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Editor's note: An earlier version of this story did not correctly attribute a statement made by CFO Mark Jenkins. The attribution is now correct.

Used-car retailer Carvana Co. posted a relatively sharp recovery in the second quarter after getting hit by the coronavirus pandemic, but now it faces constraints similar to those of its traditional peers.

Carvana on Thursday said revenue grew 13 percent to $1.12 billion in the second quarter. Retail sales rose 25 percent to 55,098. And the company's net loss increased 66 percent to $106 million.

Carvana said in a letter to investors that its sales rebounded in late April, with a growth rate of about 40 percent later in the quarter after recovering from low activity resulting from the pandemic.

One silver lining of the outbreak for Carvana: It has moved more consumers to shop for cars and trucks online. It also led more traditional retailers to more swiftly adopt an online retail platform.

"Sudden…

DETROIT -- After emerging from bankruptcy in late May, longtime supplier Dura Automotive once again has new owners.

Lexington, Ky.-based private equity firm MiddleGround Capital acquired a majority stake in the body systems supplier from Bardin Hill Investment Partners.

Terms of the deal were not disclosed, but according to MiddleGround's website, the firm's investments range from $75 million to $250 million. According to a press release, two of Middleground's partners are Toyota Motor Corp. veterans.

“We have been searching for an opportunity to invest in a business as well-positioned as Dura to capitalize on the most disruptive trends in the automotive industry," partner John Stewart said in a statement. Stewart spent 18 years at Toyota. "From today’s focus on electrification of the powertrain and vehicle lightweighting to some of the longer-term shifts toward autonomous driving and connected car, Dura is and will continue to be a driving force in an …

Advanced driver assistance technology that automates steering and braking in a growing number of vehicles is not providing reliable safety benefits, a new study by the American Automobile Association showed on Thursday.

Researchers at AAA, a federation of North American motor clubs, found that the systems recorded disruptions and disengaged roughly every eight miles, encountering situations they were not equipped to handle.

That creates dangerous situations if drivers rely too much on the technology and stop paying attention to the road, the AAA researchers said, adding that the systems are "far from 100% reliable."

"AAA has repeatedly found that active driving assistance systems do not perform consistently, especially in real-word scenarios," Greg Brannon, AAA's director of automotive engineering and industry relations, said in a statement.

Automakers are accelerating the automation of routine driving tasks such as cruising on a highway and stop-…

BorgWarner Inc. swung to a net loss of $98 million compared with a gain of $172 million in the year-earlier period as the ongoing COVID-19 pandemic disrupted its global production levels, the company said Wednesday.

BorgWarner joins several auto suppliers, including Adient and Tenneco, expected to release second-quarter reports this week.

The supplier of turbochargers and electric motors said revenue for the quarter fell 44 percent to $1.43 billion as a result of production slowdowns and shutdowns brought on by the pandemic. BorgWarner's engine-segment sales tumbled 47 percent to $826 million, while drivetrain-segment net sales dropped about 39 percent to $607 million, the company said in a statement.

Shares of BorgWarner rose 4.6 percent to $38.85 in midday trading on Wall Street. The company's results exceeded Wall Street forecasts.

"We met the challenges of managing costs and cash during the production shutdown while ensuring the ability to su…

CEO Jim Hallett had braced for the second quarter to be far worse. "We started the quarter with all of our businesses shut down," Hallett said in an earnings call Wednesday.

KAR Global reported a net loss of $32.3 million for the second quarter, vs. a net income of $27.4 million in the year-earlier period, on revenue that fell 42 percent to $419 million. Its adjusted earnings before taxes and depreciation fell 41 percent to $80 million.

The company's business was brought to a halt March 20, when it suspended all auction sales in North America because of the coronavirus pandemic. It began doing simulcast-only sales in select markets April 6.

Its auction volume was minimal at the beginning of April, and the company prepared for a gradual recovery over the rest of the year.

"What actually happened was volumes picked up week over week, consistently, beginning in mid-April," Hallett said.

Business further rebou…

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Ford Credit posted a $500 million profit for the second quarter, down 38 percent from $800 million in the second quarter of 2019, the lender said last week, thanks in part to lower value projections for active leases. Ford Motor Co.'s finance arm, at the same time, says it is encouraged by positive developments in consumer finances and spending habits.

