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A group of state attorneys general, led by California's Xavier Becerra, urged automakers Wednesday to curb "unlawful and predatory" practices regarding the timely return of off-lease vehicles to franchised dealerships during the COVID-19 pandemic.

In a letter distributed Wednesday — which includes signatures from attorneys general in Connecticut, Iowa, Minnesota, Nevada, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Virginia and Puerto Rico — Becerra directly responded to media reports that consumers are having trouble returning off-lease vehicles.

USA Today reported on April 16 that some dealerships were refusing to accept vehicles with expired lease contracts unless consumers purchased a vehicle in exchange. Some consumers were reportedly told that a lease extension would be their only option.

The states are pressing automakers' finance arms and dealerships to adopt and maintain strict controls to ensure consumers ca…

Dow Inc. containment ponds were flooded early Wednesday after two dams failed in Midland, Mich. Flood levels were reported at historic highs in the area.

Dow's flood preparedness plan has been activated, the company said in a statement. Dow is a key supplier to the auto industry for various chemicals and plastics. It also manufactures adhesive bondings for vehicles and makes safety-enhanced airbag coatings.

It was too early to determine whether Dow's problems could lead to production disruptions for its automotive customers, who already were in crisis mode as they restarted some North American production amid the coronavirus pandemic.

"The material from the pond commingling with the flood waters does not create any threat to residents or environmental damage," Dow said in an updated statement Wednesday. "There has been no reported product releases."

After days of heavy rainfall led to the dam failures, Gov. Gretchen Whitmer declared a state of eme…

General Motors is "almost there" on developing an electric vehicle battery that will last one million miles, a top executive said on Tuesday.

The automaker also is working on next-generation batteries even more advanced than the new Ultium battery that it unveiled in March, according to GM Executive Vice President Doug Parks, who was speaking at an online investor conference.

He did not specify a timeline for introduction of the million-mile battery, but said "multiple teams" at GM are working on such advances as zero-cobalt electrodes, solid state electrolytes and ultra-fast charging.

Current EV batteries typically last 100,000 to 200,000 miles.

Reuters reported n early May that Tesla , in partnership with Chinese battery maker CATL, plans to introduce its own million-mile battery later this year or early next.

CATL provides battery cells to other vehicle manufacturers, and has supply agreements in China with GM and its local partner SAIC …

Effective negotiation requires charisma, confidence, knowledge and, many experts believe, eye contact. For dealerships pivoting to remote F&I product sales during COVID-19 shelter-in-place orders, the inability to sit down with customers to talk about product sales is a hindrance to profitability.

Face-to-face interaction, whether in person or over video, are more compelling, and experts say it can really make a difference.

Jamie Payne, general manager of Planet Hyundai in Golden, Colo., said the F&I process doesn't work as well over the phone, particularly when trying to sell to people.

"There's a lot of other distractions when you don't have anyone looking you in the eye," Payne said. "If I was trying to buy a car at home on the phone, there's probably not a lot of listening to the finance department that I would have time for."

For Payne, there's a level of respect generated by eye contact that focuses the …

Dealerships that identify as having established digital retailing processes reported higher finance and insurance profits in April than those that didn't, according to a study by the National Automobile Dealers Association and digital retailing provider Roadster. Respondents also reported selling more vehicles with fewer employees, an indication that digitizing more of the car-buying experience is alleviating some of the burden on salespeople.

The study, conducted May 6 to 8, asked 236 franchised and independent dealerships to compare April sales results with those in February, before coronavirus-related closures.

F&I profits rose 58 percent on new vehicles in April for respondents with digital retailing processes. Dealerships that didn't offer digital retailing saw a smaller increase in F&I, up about 35 percent.

Dealerships also reported selling an average of 18 vehicles per salesperson in April, compared with a 13 vehic…

U.S. Sen. Tom Carper sent a letter Monday asking EPA Inspector General Sean O'Donnell to expand the agency's investigation into the new fuel efficiency rules adopted under the Trump administration.

