Automakers’ catch-up plan? Skip summer breaks

American Honda, BMW and Mercedes-Benz are canceling their traditional summer factory downtime at U.S. and Canadian plants in order to boost vehicle inventory as sales improve thanks to easing stay-at-home guidelines.

The automakers are eager to replenish inventory after their factories were idled for several weeks in accordance with government coronavirus rules.

Detroit 3 automakers have until next week to notify the UAW of planned changes in their own production calendar. Full-size pickups, in particular, have seen falling inventories as sales have remained surprisingly brisk during the lockdown.

Honda lost seven weeks of production from March 23 to May 11 as factories across North America shut down to reduce coronavirus transmission. Now it is adding production days on June 27, 29 and 30 that had previously been designated as days off for plant workers, the company said in an email to Automotive News.

"With the auto market improving as stay-at-h…

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GPB accused of violating Mass. securities law

GPB Capital Holdings, an alternative asset management firm and majority owner of Prime Automotive Group, has been accused of violating Massachusetts securities laws in its marketing materials to investors.

William Galvin, secretary of the commonwealth, filed an administrative complaint Wednesday against GPB following an investigation of more than a year and a half. The complaint accuses GPB of issuing marketing materials containing "material misstatements and omissions" to more than 180 Massachusetts investors.

Those investors, who contributed more than $14 million to five GPB investment funds, did so based on false information that they would be compensated from operational profits, Galvin's Securities Division said in the complaint.

Investors were promised a yearly 8 percent distribution paid on a monthly basis from operating profits, but eventually the firm could no longer meet those requirements and turned to investor contributions to meet its distri…

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N.Y. Honda store to pay $1.5 million for racial discrimination, deceptive practices

A New York Honda dealership agreed to pay $1.5 million to settle charges levied by the Federal Trade Commission that management discriminated against African-American and Hispanic car buyers, among other violations.

The FTC, in a complaint filed in U.S. District Court in New York on May 21, accused Bronx Honda and its general manager, Carlo Fittanto, of deceptive advertising, inflating vehicle prices with fraudulent expenses, charging above the minimum $75 state limit for documentation fees, and double-charging consumers taxes on vehicle purchases. With these and other practices, the FTC alleged the defendants violated the FTC Act, the Truth in Lending Act and the Equal Credit Opportunity Act, the agency said in a statement Wednesday.

Attempts to reach managers at the dealership for comment were unsuccessful on Wednesday.

One scam cited by the FTC in its initial complaint involved adding fees to certified pre-owned Honda vehicles.

Despite the fact…

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Five coronavirus mobility innovations attract Michigan grants

PlanetM, the State of Michigan's mobility initiative, said Tuesday it was awarding more than $280,000 in grants to five companies to tackle mobility difficulties in the state caused by the coronavirus crisis.

The companies will receive the grants in increments based on their ability to reach milestones preestablished with PlanetM.

GHSP, in Grand Haven, Mich., will receive $80,000 to develop its mobile UV-C treatment that harnesses UV-C light in various doses to disinfect the air and high-touch surfaces in shared vehicles after occupants exit.

Gatik, in Palo Alto, Calif., will receive $100,000 to provide contactless delivery via autonomous vehicles traveling assigned routes in Grand Rapids and Rochester, Mich.

Penske Vehicle Services, of Troy, Mich., a unit of Penske Corp., will get $28,000 to produce portable vinyl partitions separating front and back seat occupants, though not blocking them off completely.

RCO Engineering, in Roseville, Mi…

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GM accused of discrimination by 2 Mich. dealerships

DETROIT — The owners of two General Motors dealerships in Michigan are suing the automaker and GM Financial, alleging unfair termination of their floorplan agreements and racial discrimination.

The federal lawsuit says two GM executives accused one of the stores, Superior Buick-GMC in Dearborn, of breaching its franchise agreement by letting numerous customers receive discounts by falsely claiming to be related to a GM employee or retiree. The dealership, which has many Arab American customers, lost sales because GM imposed on its buyers an intimidating approval process for the family discounts, the suit says.

GM denied the dealers' claims and called the discrimination allegations "absolutely false."

"These particular dealers failed and refused to adhere to the terms of their agreements and violated requirements established to prevent abuse of a GM incentive program," a GM spokesman said in an email. "GM has an excellent record for diversity and inclusi…

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23 states sue Trump administration over fuel efficiency rollback

WASHINGTON -- A group of 23 U.S. states led by California, the District of Columbia and four major cities are filing suit Wednesday to challenge a Trump administration decision to weaken Obama administration fuel efficiency standards.

In March, the Trump administration issued final rules requiring 1.5 percent annual increases in efficiency through 2026 -- far weaker than the 5 percent increases in the discarded Obama-era rules -- but abandoned its August 2018 proposal to freeze requirements at 2020 levels through 2026.

Last week, a trade group representing General Motors, Fiat Chrysler Automobiles, Toyota Motor Corp. and others sided with the Trump administration on its plan and opposed a legal challenge to further weaken the requirements. Other automakers including Ford Motor Co. are not backing the administration plan.

