New vehicle inventories up again, to 1.95 million

The U.S. new-vehicle inventory continued its steady climb in June as production recovers, according to data from Cox Automotive and the Automotive News Research & Data Center. The growing stockpile of unsold electric vehicles contributed to the overall rise.

Cox estimated unsold inventory at 1,953,512 vehicles, or a 53-day supply, up 75 percent from the same point a year ago, and up slightly from 1,928,619, where it stood a month earlier. Cox uses the sales rate from the preceding 30-day period to calculate days' supply.

There was a 103-day supply of EVs — making it the only segment other than ultraluxury and high-end luxury to top the century mark, according to Cox, though full-size cars were close, at 99 days. Stock levels of compact and midsize cars and crossovers had the tightest inventories. Cox also pointed out that inventory levels were densest among lower-priced vehicles, with stocks growing roughly as price increased. Toyota and Hon…

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Ford tops recalls in first half of 2023, NHTSA data shows

WASHINGTON — Ford Motor Co. had the most recalls of any automaker in the first half of 2023, NHTSA data shows.

Through June, Ford had issued 31 recalls affecting more than 4.1 million vehicles in the U.S. In the same six-month period in 2022, Ford also topped the list, with 44 recalls covering more than 6.7 million vehicles.

Overall, the number of recalls of equipment and a broad spectrum of vehicle types — light vehicles, heavy trucks and recreational vehicles among them — in the first half of this year, 515, was relatively flat compared with the 519 in the same period in 2022. However, the 16.7 million recalled vehicles and equipment in the first six months of 2023 were 11 percent fewer than those recalled in the same period last year.

Of the recalls Ford issued through June, the largest involved a callback of nearly 1.3 million older model Fusion and Lincoln MKZ vehicles for rupturing front brake hoses. The smallest recall — is…

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UAW bucks tradition as contract talks begin

DETROIT — One of the few certainties about this year's contract talks between the UAW and the Detroit 3 is that they will be far from routine.

With two months to go before the pacts expire, union leaders are bucking tradition and employing new tactics to win meaningful gains for members in what President Shawn Fain has called this generation's "defining moment."

The union's newly elected leader last week ditched a decades-old handshake tradition with company CEOs in favor of rank-and-file meet-and-greets. And he suggested that he won't follow the usual formula of picking a lead company but will instead target — and potentially strike — all three at once.

Across the bargaining table will be auto executives determined to avoid major labor cost increases so they can remain flexible and competitive amid a costly pivot to electric vehicles. But top union officials believe they're in the strongest position in decades to win back the conc…

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Walser ‘bootstrapped’ antifraud program

Walser Automotive Group instituted an antifraud training regimen for sales and finance personnel in 2021 after recognizing the opportunity remote deals offered scammers and finding itself fooled by fraudsters as well.

The training has led to the group spotting multiple scammers, according to Walser Senior Director of Finance Jennifer Parsons, who spearheaded the antifraud effort. She said it's benefited the group's lender relationships by giving institutions confidence in the deals Walser submits.

Parsons said Walser recognized fraud as an issue in mid-2020 after the COVID-19 pandemic prompted interest in car deals involving remote deliveries and fully digital interactions with customers. Walser, of Edina, Minn., ranks No. 28 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 23,346 new vehicles (and 29,237 used vehicles) in 2022.

"We saw the writing on the wall that, 'Hey, this is g…

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EV newcomer VinFast sees just 128 registrations in 5 months

Vietnamese automaker VinFast is facing consumer skepticism after launching its first electric vehicle in the U.S. earlier this year. Experian data shows the EV maker with just 128 new-vehicle registrations for its VF 8 crossover from January to May.

VinFast is selling the two-row VF 8 in California, the biggest EV market in the country, before expanding to other states. It has cut prices and offered lease deals to move two shiploads of VF 8s that have arrived from Vietnam.

But the newcomer faces big challenges.

The brand is largely unknown in the U.S., the VF 8 is priced above similar vehicles from Ford, Volkswagen and Hyundai, and Model Y price cuts make the Tesla crossover a more competitive deal, analysts say.

The base VF 8 starts at $47,200 with shipping and doesn't qualify for the federal tax incentive of up to $7,500. The Tesla Model Y starts at $51,380 and does qualify because it's built in North America.

The VF 8 has received mixe…

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Tesla’s Shanghai factory workers welcome bonus increase after record deliveries

Several workers at Tesla's Shanghai plant, its biggest manufacturing hub globally by output, said they had been awarded a large increase in their latest quarterly performance bonuses.

The workers said they welcomed the award after the EV maker had cut bonuses for many staff in the previous quarter.

Discontent at the plant emerged in April after several workers took to social media to complain about bonus cuts and appealed directly to founder Elon Musk, who said he would look into it.

Three workers told Reuters that they had received bonuses of 1.5 times of monthly base salary for the second quarter. This was higher than the quarterly bonuses - 1.2 times the monthly salary - that the majority of workers used to receive for average performance, the workers said.

