Dodge shifts to full-time muscle, drops Journey, Grand Caravan

Asphalt beware.

The Hellcat pack just added another member in the burly 2021 Dodge Durango, which will get a limited run with a supercharged HEMI V-8 engine that will dish out 710 horsepower.

The Durango SRT Hellcat, which is fortified with a retooled suspension, is just one piece of Dodge's portfolio planned for 2021. The brand also is upping the performance ante with a Charger SRT Hellcat Redeye that churns out 797 hp and the Challenger SRT Super Stock, which tops out at 807 hp.

Dodge, which helped usher in the minivan era, is now fully dedicated to muscle. The Journey utility vehicle and venerable Grand Caravan, the top-selling minivan in the U.S. last year, are gone after the 2020 model year.

With the Grand Caravan and Journey chapters ending, Dodge — once a mainstream brand with a broad car and truck lineup that stacked up against Ford and Chevrolet, and whose U.S. sales routinely topped 1 million as recently as …

Read more
  • 0

Faraday Future founder wraps up personal bankruptcy

BEIJING -- Jia Yueting, founder of Leshi Internet and electric vehicle maker Faraday Future, said on Thursday his personal bankruptcy process was complete and that a trust would be established to compensate Leshi shareholders.

In a stock exchange filing, however, Leshi said it had not heard from Jia regarding a compensation plan or a related arrangement. It added it was unable to verify whether shareholders would be compensated.

The entrepreneur is well-known in China for building a video-streaming business into an electronics manufacturer, before starting Faraday Future with ambitions to overtake Tesla Inc.

However, the cash-intensive enterprise forced Jia to file for bankruptcy in October with personal net debt of around $2 billion. To date, Faraday Future has only produced a small number of test models.

In a post on Chinese social media platform Weibo, the former executive said the bankruptcy process ended on June 26, and apologized to investor…

Read more
  • 0

Senators seek details on trade officials who sought auto clients

WASHINGTON -- Two senators asked the U.S. trade chief for details about officials who allegedly sought private-sector consulting work while still government employees and said the episode raises questions about policies at the Office of the U.S. Trade Representative.

“Americans deserve to know that their trade policy is made in the public interest and not for private gain,” Democrats Bob Menendez, of New Jersey and Sherrod Brown, of Ohio, said in a letter Wednesday to U.S. Trade Representative Robert Lighthizer.

The lawmakers asked Lighthizer whether the two officials still work at the trade office, and for details about approvals from the ethics office at the trade representative’s office.

“This example also raises broader questions about ethics policies and procedures at USTR,” they wrote.

Lighthizer told lawmakers June 17 that he was troubled to learn of the workers’ actions. He said the two were career officials, and that he was told that civi…

Read more
  • 0

VW: Brand plunges 29% in Q2; Audi down 35%

Volkswagen of America said its U.S. sales fell 29 percent in the second quarter to 69,933, while sister brand Audi saw its second-quarter sales slide 35 percent to 34,843 because of the COVID-19 pandemic.

Notable nameplates: Volkswagen Atlas, down 56%; Tiguan, down 17%; Jetta, down 38%; Audi Q5, down 52%; A4, down 31%; Q7, down 50%

Incentives (including Porsche): $4,378 per vehicle, up 28% from a year earlier, ALG says.

Average transaction price (including Porsche): $40,744, down 2.1% from a year earlier, according to ALG.

Did you know? Volkswagen said its retail sales were off only 1.6 percent in June and that its crossovers accounted for a record 60 percent of sales during the quarter.

Read more
  • 0

Daimler CEO warns of ‘drastic’ pay cuts, deeper restructuring

FRANKFURT -- Daimler CEO Ola Kallenius said the maker of Mercedes-Benz vehicles and the industry as a whole faces painful cutbacks to overcome the economic fallout of the COVID-19 pandemic.

The virus outbreak will force manufacturers to do more significant restructuring than they planned before the crisis erupted, Kallenius said Wednesday during a webcast hosted by the German manufacturer’s main labor union, IG Metall.

The “significantly harsher reality” for the industry following COVID-19 will necessitate “drastic” salary cuts, with Daimler executives facing bigger reductions than rank-and-file workers, Kallenius said. The adjustments are necessary to protect Daimler’s financial condition and safeguard huge investments in future technologies, he said.

The virus outbreak shuttered factories and showrooms across the globe, exacerbating Daimler’s struggle to execute a deep restructuring announced last year. Kallenius indicated in April that the planned mea…

Read more
  • 0

HONDA: Lean stockpiles a drag

Sales at American Honda fell 16 percent in June and 28 percent in the second quarter, as the mainstream Honda and premium Acura brands suffered from the effects of the coronavirus pandemic.

June deliveries marked a continued recovery that began in May, but the automaker said supply issues limited volume. Most Honda and Acura vehicles sold in the U.S. are made in North America, which suffered plant shutdowns that affected inventory levels.

Two bright spots for the Japanese automaker: the Honda Pilot and Acura RDX crossovers posted gains last month compared with June 2019.

Brands: Honda, down 17% in June; Acura, down 0.6%.

Notable nameplates: Honda Civic, down 22% in June; Honda Accord, down 30%; Honda CR-V, down 13%; Honda Pilot, up 4.7%; Acura ILX, down 16%; Acura TLX, down 21%; Acura RDX, up 11%.

Incentives: Honda, $2,570 per vehicle in the second quarter, up 48% from a year earlier; Acura, $6,242 per ve…

Read more
  • 0

Lincoln kills Continental, goes all-in on utilities

DETROIT — Lincoln Motor Co. confirmed Wednesday it will end production of the Continental at the end of 2020 as the luxury brand abandons sedans.

