Appeals court strikes down order for Barra, Manley to meet

DETROIT -- A federal judge abused his power when he ordered the CEOs of General Motors and Fiat Chrysler Automobiles to meet in an effort to settle a racketeering lawsuit filed by GM, an appeals court ruled Monday.

But the appeals court denied GM's request to have a new judge handle the case, in which GM accuses FCA of bribing union leaders to gain a labor-cost advantage.

Monday's ruling said U.S. District Judge Paul Borman failed to consider other possible remedies when he ordered GM's Mary Barra and FCA's Mike Manley to meet in person. The 6th U.S. Circuit Court of Appeals also said Borman's reasoning — that the lawsuit would distract the companies from dealing with the coronavirus pandemic and recent racial tensions across the country — was unrelated to the case at hand.

The appeals court said Borman could, however, order mediation or a settlement conference in order to encourage the two automakers to reach a resolution without a trial.

GM had …

Read more
  • 0

Asbury, Park Place agree to revised acquisition valued at $735M

The major acquisition deal between Asbury Automotive Group Inc. and Texas retailer Park Place Dealerships is back on, though several stores shy of the original agreement.

Asbury will now acquire eight Park Place dealerships, both companies said Monday, taking a second chance on a sale that was derailed in the first weeks of the deadly coronavirus pandemic.

The new deal is valued at $735 million and is expected to close Aug. 31.

The Duluth, Ga., retailer said in December that it would buy 10 luxury Park Place stores in Texas with 17 new-vehicle franchises in the Dallas and Fort Worth market. Asbury terminated the deal days before it was scheduled to close because of declining business amid the pandemic and time constraints related to the deal's financing arrangements.

Improved new and used vehicle sales and an uptick in parts and service business in May and June allowed Asbury to regain footing amid the pandemic and move forward with a revised deal…

Read more
  • 0

Tesla's overexcited fans should cool down a little

Back when Tesla Inc. delivered 95,000 cars to customers during the spring quarter of 2019, the stock price was languishing at about $235 and Elon Musk's electric car company was valued at "only" $40 billion. Fast forward a year and the shares are now priced at more than $1,200. With a market capitalization of $224 billion, Tesla has surpassed Toyota Motor Corp. as the world's most valuable automaker.

Yet in the second quarter of 2020, Tesla delivered 91,000 vehicles — about 5 percent fewer than the same period last year. That's pretty underwhelming for a company whose fans view it as a fast-growing technology company in the mold of Amazon.com Inc., rather than a sluggish metal-bashing carmaker. So how is the massive recent jump in its market value justified?

In fairness, it shows resilience to sell this many cars when the company's main California plant was shut by the pandemic for much of the spring period. Doubtless, Tesla's new Shanghai plant…

Read more
  • 0

Uber to buy Postmates for $2.65 billion to expand delivery

Uber Technologies Inc. agreed to buy Postmates Inc. for $2.65 billion to expand in food delivery after the coronavirus pandemic cratered demand for ride-hailing, its main business, and an earlier attempt to acquire Grubhub foundered.

The all-stock deal is a modest outcome for Postmates, once a pioneer of the gig economy that was outmaneuvered by deep-pocketed competitors. It had been valued at $2.4 billion in an investment last year, a person with knowledge of the matter said at the time.

Uber estimates that it will issue about 84 million shares of common stock for 100 percent of the fully diluted equity of Postmates, the company said in a statement announcing the deal Monday.

“Postmates is highly complementary to Uber Eats, with differentiated geographic focus areas and customer demographics, and Postmates’ strong relationships with small- and medium-sized restaurants, particularly local favorites that draw customers to the Postmates brand,” Uber said i…

Read more
  • 0

VW on track to be freed from U.S. oversight imposed after diesel scandal

FRANKFURT -- Volkswagen Group said it has fulfilled its obligations under a civil settlement over its diesel emissions scandal reached three years ago with the U.S. Department of Justice.

Larry Thompson, the former U.S. deputy attorney general appointed by the department to monitor VW, has concluded in his third and final report that the automaker has met the settlement terms it agreed with the Department of Justice and California's Attorney General, VW said in a news release on Monday.

"The report did not find any new violations and states that Volkswagen has met its obligations under the Third Partial Consent Decrees with the United States Department of Justice and California Attorney General," VW said.

The findings, which can be downloaded from a VW website, put the company on track to exit the monitoring around the middle of September.

The diesel emissions scandal has cost VW about 31 billion euros ($35 billion) in settlement costs since 2015.…

Read more
  • 0

Jaguar Land Rover said to shortlist former BMW, Audi execs for CEO post

LONDON -- Jaguar Land Rover's shortlist of executives to succeed CEO Ralf Speth includes ex-BMW development chief Klaus Froehlich and former Audi CEO Bram Schot, the Financial Times reported.

The announcement could come as early as this week, the paper said.

JLR said in January that Speth would retire in September, triggering a search for a replacement.

Speth reaches 65 in September, which requires him to retire under the company policy of JLR parent Tata Motors. He will become non-executive vice-chairman of JLR.

The shortlist includes Froehlich, Schot, Nick Rogers, who is JLR's head of engineering, and Fred Schulze, head of production at Audi's home plant in Ingolstadt, Germany, the FT said, citing multiple sources familiar with the search.

Froelich retired from BMW at the end of June after reaching 60, the mandatory retirement age at BMW.

