GM hit with $103 million U.S. jury verdict in engine flaw class action

A federal court jury in California has ordered General Motors to pay $102.6 million to a class of consumers after finding that it hid an engine defect that caused problems including stalling and premature breakdown in tens of thousands of SUVs and trucks.

The verdict was handed down Tuesday following a rare class action trial in U.S. District Court in San Francisco, lawyers for the plaintiffs announced.

The winning class includes owners and lessees of SUVs and trucks sold from 2011-2014 in California, North Carolina and Idaho that contained the company's Generation IV Vortec 5300 LC9 engine. Each of the roughly 38,000 class members would get $2,700 if the verdict survives appeal.

Christopher Stombaugh of DiCello Levitt, lead lawyer for the plaintiffs, said in a statement he was "thankful for the courage of the jury, which did the right thing in holding GM responsible for its deceit and half-hearted efforts to address its problems."

GM said in a st…

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Prepare for every possible purchase path

Consumer expectations have evolved. Be ready for any consumer, any deal, anywhere with this guide. While purchase path possibilities are infinite, we focus on four shoppers and their journeys: Rick: Consistent Consumer Experience Julian: Right Shopper, Right Deal Tara: Buying Signals Lily: 100% eCommerce

Prepare for individualized purchase scenarios, discovering the tools, technologies, and processes you'll need for every unique path to vehicle purchase.

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How to find the right autonomy partner

Advancing autonomy is not autonomous. It’s much easier when you team up with a reliable technology partner that understands the end-to-end process. When you’re pushing into new realms of technology, it’s not always clear how to identify the right partner, one that checks all of the boxes. For example: How many miles of proven experience do they have? How big is their partner network, and who’s in it? Are they reliant on VC funding or do they have a track record of reinvesting in themselves?

These are just a few critical questions that automotive OEMs need to ask as they’re vetting autonomy partners. For more guidance, download our white paper.

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Nissan Ariya EV finally arriving in U.S. … but without tax credits

When Nissan's long-awaited second all-electric model, the Ariya, rolls into stores by early next month, it will have to do so without the federal support that has powered EV adoption in the U.S. for more than a decade.

The Inflation Reduction Act alters the eligibility rules for a long-standing $7,500 EV tax credit. Designed to incentivize domestic EV production and reduce reliance on foreign supply chains, automakers must now assemble EVs and plug-in hybrids in North America to qualify for the credit.

That means the Japan-made Ariya won't be eligible for the federal incentive, potentially putting its starting price of $44,485 at a competitive disadvantage.

Aditya Jairaj, Nissan's director of U.S. EV marketing and sales strategy, said the loss of the credit is unlikely to have a near-term effect on sales as few vehicles on the market now qualify under the new rules.

"But there are some changes or adjustments we need to look at in the longer term,…

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LMP Automotive Holdings’ sale of 6 dealerships terminated

LMP Automotive Holdings Inc.'s pending sale of six dealerships across Florida and West Virginia has been terminated in the latest setback for the small auto retailer.

LMP said in a news release late Wednesday that the buyer, revealed as Atlantic Coast Automotive Group in an August regulatory filing, terminated the dealership and real estate asset sale agreements. It was not clear why the deal was terminated or when.

"I'm unable to provide comments at this time," Ali Ahmed of Atlantic Coast Automotive wrote in an email to Automotive News.

LMP's stock, which is now traded over the counter, plunged 32 percent to $6.20 a share around 11:30 a.m. Thursday.

In the regulatory filing, LMP said it entered into asset purchase agreements with Atlantic Coast Automotive on Aug. 5 for its Florida Kia dealerships in Port Charlotte and Cape Coral, plus Kia and Subaru stores in Mount Hope, W.Va., a Chevrolet dealership in Oak Hill, W.Va., and a Buick-GMC store in…

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BMW declares that luxury EVs are white hot

Demand for high-performance, high-sticker electric vehicles is white hot in the U.S.

Consider this: BMW's flagship i7 electric sedan won't arrive at U.S. stores until mid-November. But advance orders for the nearly $120,000 vehicle already account for more than half of next year's U.S. allocations, BMW of North America sales boss Shaun Bugbee told Automotive News.

Meanwhile, demand for BMW electric models already on the market — the i4 compact sedan and iX midsize crossover — helped lift the brand's third-quarter sales by 3.2 percent over the prior year. BMW has sold 6,900 EVs in the U.S. this year, including more than 4,300 in the third quarter.

Bugbee said BMW dealers have pre-sold the i4 M50 into the second quarter of next year.

"We see very strong demand for EVs," Bugbee said. "Our gate is really our limitation on volume right now in terms of supply."

BMW is betting on a fleet of battery-powered vehicles…

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Faraday’s executive chair exits EV company, citing death threats

Faraday Future Intelligent Electric Inc.’s executive chair resigned following what the company said were death threats and baseless allegations against certain directors, accelerating a planned transition of the troubled electric-vehicle startup’s leadership.

