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DETROIT — Fiat Chrysler Automobiles is suing supplier Martinrea International Inc. in a U.S. court, accusing the Canadian supplier of breach of contract and leaving FCA with an engine block shortage and monetary damages that could reach more than $100 million.

FCA said in the lawsuit filed Monday that the engine component supplier had a contractual obligation to supply 2,604 engine blocks per day and 13,021 per week.

The lawsuit claims the supplier "improperly and unilaterally" reallocated one of its 3,500-ton aluminum die casting machines for another customer, leaving FCA 7,000 engine blocks short each week.

"The insufficient supply will inevitably require FCA US to shut down production of six top-selling vehicle platforms in at least six of its plants," FCA attorney Moheeb Murray said.

The lawsuit was first filed Dec. 13 in Oakland County Circuit Court in Michigan but was transfered to U.S. District Court in Detroit o…

MEXICO CITY -- Some Mexican automakers are asking for more time to meet stringent content rules set out in a new North American trade agreement, and Mexico is making progress on changes in labor standards under the deal, a top official said.

The United States Mexico Canada Agreement, which took effect in July, replacing the 1994 North American Free Trade Agreement, includes tougher content rules for autos.

For vehicles, USMCA requires 75 percent North American content compared with a 62.5 percent threshold under NAFTA, as well as 40-45 percent content from so-called "high wage" areas.

USMCA includes a provision to give flexibility to carmakers in order to be able to comply with the deal according to their production and investment plans in North America, Mexican Deputy Economy Minister Luz Maria de la Mora said in an interview with Reuters on Monday evening.

"Some companies in the automotive sector are requesting these alternative transition regim…

Hyundai Motor has completed the acquisition of a General Motors factory near Russia's St. Petersburg, Hyundai spokeswoman Yulia Tikhonravova told reporters at an online conference Tuesday.

The GM plant with a capacity of up to 100,000 vehicles per year was built in Shushary in the suburbs of St. Petersburg in 2008 but closed in 2015 as part of GM's decision to reduce its international operations.

The deal was closed in early November, Tikhonravova said, adding that it was too early to say when production would start due to the pandemic.

"If we talk about the plant in Shushary -- yes indeed, it is our second plant, now we are working on possible scenarios to use this asset," said Alexey Kalitsev, head of Russia's Hyundai unit.

Hyundai and its partner Kia already have a factory in Russia with a manufacturing capacity of more than 200,000 vehicles per year. The two automakers sold more than 400,000 vehicles in Russia last year.

The Association…

CarMax said Tuesday that a solid gain in net earnings for its fiscal third quarter was the result of "strong execution in a dynamic environment."

The environment remains dynamic, as seen by the company's same-store sales, which began the period up by mid-single digits but finished the quarter down by 0.8 percent.

CarMax said demand softened and sales trended downward near the end of the quarter, constrained in part by spreading cases of COVID-19, the disease caused by the coronavirus, as well as by uncertainty surrounding the election and future stimulus programs.

The retailer's net earnings rose 36 percent to $235.3 million in its fiscal third quarter ended Nov. 30 on total revenue that grew 8.2 percent to $5.18 billion.

Used-vehicle sales were up just 1.0 percent to 194,576, while wholesale vehicle sales increased 11 percent to 126,317. The rise in wholesale vehicle sales was driven by a record third-quarter buy rate, the company said in a relea…

Joining the growing field of exotic and ultraluxury utility vehicles is the 2021 Mercedes-Maybach GLS 600. The Maybach SUV, based on the redesigned third-generation GLS platform, is powered by a specially developed 550-hp V-8 engine. The engine is combined with a 48-volt electrical system paired with an integrated starter generator, known as EQ Boost, that can add up to 21 hp for short periods. The GLS 600 starts at $161,550, including shipping. Fully loaded, the SUV will top out at nearly $200,000. Here's a roundup of initial GLS 600 reviews from automotive journalists.

"The powerplant is long on low-end grunt, almost freakishly quiet, the steering is precise but has a nondisclosure agreement with road surfaces and the brakes could stop a crashing stock market. Road noise is muffled until it stops squirming, wind noise is slight and melodic and the double-paned glass shushes anyone yelling about the injustices of capitalism.

