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Renault CEO Luca de Meo said the effects of the global semiconductor shortage will be felt through next year, a warning that doesn’t bode well for a recovery in auto production.

Major suppliers have cautioned Renault that the shortage is "a structural thing that will be with us through 2022," de Meo said Wednesday on the sidelines of a French parliamentary hearing. "There will be tension in the system even if production capacity is improving," he said.

"We have managed in the first half, but of course we have lost volumes," de Meo said. What is frustrating for the industry is that visibility on supplies "changes every week," he said.

De Meo's comments indicate the supply crunch, which many automakers including Renault expected to peak during the second quarter, could continue to weigh on auto output for longer.

Daimler and Jaguar Land Rover this week said that sales will be further hit on chip supply shortfalls.

Jaguar Land Rover said deliv…

While subprime shares shrink in the auto-lending marketplace, new research from the Federal Reserve Bank of Chicago suggests the performance of these loans exceeded lender expectations because of steps taken by the government and auto lenders early in the coronavirus pandemic.

Many auto lenders set aside hefty reserves to insulate themselves from future losses, anticipating a jump in delinquencies and repossessions amid historic unemployment from mandatory stay-at-home orders during the crisis.

Yet those losses never materialized. According to a blog post on June 30, the Chicago Federal Reserve posits that subprime auto loan performance was assisted greatly by the extension of government assistance through the Coronavirus Aid, Relief and Economic Security Act; temporary moratoriums on vehicle repossession in many states; and proactive moves by auto lenders to extend forbearance programs. In short, the steps taken to protect vulnerable populati…

DETROIT — Ford Motor Co. on Wednesday said it will hire Steven Croley, a former U.S. federal lawyer and aide to former President Barack Obama, to become its chief policy officer and general counsel effective July 12.

John Mellen, Ford's current general counsel who postponed his retirement a year ago, will step down effective Sept. 1 following a transition period, the company said.

Croley, 55, will report to CEO Jim Farley and work closely with Jon Huntsman, a Ford board member who in April was named to the new senior advisory position of vice chairman, policy.

"Steve has deep leadership experience at the intersection of law and policy and will add strength to our terrific legal, government relations and sustainability teams," Farley said in a statement. "His background will be invaluable as we partner with governments and others to speed development of breakthrough products and services that help give more people the freedom to move and pursue their drea…

LOS ANGELES — Genesis Motor North America CEO Mark Del Rosso has taken a leave of absence as of July 1, the automaker told Automotive News.

Jose Muñoz, CEO of Hyundai Motor North America, will serve as the interim Genesis chief during Del Rosso's absence.

Genesis did not provide details about Del Rosso's leave, other than saying it is for a personal matter. The company did not give a time frame for the length of his absence.

The Genesis executive took over the North America helm in October 2019. He previously held senior positions at Audi of America and Bentley's Americas division.

Genesis has been on a roll under Del Rosso.

The brand reported its best-ever U.S. sales in June on the recent launches of its first two crossovers, the GV70 and GV80. Sales at the luxury line nearly tripled compared with June 2020. In the first half of the year, deliveries more than doubled to 19,298.

Tedros Mengiste, e…

BMW is giving the second-generation 2 Series a muscular makeover, bigger footprint and punchier powertrain.

The two-door coupe will arrive in U.S. stores in November and start at $37,345, including shipping.

As part of a major overhaul, the 2022 BMW 2 Series Coupe features a more athletic exterior design and roomier interior.

The rear-wheel-drive 230i Coupe is 4.3 inches longer, 2.6 inches wider, 1 inch lower and has a 2-inch longer wheelbase than the outgoing model. The all-wheel-drive M240i xDrive model is 3.5 inches longer, 2.6 inches wider, 0.1 inch lower and has a 2-inch longer wheelbase than the first-gen version.

A low front bumper, headlights now pushed to the outer edges of the front end and a new, turbine-style BMW kidney grille give the car a wide, low-slung stance. Flared fenders and a muscular power dome at the center of the hood hint at the vehicle's beefier powertrain.

The redesign eschews BMW'…

Grubhub is turning to Russia’s leading internet company to field a fleet of robots to make sure hungry college students can get the munchies quickly regardless of the weather.

Yandex NV’s self-driving unit will deploy suitcase-sized robots that have been in use in Russia since last year as part of Grubhub’s campus delivery program, which covers over 250 colleges around the U.S., the Moscow-based company said in a statement.

