Tesla EVs face temporary ban at site of key China leadership confab

SHANGHAI -- Tesla Inc. vehicles will be prohibited from entering the Chinese coastal district of Beidaihe, site of a secretive annual summer party leadership conclave, for at least two months starting on July 1, a local traffic police official told Reuters on Monday.

The decision by the Beidaihe authorities comes just weeks after Tesla EVs were also barred from driving on to some roads in the central city of Chengdu in early June, which coincided with a visit by Chinese President Xi Jinping to the city.

The official from the Beidaihe Traffic Police Brigade, who declined to give his name, did not provide a reason for the move but said it concerned "national affairs". An announcement will be made soon, the official said.

Tesla did not immediately respond to a request for comment.

Beidaihe, a beach resort east of Beijing, traditionally hosts a summer conclave of China's senior leaders where they discuss personnel moves and policy ideas behind closed …

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Tesla’s German recruitment drive hit by lower wages

Tesla might have to raise wages in Germany if it wants to achieve its goal of hiring thousands of additional workers for its factory near Berlin, according to the country’s leading automotive labor union.

IG Metall is getting reports from Tesla staff at the Gruenheide site who are complaining about inadequate or unequal wages, the union said Monday.

Skilled workers are getting around 20 percent less at the plant than at rival automakers with IG Metall wage agreements, the group added, citing its own analysis.

Tesla’s recruitment “is not progressing at the planned speed,” Birgit Dietze, a regional IG Metall chief, said. “Many people would be interested in switching to Tesla, but ultimately decide against it, also because they sometimes earn considerably more in their current positions at other automotive companies.”

Tesla expects to eventually employ 12,000 people at the Gruenheide site once full vehicle production is underway alongside a battery…

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Mazda, Subaru, Chevy-Buick and Nissan dealerships sell in four states

Two of the largest privately held dealership groups in the country, as well as two small companies — including a Canadian duo who bought their first U.S. store — grew their footprints with second-quarter acquisitions.

Here's a look at the deals involving import and domestic dealerships in New York, Arizona, Illinois and Colorado.

Two transactions involved an auto retailer ranked on Automotive News' top 150 dealership groups list.

Expanding West Herr Automotive Group bolstered its automaker portfolio with this month's purchase of a Mazda dealership, the group's first.

West Herr on June 13 bought Ontario Mazda in Canandaigua, N.Y., from Dan Richards. The dealership was renamed West Herr Mazda of Canandaigua.

Canandaigua is southeast of Rochester and west of Syracuse.

The Mazda store is West Herr's third dealership purchase in less than a month. West Herr bought a Honda store in Canandaigua on May 25 and a Chevrolet dealership in Roch…

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Transforming F&I for Automotive eCommerce

“No one will ever buy those online.” That used to be the conventional wisdom about clothes and home furnishings, yet eCommerce sales of both apparel and furniture increased by more than 20% in 2021.1 Consumers who used to feel strongly about seeing, touching, and trying out these items before purchase chose convenience (backed by reasonable return policies) and made the leap to online shopping.

For those who think financed vehicles are too big and complicated of an investment for eCommerce purchase, look at the residential real estate industry. Today, consumers are increasingly purchasing homes online, cross-state or even in-state, without seeing them in-person—and arranging their mortgage financing online as well.2

The reality is that consumer preferences are driving a major shift in automotive retail as well, toward eCommerce vehicle transactions. Research shows that 76% of today’s car buyers are open to buying completely online,3 although consumers still ne…

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Grid could use a jolt from lawmakers in preparation for EV influx, report says

Lawmakers must press for a more reliable and resilient electric grid to support the millions of electric vehicles slated to arrive on the nation's roads.

That's the conclusion of a report issued last week by a pair of nonprofit organizations that say policy and legislation are needed to provide and expand the possibilities offered by vehicle-to-grid technology, or V2G.

V2G tech shows emerging promise in offering a range of benefits and services to EV owners. It can also be used to store energy that feeds the grid and provides emergency power in times of need.

The 21-page report, titled "Advancing Vehicle to Grid Technology Adoption" and written by Securing America's Future Energy, or SAFE, and the Electrification Coalition, outlines the benefits of vehicle-to-grid and gives specific policy recommendations for federal, state and local governments.

SAFE and the Electrification Coalition are both focused on promoting and enabling electric transportat…

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How Geely built an auto empire in Europe

The old guard of European automakers has a new member, one focused on electrification, forward-looking technology and manufacturing efficiency.