"Performance? When the masses aris…

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 Jim Farley's two stops on Daily Drive, the future Ford CEO reflected on his plans to fast-track the company's growth, what type of leader he wants to be, the pace of decision-making at the automaker and an array of other topics. 

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WASHINGTON -- The U.S. International Trade Commission (ITC) said on Monday it is opening in investigation into whether Volkswagen Group infringed on patents held by Jaguar Land Rover for a system used for off-road driving.

In November, Jaguar Land Rover filed a complaint with the ITC seeking to prevent the import of some VW, Porsche, Lamborghini and Audi models with "certain vehicle control systems" that allegedly infringe on its patents.

The models include the Lamborghini Urus, Porsche Cayenne and Audi's Q8, Q7, Q5, A6 Allroad, and e-tron vehicles and the VW Tiguan. The ITC said it has made no decision on the merits.

VW said in a statement it was examining the action and determining its next steps.

"We will of course cooperate with investigating authorities. While we cannot comment on any details of the proceedings, we strongly believe that the claims have no merit and will robustly defend our position," VW said.

Jaguar Land Rover said the…

Legislation in Michigan that would have removed an exemption for Tesla Inc. from the state's ban on direct vehicle sales will not pass this year.

The Michigan Senate did not vote on the amended legislation, which passed out of the state House this month, before it wrapped up its two-year legislative term late last week. Any bills not passed before the end of the term are considered dead and must be reintroduced in the new year.

House Bill 6233 was introduced in September and backed by Michigan's franchised auto dealers. As originally written, the bill would have codified into law an agreement between Tesla and the state of Michigan in January that resolves a federal lawsuit the company filed in 2016 against the state's direct-sales ban.

The stipulation allows Tesla to operate its galleries in Michigan, though vehicle titles must be transferred in another state. It also allows Tesla to operate service centers indirectly through a subsidiary.

The or…

Apple Inc. is moving forward with self-driving car technology and is targeting 2024 to produce a passenger vehicle that could include its own breakthrough battery technology, people familiar with the matter told Reuters.

The iPhone maker's automotive efforts, known as Project Titan, have proceeded unevenly since 2014 when it first started to design its own vehicle from scratch. At one point, Apple drew back the effort to focus on software and reassessed its goals. Doug Field, an Apple veteran who had worked at Tesla Inc., returned to oversee the project in 2018 and laid off 190 people from the team in 2019.

Since then, Apple has progressed enough that it now aims to build a vehicle for consumers, two people familiar with the effort said, asking not to be named because Apple's plans are not public. Apple's goal of building a personal vehicle for the mass market contrasts with rivals such as Google affiliate Waymo, which has built autonomous taxis to carry passen…

Shares of Tesla dropped in their S&P 500 debut on Monday, pulling back from record-highs as worries over a fast-spreading new coronavirus strain in Britain weighed on markets.

Tesla's stock closed Monday's trading down 6.5 percent to $649.86 in its first session in the S&P 500. The shares were the biggest drag on the S&P 500, accounting for 0.07 percentage point of the index's 0.46 percent decline, according to Refinitiv data.

Wall Street was down broadly after a more-virulent strain of the coronavirus in Britain sparked fears of fresh disruptions.

Other electric-vehicle companies, whose shares have gained significantly over the past month after Tesla’s S&P 500 inclusion was announced, were also weak on Monday. Some of the biggest declines came from Nikola Corp. and Workhorse Group Inc.

The electric vehicle maker, headed by billionaire Elon Musk, becomes the most valuable ever admitted to Wall Street's main benchmark and accounted …

NextCar, a startup aimed at helping vehicle subscription providers achieve scale and profitability, said it has signed a letter of intent to partner with auto lender Westlake Financial as it builds out its platform.

The partnership between NextCar — started this year by Scott Painter, the founder and former CEO of used-vehicle subscription platform Fair — and Westlake will include a $400 million debt facility and an agreement by Westlake to handle origination and servicing, according to the two companies.

Painter said the debt facility is not an equity investment into NextCar, but rather financing from Westlake that will help NextCar acquire vehicles from dealerships participating in a subscription program. NextCar will hold vehicles on its balance sheet on behalf of a customer-facing subscription provider once a consumer selects one from a participating dealership. When the subscription period ends, the vehicle would come off NextCar's balance sheet, he said.<…