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Used-car retailer Carvana Co. is cutting 1,500 jobs, or 8 percent of its workforce, the company said on Friday, amid waning demand for used cars on the back of sky-high prices and supply shortages.

Demand for used cars has been negatively impacted by hybrid-working models and higher costs caused by rising interest rates, as consumers rethink personal mobility options to try and trim their daily expenses.

CNBC, which first reported the layoffs, cited an internal memo, that the company faced economic headwinds from higher financing costs and it "failed to accurately predict how this would all play out and the impact it would have on our business."

The weak demand has forced Carvana to sell many used cars at lower prices after having acquired them at a higher cost due to strong demand for personal transportation.

It is now faced with soaring expenses that have led to dour results in the last five quarters, raising investor concerns and sending its sh…

<!--*/ */ /*-->*/ Costly battery research in search of holy grail

Automakers and battery suppliers are in search of a vehicular holy grail — a battery chemistry for electric vehicles that sharply reduces charging times and greatly increases range while remaining cheap and easy to mass produce.

Unprecedented sums of money are being poured into battery research to find such a solution, and battery performance has improved over time as companies tinker with chemistries and packaging. But so far, that breakthrough, one that could push EVs into the mainstream once and for all, is proving elusive.

"We have hit a chemical plateau in terms of lithium battery cathode composition," said Conrad Layson, senior alternative propulsion analyst at AutoForecast Solutions LLC.

As automakers spend billions rolling out EVs and governments boost public adoption of zero-emission vehicles, finding ways to increase battery performance is becoming increasingly im…

SAN DIEGO – Carvana Co. CEO Ernie Garcia reflected Thursday on the online used-car retailer’s tough year.

“Right around this time last year, I think a number of things started to break against us, and it’s definitely been much tougher sledding since then,” Garcia acknowledged in a video teleconference Thursday at Used Car Week in San Diego.

Carvana’s tumultuous journey in 2022 highlighted by mounting financial losses and a more challenging used-car market is being closely watched. The online giant has been pressed in recent months by waning used-car demand, cash burn, a crashing stock price and regulatory challenges in several states.

One year ago, it felt like Carvana could do no wrong, Garcia said on the teleconference, but it's a different story these days.

The used market was in a good spot a year ago, and people seemed focused on Carvana’s positives, Garcia said. Today, it's the opposite — market conditions have worsened, and people are look…

Coverage of the Los Angeles Auto Show begins with Porsche unveiling its 911 Dakar. Subaru shows a new Impreza even as it gets rid of another. Polestar gets a big loan to help tackle its goals in 2023. Plus, Automotive News reporter CJ Moore joins the show from Used Car Week in San Diego.

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General Motors on Thursday said its electric vehicles would be "solidly profitable" by 2025, when it expects to be building 1 million of them a year in North America and 1.2 million battery cells daily in the U.S.

GM CFO Paul Jacobson told reporters ahead of the company's investor day in New York that the automaker will maintain North American profit margins of 8 to 10 percent in the coming years and that EV margins will nearly match those of internal combustion vehicles with the benefit of additional scale and forthcoming federal tax credits.

The company is projecting low- to mid-single-digit margins on EVs in 2025, including emissions credits and software and aftersales revenue. GM expects to generate more than $50 billion in revenue from EVs and $225 billion in total revenue in 2025. Its global revenue last year was $127 billion.

"This is really just the start for us," Jacobson said. "And when you think about the EV tax credits on top of it — we will…

LOS ANGELES — Kia revealed the freshened 2024 Seltos subcompact crossover Thursday at the Los Angeles Auto Show, with sharper styling, a new X-Line trim and more power from its turbo engine.

The Seltos, the brand's entry point, joins the ranks of its larger siblings — the Sorento and Telluride — in offering the more rugged-looking X-Line trim.

Its reworked front fascia features a larger tiger nose grille and new bumper design that creates a wider appearance. New vertical fog lights are incorporated into the daytime running lights, which reduces clutter and gives the small crossover a more commanding presence.

The restyled rear is cleaner, with a new tailgate lighting design and new backup lamps and rear reflector on the bumper.

The ruggedness of the X-Line is enhanced by 18-inch wheels, black roof rails and gloss black door trim.

For 2024, the vehicle is offered in LX, S, X-Line, EX and SX trims. The X-Lin…

LOS ANGELES — The Toyota Prius is a nerd mobile no more.