Two additional board members stepped down this week along with Executive Chair Susan Swenson, the company said Thursday in a securities filing. Adam He was appointed to serve as interim non-executive chair.

The startup has been rocked by a fight over control, which veered into the morbid last month when Faraday reported that criticism of current management has escalated to include “threats of physical violence and even death threats.”

That contributed to a shakeup under which Swenson was to have left once the company received certain funding as part of a wider overhaul giving more control to a group of dissident shareholders who own about 36 percent of the company.

But Faraday said the thre…

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Volvo sales gain steam in Sept.

Volvo Car Corp.’s China sales spiked 53 percent to 14,845 in September, extending a rebound that began in June.

The latest sales volume was composed of 13,788 gasoline vehicles, 832 plug-in hybrids and 225 full electric vehicles, according to data the Swedish brand released this week.

In the first nine months, Volvo delivered 117,744 vehicles in China, a drop of 11 percent from a year earlier. 

The tally consists of 109,493 gasoline vehicles, 6,306 plug-in hybrids and 1,945 EVs. 

Globally, sales at Volvo rose 4.5 percent to 49,536 last month, with year-to-date volume slipping 19 percent to 428,987. 

Other global automakers haven’t disclosed sales for September because of China's National Day holiday, which runs from October 1 to October 7.

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Honda brand sales exec Michael Kistemaker departs for Ken Garff Automotive

Michael Kistemaker left American Honda Motor Co. nearly two months ago as assistant vice president of sales for Honda.

A Honda spokesperson confirmed Kistemaker's departure but did not provide information on who will replace him as the brand tries to build back lost momentum.

Kistemaker is now vice president of OEM relations and strategy for Ken Garff Automotive Group, a family-owned dealership group based in Salt Lake City that operates stores in eight states, including three Honda dealerships.

A Garff spokesperson confirmed that Kistemaker joined the group in August.

Kistemaker, in an emailed statement, said he will help Garff, with 60 plus stores and 22 brands, navigate the auto industry's transition over the next decade, including changing sales models and the rollout of EVs.

“I had a great, 22-year career with Honda and I have always had a relationship with Brett Hopkins, CEO of Ken Garff Automotive Group," Kistemaker told Automot…

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GM Financial to pay more than $3.5M to settle service members’ claims over repos, lease terminations

WASHINGTON -- GM Financial, the captive finance unit of General Motors, agreed to pay over $3.5 million to resolve allegations it violated a U.S. federal law that provides certain benefits and protections to eligible service members, the Justice Department said.

GM Financial was accused of violating the Servicemembers Civil Relief Act by illegally repossessing 71 service members' vehicles and by improperly denying or mishandling over 1,000 vehicle lease termination requests, the Justice Department said in a statement on Wednesday.

GM Financial did not immediately respond to a request for comment. It is a wholly owned subsidiary of General Motors, and provides financing for vehicle sales and leases. In 2021, GM Financial had revenue exceeding $13 billion.

In a complaint filed in U.S. District Court in Dallas, the department alleged that since 2015 GM Financial had improperly denied servicemembers' lease termination requests, charged servicemembers imprope…

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Ford raises price of entry-level F-150 Lightning for 2nd time in two months

DETROIT — Ford Motor Co. has raised the starting price of its entry-level F-150 Lightning Pro trim for the second time in less than two months as it struggles with rising material costs and supply chain issues.

A spokesman on Wednesday confirmed the Pro trim on the electric vehicle now starts at $53,769, including a $1,795 shipping fee. That's up from the $48,769 price, including shipping, that Ford announced in August as part of across-the-board hikes for all 2023 model year trims.

The spokesman said the Pro trim was the only model to see an additional increase for now, citing "ongoing supply chain constraints and rising material costs." He said Ford would continue to monitor pricing.

The cheapest Lightning now costs more than $10,000 over what was advertised at the truck's reveal about a year and a half ago.

Ford at the time said it was able to price the Lightning so aggressively because of scale and by sharing some common parts with its existin…

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GM appoints Cruise executive as HR chief

DETROIT — General Motors' human resources chief is retiring and being replaced by an executive from the automaker's Cruise autonomous driving subsidiary.

Arden Hoffman, 51, a former HR executive at Google and Dropbox hired by Cruise in 2019, will become GM's chief people officer on Jan. 1, the company said Wednesday. She will succeed Kim Brycz, who has been with GM for nearly 40 years and has been its head of HR since 2018.

Brycz's departure is not related to backlash over efforts to resume having salaried employees work from company offices more frequently, a spokesman said.

"When Kim shared her plans to retire several months ago, I reflected on the significant contributions she has made to GM over the years," CEO Mary Barra said in a statement. "She has built a world-class HR organization that has been instrumental to our ongoing transformation. Arden's deep background leading the HR function for fast-growing global tech companies makes her the right l…

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