The latest numbers on the microchip shortage: Chip outlook brightens — a bit

The forecast for lost 2022 factory production resulting from microchip shortages has softened by a small amount, according to the latest estimate from AutoForecast Solutions. But AFS predicts the year will still end with factories worldwide having eliminated 4.26 million vehicles from their plans this year because of inadequate chip supplies.

That is modestly lower than the 4.39 million year-end total AFS forecast one week ago.

The slight improvement illustrates the situation at the moment, after almost two years of the supply crisis. Automakers say the chip situation seems to be getting better but is still troubling as it approaches its third year.

The estimate of 4.26 million lost vehicles for the year would be a significant improvement over the 10.5 million lost last year. But the current figure does not reflect other supply chain troubles that manufacturers are coping with, such as shipping delays and international supply interruptions, said Sam Fio…

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Editorial: Time to focus, improve dealers’ fixed operations

New-vehicle sales may hog the spotlight, but smart dealers understand that fixed operations is the engine that drives most successful franchised stores.

The same trends that have upended the new-vehicle side — inventory shortages, digital retailing and pricing transparency, and rapidly growing electrification — are now heading to service and parts. Dealers should take full advantage of this transition period to overhaul their strategies, including rethinking some of the foundational principles of how this vital part of their business operates.

Every franchised auto dealership works differently, of course, but the challenges most face in their service operations are remarkably uniform, including insufficient numbers of trained technicians, customer retention and satisfaction rates and difficulty obtaining parts. There is little that dealers can do about parts shortages, but the remaining issues are particularly ripe for a fresh approach.

Consider the rol…

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Dealership whiffs on hole-in-one prize

A golfer is suing an Arkansas Ford dealership that he said owes him a free F-150 for making a hole-in-one.

Austin Clagett posed for photos holding his ball in front of the $53,595 pickup after his hole-in-one shot Oct. 8 at Morrilton Country Club.

But Jay Hodge Ford of Morrilton said it had never agreed to give the truck away in the "Tournament of a Century" event. The country club had specifically advertised it as a prize in Facebook posts tagging the dealership.

"Hole-in-one on #10 gets you the keys to this F-150," the club wrote with a photo of a F-150 4x4 SuperCrew. "Thanks to Jay Hodge Ford of Morrilton!"

The dealership, which was known as Magie Ford until a change of ownership in August, said on its Facebook page that it provided the truck "for display/advertising purposes only" because it didn't have enough lead time to obtain insurance for a giveaway. "Without our knowledge," the store wrote, "Morrilton Country Club promoted that this new…

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Highlights from the latest Daily Drive podcasts, Oct. 17-20

Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, Oct. 17-20, hosted by Jamie Butters with Kellen Walker.

"On an average, we probably receive about 100, 125 now, leads that I can say are from social media."--Eric Barbosa, managing partner of Henson Brand Dealerships in Texas, on the benefits dealers are seeing from new retail technology and digital strategies

"I believe you need three pieces of technology to get [intelligent speed assistance] right. You need a map. You need an electronic horizon that reads the data from the map that is ahead of the vehicle. And then you need a camera that can also look out for speed limit signs."--Philip Hubertus, HERE Technologies' director of product management, on intelligent speed assistance, which is now mandatory for all new vehicles sold in the European Union

"I have great confidence that, indeed, this environment is going to put a solid floor under vehicle values. An…

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Guest commentary: FTC’s new rules would only punish honest car dealers

I'm a compliance lawyer for car dealers. It ain't sexy, but as they say, it pays the bills.

And speaking of paying the bills, the Federal Trade Commission recently proposed a massive new set of regulations for car dealers. Every time the agency does this, lawyers like me make money, and lots of it. Dealers have to shell out big bucks to lawyers and compliance companies whenever the FTC makes new rules, largely because these rules are basically indecipherable to anyone other than lawyers who specialize in this area.

I have spent a lot of time analyzing and distilling complicated regulations, providing regulatory compliance advice to dealers for nearly 30 years. So I think I am qualified to say that the only ones who will benefit from these new regulations are lawyers like me and some dishonest dealers.

The FTC claims that adoption of these rules will direct business away from dishonest dealers and save consumers billions of dollars'…

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Ouster’s new lidar series doubles range of its previous sensors

Ouster Inc. has unveiled a series of digital lidar sensors that use a new chip and provide double the range of the previous generation.

The San Francisco company said its REV7 sensors have a maximum range of more than 400 yards, allowing detection of objects up to a quarter-mile away.

The distance is achieved by use of the company's new proprietary L3 chip that's capable of calculating approximately 10 trillion photons per second.

"We doubled the range of all our products just by swapping the chip," Ouster CEO Angus Pacala told Automotive News.

This puts the REV7 sensor on par with the lidar sensor of autonomous-vehicle developer Argo AI, which also has range of approximately 400 yards. But it's below the range of AEye's lidar that detected vehicles at more than a half-mile away in an independent test.

