Stellantis tailors campaigns for African-American, Hispanic consumers

Stellantis multicultural advertising chief Juan Torres wants the automaker to be in tune with the "majority of tomorrow."

The U.S. Census Bureau projects that minority groups will make up a majority of the population by 2045, and Torres says it's a competitive advantage to engage these audiences now with messaging that is culturally relevant. Authenticity, Torres says, is key when trying to connect with minority shoppers.

Torres, 51, spoke with Staff Reporter Vince Bond Jr. about how the automaker tailors content for multicultural viewers, recent campaigns aimed at African-American and Hispanic consumers, and how the marketing space has changed over the past decade.

Torres, who also oversees advertising in international markets, was born in Colombia and split time between that country and the U.S. while growing up. This upbringing, with a Colombian father and American mother, helped shape how he approaches multicultural marketing. Here are edited excerp…

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Better training, new tool bring loan fraud to light

Some dealership staff might intentionally send suspicious loan applicants to a lender partner hoping to close the deal. But according to antifraud provider Point Predictive, many dealers don't even realize when they're transmitting a fishy loan.

Better training and lender communication could help dealerships avoid being an unwitting accomplice to fraud or having to buy back fraudulent auto debt, according to Point Predictive Chief Fraud Strategist Frank McKenna.

McKenna's company has launched BorrowerCheck, a tool to help dealerships spot fraud. But it's also training retailers to notice it themselves, McKenna said.

"They've experienced it, but they just don't know it," McKenna said.

Seventy percent of auto loans that default within the first six months — a sign of potential fraud, most lenders say — have evidence of misrepresentation on the initial application, according to Point Predictive's 2022 Auto Fraud Trends report.

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Nikola founder convicted of fraud

NEW YORK - Nikola Corp founder Trevor Milton on Friday was convicted by a U.S. jury of fraud in a case alleging he lied to investors about the electric vehicle company's technology.

The jury found Milton guilty on one count of securities fraud and two counts of wire fraud after deliberating for around five hours. Milton was acquitted on an additional count of securities fraud.

During the trial in federal court in Manhattan, prosecutors depicted Milton, 40, as a "con man" who sought to deceive investors about the electric- and hydrogen-powered truck maker's technology starting in November 2019.

Milton, of Oakley, Utah, was indicted in July 2021. He left Nikola in September 2020 after a report by short seller Hindenburg Research called the company a "fraud."

Prosecutors accused Milton of using social media and interviews on television, podcasts and in print to make false and misleading claims about Nikola's trucks and technology.

They said Mi…

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DAILY DRIVE PODCAST: October 14, 2022

Lincoln says its dealers will have to invest up to $900,000 on chargers and other upgrades in order to sell the brand’s EVs. BMW and Amazon collaborate on vehicle data software. Toyota offers a 10-year free trial on connected safety services. Plus, a conversation about a new report that says dealership F&I offices are doing surprisingly well this year.

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Stellantis unit to pay $5.6 million to resolve California emissions probe

WASHINGTON -- The U.S. unit of Stellantis will pay $5.6 million to resolve a California investigation into violations of air quality regulations, the state said on Thursday.

The California Air Resources Board (CARB) said the 30,600 vehicles involved in the settlement include 2012-2018 model year Ram 1500, Jeep Grand Cherokee and Dodge Durango vehicles that were equipped with 5.7L gasoline engines and did not comply with certification emission standards.

The automaker will pay a $2.8 million civil penalty and $2.8 million to bring more electric school buses to schools in the South Coast Air Basin. CARB said Stellantis cooperated with the investigation into the emissions issue discovered during state testing.

"This case is a perfect example of why CARB's compliance testing is so important in protecting the state's air quality and public health," said CARB Executive Officer Steven Cliff.

Stellantis said Thursday: "While we accept responsibility, this…

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EV battery plants create gold rush of competing state incentives

State EV Investments and Incentives Financial disclosures vary by state, and some withhold data at the behest of a company or to stay competitive against other states. This makes the full picture of corporate incentives incomplete, but below are estimates compiled by Bloomberg. Some subsidies and incentives may still be subject to state or local approvals or could be challenged in court. Company State Investment   Subsidies Jobs GM Michigan $6.6 Bln $1.8 Bln 4,050 Ford Tennessee $5.6 Bln $2.4 Bln 5,800 Hyundai Georgia $5.5 Bln $1.8 Bln 8,100 Rivian Georgia $5.0 Bln $1.5 Bln 7,500 Source: Bloomberg

Michigan Gov. Gretchen Whitmer wasn’t happy. Ford Motor Co., a company whose very name is synonymous with Detroit, had just announced it had chosen two southern states, Tennessee and Kentucky, as sites for an $11 billion electric-vehicle project.

