West Coast port labor talks could further squeeze autos

North America's auto industry is already weary from two years of supply chain troubles and pipeline interruptions on parts and vehicles. But things could now get a bit worse.

The labor contract between the Pacific Maritime Association and the International Longshore and Warehouse Union expired July 1, and that could squeeze inbound inventories even tighter.

The contract covers 22,000 workers at 29 West Coast ports that stretch from San Diego to Bellingham, Wash. Negotiations are underway, and the ports — already under enormous pressure to process cargo amid COVID-19 — are still operating. But the union is working without a contract.

The association and union issued a joint statement ahead of the contract's expiration assuring onlookers that the ports would remain operational and that they both "understand the strategic importance of the ports to the local, regional and U.S. economies, and are mindful of the need to finalize a new co…

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Jaguar Land Rover dealership boosts sales during facility upgrade with competition

When Jaguar-Land Rover Norwood in Massachusetts was undergoing a facility upgrade for the British luxury automaker's sleeker, more modern Arch concept, the store's nearly 20 salespeople and managers were crammed into two trailers at the bottom of a hill.

Given the disruption during the store's face-lift — which took place from December 2019 through June 2020 and coincided with the worsening COVID-19 crisis — employee morale needed a major boost.

"I was like, 'OK, well, we've got to look at it the other way. Maybe there's an advantage here,' " said Eddy Allen, the store's general manager since 2018. "We get to see the customers the second they pull in. There's parking right here in front of us. You've got to look at the positives."

To promote a fun atmosphere and stir up some friendly competition, Allen created an objective-based game that pitted one trailer against the other.

"We always like to be competitive and have team games and everything l…

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Dealership groups turn to Venmo, Zelle to pay customers for used cars

The rising popularity of Zelle, Venmo and other digital payment platforms has leaders at some large dealership groups asking: Why not try using such technology to pay consumers for their used cars and trucks?

Zelle is being used at some of the nation's largest dealership groups. AutoNation Inc., Group 1 Automotive Inc. and Penske Automotive Group Inc. all offer it as an option vehicle sellers can select to receive payments. Meanwhile, Tampa, Fla.-based Morgan Automotive Group is testing Zelle this summer.

Consumers' interest in instant payment transfers conducted via apps has shot up in part because it means they could get their money more quickly. Assuming all goes smoothly, sellers can receive the payment for their vehicle within mere hours, dealership group executives told Automotive News.

"Usage definitely has grown over time," said Paige Goodwin, Group 1's director of digital retailing. "We are right now averaging between 400 and 450 Zelle transac…

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Musk says he is terminating $44 billion Twitter deal; litigation looms in Del.

Tesla Inc.  CEO Elon Musk said on Friday he was terminating his $44 billion deal for Twitter Inc., citing a material breach of multiple provisions of the agreement.

The announcement likely brings to an end a will-he-won't-he saga after the world's richest person clinched a deal for Twitter in April but then put the buyout on hold until the social media company proved that spam bots accounted for less than 5 percent of its total users.

Twitter Chairman Bret Taylor said on the micro-blogging platform that the company's board planned to pursue legal action in Delaware Court of Chancery to enforce the merger agreement.

"The Twitter Board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk...," he wrote.

“We are committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plan to pursue legal action to enforce the merger agreement,” Twitter said in a statement. “We are confident we…

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California dealer agrees to $2.5 million settlement of ringless voicemail lawsuit

A California dealership group and a former customer have agreed to a $2.5 million class-action settlement in a case surrounding ringless voicemails — a practice that is popular among auto dealers.

The allegations against Moss Bros. Auto Group, based in Riverside, Calif., claim the company continuously used ringless voicemails that amounted to "aggressive unsolicited marketing" that violated the Telephone Consumer Protection Act.

Ringless voicemails are phone calls that deliver messages directly to a consumer's voicemail and do not trigger a typical ring on an individual's phone. The plaintiff said the messages are "essentially the same as the method for transmitting text messages."

Due to their nature, ringless voicemails cannot be blocked in the same way other unsolicited calls can. Some car dealers have adopted the method as a way to telemarket to customers without being accused of violating the law.

The Telephone Consumer Protection Act prohi…

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Ford recalls 100,000 U.S. vehicles for fire risks, expands earlier recall

WASHINGTON -- Ford Motor Co. said on Friday it is issuing a new recall for 100,000 U.S. hybrid vehicles over fire risks, and expanding an earlier recall after a series of reported fires.

The new recall covers certain 2020 through 2022 model-year Ford Escape, Maverick and Lincoln Corsair vehicles with 2.5-liter hybrid/plug-in hybrid engines. Ford said in the event of an engine failure, significant quantities of engine oil and fuel vapor may be released that could accumulate near ignition sources, resulting in a potential under-hood fire.

Dealers will modify the "under engine shield and active grille shutter" to address safety concerns, Ford said. There are no accidents or injuries associated with this issue and customers do not need to park the vehicle outside.

