News

The coronavirus dominated the news cycle this year, roiling the U.S. auto industry and driving millions of Americans out of offices and into their homes.

Businesses big and small — including automotive retailers, suppliers and manufacturers — laid off thousands of workers as customer traffic dried up and manufacturing operations came to a temporary halt.

These disruptions galvanized the auto retail industry, prompting innovation, collaboration and widespread digital adoption, financial assistance and technical support.

Here were the top F&I stories of 2020:

GM launches broad plan to combat coronavirus impact: General Motors in March forged a comprehensive plan to mitigate business losses caused by the pandemic. The program included aggressive incentives for new-vehicles, 0 percent interest, 84-month loans and deferred payments of up to 120 days to customers in top credit tiers and free OnStar crisis-assist services…

The auto industry dodged disaster when the UK and the European Union sealed a post-Brexit trade accord, but not before automakers announced factory closures and called off plans to make several new vehicles in the country.

More damage may still be done even with last week’s deal. Automakers including Nissan might struggle to qualify some UK-assembled models for tariff-free export to the EU as they evaluate whether they source enough of their components locally.

Costs associated with having to switch suppliers and the burdens of customs declarations, certifications and audits could still leave car companies convinced that they are better off investing elsewhere.

“This is still a thin deal with major implications and costs for automotive,” said David Bailey, a business economics professor at Birmingham Business School. “Much will depend on the degree of flexibility allowed and the degree of phasing in.”

The stakes for the UK economy are huge. The c…

Tesla Inc. is coming to the end of its first year selling China-made cars with a commanding position in the world’s biggest EV market, but Elon Musk shouldn’t rest on his laurels.

While Tesla regularly topped monthly premium EV sales tallies this year, helped by the sedans churned out from its multibillion-dollar plant opened to much fanfare in Shanghai last December, 2020 was also marked by rivals catching up. In 2021, the breadth of the competitive attack that Tesla faces will be greater than ever.

Whether Tesla can defend its lead in China will be key to its wider growth and earnings trajectory. While still in its infancy, China’s EV market dwarfs that of other countries and the government is intent on further expansion amid commitments to reduce fossil-fuel use. Tesla’s fate in China will also show whether it can grow into a truly global carmaker, an ambition investors are banking on after pushing the company’s shares up almost 700 percent this year.<…

China's Sichuan Yahua Industrial Group Co. said on Tuesday it had signed a deal to supply battery-grade lithium hydroxide to Tesla Inc. for the next five years.

Yahua, which is based in southwest China's Sichuan province, did not provide tonnage figures but, in a filing to the Shenzhen Stock Exchange, put the total value of the contract at $630 million to $880 million over 2021-25.

Tesla, which started delivering the first vehicles from its plant in Shanghai in December last year, already sources lithium -- a key ingredient in EV batteries -- from China's Ganfeng Lithium, one of the world's biggest producers of the commodity.

Tesla did not immediately respond to a request for comment on Tuesday.

In May, Yahua put a 20,000 tons per year lithium hydroxide plant into operation, more than doubling its previous capacity, even as prices languished at multi-year lows amid oversupply and a knock to lithium demand brought about by the coronavirus pandemic.

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

As suppliers continue to cope with challenges around the pandemic, Daily Drive guests provided a sobering perspective on what's ahead for suppliers and why the supply chain could become decentralized. 

How do I subscribe?

Can't wait to hear the next episode of "Weekend Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Weekend Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Weekend Drive"

Android

“Weekend Drive” is available on the Google Play store. Click …

Editor's note: Reuters has corrected the plant investment figures that were published in an earlier version of this story.

WARSAW -- Fiat Chrysler Automobiles plans to invest 755 million zlotys ($204 million) in its plant in Tychy, Poland, Deputy Prime Minister Jaroslaw Gowin said on Tuesday, in a move that will see new electric and hybrid vehicles produced at the factory.

FCA said new hybrid and electric Jeep, Fiat and Alfa Romeo models would be built in Tychy. The company wants to start production of the first of three new models for the group's brands in the second half of 2022.