They had won Ford over by dangling huge incentives, and Whitmer knew Michigan needed to do more to compete. S…

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BMW, Amazon Web Services collaborate on vehicle data software

Amazon Web Services Inc. will collaborate with the BMW Group to create cloud software to deliver and manage data generated by connected vehicles.

The software is designed to aggregate vehicle data from multiple sources to expedite development of features and enhance software life cycle management. The software will also provide after-sale vehicle and driver-personalization features via over-the-air updates, Amazon said.

Most automakers have for years understood the value of data to their business, said Alex Oyler, director automotive technology research and consulting firm at SBD Automotive.

"But practical challenges in the collection and distribution of this data in a safe, secure and compliant manner presented economic and logistical challenges that have been difficult to overcome," Oyler said.

The availability of automotive-specific cloud services and the advent of in-vehicle data processing technologies make it possible for automakers like BMW…

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DAILY DRIVE PODCAST: October 13, 2022

Honda and Sony’s electric vehicle will be built and sold in North America first. Stellantis cuts a shift at the plant that makes the Jeep Wagoneer. BMW and AirConsole team up to put on-the-go gaming in vehicles. Plus, a conversation with Gentex Corp. Corporate Controller Rosa Estrada, one of Automotive News’ 2022 Notable Champions of Diversity.

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Discover Trends in Automotive

How can companies plan for a profitable and sustainable future in uncertain times?

To find out, we surveyed 500 decision makers from original equipment manufacturers (OEMs), captive finance companies, and retailers. Get the report to learn:

The progress companies are making to provide digital customer experiences Why first-party data is more important than ever The impact of electric vehicle investments on profits
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Toyota: 10-year free trial on connected safety services

Toyota Motor Corp. and General Motors already walk divergent paths in their assessments of the future of electric vehicles.

Now there's another space where the two top-selling automakers in the U.S. and relatively friendly rivals will operate in opposition: connected cars.

Toyota announced last month that it would begin offering 10-year free trial periods on its core Safety Connect and Service Connect systems, beginning with 2023 Toyota and Lexus models — as well as some 2022 Toyota Tundras — equipped with the automaker's new built-in-house infotainment systems.

The trial periods mean that human-assisted services including automatic collision notification, stolen vehicle location, vehicle service and health alerts, and emergency roadside assistance will be delivered free of charge for at least a decade, even if the vehicle changes owners. And it comes just a few months after GM began charging a mandatory one-time $1,500 subscription fee for its similar …

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Next-gen BMW X2 crossover takes queues from larger X4 and X6

BMW designers plan major changes to the next-generation X2 compact crossover, embracing a sloped roof and more raked rear hatch.

The coupe version of the X1, BMW's entry-level crossover that grows for 2023, is code-named U10 and will launch next year as a 2024 model. BMW has already stopped producing the current X2.

With a higher beltline, the latest X2 adopts styling similar to that of the larger X4 and X6. The front features a wider, deeper grille and smaller headlights, based on photos of the camouflaged crossover undergoing road tests.

Several variants have been spotted in Germany, including this range-topping M35i model on the Nürburgring with wide tires and big brakes visible behind the large wheels and quad exhaust pipes in the lower rear fascia. BMW's turbocharged 2.0-liter engine is likely under the hood, producing just over 300 hp.

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Stellantis cuts 3rd shift at Jeep Wagoneer, Ram plant

DETROIT — Stellantis is eliminating the third production shift at a Michigan plant that builds the Jeep Wagoneer and previous-generation Ram pickup.

The automaker said no permanent employees would be laid off as a result of the cutback, which it called an effort to "improve production efficiency" amid the ongoing industrywide microchip shortage.

Warren Truck Assembly has more than 5,500 employees and began running a three-shift schedule in January. It builds the Wagoneer and Grand Wagoneer, nameplates that rejoined the Jeep lineup in 2021, as well as the Ram Classic, which is scheduled to remain in production through next year.

Supplemental workers will see their hours cut, but "there are no layoffs associated with this action," a company spokesperson said.

"All full-time third-shift seniority employees will be redeployed to the other shifts," the company said in a statement. Stellantis said it notified the Michigan Department of Labor and the U…

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