The workers said several of their colleagues had received similar sized bonus increases but Reuters was unable to establish how many had been awarded a bonus hike. The plant, which makes M…

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DAILY DRIVE PODCAST: July 14, 2023

Online used-vehicle retailer Shift Technologies cuts staffing by a third. Sources say a former Porsche leader left to join EV specialist Rivian. Mazda contemplates making EVs in Mexico. Plus, why are so many young adults falling behind on their car payments?

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Zeigler Auto buys Kia-Nissan, GMC and Hyundai dealerships

Zeigler Auto Group purchased Elhart Automotive, of Holland, Mich., the company said, acquiring its first Kia dealership in a deal that expands the auto retailer further in the Midwest.

The deal also included franchises for Nissan, Hyundai and GMC, plus a collision shop and one used-only store. The acquisition grows the Kalamazoo, Mich., group in the state. The deal closed Wednesday.

"To us this isn't just another acquisition, this is an opportunity to continue a family tradition and carry on a legacy that the Elhart family started nearly six decades ago," Aaron Zeigler, the group's president, said in a statement.

Upgrades are slated for the new facilities, which span five buildings.

The Kia and Nissan stores are under one roof but have separate entrances. Also included in the deal is a Caliber Collision store, in a building that Elhart had leased. Zeigler Auto Group will continue to lease that building, Zeigler said.

He told Automotive Ne…

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JM Family leads investment round for computer vision AI startup

Auto retail industry stalwart JM Family Enterprises is the lead investor in a new venture capital financing for Skaivision, a developer of computer vision artificial intelligence for automotive dealerships.

JM Family declined to disclose the size of its investment, other than to note that it is in the "single-digit millions" range. The Deerfield Beach, Fla., company chose to invest in Skaivision because it saw great customer service potential in its technology, according to Pearl Percy, JM Family's chief corporate development officer.

"We liked the fact that they're using AI technology in a way to create better customer outcomes in the dealership that ultimately help our dealer partners be better at their job of providing excellent customer service," Percy told Automotive News.

Skaivision, founded in 2021, formally rolled out its Computer Vision AI technology in January — designing it to be an off-the-shelf tool that works with existing automotive deal…

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BYD says first-half net profit could more than triple

HONG KONG — Chinese electric vehicle giant BYD Co. forecast strong growth in six-month net profit on Friday, buoyed by robust vehicle sales and increased market share.

Net profit for the first six months of the year would rise as much as 225.4 percent to 11.7 billion yuan ($1.64 billion) from 3.6 billion yuan the year before, it said in a filing to the Shenzhen stock exchange.

The bottom end of its forecast range was 10.5 billion yuan, up 192.1 percent from the year before.

"The sales volume of the company's new energy vehicles has achieved strong growth from a high base in the same period last year, and continued to consolidate its leadership in new energy vehicle industry," BYD said in the filing.

BYD and U.S. rival Tesla set record deliveries of China-made vehicles in the second-quarter, according to industry data, as a fight for market share heats up.

BYD has proposed a $1 billion investment plan to build electric cars and batterie…

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Mazda Financial Services proves fruitful for consumers, dealers

In April 2020, amid a worldwide shutdown that halted auto manufacturing across the globe, Mazda Motor Corp. was evaluating whether it would be able to open its global manufacturing facilities — including its plant in Hiroshima, Japan, where the automaker is headquartered.

Mazda North America Operations, which was then importing all of its vehicles from overseas or Mexico, was working against the tide to launch a full suite of automotive finance and lease options in the U.S., backed by Toyota Motor Credit Corp.

"While it was a very challenging time to get systems aligned and dealers trained on the new processes, delaying the launch was never a consideration," Tom Donnelly, Mazda North America Operations CEO, told Automotive News. Mazda and Toyota were aligned in getting the program started, despite the hurdles, he said.

The program was a replacement for the existing partnership Mazda had with JPMorgan Chase that ran from 2009 to 20…

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Self-driving setbacks: AV companies bruised in California showdowns

<!--*/ */ /*-->*/ Self-driving setbacks: AV companies bruised in California showdowns

SAN FRANCISCO — Delays, defeat and dystopia.

Tuesday marked a sobering and perhaps seminal milepost in efforts to deploy and expand the presence of autonomous vehicles in California.

In the morning, the California Public Utilities Commission again delayed a vote on commercial robotaxi applications from Cruise and Waymo. Cruise wants to expand and Waymo wants to begin service in San Francisco.

In the afternoon, a state Senate subcommittee unanimously advanced legislation that would prohibit self-driving trucks from operating on the state's roads.

In between, Jeffrey Tumlin, director of transportation at the San Francisco Municipal Transit Agency, said current deployments on city streets have sown havoc. He warned that without cooperation from self-driving technology companies, self-driving taxis could cause "dystopic scenarios" related to traffic a…

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