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European car buyers still want minicars, for their ease of parking, low cost and fuel efficiency. But automakers say new emissions rules that require costly modifications are making them economically unfeasible.

So, how can the key entry-level segment be saved?

In some cases, automakers are offering electric versions of existing models. In others, they are blurring the line between minicars and models one size up. A few players, including some new entrants, believe that limited-range electric quadricycles are the answer.

Minicars -- also known as city cars or A-segment cars -- were Europe's fifth-largest segment in 2019, with more than 1.1 million sales, according to data from JATO Dynamics. Sales fell 3.9 percent from 2018, representing a decline of about 45,000 units.

"It's one of the very few stable car segments," said Felipe Munoz, lead automotive analyst at JATO Dynamics. "It's lost a bit of share because overall sales have grown slightly in E…

Bentley CEO Adrian Hallmark says China's rebound from coronavirus-induced lockdowns has been "astonishing," resulting in a surge in demand for ultraluxury models from the automaker

“In one week in April the order intake for us was greater than any individual month in the six months leading up to it," Hallmark told BBC Radio 4 on Monday. "It’s fair to say the rebound in China is quite astonishing.”

The Volkswagen Group subsidiary restarted production at its factory in Crewe, England, on May 11. It is building cars at half the rate prior to the plant's shutdown in March as it tries to balance protecting the health of its workers against keeping pace with demand.

Like most automakers Bentley temporarily halted output in Europe in March to help slow an outbreak of the virus.

Bentley started the year with 8,000 orders after it had finally overcome delays in launching the new Continental GT coupe and convertible, and the Flying Spur sedan. Hallmark said …

Audi will roll out an advanced, more powerful infotainment system for the 2021 model year across most of its cars and crossovers, broadening the vehicles' ability to deliver satellite radio and Internet connectivity as well as enabling consumers to purchase digital upgrades.

The modular MIB 3 system, which will debut on the 2021 Audi A4 and A5, is Linux-based and comes with a processor that is exponentially faster than the MIB 2 system, the German premium brand says. It will eventually migrate across most of the Audi lineup.

The system's internal modem is capable of download speeds of up to 1Gbps and will be capable of serving up dual-band Wi-Fi to passengers, the brand says. The integrated satellite radio will be equipped with 360L service from SiriusXM, expanding the number of available channels and opening up personalization options as well as on-demand audio.

Audi said the MIB 3 system will also allow it to offer digital upgra…

LONDON -- Arlington Automotive is laying off employees after the coronavirus outbreak forced the supplier to appoint administrators in the U.K. to restructure the company.

Arlington's operations include making bespoke thermostats and the assembly of vehicle systems. The company supplies Jaguar Land Rover, Ford and Nissan.

The company did not specify how many staff are being laid off. It employs around 600 people at several locations in Britain.

"The financial issues faced by the group have been compounded by coronavirus," said joint administrator Allan Graham in a statement. "New-car registrations have fallen dramatically and the complexity of supply chains in the sector have led to a sudden halt to manufacturing."

Restructuring acquisitions, including a German business bought last year, and uncertainty around Brexit and tariffs have also contributed to problems, according to joint administrators Duff & Phelps.

Other subsidiaries of Arl…

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.

Christophe Georges, Bentley's CEO of the Americas, says the ultraluxury brand's U.S. sales have risen 62 percent this year. Why the company is uniquely positioned and will continue to invest in physical product showcases.

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TOKYO -- Toyota Motor Corp plans to slash production in North America by nearly a third through October due to the coronavirus crisis and expects it will take some time for output to return to normal, a person familiar with the matter said.

Toyota will build about 800,000 vehicles, including its RAV4 crossovers and Camry sedans, at plants in the United States, Canada and Mexico from April through to the end of October, the person told Reuters.

That's down 29 percent from the Japanese automaker's output in the same seven months of 2019 and 32 percent lower than its forecast in January for production during the period.

The source declined to be identified because the information is not public.

A Toyota spokeswoman declined to comment on production plans.

The drop in Toyota's production highlights the pain for automakers around the world due to the fallout from the virus. Besides weak demand, problems with procurement and social…

BERLIN -- German Economy Minister Peter Altmaier said on Monday that he did not expect any major delays to the construction of Tesla's factory near Berlin due to the coronavirus pandemic.

The U.S. automaker said last November it would build a factory in Gruenheide in the eastern state of Brandenburg, creating up to 12,000 jobs and assembling as many as 500,000 vehicles annually.

The factory, which is due to open in 2021, has faced moves by environmentalists to stop local deforestation in addition to the problems surrounding the pandemic.

Tesla is moving into Germany's heartland to vie with Volkswagen, BMW and Mercedes-Benz as the country targets a massive increase in electric-car sales.

Tesla plans to build several models at the new plant starting with the Model 3 sedan and Model Y crossover, with more cars to follow.

Tesla Inc. asserts that restarting its operations in the midst of the coronavirus pandemic doesn’t make the company an outlier, nor is it going against the grain.

But its CEO's handling of the health crisis has been anything but ordinary. Tesla sued the county blocking its car plant from reopening, with Elon Musk calling the local health officer -- a former infectious diseases professor with a master’s degree in public health -- “unelected & ignorant.” He threatened to move Tesla’s headquarters out of California, warning that all its manufacturing may leave the state, too.

The weekend flare-up was without precedent in the three months since the first confirmed COVID-19 death in the U.S. -- a resident of Santa Clara County, home to Tesla’s headquarters and neighbor to its factory in Fremont, Calif. As the nation’s death toll approaches 80,000, Musk has emerged as arguably the loudest voice in corporate America advocating for the economy to reopen.

“I…

AutoNation Inc.'s first-quarter results were hampered by slower business and stay-at-home orders across most of its footprint amid the coronavirus pandemic, driving the auto retail giant to a net loss.

The nation's largest new-vehicle retailer said Monday that first-quarter revenue dropped 6.3 percent to $4.67 billion. Lower revenues and $315 million in after-tax noncash goodwill, franchise rights and other impairment charges mostly related to COVID-19 led to a net loss of $232.3 million. That compared with net income of $92 million in 2019's first quarter.

When adjusted for the special charges, net income from continuing operations was $82.4 million, down 4 percent. In the year-ago quarter, AutoNation had $6 million in after-tax gains on store divestitures.

AutoNation said its same-store new and used retail vehicle sales plunged 52 percent during the first 10 days of April but were down just 19 percent during the last 10 days of the month. For all …

BRUSSELS -- EU antitrust regulators will decide by June 17 whether to clear a proposed $50 billion merger between Fiat Chrysler Automobiles and PSA Group, a European Commission filing said on Monday.

The companies announced the deal last year to create the world's fourth-largest automake, putting under one roof the Italian company's brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company's Peugeot, Citroen, Opel, Vauxhall and DS marques.

FCA and PSA sought EU approval on Friday, the Commission site showed.

EU competition enforcers can approve the deal with or without conditions or open a full-scale investigation of about four months following the end of the preliminary review should they have deep concerns.

The deal comes amidst falling car sales across the world as companies have shut down production lines and showrooms to contain the coronavirus outbreak, although some companies are reopening plants as countries eas…