Chip crisis stalls Tesla portfolio expansion

Tesla Inc. has ambitious plans to continue adding vehicles that upend the status quo and challenge legacy automakers, but it's running into some familiar problems: namely, an inability to deliver on CEO Elon Musk's production promises. Musk has said the ongoing global semiconductor shortage will be a factor in Tesla's ability to produce vehicles through the end of the year and has already delayed plans for the Cybertruck, the next-generation Roadster and a semitruck.

Beyond that, the company continues to toy with the idea of adding some sort of van as well as an inexpensive compact vehicle, but those tenuous plans are subject to change anytime Musk sends off a tweet.

Compact vehicle: Musk first floated the idea of a compact vehicle, priced at less than $25,000, at Tesla's Battery Day event last year. The price point would be achieved by the company's new battery technology, which aims to cut costs. Musk, on a call with Tesla employees, reportedly said the vehi…

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Cadillac Lyriq begins brand’s latest overhaul

DETROIT — Cadillac is setting a new design tone with the Lyriq, the electric vehicle that will be a launch pad toward its plan to eliminate internal combustion engines by 2030.

The crossover, due out early next year, kicks off the latest of many reinvention efforts that have had varying levels of success for the General Motors luxury brand in recent decades. But the conversion to all EVs is not the kind of transformation that can be easily unwound or brushed aside later if brand leaders' execution falls short.

Designers borrowed embellishments from Cadillac's heritage while leveraging the styling freedom created by the new battery architecture to give the Lyriq a low, wide stance. They added touches such as a lined jewelry drawer and a cantilever console inspired by grand balconies. Each component of the midsize crossover — and all future Cadillac EVs — is unique. It won't share parts with Chevrolet, Buick or GMC.

"We've got a whole strategy of how we w…

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CEO: VW of America profit best in decades

MUNICH — Volkswagen of America had its most profitable year in decades in 2020 and turned its first profit since 2012 in the U.S., thanks to a new lineup of more profitable crossovers and the knock-on effects of the pandemic, CEO Scott Keogh said.

The German automaker doesn't break out its performance by regions, but Keogh told journalists gathered here for the Munich auto show that the brand had a $700 million turnaround in 2020 from the previous year because of sales of the Atlas, Atlas Cross Sport and Tiguan crossovers.

"A few years ago, 16 percent of our mix came from SUVs, and now if you look at, year to date, 71 percent of our mix is coming from SUVs," Keogh said. "That's transformative because if you look at the profits that we make on the SUVs versus sedans, it's night and day."

Keogh also said VW dealers in the U.S. — who historically have had some of the thinnest profit margins in the industry — experienced an average 5…

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2 out of 3 EVs in the U.S. are Teslas

Tesla had nearly twice as many electric vehicles registered in the U.S. during the first seven months of 2021 as the rest of the industry combined — accounting for two out of every three EV registrations.

Tesla's U.S. registrations soared 75 percent through July to reach 168,021. Because Tesla doesn't report monthly sales results or sales by country, the registration data provides the most accurate view into its U.S. performance.

According to data gathered by Experian, EV registrations in the country more than doubled in the first seven months, outpacing the 30 percent rise in overall vehicle registrations.

Registrations of zero-emission vehicles climbed to 255,393 through July, up from 119,628 a year earlier, Experian reports. EVs accounted for 2.6 percent of total industry registrations, up from 1.6 percent last year.

The EV market is on the cusp of a growth spurt as the auto industry pivots en masse from combustion…

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DE&I advocates, retailers join forces on tough task of getting conversation rolling

The murder of George Floyd in police custody in May 2020 sparked discussion across the auto retail world about how to best address employment gaps of underrepresented groups in the industry.

There was confusion on how — and where — to start.

Many diversity, equity and inclusion programs that flourish in corporate environments tend to fall short of dealership expectations, said Fleming Ford, president of ESI Trends, an employment research and consulting firm in Clearwater, Fla., that works with more than 500 dealerships. Dealerships differ greatly from more "corporate" environments with fixed roles, schedules and benefits, Ford said.

"It's a struggle to bring people from outside to talk to our dealers because everyone's automatic response is, 'You don't get it,' " Ford said. "And there really wasn't anybody that we could find in automotive who specialized in this already."

This spring, ESI Trends joined forces with p…

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Bob Brockman’s competency for trial still undecided

Lawyers for Bob Brockman say the ailing former CEO of Reynolds and Reynolds Co. is unable to assist in his defense against federal tax evasion charges.

But prosecutors are skeptical about those claims, writing in court filings that despite a diagnosis indicative of Parkinson's disease or Lewy body dementia, Brockman continued at the helm of the privately held dealership management system giant until after he was criminally charged nearly a year ago.

The case against Brockman, 80, is on the cusp of determining whether he is competent to stand trial. A federal judge on Friday, Sept. 10, delayed a competency hearing that had been scheduled to begin Monday, Sept. 13, instead scheduling a status conference for Monday to discuss details of the hearing.