California Attorney General Xavier Becerra said the revised requirements "will increase costs to consumers and allow the…

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Ford marked Trump visit with special face shield, leather bomber jackets

DETROIT — Ford Motor Co. last week asked President Donald Trump to comply with its rules by wearing a face mask and other protective equipment throughout his visit to a Michigan plant building ventilators.

He chose not to, aside from a brief behind-the-scenes tour, but the automaker was ready if he did.

In the days leading up to the presidential visit, Ford scrambled to prepare a one-off face shield specifically for Trump. A member of the automaker's D-Ford design team mocked up a number of special shield designs in his personal shop: one featuring a blue band with the presidential seal and "President of the United States" stamped in the middle, another with a simple red, white and blue background with the words "United States of America."

Ford ultimately chose another design: The words "Commander-in-Chief" over a navy blue background, flanked by two Ford Blue Oval logos and accented by red stripes and white stars. It was made with the same rubber door-s…

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Tesla’s price cuts signal demand is weaker than shares suggest, analysts say

Tesla Inc.’s overnight price cuts suggest the coronavirus is putting a bigger damper on demand than has been reflected in the electric-car maker’s share price, two analysts said.

The $5,000 reductions for the Model S and X and $2,000 cut for the Model 3 were an “acknowledgment that Tesla isn’t immune to material North American demand weakness,” Craig Irwin, an analyst at Roth Capital Partners, said in a report Wednesday.

“With the stock trading in the stratosphere,” Roth wrote, “the key question is, ‘Can Tesla continue to deliver an interesting growth rate in the U.S.?’”

Credit Suisse’s Dan Levy said the discounts change the narrative around the company’s volume this quarter. Prior to the price cuts, investors were concerned that demand would be limited by tight inventory. The company shut down production at its lone U.S. auto plant on March 23 and rushed to reopen the facility -- initially without local authorities’ permission -- in mid May.

Tesl…

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NADA, AIADA join groups asking for liability protections during pandemic

The National Automobile Dealers Association and the American International Automobile Dealers Association have joined a growing list of trade associations and other groups calling for Congress to pass temporary and targeted liability relief legislation related to the coronavirus pandemic.

In a letter sent Wednesday, more than 200 groups urged members of Congress to "enact temporary liability protections for businesses, nonprofit organizations and educational institutions that work to follow applicable public health guidelines against COVID-19 exposure claims."

The groups also are asking members to protect health care workers and facilities providing critical care and services; manufacturers, donors, distributors and users of personal protective equipment and other supplies; and public companies "targeted by unfair and opportunistic" securities related to the coronavirus.

"The need for liability protections and relief is clear," the groups said in the let…

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Manheim recalls some furloughed workers

Auction giant Manheim said Wednesday it is bringing back more than 300 of the 9,000 workers it furloughed earlier this month in the U.S.

The move comes as the Cox Automotive company has seen an uptick in reconditioning requests, as well as other early signs of economic recovery, such as increasing sales and eased restrictions in all 50 states, Manheim President Grace Huang said in an emailed business update.

The 9,000 Manheim employees were among 12,500 Cox Automotive personnel furloughed earlier this month after the coronavirus pandemic forced the closure of physical auctions and wholesale activity dropped significantly. Manheim has been running digital-only auctions since mid-March, and clients had been barred from visiting physical auction sites.

Huang said Wednesday the company has begun to allow clients to preview inventory on a limited basis at two-thirds of its auction locations. The company continues to waive fees related …

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Worries grow that cashback deals, gifts presage damaging price war

HANGZHOU -- Cashback offers, up to 10 free oil changes, generous prepaid gasoline cards -- these are just some of the giveaways China's auto dealerships are using to woo customers out and about after spending much of February and March in lockdown.

For the most part, they are getting the job done.

Cui Peng, a Geely sales manager in the eastern city of Hangzhou, says unit sales at his dealership jumped 30 percent in April from March and they are hoping for 25 percent growth in May.

That is partly due to delayed demand after China shut down to contain the coronavirus. But it is also thanks to an offer of six free engine oil changes, worth around 3,000 yuan ($420), for customers who buy models such as the Binyue crossover.

"Although car retail prices are not much different from usual, customers get to enjoy these complimentary services that do not impact our budget much in the short term," he said.

In the nearby city of Ningbo, a Toyota Motor …

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Renault to cut 5,000 jobs in cost-reduction drive, report says

PARIS -- Renault plans to cut 5,000 jobs by 2024 to help save 2 billion euros ($2.2 billion) in costs, according to a report published by Le Figaro newspaper.

The automaker will not resort to outright layoffs, the newspaper said on its website on Tuesday.

Renault will prioritize "the non-replacement of employees planning to retire," the report said.

The company declined to comment on Le Figaro's report.

Renault has a 48,500-strong workforce in France as of 2019. The automaker is expected to unveil job cuts and plant closures on Thursday as part of its cost-saving plan.

Earlier on Tuesday, President Emmanuel Macron announced an 8 billion euro plan to make France the top producer of clean vehicles in Europe and urged French automakers to make vehicles in their own country.

Macron said the government would not sign off on a planned 5 billion euros ($5.5 billion) state loan for Renault until management and unions had concluded …

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