In January 2019, Audi promoted Schot, its former sales and marketing chief to the CEO role he…

Read more
  • 0

Manheim adds 12 more sites for in-lane bidding

Manheim said Monday it is adding 12 more auction sites where it's allowing dealers to bid in-lane, bringing its total to 17 such locations. The latest pilot locations include Manheim Denver, Manheim Nevada and Manheim Utah.

While bidders are allowed in lanes, vehicles are still not running through them, instead being shown on large screens as part of "digital blocks" with simulcast.

The Cox Automotive company first began allowing bidders to return to lanes at five pilot locations the week of June 22. It had planned on adding three additional sites in Florida, but postponed those amid rising levels of the novel coronavirus. Other pilots could also be postponed, based on the state of the virus.

"As we continue to move forward with our re-opening plans, we saw great success with our return to in-lane bidding at our five initial pilot sites," Alan Lang, Manheim's division vice president, said in a release. Lang added that the company adheres to "strict safet…

Read more
  • 0

Ford ventures extend sales rebound

BEIJING -- Ford Motor Co.'s China ventures reported sales growth in June as the world's biggest auto market continues to recover from coronavirus-induced lows.

The automaker's Chongqing-based venture with Changan said on Monday sales jumped 7.7 percent from a year earlier. It did not disclose the number of vehicles sold.

Ford's new and redesigned crossover models, including Escape, Edge and Explorer, are selling well and contributed to growth in past months, it said in a statement.

Jiangling Motors Corp., in which Ford owns a stake, said in a filing last week that it sold 39,192 vehicles last month, up 67 percent year on year. JMC sells Ford-branded crossovers and vans as well as JMC-branded commercial vehicles.

The ventures also saw sales up in April and May, putting the U.S. company on track for its first quarterly growth since the third quarter of 2017. It said the aging model lineup caused the sales slide.

Ford's rival General Motors sa…

Read more
  • 0

Ford says it may expand off-road line beyond Bronco, Bronco Sport

DETROIT — Ford Motor Co. is not just introducing the Bronco and Bronco Sport next week; it's launching a vehicle line that could grow to include more off-road nameplates.

The automaker on Monday confirmed Bronco would be a subbrand, using the "Built Wild" tag line. Executives as far back as early 2019 had been telling dealers its off-road offerings would be a "family" of vehicles.

That brand will include two-door and four-door versions of the Bronco SUV, as well as the smaller Bronco Sport crossover, a name Ford confirmed Monday after previously referring to it as a small, rugged off-road utility.

There's room to expand the Bronco line beyond those models, officials say.

"We'll start with the three models that we have," Mark Grueber, Ford's U.S. consumer marketing manager, said on a call with media. "We will continue to look to where there's customers we could satisfy with Bronco and how to continue to expand the brand in the future."

Ford …

Read more
  • 0

How did FCA go from worst to first?

For years, you could always count on Fiat Chrysler brands being doormats in surveys of vehicle quality.

In a decade of annual J.D. Power Initial Quality Studies starting in 2008, only one FCA brand — Ram in 2017 — managed to make it among the top 10. That's one for 100, a sorry batting average in any league.

FCA did better in scoring last-place finishes. During the same span, Dodge and Jeep each had one such inglorious title. And Fiat — true to its "Fix It Again, Tony" reputation — claimed four.

This is hardly what Dennis Pawley, Chrysler's former manufacturing chief, had in mind when he went public in the 1990s with his goal of topping Toyota in quality.

What we saw in late June was more like it: FCA's Dodge, in a tie with Kia, ranked No. 1 in the 2020 IQS report, the first time a domestic brand finished on top in 34 years of the study.

What's more, Ram came in at No. 3. And Jeep finished above the industry average at 11, a notch above Le…

Read more
  • 0

Dealers reevaluate ad spending in pandemic

Nielsen Automotive Group scaled back much of its paid advertising this spring as it grappled with state orders from New Jersey to close showrooms to slow the spread of the coronavirus.

The dealership group restarted some minimal spending in June, said Colin Carrasquillo, its digital marketing manager. But Nielsen, which has six franchised dealerships and a used-only store in New Jersey, won't approach advertising the way it did before the pandemic. Carrasquillo said that going forward, he will more strictly assess whether the group's ad sources are delivering the best results for the money.

"I will tell you, the spend is so much smarter," he said.

Many dealerships are reevaluating how they advertise — not just how much they spend and on which platforms, but whether that investment ultimately produces sales. Some retailers and dealer advertising consultants say that laser focus is an outgrowth of dealers' efforts to control costs t…

Read more
  • 0

How to succeed in era of touchless auto service

In 2018, I wrote an article about how your dealership's service department is moving to your customer's home, and that message could not be more applicable today. Because of the pandemic, touchless automotive service is the name of the game. This has been a consumer preference for some time. Case in point: Apple stores have been offering no-contact service since 2001.

Dealers have long been incredible survivors. As Winston Churchill is famous for saying, "Never let a good crisis go to waste." What can you do to come out of this swinging and be even more efficient? How can your dealership further improve the customer experience with touchless service in your service department?

You can choose to be the Usain Bolt of the service world and use the right training regimen and processes to trounce your competition, or you can be stuck in the past. My advice is to study what other successful businesses have done.

Apple has been the leader…

Read more
  • 0