Automaker and chip CEOs were to meet ahead of Biden signing microchip legislation

WASHINGTON - The heads of chipmakers GlobalFoundries and Applied Materials and carmakers Ford Motor and General Motors were to meet at a closed-door summit with U.S. government officials on Monday to discuss administration plans to invest in semiconductors.

On Tuesday, President Joe Biden will sign legislation to subsidize the U.S. semiconductor industry and boost efforts to make the United States more competitive with China. The bill provides $52 billion in subsidies for chip manufacturing and research. It also includes an investment tax credit for chip plants estimated to be worth $24 billion.

GlobalFoundries CEO Thomas Caulfield said in a statement the chips legislation "protects U.S. economic, supply chain and national security by accelerating semiconductor manufacturing on American soil."

The legislation aims to alleviate a persistent shortage that has affected supplies of goods from cars and weapons to washing machines and vide…

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LMP board recommends liquidation plan; company set to sell 6 dealerships

LMP Automotive Holdings Inc.'s board of directors has unanimously recommended that stockholders approve a proposed plan to liquidate and dissolve the company, while the publicly traded auto retailer has agreed to sell what looks like most of its franchised dealerships.

LMP said Monday that it has entered into dealership and real estate asset sale agreements for its Kia dealerships in Port Charlotte, Fla., and Cape Coral, Fla., as well as Kia and Subaru stores in Mount Hope, W.Va., a Chevrolet dealership in Oak Hill, W.Va., and a Buick-GMC store in Beckley, W.Va.

It's not clear if LMP is selling the six dealerships in one transaction or in multiple deals. LMP said closing is expected in October.

The retailer said its board recommends that the company's stockholders "vote to approve a proposed plan of liquidation of LMP's assets and the dissolution of the company" at its next special meeting of stockholders. LMP did not indicate when the meeting is to take…

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Bob Brockman grew DMS giant Reynolds; faced tax evasion charge

Bob Brockman, the former CEO of dealership management system giant Reynolds and Reynolds Co. who was indicted in what federal prosecutors called the largest-ever tax case against an individual in U.S. history, has died at 81.

Brockman was a self-taught computer programmer who started dealership software company Universal Computer Systems Inc. in his living room in 1970, before taking the helm of Reynolds and Reynolds after a merger with UCS in 2006.

But his rise in the auto retailing software world started to unravel in October 2020, when he was charged with tax evasion, wire fraud and other crimes in what prosecutors say was a scheme lasting two decades to evade taxes on $2 billion in income.

He stepped down as chairman and CEO of Reynolds in November 2020, shortly before his attorneys argued in federal court that Brockman had dementia that left him incompetent to stand trial. A federal judge in May ultimately found Brockman to be competent, moving for…

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Unity game software to power new Mercedes-Benz infotainment domain

Mobile games and real-time 3D platform developer Unity Technologies will power the infotainment domain of the new Mercedes-Benz operating system.

The infotainment domain is an essential component of the German automaker's plan to broaden its digital offerings. Mercedes' current infotainment platform, MBUX, was co-developed by Daimler and Luxoft, a unit of DXC Technology.

The new Mercedes-Benz Operating System, or MB.OS, will debut in 2024 model-year vehicles and enhance four central domains — infotainment, automated driving, body and comfort, and powertrain, the automaker said Monday.

"With our own operating system, we want to achieve three key things: to shape the user interface according to a luxury brand, to create a bidirectional communication with the customer and to integrate the digital lifestyle of the customer into the vehicle domain," Magnus Östberg, chief software officer for Mercedes-Benz, told Automotive News in an email.

Unity is pro…

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House lawmakers trying to jump-start self-driving legislative push

WASHINGTON - Two members of the U.S. House of Representatives are launching a bipartisan effort to help revive legislative efforts to boost self-driving vehicles.

Representatives Robert Latta, a Republican, and Debbie Dingell, a Democrat, told Reuters in a joint interview they are unveiling the bipartisan Congressional Autonomous Vehicle Caucus to help educate fellow lawmakers on the importance of self-driving vehicles as they work to revive legislation.

"We're working hard to find that common ground to get something that we can pass," Dingell said, adding the United States must update motor vehicle safety standards written decades ago assuming human drivers are in control and "cannot afford to have a patchwork of laws either across 50 states."

Last month, the National Highway Traffic Safety Administration said General Motors and Ford Motor had asked for exemptions to deploy up to 2,500 self-driving vehicles annually without human c…

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UVeye scanners uncover auto wear and tear in service lane

What started out in 2016 as a security technology that scanned vehicles for weapons and explosives at international border checkpoints has been transformed into what some in the auto industry are calling "game-changing" technology for dealers and manufacturers.

Companies such as General Motors, Volvo, Toyota, Hyundai and CarMax — plus investors not affiliated with the auto industry — are lining up to invest in UVeye because they see the benefit for their business.

CEO Amir Hever, who developed the technology and co-founded the company, originally sought to supply the security industry with an alternative to mirrors on long handles used to inspect vehicle undercarriages for explosives. He created a camera-based, high-speed system equipped with artificial intelligence and machine-learning technologies.

