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Dealership technology company Cars.com reported a smaller profit in the second quarter but gains in revenue and dealership customers as it navigated an ongoing vehicle inventory shortage and an economy affected by inflation and higher interest rates.

Chicago-based Cars.com on Wednesday reported net income of $5.5 million in the quarter ended June 30, down 7 percent from the same quarter a year earlier. Revenue increased 5 percent to $162.9 million, growth the company attributed largely to its dealership customer base and adoption of its digital software tools.

Revenue from automakers, including for advertising, fell 13 percent from the second quarter of 2021.

"Our platform strategy is working. Revenue is growing and diversifying, and margins are expanding. The business continues to prove resilient and sustainable," CEO Alex Vetter told analysts Wednesday. "Despite the challenges of the current environment, we have confidence in our a…

U.S. new-vehicle sales slump persists in July. General Motors tries to stop quick re-selling. Carvana is back at work in Illinois -- for now. Supercar brands are on a roll. Plus, Michigan Governor Gretchen Whitmer discusses the importance of the Chips and Science Act to industrial employers in her state, including GM, Ford, and Stellantis.

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A revamped proposal in the U.S. Senate to extend the tax credit for new electric vehicle purchases is less about consumers and more about sourcing, said Jennifer Safavian, CEO of industry trade group Autos Drive America.

The EV tax credit proposal unveiled last week by U.S. Democratic Sens. Chuck Schumer and Joe Manchin lifts the cap on the current $7,500 tax credit but adds increasingly stringent critical mineral and battery sourcing requirements for automakers, among other rules.

Safavian, whose group represents the U.S. operations of international automakers such as Hyundai, Toyota and Volkswagen, said the "clean vehicle" credit that is included in the latest iteration of the Democrats' reconciliation bill — now called the Inflation Reduction Act — is "no longer a credit for electric vehicles."

"It's really a sourcing credit," she said Tuesday during a hybrid version of the annual CAR Management Briefing Seminars in Traverse City, Mich. "It's not abou…

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Illinois’ biggest electric vehicle producer is complaining that pending federal legislation intended to incentivize people to buy electric cars and trucks actually would hurt it, putting it at a competitive disadvantage.

In a statement and an interview, James Chen, vice president of public policy for Rivian, said the pending climate change bill, the result of a political deal between Senate Majority Leader Chuck Schumer and Sen. Joe Manchin, D-W.Va., would give most breaks to other producers like Tesla and General Motors that have had longer to ramp up production or do some manufacturing overseas.

While Rivian applauds the intention of the pending bill, “as currently drafted, this legislation will pull the rug out from consumers considering purchase of an American-made electric vehicle,” said Chen, whose company employs roughly 6,000 workers at an assembly plant in downstate Normal. Though the company last week announced it was laying off 50 nonmanufacturing …

Reynold & Reynolds makes an acquisition to boost cybersecurity offerings. Public dealers show that inventory is still scarce. The world’s biggest auto supplier sees the chip shortage continuing well beyond 2022. Plus, Automotive News reporter Michael Martinez discusses the power dynamics on display at the UAW’s constitutional convention.

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An Illinois judge on Friday granted Carvana Co.'s request to halt the Illinois Secretary of State's latest revocation of its license to sell vehicles in the state.

The development comes days after the regulatory agency re-suspended Carvana's dealer license, a move aimed at prohibiting new sales by the online used-vehicle retailer. The agency at the time said it took the action because it found the company was not transferring vehicle titles within 20 days of sale or properly issuing temporary registrations.

But Carvana last week filed a motion for a temporary restraining order and injunctive relief against Secretary of State Jesse White, according to court records. That was ultimately granted by Judge Bonnie Wheaton of the 18th Judicial Circuit Court in DuPage County.

The agency is forbidden from "suspending or revoking" Carvana's certificates of authority and dealer plates, according to Wheaton's order.

"We sincerely appreciate the support from o…