U.S. sales of the Continental, reintroduced in 2016, slowed in recent years as customers shifted to the brand's growing crossover lineup. Lincoln announced this year that it would end production of its other sedan, the MKZ, at the end of the year.

"Lincoln is investing in growth segments and the brand will feature a full portfolio of SUVs, including a fully electric vehicle in the future," the brand said in a statement. "Lincoln will continue to keep its newest SUVs fresh and we will have more news to share later this year; however, as the full-size premium sedan segment continues to decline in the U.S., we plan to end production of the Lincoln Continental at the end of this year."

Lincoln informed workers Wednesday at the Flat Rock Assembly Plant that Continental production would end.

“We buil…

Read more
  • 0

GM: Q2 sales fall 34% amid lean inventories

General Motors' U.S. light-vehicle sales plunged 34 percent in the second quarter because of the coronavirus pandemic's impact on demand and slim inventories at dealerships.

GM delivered 492,489 vehicles in the quarter, the automaker said in a statement Wednesday. Volume for each of GM's four brands fell at least 33 percent.

Retail sales fell about 24 percent during the quarter. April was GM's weakest month, when retail sales fell about 35 percent from a year earlier, but as demand began to outpace supply in May and June, retail sales were down about 20 percent during those months, GM said.

GM shut down its plants in the U.S. from mid-March to mid-May to help curb the spread of the coronavirus. Many dealerships around the country also closed or limited hours and services because of the pandemic.

Although sales dipped 5.3 percent for the GMC Sierra and 14 percent for the Chevrolet Silverado, according to the Automotive News Data Center, GM said dem…

Read more
  • 0

FCA: Jeep, Ram decline less than Dodge, Chrysler

Sales for FCA US fell 39 percent in the pandemic-wracked second quarter.

The automaker said it prioritized vehicle deliveries to retail customers during the quarter while fleet sales were low. FCA sales in the first half of 2020 were down 26 percent to 816,998.

Brands: Ram, down 35%; Jeep, down 27%; Dodge, down 63%; Chrysler, down 58%; Alfa Romeo, down 21%; Fiat down 54%

Notable nameplates: Ram pickups, down 35%; Jeep Cherokee, down 51%; Grand Cherokee, down 29%; Wrangler, down 16%; Gladiator, up 174%; Chrysler Pacifica, down 56%; Dodge Charger, down 53%; Challenger, down 53%

Incentives: $5,434 per vehicle in June, up 18% from a year earlier, ALG says

Average transaction price: $41,924 in June, up 4.2% from a year earlier, according to ALG

Quote: "This quarter demonstrated the resilience of the U.S. consumer," Jeff Kommor, head of U.S. sales, said in a statement. "Retail sales have been rebou…

Read more
  • 0

NISSAN: Tiny green shoots in a dismal quarter

With economic activity in a pandemic freeze during much of the second quarter, Nissan's quarterly sales cratered 50 percent.

The Nissan division sold 161,233 vehicles in the quarter, down 50 percent from the year earlier. Infiniti volume tumbled 44 percent to 16,095 vehicles.

Behind the dismal performance is good news.

Monthly sales momentum rose consistently in April, May and June — with retail deliveries accounting for a growing share of volume, said David Kershaw, Nissan division vice president of sales and regional operations.

"Retail sales have exceeded our expectations in the second quarter as we continue to decrease rental fleet volume and focus on steadily building a quality, sustainable business for our employees, dealers and for our customers," Kershaw said, declining to disclose the retail-fleet sales mix.

Nissan is pivoting away from an aggressive pursuit of market share championed by former Chairman Carlos Ghosn. A cornerstone…

Read more
  • 0

Local Motors forges its own crash-test path

The toaster-shaped shuttle slammed into a concrete barrier. Shards of glass sprayed through the air. Hub motors on the rear wheels detached from the underlying vehicle structure.

For Local Motors, this constituted a good start.

Where none existed before, the mobility company — perhaps most well-known for 3D-printing vehicles — had developed testing protocols to vet the crashworthiness of its purpose-built Olli autonomous shuttle. That was a year and a half ago.

The company took lessons from that initial round of testing and iterated on its printing methods, its frontal-crash structures and made design changes to the vehicle itself. In January, Local Motors ran a second gauntlet of crash tests more narrowly focused on components that showed substantial gains in how crash energy is dissipated in a vehicle without traditional crumple zones.

Among the findings: Local Motors says its 3D-printed frontal crush structure per…

Read more
  • 0

SUBARU: Forester bright spot in tough month

Subaru of America reported a 12 percent decrease in its June deliveries as the industry works to recover from the effects of the COVID-19 pandemic.

The Forester compact crossover bucked the downward trend as its June sales rose 32 percent to 19,490. It accounted for more than a third of Subaru's 53,911 sales in the month, and the vehicle's volume is down just 0.4 percent year to date.

"The Forester continued to shine in our lineup of all-star vehicles, drawing a healthy demand from car buyers looking for vehicles they can rely on when times are tough," Jeff Walters, senior vice president of sales, said in a statement.

Subaru's other key light trucks — the Ascent, Outback and Crosstrek — fell in June. The lower-volume WRX/STI and BRZ cars saw gains.

Subaru of America earlier this week said it would switch to quarterly sales reports after June, but a spokesperson on Wednesday evening told Automotive News that the brand changed its …

Read more
  • 0