The robots, which will be rolled out at some campuses during the fall semester, mark Grubhub’s first attempt to use autonomous vehicles as the restaurant business turns to drones as a novel way to eventually cut delivery times and, eventually, costs. Nuro, which operates a fleet of self-driving pods, started delivering pies for Domino’s Pizza Inc. in Houston this April, while California-based Kiwibot introduced a model this year that can bring food indoors.

Grubhub has lost more than 30 percentage points in food-delivery market share …

WASHINGTON — A group of 16 Republican state attorneys general are pressing the EPA to not reinstate California's waiver under the Clean Air Act, which allows the state to set its own greenhouse gas emissions standards and zero-emission vehicle mandates.

In a letter sent Tuesday to EPA Administrator Michael Regan, the officials from states including Alabama, Indiana, Kentucky, Ohio and West Virginia urged the agency to continue the policy under the Trump administration's Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule, which revoked California's authority to restrict tailpipe emissions and set ZEV mandates.

The attorneys general argue that any attempt to restore California's waiver would be "unconstitutional" because "a federal law giving one state special power to regulate a major national industry contradicts the notion of a union of sovereign states," the group wrote.

"This is not the United States of California," Ohio Attorney General Dave Yost…

DETROIT — Former UAW Regional Director Vance Pearson was sentenced Tuesday to a year in federal prison for conspiring to embezzle union funds and further racketeering activity with other high-ranking union officials.

The court recognized that Pearson played "a minor role but at the same time, it was active," said U.S. District Judge Paul Borman. The court did not order Pearson to pay a fine.

Pearson's original sentencing guideline was 24-30 months. But acting U.S. Attorney Saima Mohsin last month requested a reduced 14-month sentence because of Pearson's cooperation and assistance in the investigation and prosecutions of ex-UAW presidents Gary Jones and Dennis Williams. Jones was sentenced to 28 months in June, and Williams was sentenced to 21 months in May.

In December 2019, two months after he was arrested, Pearson began cooperating with investigators through in-person and phone interviews. He agreed to testify against his co-conspirators and forfeit…

FRANKFURT Volkswagen Group is to sell a stake in its electric vehicle charging unit Electrify America, two people familiar with the matter said, as the automaker looks for outside funds to build infrastructure for battery-powered cars.

Volkswagen is working with Citi to look for a co-investor that is prepared to inject roughly $1 billion into the division, the people said, adding that the company is expected to shortly reach out to infrastructure groups and other potential investors.

Volkswagen, Electrify America and Citi declined to comment.

Set up in the aftermath of Volkswagen's emissions cheating scandal that broke in the United States, Electrify America plans to spend $2 billion in the 2017-2026 period to expand charging stations for electric vehicles.

The unit, whose main rivals include ChargePoint and Tesla's Supercharger, has 635 charging stations with around 2,850 fast-loading spots up and running, while a further 125 stations are curre…

Halfway into 2021, the horse race for the luxury crown has a new leader.

BMW galloped to the front in the second quarter, powered by strong demand for crossovers, and taking a first-half lead.

At the mid-year mark, BMW outsold German rival Mercedes-Benz by 7,348 units. That's quite a reversal of fortunes from a year ago when Mercedes had a 16,795 unit lead over BMW.

Mercedes also led after the first quarter, with Lexus No. 2 and BMW No. 3.

The luxury vehicle segment has roared back to life from the COVID lockdown doldrums a year ago. Total U.S. luxury sales rose 63 percent to 624,414 cars and light trucks in the second quarter, outpacing the broader industry's 49 percent increase, even amid tightening inventories. First-half luxury sales rose 42 percent.

BMW captured the U.S. luxury crown in 2019 and 2020 after Mercedes had a three-year run atop the rankings.

In the second quarter, BMW sold 96,561 vehicles, up 90 percent from a year…

Asbury Automotive Group has closed the search for a new CFO with the hiring of Group 1 Automotive executive Michael Welch. He will take over for interim CFO William Stax on Aug. 9. Stax will return to his role as Asbury's corporate controller and chief accounting officer.

Welch, 46, replaces Patrick Guido, who was Asbury's CFO for a little more than a year. Guido stepped away from his role for personal reasons June 24, the company said.

Welch is Asbury's third CFO in the past three years. Welch, an industry veteran, has spent more than 20 years at the competing public dealership group, most recently as corporate controller.

Welch will receive an annual base salary of $550,000 and cash incentives of up to 85 percent of his base salary, Asbury said in a government filing. Once in his position, Welch also will receive shares valued at $500,000 to vest across a three-year period, a $100,000 relocation allowance and the use of a demonst…