In the quarter century since the pioneering gasoline-electric fuel sipper was born, it has gone from a frumpy, dumpy subcompact sedan to a weird origami-styled hatchback with bizarre zigzag taillights.

The 2004-10 second-generation car, a nicely proportioned hatchback with a smoothly integrated front end, almost turned the corner onto Hip Street, but for a leisurely 11-second 0-to-60 mph run.

The fifth-generation car that debuted here at the Los Angeles Auto Show is a different animal. For one thing, it's now a slick five-door hatchback that looks very much like a sedan. For another, it's faster. Toyota engineers found a way to dramatically increase performance without sacrificing fuel economy. The new car, which arrives in January, will have an estimated 57 mpg combined city-highway fuel economy, and the top model can hit 60 mph in 6.7 seconds.

The styling of the new car is bound to be no…

LOS ANGELES — The X Convertible, the third in a trio of Genesis concepts, previews some key styling cues that will adorn the luxury automaker's electric vehicles.

It was unwrapped late Tuesday against the backdrop of a spectacular West Coast sunset in Malibu, Calif., ahead of the Los Angeles Auto Show.

The sleek open-roof, four-door concept follows the Genesis X Concept two-door grand tourer and Genesis X Speedium Coupe, which showcased a new, lighted version of the crest grille and what the brand calls its "athletic elegance" design language.

The new grille, also featured on the X Convertible, is a cleaner take on the mesh design found across Genesis' lineup. A spokesperson for the brand said it serves as a blueprint for the front-end designs that will be featured on future Genesis EVs.

Some of the concept's styling cues can already be found on Genesis models. The horizontal quad rear lights closely resemble the tail…

The automotive marketplace continues on a roller coaster-like ride. Macro-economic conditions are slowing demand and moderating prices at the same time as production and inventory levels are rebounding off their pandemic-related lows. Many dealers are facing the future with inexperienced sales teams. Yet dealerships can employ a more effective sales strategy to overcome these challenges…and thrive. With defection data that’s specific, timely and deep. Here are four ways dealers can use data and technology to gain a competitive advantage. Take a better approach to handling defections. Give your salespeople the tools and processes to be successful. Bolster the confidence of your salespeople. Carefully craft what you say…because now, more than ever, the message to your customers matters.

Selling cars in the current marketplace is hard; we all know that. But what you might not know is that accessory selling is the key to drive up those dwindling profit margins and drive down customer price points in this high-interest rate environment. Read on to find out how we can help you add value and profit to your automotive sales, all while putting some very happy and loyal customers on the road in the car or truck they’ve been searching for.

When developing an effective advertising strategy insights into the intended audience’s preferences are significant reference points. For example, learning that your future buyer audience is interested in more sustainable products helps advertisers understand the messaging and creative that best resonates with their intended audience. Amazon Ads can help advertisers reach audiences through services they frequently use such as shopping on Amazon, listening to Amazon Music’s ad-supported tier, or watching live sports on Prime Video.

Did you know? Amazon’s automotive audience includes over 632,000 electric vehicles owners who have registered their electric vehicle to Your Garage, Amazon’s exclusive source for 1P vehicle ownership audiences and insights.1 And since 2017, the number of EVs in Your Garage has grown by ~20x.2 Amazon can help you reach this audience alongside the Amazon users who are actively researching cars for future purchases.

1 Amazon internal, US only,…

Porsche is pitching its new 911 Dakar as a sports car aimed at the SUV set.

The rally-inspired Dakar features a jacked-up suspension, all-terrain tires and an antilock braking system optimized for loose gravel.

Porsche unveiled the two-door off-roader on the eve of the Los Angeles Auto Show. The 911 Dakar is limited to 2,500 units globally and starts at $223,450, including shipping, in the U.S. starting next Spring.

The Dakar's appeal extends beyond the shriveled pool of two-door sports car buyers. Its racy performance and utility ride speak to both the on-track and off-road demographic.

"When drivers are looking for crossovers and sport-utilities, appealing to these buyers means going to where they are," said Sam Fiorani, vice president at AutoForecast Solutions.

What the 911 Dakar lacks in volume, it makes up in buzz.

"It's a showpiece that allows engineers to go to town and show what they can do," said Ryan Kirchner, new-car mana…