The result marks a departure from a plunge in first-quarter profits, which the company attributed to efforts to bolster credit-loss reserves — funds set aside for auto loans it doesn't expect will be repaid — during the coronavirus pandemic.

Ford CFO Tim Stone told investors last week that the captive lender provided payment extensions to an unprecedented 361,000 customers, representing11 percent of its customer base, through May. As of July 28, 84 percent made their scheduled payment by the due date, 12 percent made payments and opted to extend the relief period, and 1 percent received an addi…

Finance-and-insurance profit per vehicle rose for all six publicly traded dealership groups in the second quarter as the industry absorbed the continuing impact of the coronavirus pandemic on operations.

Earnings at the public dealership groups took a hit from the pandemic, though many reported better-than-expected figures for the quarter thanks in large part to early adoption of digital tools. After a swift transition in a challenging environment, retailers say hurdles remain in digitizing the F&I component in particular.

AutoNation Inc., the retailer with the highest same-store F&I profit per vehicle, said its digital F&I product penetration is not yet on par with in-store metrics.

"We have it, I would say, perfected in the stores," AutoNation CEO Mike Jackson said on a call with investors last month. "There is still work to do in the digital world on those products."

Jackson said last quarter that the ret…

Big incentives from General Motors helped GM Financial increase auto loan originations by double digits in the second quarter, even as many dealerships had to temporarily close or limit operations because of the coronavirus pandemic.

GM's captive finance arm said in a statement last week that auto loan originations rose 22 percent from the same period of 2019 to $8.7 billion. Generous incentive programs geared toward prime credit buyers, including 0 percent financing for 84 months and 120-day payment deferrals, drove much of the growth.

"That attracted very strong traffic into the showroom," CEO Dan Berce told Automotive News. Many customers who didn't qualify for the 0-for-84 offer took advantage of other promotions through GM Financial, he said.

GM Financial provided floorplan financing for 30 percent of GM dealers in the quarter, up from 27 percent a year earlier. Floorplan dealers are more likely to finance auto loans through G…

FRANKFURT – Daimler says it is deepening an alliance with the Chinese battery maker CATL to deliver battery packs capable of giving Mercedes-Benz cars 430 miles of range at higher recharging speeds.

Daimler already has battery cell supply deals with Korea's SK Innovation, LG Chem and Farasis in addition to Contemporary Amperex Technology, which is known as CATL, as it plans to ramp up production of electric and hybrid vehicles.

Mercedes will launch the EQS luxury electric sedan with CATL cell modules in 2021, with a range of more than 430 miles on the Worldwide harmonized Light vehicle Test Procedure (WLTP) scale.

Wednesday's agreement with CATL said the partnership will include supplying cells and entire battery systems as well as combining research.

"We intend to lead in battery technologies, so we are now combining our own research and development expertise with bold partners," Daimler said in a statement.

"The agreement covers the full …

Amid economic uncertainty from COVID-19, American consumers are more hesitant to buy or lease a vehicle since the outbreak began. Used-vehicle consideration remains down compared with pre-pandemic levels, but it is stabilizing, while new-vehicle intent is decreasing, according to a study by McKinsey & Co.

The consulting firm's COVID-19 Auto & Mobility Consumer Insights study, conducted in seven global markets including theU.S., surveyed approximately 1,200 consumers in the U.S. four times in May through July, of which approximately 400 respondents had intent to purchase or lease a vehicle. It asked them:

1. Before COVID-19, whether they were "not likely, likely or very likely" to buy/lease a new or used vehicle in the next 12 months.

2. Given the current COVID-19 situation, whether they were "not likely, likely or very likely" to buy/lease a new or used vehicle in the next 12 months.

In the latest survey, conducted July 15-17, 70 percent o…

BEIJING -- China sales at Japan's three biggest automakers grew by more than 12 percent in July as the world's biggest auto market continued to recover from the coronavirus outbreak.

Nissan Motor Co. said on Wednesday sales in China rose 12 percent last month from a year earlier to 120,945.

China is a market that Nissan is focusing on as the embattled carmaker struggles to fix problems from ousted leader Carlos Ghosn's aggressive expansion drive.

Toyota Motor Corp. sold around 165,600 cars and light trucks under the Toyota and Lexus brands last month in China, up 19 percent year-on-year. Toyota said deliveries at Lexus rose 38 percent to 22,300 in July.

Honda Motor Co said on Wednesday it sold 136,646 vehicles in China in July, up 18 percent.