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TOKYO -- Straining under a pile of back orders, Honda says its top priority is getting cars to U.S. customers rather than worrying about recession talk or more stringent electric vehicle credits.

Many uncertainties still loom over the auto sector, Honda Chief Financial Officer Kohei Takeuchi said.

Risks include rising inflation and interest rates in the U.S., and a semiconductor shortage that Honda predicts will run into early 2023. Meanwhile, tougher North American manufacturing requirements for a new EV tax credit mean most of today's EVs won't be eligible, he said.

Takeuchi said higher inflation and interest rates will "eventually have an impact on the economy." Honda has 48,300 vehicles in the U.S. market, and its first move will be filling orders. "Rather than taking immediate measures with a recession in mind, we have to focus on delivering our vehicles to customers," Takeuchi said.

Honda has been raising U.S. prices in line with inflation. …

DETROIT — General Motors has begun requiring all Buick and GMC buyers to pay $1,500 for a subscription service that previously had been optional.

The mandatory upcharge provides a three-year subscription to OnStar, GM's long-standing in-vehicle safety, security and connectivity service. It's included in the manufacturer's suggested retail price of all Buicks and GMCs ordered starting June 2 and all Cadillac Escalades ordered starting July 18.

The $1,500 plan is listed on the window sticker as a separate line item along with other additions to the vehicle's standard equipment, but there is no option to remove it or order the vehicle without it. Customers who decline to activate their OnStar service will not be given a price reduction, GM said.

The Detroit Free Press reported the compulsory OnStar charge earlier Tuesday.

"By including this plan as standard equipment on the vehicle, it helps to provide a more seamless onboarding experience and more c…

Kia Motors America is recalling 257,998 Optima midsize sedans manufactured at its Georgia plant after the discovery of insufficient adhesive on headliner plates.

The recall affects 2012-13 Optima sedans built from Aug. 12, 2011, to Sept. 27, 2013. A potentially insufficient amount of adhesive was applied to the headliner plates, which could lead to the plate detaching during side airbag deployment and injuring occupants.

Headliner plates are used for structural support in the roof of vehicles. The problem was identified in a review of vehicle production and supplier records, a NHTSA report said.

Kia America said in a statement that one injury has been reported, but no fatalities, crashes or fires.

All affected vehicles are within the U.S. or U.S. territories.

The remedy is an application of industrial-grade adhesive tape over the headliner plates. The same tape was applied to Optima models during assembly from…

LMP Automotive Holdings' board has unanimously backed a plan to liquidate and dissolve the company. Ford increases the price of the F-150 Lightning. Mazda also plans to raise prices to make up for lost production. Plus, a look at why industry forecasting is getting tougher.

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Giving word-of-mouth referrals a run for their money, online reviews have become the trusted source for customers to turn to in making automotive purchase decisions.

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In the automotive industry, ECAD-MCAD co-design has long been recognized as a potential enabler to increasing productivity and ensuring a robust design. Until now, the electrical and mechanical domains mostly exchanged design data through email, spreadsheets, and XML files. With modern CAD tools, designers can directly synchronize their data. This ensures data integrity and more efficient, effective collaboration on critical designs between domains.

Electronic device manufacturer Foxconn has signed a contract to build autonomous electric tractors for a California startup.

Foxconn, which assembles iPhones, iPads and Kindles, will build the vehicle for Monarch Tractor of Livermore, Calif., the companies said Tuesday.

Monarch has raised $81 million in funding. Its investors include VST Tillers, CNH Industrial, Musashi Seimitsu Industry, Astanor Ventures, At One Ventures, Trimble Ventures and MUUS.

Foxconn will build the tractor at the former General Motors plant in Lordstown, Ohio. It acquired the plant in May for $230 million from the struggling Lordstown Motors electric pickup startup. Monarch expects production to begin in the first quarter of 2023.

"Creating the industry's most advanced tractor demands a manufacturing partner with the experience to quickly scale and execute with precision," Praveen Penmetsa, CEO of Monarch Tractor, said in a news release.

The partnership continues a t…

Lucid Motors will offer a new Stealth Look package for its Air sedan with changes to 35 components for a sportier, assertive exterior compared with the elegant, luxurious design of other models.

"From its inception, Lucid Air was designed for two distinct looks that reflect the duality of its personality: standard Platinum Look, which highlights its luxurious nature; and now Stealth Look, which is simultaneously assertive, yet under the radar," said Derek Jenkins, Lucid Group senior vice president of design and brand.

The company said the Stealth Look Air will make its public debut Aug. 17 during Monterey Car Week.

The exterior package costs $6,000 and can be configured online in three of the Air's trims: the top Grand Touring Performance trim, the high-level Grand Touring and the mid-level Touring. The base Air Pure trim won't immediately get the option.

The black-on-black version of the Air with the Stealth Look is the most aggressive of the ne…

The U.S. Senate approves expanded EV tax credits as part of the Inflation Reduction Act. U.S. House lawmakers try to jump-start legislation for self-driving cars. Embattled ex-Reynolds and Reynolds CEO Robert Brockman dies at age 81. Plus, Ample's Levi Tillemann talks with Automotive News' Pete Bigelow about what the Inflation Reduction Act might mean for the push to get more EVs on the road.

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Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

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