Backward compatibility

In addition to improved range, Ouster lidar sensors' backward compatibility makes them unique and competitive,…

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Kia cuts price of redesigned, top-end Niro EV trim

The second generation of Kia's Niro EV, which tops off the automaker's trio of electrified compact crossovers that also includes plug-in hybrid and gasoline-electric hybrid powertrains, goes on sale this month in all 50 states.

The Korean automaker slashed $200 off the price for buyers that opt into the higher of two trims, called the Wave.

For 2023, Kia simplified the lineup from three trims to two. The more expensive Niro EV Wave will cost $45,745, including a $1,295 destination fee. By comparison, the first-generation Nio's top trim, the Niro EV EX Premium, was priced at $45,945.

The entry trim, called the Wind, is priced at $40,745. It sits between the previous generation's base Niro EV S ($40,385) and mid-level Niro EV EX ($41,285).

The lack of a price increase, given many automakers are hiking EV MSRP's, will help keep the Niro EV competitive against domestically built EVs that now qualify for the $7,500 federal tax credit. The Niro EV is …

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How a VW dealership’s competitions boosted alignment, tire sales

Donnie Wetsel believes that aggressively selling tire and wheel services boosts profits and prevents customers from drifting away to independent shops, not only for new tires and alignments, but also for the oil changes and other maintenance and repair services that his technicians should be doing.

When Wetsel, 36, took over as service director at Onion Creek Volkswagen in Austin, Texas, in January, he made it a priority to straighten out the store's sales of alignments and replacement tires.

The dealership invested around $75,000 in three Hunter Quick Check machines that read alignment specs as the customer drives into the service lane.

The results are posted instantly on a screen the customer can see and on a printed color handout showing wheel alignment in a red-yellow-green format.

But the service advisers at Onion Creek Volkswagen were not putting a priority on explaining the results to their customers. So to fix that, Wetsel devised sales …

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New CR-V Hybrid targets EV buyers

Honda will use its forthcoming CR-V Hybrid to hold onto EV-minded buyers until its Prologue electric crossover arrives at U.S. dealerships in 2024.

Shoppers for the hybrid compact crossover, which goes on sale this fall in two well-equipped trims, the Sport and Sport Touring, will be able to opt into a two-year lease that will let them easily swap into a Prologue electric vehicle when it reaches dealership lots.

While final details have not been worked out, "there will be some sort of benefit to purchasers of the Prologue from having taken the lease, whether it's a financial incentive or something else," said Gary Robinson, American Honda's assistant vice president of product planning.

Robinson said the CR-V serves as a steppingstone to other Honda crossovers. "About 60 percent of CR-V buyers are repeat Honda customers," he said. "They're buyers who continue to stay in the brand."

Honda predicts that half of all CR-V buy…

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Arizona dealership group gets green light to pursue suit over raid by state AG

An Arizona dealership group claims that a raid by the state attorney general's office that focused on vehicles imported from Mexico shut its stores and caused "substantial damages," including lost sales and profits.

A federal judge in Phoenix is allowing the dealership group, Mark Enterprises Car Co., to pursue its lawsuit against agents of the attorney general's office over the October 2019 raid. The agents were investigating allegations that the retailer put fake Ford Motor Co. stickers on vehicles imported from Mexico.

In its September 2021 lawsuit, Mark Enterprises claims armed agents violated its constitutional rights by wrongfully obtaining and executing a search warrant as well as by seizing vehicles, deal jackets and business records.

"The raid was a 2½-day affair. Over 70 agents were involved," said Robert Tolman, a Tempe, Ariz., lawyer representing the dealership group.

The raid involved Mitsubishi stores in …

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Analysts begin to doubt Elon Musk can deliver the goods

Tesla Inc. posted record sales numbers in the third quarter, but analysts are expressing doubts about the EV leader's ability to power through an economic slowdown — despite CEO Elon Musk's assurance that the company is "certainly recession-resilient."

As of market close Thursday, Oct. 20, the high-flying stock is down 48 percent so far this year, including a nearly 7 percent decline following Tesla's third-quarter earnings report last week. By comparison, the Nasdaq Composite Index is down 33 percent this year.

Tesla's third-quarter revenue and vehicle deliveries missed analysts' estimates. At least six brokerages lowered their price targets on the stock, according to Reuters, with Tesla bull Wedbush Securities making the biggest cut of $60, bringing its target to $300 a share.

Part of the doubt concerns Musk's sales target of growing by about 50 percent a year into the foreseeable future — along with his predictions that Tesla could become the most v…

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Startup Wejo aims to save lives with data

PAHRUMP, Nev. — Countless data points gathered by vehicles every day on public roads can be used to improve safety and traffic flow and speed up emergency response times.

British automotive data startup Wejo hopes to play a major role in getting the auto industry to that point by using data to learn how drivers behave in every use-case scenario.

The goal is to predict what happens "within three meters on this road at this time of day in these specific road conditions," Wejo CEO Richard Barlow said during a demonstration of the company's technology near Las Vegas in late September.

The Manchester-based company has collected data on vehicle and road conditions from about 19 million vehicles worldwide to date, including 85 billion drives and billions of miles driven on U.S. roadways and elsewhere.

As vehicles become more connected and offer more automated features, automakers, governments and service providers want to leverage that data to make roa…

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