In late February, Carper asked the inspector general to open an investigation into "potentially unlawful efforts and procedural problems" related to the vehicle emissions rules, citing reports received by his office that EPA political officers were dodging certain rule-making and procedural requirements and appeared to be trying to conceal documents critical of the draft rules.

President Donald Trump's rollback of Obama-era vehicle emissions standards was completed March 31. The new rules require 1.5 percent annual increases in efficiency through 2026. The final rules take effect June 29.

In the letter Monday, the Delaware congressman and top Democrat on the Senate Environment and Public Works Committee said his office has obtained new documents revealing "sig…

FRANKFURT -- Germany's car finance companies are facing increased scrutiny from the country's main financial watchdog as the coronavirus crisis reduces the value of the vehicles used as collateral for their loans.

Bafin has stepped up how frequently the country's car leasing and auto finance companies must report liquidity and capital metrics, according to people familiar with the matter.

Scrutiny of the lenders is now the closest since at least the financial crisis more than a decade ago, the people said, asking not to be identified discussing private information.

A Bafin spokesman declined to comment.

Lockdowns to combat the spread of the coronavirus have resulted in a collapse of car resale values and increased financial stress for many borrowers, a combination that could force increased provisions and writedowns at auto lenders. The companies generally are not subject to much scrutiny because their loans are usually backed by the cars that are…

DETROIT — Ford Motor Co. has briefly halted production at two assembly plants in two consecutive days after workers tested positive for COVID-19. 

Employees at the automaker’s Dearborn Truck Plant in Michigan were sent home early Wednesday afternoon after a worker tested positive for the coronavirus, according to a spokeswoman, although the company hoped to restart production later Wednesday evening. Assembly lines at its Chicago Assembly Plant were briefly halted Tuesday afternoon and again overnight after two workers there were found to have the virus.

Ford again halted production at Chicago Assembly Wednesday afternoon following a supplier parts shortage, a spokeswoman said. The Wall Street Journal reported an issue at the nearby Lear Corp. seating plant. 

The incidents are the first known issues at Ford since the automaker restarted production at most of its North American assembly plants Monday.

The affected employees in Chicag…

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.

VW's executive director of innovation discusses how the company is fast-tracking the development of future products, moving forward with a venture capital fund to take stakes in startups, and using its Konnect innovation hub to collaborate with the Israeli mobility community.

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Since its founding six years ago, self-driving startup Zoox has devoted its efforts exclusively to creating a brand-new, bespoke people mover. But amid the current pandemic, the company has explored the possibility of using its prototypes for package deliveries.

"This gave us the opportunity to think about moving beyond people," CEO Aicha Evans said Tuesday. "In times of an emergency like this, we're helping the health sector, and cities and states, do essential services. We see this as an opportunity."

Whether the exploration remains a short-term anomaly or evolves into part of the company's overall strategy might hinge on the fate of Zoox itself.

Evans did not address reports of a prospective sale during an appearance Tuesday at the virtual EcoMotion mobility technology conference. But in recent weeks, multiple news outlets have reported the company has explored the possibility.

Given the capital-intensive challenge…

WINDSOR, Ont. -- Auto assembly is slowly coming back online in Canada. 

Fiat Chrysler Automobiles was the latest to fire up production lines as production resumed at its Windsor Assembly Plant in Windsor, Ont., where the automaker builds minivans.

All employees, from unionized hourly workers to office staff a few miles away at the company’s Canadian headquarters had to undergo a health screening before reporting to work.

Automotive News Canada was one of a handful of media that saw firsthand how employees are screened before entering the workplace — be it a factory or office space.

Six tents and six trailers have been deployed in parking lots east and west of the plant. Employees are first required to pass a daily online personal health questionnaire, delivered through an app on mobile phones.

They then slowly and methodically filed through a screening tent, following red dots spaced about six feet apart in the empl…