The investment comes as a boost to emerging Europe's largest economy, which is hoping a switch to EVs can help its auto sector catch up with regional rivals such as the Czech Republic and Slovakia.

"Modern, hybrid and electric cars of the Jeep, Fiat and Alfa Romeo brands will start to leave the factory in Tychy in 2022," Gowin wrote on Twitter.

Gowin did not…

BANGALORE -- Tesla Inc. will begin selling vehicles in India in 2021, CEO Elon Musk tweeted.

Replying to a tweet asking him if Tesla would being selling vehicles in January in India, Musk tweeted on Sunday: "No, but definitely this year." 

The first model to be launched will be the Model 3, the cheapest among Tesla vehicles, with prices starting at over $74,739 (5.5 million Indian rupees), according to a report in the Economic Times on Saturday. The report said sales would begin in June and orders could start "anytime soon." 

In October, the government of Maharashtra had invited Tesla to the state, weeks after Musk suggested entering the country next year.

Nitin Gadkari, India's transport minister, told the Indian Express on Monday that the EV maker might look at assembly and manufacturing in India based on the sales response. 

Tesla and the minister's office could not be reached by Reuters for comment.

India has bee…

It’s a situation that plays out at auto dealerships every day: A customer brings in a vehicle for service or after minor damage, only to find that the estimated charges are more than he or she was prepared to handle.

 Just four in 10 U.S. adults would be able to pay for an unexpected $1,000 car repair, according to a well-publicized 2020 survey by Bankrate, a consumer financial services company.

To help consumers manage unexpected costs, dealership service departments are offering more F&I products. Besides traditional insurance products such as vehicle service contracts and extended warranties, an increasing number of point-of-sale lending options can help customers cover their service bills. And at many dealerships, the customer doesn’t even have to leave the service department.

Industrywide, about half of new- and used-car buyers complete their initial purchase without signing up for upfront insurance products such as vehicle service contract…

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

In these excerpts from executive interviews with EV startup Lucid Motors and tech firm ZeroLight, hear how a 3D cloud-based configurator is giving customers more vehicle customization options.

How do I subscribe?

Can't wait to hear the next episode of "Weekend Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Weekend Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Weekend Drive"

Android

“Weekend Drive” is available on the Google Play store. Click here to …

The assumption of 2020 was that the year would be a washout when it came to automakers making big, new investments in assembly plants. Given the cataclysm of the coronavirus pandemic, the halt in industry production, the crash of the U.S. economy, the scramble for cash reserves, the new uncertainty over the health and safety of industrial workplaces and the very real fear that Americans would be in no hurry to buy a new vehicle, it was logical that nobody needed to spend money on an auto factory.

But things turned out differently.

Despite the early worries, automakers pressed ahead with new investments, expansions, retoolings and undeveloped land in 2020. These were the largest projects in the January-November period, as tabulated by the Center for Automotive Research of Ann Arbor, Mich., for its industry-tracking Book of Deals database.

$1.45 billionFord: Oakville, OntarioRetooling and preparation for production of battery-electric vehicles

$1.2…

COVID-19 disrupted but didn’t cancel some of 2020’s biggest product debuts and tech advances, but we did detect one major shift — changes and updates seem to be coming faster inside, under the hood, even in the drivetrain, than outside.

We’ve rounded up some of the year’s breakout hits, as well as a few misses.

HITS

HIT: Ford Bronco family

The return of Ford's Wrangler rival generated online buzz and a strong preorder bank. But perhaps the biggest validation of what became Ford's odyssey to resurrect the Bronco nameplate came when General Motors reportedly lamented that it's missing the latest round of Detroit's off-road battles featuring Jeep and Ford. The Bronco may now be delayed until summer 2021, but the Bronco Sport appears to be off to a strong start.

HIT: Land Rover Defender 110

This was one of the most anticipated reboots of 2020, and like just about everything else this year, it didn't go as planned. The pandemic shut La…