Ford is separately expanding its recall of 2021 Ford Expedition and Lincoln Navigator SUVs for under-hood fire risks by another 27,000 U.S. vehicles after five additional fires were reported after …

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Wholesale used-vehicle prices fall in June, with smaller increases forecast for second half of 2022

Wholesale used-vehicle prices fell as anticipated in June, signaling the start of the seasonal summer cooldown in prices.

Cox Automotive said Friday that its Manheim Used Vehicle Value Index, which tracks vehicles sold at Manheim's U.S. auctions, fell 1.3 percent in June compared with May. The first half of 2022 was marked by cooling prices, save for May, the one month in which the index slightly increased.

Wholesale prices remained 9.7 percent higher in June than they were in the year-earlier period. Those numbers are adjusted for mix, mileage and seasonality. On a nonadjusted basis, the index fell 1.8 percent in June from its May level, with prices up 11 percent year over year.

"It is notable that the seasonal factor is now more favorable and likely will be throughout the summer months," Cox Automotive Chief Economist Jonathan Smoke said during Manheim's July quarterly conference call. "Prices are clearly retreating from their record highs this past w…

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DAILY DRIVE PODCAST: July 8, 2022

Japanese automakers express shock and sadness over former Prime Minister Shinzo Abe’s assassination. Tesla keeps the U.S. luxury crown. Self-driving tech firm Argo AI sheds about 150 workers. Plus, Association of Finance and Insurance Professionals (AFIP) Executive Director Shannon Robertson talks about the FTC’s recent push to toughen regulatory language around certain dealership F&I practices.

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Toyota Crown images reveal tall, crossover-inspired sedan, Japan patent filing shows

It is taller than expected, clearly crossover inspired and generally bulky but sporty, images of Toyota's forthcoming Crown sedan show.

Plans for a redesigned, hybrid edition of one of the most venerated nameplates in Japan were reported in April, but details were scarce on how the vehicle would be styled.

Images posted to Japan's government patent office in late June, first reported by Motor1.com, show a sedan with a variety of styling cues. The sloped rooftop indicates coupe or fastback, but the lifted height suggests crossover. A source told Automotive News in April that the new Crown will be a primary replacement for the axed Avalon sedan. The ride height and positioning, Car and Driver noted, seems reminiscent of the last-generation Subaru Outback sedan.

A countdown on Toyota's website indicates the 2022 Crown will premiere Friday, July 15. The latest Crown model will be sold in North America, Automotive News reported in April.

The new Crown'…

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ZF names Holger Klein as its next CEO

ZF Friedrichshafen has named Holger Klein, a current management board member focusing on China, as its next chairman and CEO, succeeding Wolf-Henning Scheider, who will leave the company at the start of 2023.

The world's third-largest auto supplier also said CFO Konstantin Sauer and Commercial Vehicles chief Wilhelm Rehn would leave the company. Those changes take effect at the end of 2022, the supplier said Friday in a statement.

Scheider, 60, joined ZF in 2018 from Mahle, where he was chairman and CEO. Before that he was head of the Automotive Technology business at Robert Bosch. He announced in March that he would be stepping down at the end of this year.

Klein, 52, joined ZF in 2014 from management consultancy McKinsey. He led the integration of TRW Automotive after ZF's purchase of the U.S. supplier in 2015, and in 2017 became head of the Car Chassis Technology Division.

Klein has been a member of ZF's management board since 2018, with…

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U.S. investigating fatal Tesla pedestrian crash in California

U.S. auto safety regulators have opened a special investigation into a fatal pedestrian crash in California involving a 2018 Tesla Model 3 where an advanced driver assistance system is suspected of use.

The National Highway Traffic Safety Administration (NHTSA) cited the California incident in an emailed update on Thursday but did not identify the specific crash.

The San Diego Union-Tribune reported June 7 that a Tesla went airborne and struck and killed a woman. NBC-7 in San Diego said a 39-year-old man was charged with vehicular manslaughter and driving under the influence of drugs in the incident.

NHTSA had previously opened 35 special crash investigations involving Tesla vehicles in which advanced driver assistance systems like Autopilot were suspected of being used since 2016.

NHTSA typically opens more than 100 special crash investigations annually into emerging technologies and other potential auto safety issues that have, for instance, pre…

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Toyota President Akio Toyoda commended Abe for his efforts in diplomacy, national security

TOKYO — Akio Toyoda praised former Prime Minister Shinzo Abe, assassinated Friday in a rare shooting on the street in Japan, for his leadership in trying to revive the country's economy.

Abe, Japan's longest-serving prime minster, was gunned down shortly before noon in the western prefecture of Nara as he was delivering a campaign speech on behalf of a candidate.

Japan's parliamentary elections are this Sunday.

Gun violence is extremely rare in Japan, where firearms are strictly regulated. The killing in broad daylight during a campaign stump stunned a nation that prides itself on safety.

Toyoda, in his role as chairman of the Japan Automobile Manufacturers Association, issued a statement expressing shock and sadness at the killing. Toyoda eulogized Abe for his efforts in diplomacy and national security, while commending his moves to shore up Japan's economy.

Toyoda, who also is president of Toyota Motor Corp., the nation's biggest automake…

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