News

A pair of Midwest dealership groups expanded via dealership purchases from Michigan's Spartan Auto Group, which sold its remaining four stores in the state in two transactions.

Serra Automotive Inc., of Fenton, Mich., one of the largest privately held groups in the country, bolstered its presence in the state with its Monday purchase of Lexus of Lansing. The acquisition marks Serra Automotive's first Lexus store.

Serra Automotive bought the store from the Criscuolo family, which owned Spartan Auto Group.

The dealership was renamed Serra Lexus Lansing. Lansing, Michigan's capital, is located in the middle of the state.

Serra Automotive said it plans to relocate the Lexus dealership to a new facility in Okemos, east of Lansing, where the group already has BMW, Mercedes-Benz and Porsche dealerships across a 20-acre site.

Serra Automotive said the move is pending Lexus' approval, but noted it plans to build the facility and move in 2024.

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KAR Global CFO Eric Loughmiller will retire at the end of 2022, the company announced.

The wholesale auctions provider is conducting a national search for Loughmiller's replacement and aims to fill the role before he retires, KAR CEO Peter Kelly told investors and analysts Wednesday on the company's third-quarter earnings call.

KAR reported higher year-over-year revenue, more profits per each vehicle sold and a net profit from its continuing operations in the quarter that ended Sept. 30, though Kelly noted continued wariness about reduced conversion rates at auctions.

KAR reported a $500,000 net profit from continuing operations, which include its digital and hybrid wholesaling units such as BacklotCars, Openlane, Carwave and TradeRev. That's compared with a $26.9 million net loss one year ago.

However, KAR recorded a net loss of $5.8 million in the quarter that ended Sept. 30. That figure factors in a loss of $6.3 million from the company's disco…

Bank information provider TurboPass hopes to break into the franchised dealership market with a new product allowing retailers to review payroll data for prospective auto borrowers, Patrick Jarman, director of marketing and strategic initiatives, said this last month.

TurboPass' business historically has involved helping auto shoppers easily share their bank account data with lenders and dealerships through an online tool accessible through a text message link. This allows the retailer or creditor to quickly verify the stipulation ("stip") information, such as income, the lender checks before granting a loan. TurboPass says it's able to cut a contract "in transit" — not yet funded — from days to hours. Dealers have requested more than 200,000 TurboPass banking reports in the past two years, according to the company.

The company's new PayStub Report option allows TurboPass' dealers and lenders to receive information and verify creditworthiness s…

It’s still early days in the race for electric vehicle supremacy, and while auto engineers have rushed to improve driving ranges and charging speeds, they remain split on the front trunk.

Roughly one-third of the 30 or so EV models for sale in the U.S. have supersized the feature in recognition of its novelty and utility -- after all, a “frunk” is one of few things EVs offer that a gasoline-powered vehicle cannot.

Another third of models, however, skip the frunk altogether, freeing up cabin space on a bet that customers accustomed to frunkless living will not demand one when they go electric.

Those that do offer novel uses such as Ford, which suggests filling their refrigerator-sized front trunk, that comes standard on two of its EVs, with seafood (see below) or even 1,000 chicken wings. The frunks even come with a useful drain to help transport food items.

Frunks are not new to the auto industry. Models with engines in the rear of the car, like…

Seating and electronics supplier Lear Corp. reported improved financial performance in the third quarter, fueled by better market conditions.

Lear said net income increased 440 percent from a year ago to $92 million in the third quarter, while sales rose 23 percent to $5.2 billion, due primarily to improved production volumes.

Core operating earnings increased 140 percent to $235 million for the quarter, according to the automotive seating supplier's earnings presentation Tuesday.

All of that was aided by global car production that increased 29 percent year-over-year to 20.8 million units, while U.S. production increased 24 percent to 3.7 million units.

"Our financial returns in seating lead the industry," CEO Ray Scott said in a call with investors. "Electrification and other added content in the vehicle will drive growth in e-systems. As we work through the challenging industry conditions, we are proactively taking steps to position Lear for …

Hyundai Motor America is recalling 44,396 crossovers and is recommending owners park their vehicle outside after discovering a defect that could cause an electrical short and subsequent fire.

NHTSA said the recall affects the 2018 Santa Fe Sport models produced between May 1, 2017, through May 10, 2018, at the Kia Georgia plant in West Point, Ga.

The anti-lock braking system, or ABS, module in these vehicles could cause an electrical short, leading to an engine compartment fire, said the NHTSA report.

Hyundai is urging owners to park their Santa Fe Sport outside and away from structures. Warning signs of an engine fire include smoking coming from the compartment, a burning or melting odor and the illumination of the malfunction indicator lamp or ABS light.

This new action is an addition to a 500,000-vehicle recall earlier this year affecting a variety of the 2016-19 Santa Fe models, as well as the 2014-15 Tucson, the 2016-18 Kia K900 and the 2014-…

Penske Automotive Group's president talks with Automotive News Publisher KC Crain from the Automotive News Retail Forum in Chicago. October sales look good for Toyota, Hyundai, and Kia. The UAW has its eye on GM’s battery joint venture. Plus, Tesla sends Chinese workers to California to boost production.

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Rental car company Avis Budget Group Inc. reported its best quarterly net income in its history.

Avis' net income for the third quarter was reported at $1.03 billion, a 53 percent increase from the same period a year ago. Adjusted earnings before interest, taxes, depreciation and amortization rose 38 percent from last year to $1.46 billion. Both figures are records for the company, according to an Oct. 31 statement from Avis, which attributes its success to strong commercial and leisure demand.

Record demand benefited Avis both in the Americas and internationally. The Americas posted adjusted earnings before interest, taxes, depreciation and amortization of $1.8 billion, while that figure came in at $291 million internationally, according to the company. Americas earnings rose 24 percent compared to a year ago and international earnings increased 127 percent.

While Avis benefited from a rebound in travel, some profits were assisted by lower U.S. deprecia…

Stellantis' Ram truck brand will unveil the Ram 1500 Revolution battery-electric vehicle concept Jan. 5 at CES 2023, the tech industry's signature showcase in Las Vegas, the automaker said on its blog.

The company said the truck is packed with technology features it called "exclusive and advanced."

Ram plans to offer electrified vehicles in the majority of key light-truck segments by 2025, and all truck and van segments no later than 2030.

Ram says its EVs, including the 1500 BEV production vehicle debuting in 2024, will lead rivals in range, towing, payload and charge time. By 2024, trucks such as the GMC Hummer EV and Ford F-150 Lightning will have been on the market for two years. The Chevrolet Silverado EV goes into production next year. Ford and GM have received more than 150,000 reservations for their big electric trucks.

Stellantis officials have said the Ram electric truck's later arrival to market is an advanta…