"The judge's overriding burden is to make sure that the system gets a fair trial, which means we don't prosecute the sick. But if he can assist in his own defense and he can participate in the trial and he know…

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Tesla raises the price of its Model Y performance car in China

Tesla Inc. is raising the price of its Model Y Performance car in China by 10,000 yuan ($1,552), effective immediately, the company announced on social media service Weibo Saturday.

The vehicle’s new price will be 387,900 yuan ($60,200), according to the statement.  

Elon Musk’s electric-vehicle maker reported a rebound in domestic China shipments in August, a bright spot after a torrid few months for the company in one of its key markets that came as the country’s overall auto sales slumped. The company shipped 12,885 units, an increase of almost 50 percent from July, when deliveries plunged 69 percent. 

Exports from the company’s Shanghai factory also jumped to 31,379 vehicles, with most destined for Europe, data from China’s Passenger Car Association showed Wednesday.

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Toyota, Honda oppose U.S. House electric vehicle tax plan

WASHINGTON -- Toyota Motor Corp. and Honda Motor Co. on Saturday sharply criticized a proposal by Democrats in the U.S. House of Representatives to give union-made electric vehicles in the United States an additional $4,500 tax incentive.

Toyota said in a statement that the plan unveiled late Friday discriminates "against American autoworkers based on their choice not to unionize."

The bill, set to be voted on Tuesday by the Democratic-led House Ways and Means Committee, would benefit Detroit's three automakers, which have union-represented auto plants.

In a statement, Honda called the bill "unfair" and said it "discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union. ... The Honda production associates in Alabama, Indiana and Ohio who will build our EVs deserve fair and equal treatment by Congress."

The proposal, estimated to cost $33 billion to $34 billion over 10 years, would…

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Sony, Elektrobit reimagine in-cabin user experience

Short of Apple's secretive foray into automated and electric vehicles, perhaps the most interesting ongoing mystery in the automotive industry revolves around Sony Group Corp. and its Vision-S prototype.

The Japanese entertainment and consumer electronics behemoth dropped the surprise of CES in January 2020, unveiling an all- electric sedan that made public its ambitions in the automotive space. But more than a year and a half later, exactly what Sony intends to do with the Vision-S remains unclear.

Izumi Kawanishi, an executive vice president at Sony, remains tight-lipped on specific plans for the vehicle. He chuckles at attempts to unearth fresh insights.

"We don't have a concrete plan at this time because our current phase is a research and development phase," he told Automotive News. "We have to investigate what is our purpose in contributing to mobility service. That is our basic idea, and we have to continue the R&D phase."

Of course ,…

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How buying truck service center helped Calif. dealer diversify, grow

When Melvin Cooper heard that a distressed service center for medium- and heavy-duty trucks was up for sale in 2014 just minutes from his growing Chevrolet dealership, he jumped on the opportunity.

Buying the business, now known as National Truck Sales & Service, has allowed Cooper to free up service department capacity at the Chevrolet store. The operation, which is now profitable, also has helped diversify his growing automotive business.

Cooper, dealer operator of Watsonville Auto Group in California, was familiar with servicing medium- and heavy-duty trucks at Chevrolet of Watsonville, which he acquired in 2008. Cooper had an established relationship with large fleet customers, including the local beer distributor, a school district and several agricultural customers.

The only problem? The Chevrolet dealership, which had two service shops, including one devoted to commercial trucks, was running out of room. So Cooper bought the 15,000-square-foo…

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GM takes rapid path to retool Canadian plants

In a bid to get important products to the market faster, General Motors accelerated the timetables for billion-dollar investments at two Canadian assembly plants, CAMI Assembly and Oshawa Assembly.

But to do so, GM has taken unusual steps to get the plants up and running sooner.

In July, GM confirmed that German supplier Kuka will handle initial production of GM's new EV600 electric commercial van at a plant in Michigan in an effort to fulfill an order from FedEx. GM will then end production of the Chevrolet Equinox at CAMI, in Ingersoll, Ontario, in April and begin full EV600 production there in November 2022 — about a year earlier than originally planned.

Kuka is expected to build fewer than 500 EV600 models by hand starting in October. After that, Kuka, a tooling producer that supplies assembly equipment to GM, will ship the equipment needed to make the EV600 to CAMI.

Doing that will "dramatically reduce the time needed to convert" the plant, …

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House committee proposes tax credits to support affordable, union-made EVs

WASHINGTON —The House Ways and Means Committee on Friday released its proposal for consumer tax credits in the $3.5 trillion budget reconciliation bill that would support affordable electric vehicles, domestic battery production and union jobs.

The committee's legislative proposal — led by U.S. Rep. Dan Kildee, D-Mich. — would boost EV tax credits for consumers to as much as $12,500 for EVs assembled by union workers with domestically manufactured batteries.

The fully refundable credit would be transferable at the point of sale and would phase out over 10 years.

In the first five years, the base credit would be $7,500 — the maximum tax credit currently available — with an additional bonus credit of $4,500 for vehicles made in a factory represented by a labor union and another $500 bonus if the automaker has a domestic supply for batteries.

In the second five-year period, only EVs assembled in the U.S. are eligible for the $7,500 base credit.

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