage. By not taking advantage of declined service requests, you are leaving money on the table. Download this FREE guide to ensure your team is mastering declined service follow-ups by leveraging five proven phone handling strategies and taking advantage of the correlating word tracks.

Download to discover:

Five in-depth strategies to prepare your Service Department for customer follow-up success Best practices when it comes to declined service follow-ups Creative follow-up strategies, such as the exact date to call and communication channel to use FREE word tracks that will get the customer back into your Service Department
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Hyundai Kona adds hybrid variant, bigger footprint with second-gen makeover

Hyundai's Kona subcompact crossover is getting a bigger footprint and adding a gasoline-electric hybrid to the lineup.

The second-generation, 2024 Kona will feature larger dimensions, including a 5.9-inch increase in length and nearly 1 more inch of width. The wheelbase grows by 2.4 inches. The new Kona is still billed as an urban runabout but Hyundai says the bigger size will give it more living space and a bolder presence.

Hyundai said the redesign started with the EV, an unusual move for vehicles with multiple powertrains. The styling is more EV-leaning, with a lightbar that stretches across each model's front end.

The Kona EV sports the pixelated design cues found on Hyundai's electric Ioniq 5 and upcoming Ioniq 6 stablemates. The gasoline and hybrid variants have a more rugged bumper that incorporates a skid plate design as well as chunkier black wheel arch cladding. The N-Line, also gas-powered, sits lower to the ground and i…

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U.S. Treasury delays EV tax credit guidance until March

WASHINGTON — The U.S. Treasury Department on Monday said it will issue proposed guidance for the critical mineral and battery component requirements in March, effectively delaying those eligibility restrictions in the $7,500 tax credit for new electric vehicles.

Under the recently signed Inflation Reduction Act, the department was required to issue proposed guidance by Dec. 31 that will further define how to meet the revamped EV tax credit's eligibility rules, which are designed to incentivize domestic EV production, reduce reliance on foreign supply chains and prevent wealthy buyers from getting a discount.

Instead, Treasury said it will release information before the end of the year that will outline the "anticipated direction" of the critical mineral and battery component requirements that new EVs must meet to qualify. The information also will help automakers "prepare to be able to identify vehicles eligible for the tax credit when the new requirements go i…

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