At the checkpoints, the founders noticed that as more vehicles were scanned, the more the technology detected wear and tear on under…

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Former Ford exec Matt VanDyke on jump to Shift Digital

After working to develop digital retailing at Ford Motor Co., longtime automaker executive Matt VanDyke is now looking to accelerate online sales throughout the broader auto industry.

In June, VanDyke left Ford after 14 years, primarily in marketing roles, to become president of Shift Digital.

VanDyke, who was CEO of the FordDirect joint venture with franchised dealers, said the time was right to make the jump to the digital marketing vendor based in Birmingham, Mich., outside Detroit. He said that in addition to his marketing efforts, he had worked to advance Ford's digital retailing going back a decade.

That was before the pandemic accelerated the use of technology for both brands and dealerships. Now, VanDyke said, he has a chance to work on a bigger scale with more dealerships and brands and make progress on a "really unique opportunity" to improve the customer experience.

VanDyke, 50, spoke with Staff Reporter Li…

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The Intersection 8-7-22

UAW convention unusually full of messy surprises

Something noteworthy happened at the UAW convention last month: surprises.

And while they weren't all great, the fact that they happened at all during what has for decades been a giant rubber-stamp party shows that the Detroit-based union is now at least pointed in the right direction — even if the road ahead looks bumpy and full of curves.

Perhaps the biggest surprise came when delegates agreed to adopt a runoff process for elected officers to ensure that any potential victor must capture a majority of votes for the office they seek — as we had suggested in February when a federal judge ordered the union to change its constitution and election system. In doing so, delegates eschewed a proposal that would have adopted so-called ranked choice balloting in favor of the more costly runoff process.

We continue to believe that head-to-head runoffs of the top two vote-getters for each office will ensure…

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Highlights from the latest Daily Drive podcasts, August 1-4

Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, August 1-4, hosted by Jamie Butters with Kellen Walker.

"It was sort of the establishment flexing its power and showing them, 'Hey, we still have plenty of influence here.' --Michael Martinez, Automotive News reporter, on the UAW constitutional convention reversing course on strike pay after anti-establishment delegates had gotten it increased

"We are a symbol of the American dream, and that comes through in who's attracted to this brand."--Melissa Grady, Cadillac chief marketing officer, on the brand's place in society as it pivots to an all-EV lineup

"Overall sales were disappointing yet again; we just didn't have the inventory to sell. But Ford was the bright spot. … I think the lesson is: If you have vehicles, you will sell them. But not everybody does."--Michelle Krebs, executive analyst at Cox Automotive, on July light-vehicle sales in the U.S.

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How dealerships can keep customers coming back for service

In 2018, Jessica Lee was a consultant working with political campaigns to reach potential voters via text messages when she had an idea about a new way for companies to connect with their customers.

She was approached by a general manager at a dealership who was eager for more customers. The dealership launched a lease-retention campaign Lee designed that relied solely on texts.

"From that one day they closed 12 deals," Lee says.

Seeing the potential in this approach, Lee raised money to build her idea into a dealership-focused solution. She launched Bitesize in 2021; it currently has 30 dealership clients in the U.S.

Lee says Bitesize can be particularly helpful in addressing a long-standing challenge — getting customers into the dealership service department. For most people, keeping track of regular maintenance isn't a priority. Some customers, Lee jokes, "will only think to bring their car in when it's actively…

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Warren Henry launches tech apprenticeships

As the technician shortage grinds on, more and more dealers are partnering with local entities to fill their own pipelines. The latest: South Florida's Warren Henry Auto Group.

The company, which sells domestic brands as well as luxury imports such as Jaguar, Land Rover, Audi, Bugatti and Lamborghini, has established a service technician apprenticeship program with Miami Dade College. As many as 20 students per semester can be enrolled.

Students accepted into the program get free tuition, health insurance and books. The two-year program, which began this summer, consists of classroom learning followed by real-world experience at a Warren Henry Jaguar-Land Rover store. There, apprentices are paired with mentors while they learn how to work in the service department. They also get a paycheck.

After completing the program, apprentices earn a certificate and are offered a job at one of Warren Henry's six locations. Currently, the group h…

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Dealerships need a plan to turn students into techs

We're hearing a lot about the number of unfilled jobs in the automotive profession. But as a high school vocational teacher — collision repair, specifically — I see a major issue.

There's a gap between the high school exit door and the dealership entry door. In other words, kids come out of a high school program, and there's no continuity on how to enter the work force.

I know that sounds bad, like the high school doesn't prepare them. But I'm talking about, how do you land a job and advance? How do you get to that end game? It's all situational, and it's all attitudinal. A kid coming into the profession has to prove their worth, so to speak. There's no written plan.

My program is very structured. The body shop business wants a student who is trained and has a strong work ethic. I get 16-, 17- and 18-year-olds in my program. And even an 18-year-old can still be working on building a strong work ethic.

They leave a prog…

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