News

U.S. light-vehicle sales slowed in June from the booming pace of April and May, as shortages of many popular vehicles kept consumers on the sidelines, forecasters said. Second-quarter sales are still expected to reach the highest level since at least 2018, but analysts anticipate declining volume in the months ahead.

Cox Automotive expects total sales of 4.5 million in the second quarter, up 1.2 percent from 2019 and up 51 percent from the same period of 2020, in the early months of the pandemic.

For June, Cox estimates that the seasonally adjusted, annualized light-vehicle selling rate fell to 16.4 million from 17.1 million in May and more than 18 million in April. LMC Automotive and J.D. Power project a SAAR of 15.8 million.

Most automakers plan to report June and second-quarter sales Thursday.

"It is unlikely the industry can maintain the sales pace any longer because inventory is getting extremely tight. If shoppers can't find the product they…

Volvo Cars laid out an extensive road map to becoming a fully electric car maker by 2030, including plans to sell 600,000 battery electric vehicles at mid-decade and build a European battery gigafactory in 2026.

Volvo also said it plans to equip many of its future vehicles with self-driving technology, including standard lidar sensors from Luminar Technologies and computers from Nvidia.

"Our goal is to build the safest cars possible, using all available technology," CEO Hakan Samuelsson said during a briefing on Wednesday on its electric business strategy.

Volvo unveiled the Concept Recharge previews the automaker's next generation of full-electric cars and the electric-only XC90 successor.

For its future electric vehicles, Volvo is working with Swedish partner Northvolt on a new generation of batteries with higher energy and designed to be packaged as a structural element of the vehicle.

The new batteries, due after 2025, will enable a lon…

DETROIT — Ford Motor Co. on Wednesday said several of its North America assembly plants, which have already experienced weeks of downtime from the global chip shortage, will be idled for at least part of July.

Chicago Assembly Plant, which builds the profitable Ford Explorer and Lincoln Aviator crossovers, will be down the weeks of July 5, 12, 19 and 26 and will run two shifts the week of Aug. 2, the automaker said Wednesday.

Dearborn Truck, which makes all-important Ford F-150 pickups, will run on two shifts the weeks of July 12,19 and 26. Kansas City Assembly Plant's F-150 line will be down the weeks of July 12 and 19, while its Ford Transit line will be down the week of July 19.

Flat Rock Assembly Plant, which builds the Ford Mustang, will be down the weeks of July 12 and 19.

Hermosillo Assembly Plant, which builds the Ford Bronco Sport, will run one of two shifts the weeks of July 12 and 19.

Kentucky Truck Plant, which builds the Supe…

A New York judge on Monday sentenced a car dealer to 60 months in prison and ordered him to pay nearly $4 million in restitution for tampering with hundreds of vehicle odometers.

From 2006 to 2011, Shmuel Gali, 48, altered the mileage of an estimated 690 used vehicles he had purchased, then sold them at wholesale auctions in Pennsylvania and New Jersey, according to court documents. On average, odometers were rolled back by more than 69,000 miles.

Also heavily involved was Gali's brother, Chaim Gali, 46. The two brothers bought the vehicles in Florida, Maryland and Missouri using fake dealer names. Pennsylvania issued vehicle titles reflecting the altered mileage figures, which the Galis gave to their buyers at the auctions.

The falsified lower mileage numbers led to more profitable sales. The brothers deposited the money into multiple bank accounts, mainly in New York City, and used it to buy more cars, court documents said.

Judge Kiyo Matsumoto …

Global light vehicle production is expected to grow 50 percent in the second-quarter as the industry recovers from the pandemic, but supply constraints remain a challenge, data firm IHS Markit said on Wednesday.

IHS Markit estimates semiconductor capacity will be able keep up with demand starting only in the first quarter of 2022.

"The rise of new (COVID-19) strains especially in regions with limited vaccines continues to threaten the availability of semiconductors due to workforce reductions," the forecast said.

Supply chains were hit hard in the first-quarter by the storms in Texas, the Fukushima earthquake in Japan and the fire at a Japanese semiconductor factory owned by Renesas Electronics Corp. IHS Markit estimates the greatest impact of supply disruptions was felt in the second quarter.