No, it's not Tesla.

The automaker that is quietly disrupting Europe's auto market is Geely, the Chinese conglomerate founded by billionaire Eric Li that now owns or collaborates with more than a dozen European companies.

In doing so, Li, who started his career making refrigerator parts, has created a web of interdependent enterprises that form the foundation of a vertically integrated mobility business that engages with a variety of partners.

Zhejiang Geely Holding Group, headquartered in Hangzhou, China, is the umbrella company for an expanding empire with four business divisions: passenger vehicles, commercial vehicles, technology and mobility services. Revenue in 2021 was $47.2 billion, with 2.2 million vehicles sold, according to Geely.

Starting with the 2010 acquisition of Volvo Cars from For…

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Lawsuit: BMW kept equity after car totaled

A California man has sued BMW, claiming the automaker improperly kept nearly $25,000 in equity owed him after the M5 he leased in 2019 was totaled amid this year's hot used-vehicle market.

Alexander Russell's lawsuit in the U.S. Central District of California seeks class-action status for himself and other BMW lessees experiencing similar circumstances. It estimates the class could span more than 1,000 plaintiffs.

Russell took out a 36-month lease on a $115,816 2019 BMW M5 Competition from Sterling BMW in Newport Beach, Calif., in October 2019. On Feb. 14, 2022, he was involved in an auto accident that left the M5 a total loss.

The lease's residual value was $81,589.57, the lawsuit states. However, Russell's insurer, Safeco, set the vehicle's market value at $106,178.97. Russell's lawsuit alleged this would leave him with $24,589.40 in equity after the balance of the financing was repaid.

"However, despite numerous attempts by Plaintiff's attorn…

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Digital options add value for dealers as well as customers

Josh Baer, formerly the head of pricing and strategy for Santander Consumer USA, joined digital auto retail and finance platform leader AutoFi in May as its president.

Baer will run AutoFi's lender and enterprise segments. In a press release announcing Baer's hiring, the company said he will focus on speeding growth in those businesses with "transformative retail and financing experiences" that will help clients meet consumer preferences.

AutoFi's software allows consumers to browse dealership inventory and see financing offers tailored to the dealership's preferences.

Baer, 47, sat down with Staff Reporter John Huetter to talk about the growth of digital retailing in automotive lending. Here are edited excerpts.

Q: What is your perspective on where the digitization in the auto industry is right now?

A: I think it's largely talked about and acknowledged that the auto industry is changing. The pace of how quickly digital takes over — I thi…

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OBITUARY: Lou LaRiche

DETROIT — Longtime auto dealer Lou LaRiche died June 9 at age 90 in Northville, Mich. After working with his father and brothers at the family dealerships in Cleveland, LaRiche opened his first dealership in 1964, a Volkswagen franchise in Findlay, Ohio. In 1971, he opened Lou LaRiche Chevrolet in Plymouth, Mich. Over the years he acquired a Toyota-Subaru dealership, which was sold in 2021, and a Chevrolet-Cadillac dealership, both in Findlay.

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BrightDrop’s Rachad Youssef: Why GM and BrightDrop are poised to succeed (Episode 153)

GM is trying to capture a sizable slice of the delivery market with BrightDrop electric vans. BrightDrop Chief Product Officer Rachad Youssef hints at BrightDrop's plans for the future and the opportunity within the delivery and logistics market.

How do I subscribe?

Apple Podcasts: “Shift: A podcast about mobility” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe.

Spotify: "Shift: A podcast about mobility" can be streamed through Spotify on your desktop, tablet or mobile device. Click here to subscribe.

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SpaceX staffers allegedly fired for calling out Musk

A group of SpaceX employees was reportedly fired last week after writing an open letter decrying CEO Elon Musk as a frequent "embarrassment" to the company.

The letter to SpaceX President Gwynne Shotwell says recent actions by Musk, who is also CEO of Tesla Inc., and allegations of sexual harassment against him are harming the rocketry company's reputation.

"Elon's behavior in the public sphere is a frequent source of distraction and embarrassment for us, particularly in recent weeks," the letter says, according to The Verge.

"As our CEO and most prominent spokesperson, Elon is seen as the face of SpaceX — every tweet that Elon sends is a de facto public statement by the company. It is critical to make clear to our teams and to our potential talent pool that his messaging does not reflect our work, our mission or our values."

SpaceX fired "a number of employees involved" in writing the letter, according to an internal em…

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