Reduced production due to shortages of semiconductors has resulted in the lowest levels of unsold cars and trucks on dealer lots in years, according to cons…

Bob Johnson Auto Group has acquired Dorschel Automotive Group, adding eight new brands to its portfolio in a deal the Rochester, N.Y., group expects will boost annual revenue by $350 million.

The transaction, which closed June 21, included Dorschel Toyota, Mini of Rochester, Alfa Romeo-Maserati of Rochester, Dorschel Infiniti and Dorschel Lexus-Kia-Volkswagen-Nissan, all in Rochester, said Greg Stahl, co-owner of Bob Johnson Auto Group. The deal also included used vehicle-only stores, he said. Terms weren't released. "The group fits nicely with ours as it adds eight franchises that we did not have with locations central to our current dealerships," Stahl said in an email.

Stahl said the group's annual revenue now will reach $1.4 billion.

The growing retailer now has more than 1,200 employees at 22 locations. It also sells Chevrolet, Buick, GMC, Cadillac, Ford, Chrysler, Dodge, Jeep, Ram and Mazda vehicles.

Last month, …

Chinese ride-hailing company Didi Global Inc. raised $4.4 billion in its U.S. IPO, pricing it at the top of its indicated range and increasing the number of shares sold, the company said.

Didi sold 316.8 million American Depositary Shares, versus the planned 288 million, at $14 apiece.

This would give Didi a valuation of about $73 billion on a fully diluted basis and $67.5 billion on a non-diluted basis.

The decision to increase the deal size came after the Didi investor order book was oversubscribed multiple times, a source told Reuters. The company is expected to debut on the New York Stock Exchange Wednesday.

Didi's IPO is more conservative versus its initial aim for a valuation of up to $100 billion, Reuters has previously reported. The size of the deal was cut during briefings with investors ahead of the IPO's launch.

Investors balked at the $100 billion target given concerns the company's future growth prospects could be curbed by the…

DETROIT -- The Detroit automakers and the UAW said on Tuesday fully vaccinated workers at their U.S. factories will not have to wear masks on the job beginning on July 12.

General Motors, Ford Motor Co., Stellantis and the union that represents their U.S. manufacturing workers said in a joint statement that those who have not been vaccinated will continue to wear masks at work.

"The task force will continue to monitor data carefully and make any adjustments necessary to protect the health and safety of employees," the joint statement said.

"While the UAW and the companies continue following the protocols that have kept our workplaces safe, we know that one of the best ways to fight this virus is by getting vaccinated. The Task Force continues to encourage everyone to roll up their sleeves and get vaccinated against COVID-19 so that we can protect our sisters and brothers and their families."

Other automakers operating in the U.S. have already begu…

A Michigan plant of French supplier Faurecia suffered minor damage from a roof fire Monday evening, causing some production to be temporarily paused. No employees were harmed.

The company was working to get back to full production at the Faurecia Interiors Systems plant in Saline, Mich., by the end of the day Tuesday, according to Faurecia Communications Manager Kyle Gillis.

The Saline and Pittsfield Township Fire Departments found smoke on the roof when they arrived around 8 p.m. Monday. The blaze stemmed from the electrical room on the roof, where a transformer box caught fire, Saline Fire Chief Craig Hoeft said.

Excess power coming from the box caused the fire, which burned tar and other materials.

The plant, once part of Ford Motor Co.'s parts unit, is about 45 miles west of Detroit. It produces interior parts such as instrument panels and center consoles for a variety of automakers. As of last year, customers included Tesla Inc., Ford and Ste…

Lithia Motors Inc. has expanded its presence in the Pacific Northwest with the purchase of the largest Toyota store in Washington state based on new-vehicle sales.

The auto retailer said the store is expected to add $235 million in annual revenue.

Lithia on Tuesday said it paid for Michael's Toyota of Bellevue, near Seattle, using funds from its balance sheet capacity. It also bought Michael's Subaru of Bellevue. Both dealerships' names will remain.

The transaction closed on Monday. Lithia bought the dealerships from Seattle-area dealer David Broadus. Erik Paulson, a minority partner and general manager at both stores, is staying on as general manager.

"This exceptional Toyota store doubles our presence and offerings in the largest automotive retail market in our northwest region," Lithia CEO Bryan DeBoer said in a statement. "We welcome Erik Paulson and his high-performing team as they continue to serve and create loyal, satisfied customers in t…