0% finance deals boost Detroit 3 captive share

Aggressive incentives didn't prevent new-vehicle demand from falling by double digits in March, but J.D. Power believes they allowed the Detroit 3 to take their largest slice of new-vehicle sales since 2006.

Since launching a wave of incentives that includes 0 percent interest rates on seven-year loans, the Detroit 3 captives have seen their share of financed new vehicles skyrocket 60 percent.

Ford Motor Credit Co., GM Financial and Santander Consumer USA's Chrysler Capital business originated 31.8 percent of new-vehicle financing from mid-March to April 8, according to J.D. Power, up from 19.9 percent in the weeks prior. All other captives, which include banks' captivelike relationships, comprised 38.4 percent of the market.

Tyson Jominy, vice president of data and analytics at J.D. Power, said origination shares for the Detroit 3 may have been even higher had the automakers not offered to extend leases.

"Lease buyers are staying out of the marke…

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Darwin Automotive provides vital assistance & tools to auto dealership partners & OEMs during COVID-19

Iselin, NJ, April 13, 2020 -- Darwin Automotive today announced that in response to the COVID-19 pandemic, and numerous requests from its dealership partners and OEMs for help, it will be providing its industry-leading "Virtual Deal Maker" tool for free to its existing digital retailing customers nationwide for the life of their agreement.

The Virtual Deal Maker tool enables dealership personnel located anywhere in the world to virtual "desk" their online consumers, conducting multiple deals and options while the customer is online. This functionality enables the online consumer to interact anywhere and at any time with the dealership, just as if they were in front of the dealership’s employees.

In just seconds the dealership’s sales team can view multiple lenders, programs and other valuable items including dealer cash and front and back end profits. This enables them to properly desk the deal virtually with their customers and efficiently close transactions.<…

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Evolution by Dent Wizard adds PermaSafe to vehicle protection services

ST. LOUIS, April 10, 2020 – Dent Wizard International, the largest provider of automotive reconditioning services and vehicle protection products in North America, recently formed a partnership with PermaSafe Protective Coatings, the maker of a unique vehicle disinfection and long-term antimicrobial surface and air protection system. The PermaSafe System meets the EPA’s criteria for use against SARS-CoV-2, the novel coronavirus that causes the disease COVID-19. Dealerships and rental companies can purchase the product through Evolution, with detailed instructions and support on applying PermaSafe to a vehicle. PermaSafe can be offered on all new and used vehicles upon delivery and can be sold to customers scheduled in service. The PermaSafe System is a two-step process, comprising two patented and EPA-registered products: PermaSafe CLEAN and PermaSafe SHIELD. PermaSafe CLEAN is an EPA registered multi-purpose cleaner, heavy duty odor eliminator, airborne odor elimi…

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NIADA urges SBA to open loan program to certain dealer finance companies

The National Independent Automobile Dealers Association is calling on the Small Business Administration and Congress to open the Paycheck Protection Program to related finance companies of buy-here, pay-here dealers.

In separate letters sent Friday to congressional leaders, the Small Business Administration and the Senate Committee on Small Business and Entrepreneurship, NIADA CEO Steve Jordan argued that current guidance from the administration prohibits small finance companies from receiving loans from the Paycheck Protection Program — a crucial part of the $2 trillion Coronavirus Aid, Relief and Economic Security Act.

The CARES Act states "any business concern … which employs not more than 500 employees shall be eligible" for the paycheck protection loans. The association said dealerships are being approved for the loans but the related finance companies "are routinely denied, with lenders stating current SBA guidance prohibits finance comp…

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AutoNation offers 25% off service work through April

AutoNation Inc., the nation's largest new-vehicle retailer, is offering 25 percent off service work to all customers through April, hoping to help people financially impacted during the coronavirus outbreak.

The retailer, which on April 1 launched the deal that includes parts and labor, shared a video of the promotion on Twitter on Monday. The company also has information about the offer on its website.

"For everyone that has to be on the road @AutoNation says #ThankYou & brings you some relief," the company tweeted.

Auto retailers from the largest companies to smaller dealerships are rolling out promotions aimed at helping customers — and their businesses — during the coronavirus pandemic. With service driving a significant portion of dealership revenue and profits, some stores are offering service discounts to essential workers or deferrals on service work for a certain time period.

"We have had many thank us for helping to keep them on the…

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GM begins mass production of ventilators for U.S. government

General Motors said on Tuesday it has started mass production of ventilators needed to treat severely sick coronavirus patients and would deliver the first batch of the medical equipment to the U.S. government this month.

Last week, the Department of Health and Human Services awarded GM a contract worth $489.4 million to make 30,000 ventilators by the end of August.

GM, which is working with ventilator firm Ventec Life Systems to produce the medical equipment, said it will ship more than 600 ventilators in April.

It added that it expects to fill nearly half the order by the end of June and the full order by August-end.

The news drew praise from the Trump administration weeks after the president accused the automaker of dragging its feet.

While Trump criticized GM CEO Mary Barra in March for taking too long to start building the medical devices, people familiar with the matter told Bloomberg at the time the company and Ventec were waiting on…

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Porsche, Kia dominate World Car awards

The Porsche Taycan won two of the five categories in the 2020 World Car Awards, as did the Kia brand, including Car of the Year for the Telluride SUV.

The battery-powered Taycan sports sedan was named Luxury Car of the Year, ahead of the Porsche 911 and Mercedes EQC. The Taycan was also named Performance Car of the Year in a Porsche-only contest, beating the 718 Spyder and the 911.

The winners were selected by 86 international jurors, including Automotive News Europe. The awards were to be handed out at the New York auto show on Wednesday, but the show was postponed due to the coronavirus crisis. The winners were announced on a video available on YouTube.

PSA Group CEO Carlos Tavares was named Person of the Year, an honor announced in March. 

The Telluride, a model not sold in Europe, won Car of the Year over the Mazda CX-30 compact crossover and the Mazda 3 small hatchback. Kia’s other award-winner was the Soul EV, which was named Urban Car…

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Tesla wooed by $1 billion Missouri package for Cybertruck plant

A small Missouri city is trying to lure Tesla Inc. with big bucks.

The city of Joplin, near Missouri’s borders with Oklahoma and Kansas, is seeking to tempt the electric-car maker with $1 billion in incentives and savings to build a new factory for its futuristic Cybertruck.

Joplin is offering Tesla a 1,042 acre site at a 50 percent discount, according to a website it’s built to court the company led by billionaire Elon Musk. It’s also coaxing the carmaker with a 100 percent tax abatement for 12 years and various other tax breaks and incentives.

The city, which is home to a pair of industrial-battery production facilities, has taken its campaign directly to Musk, with Joplin Area Chamber of Commerce President Toby Teeter appealing to the CEO Monday on Twitter. Tesla didn’t respond to a request for comment on Joplin’s proposal.

Musk, 48, said in a March 10 tweet that Tesla was scouting locations to build the Cybertruck somewhere in the …

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Automakers from Audi to Renault begin rebooting European plants

Volkswagen Group's Audi unit is among automakers gradually reopening factories in Europe, even as coronavirus lockdowns drag on across much of the region.

Some 100 workers at Audi’s Gyoer, Hungary site, one of the world’s largest engine plants, restarted output on an assembly line in a single-shift system, the company said Tuesday. A second line is set to follow at the end of this week.

Manufacturers are facing a crushing economic blow after governments across Europe placed restrictions on public life to combat the pandemic, which has claimed some 120,000 lives worldwide. The slump may mean 3 million lost vehicle sales this year in Europe, or 60 billion euros ($66 billion) in lower revenue, according to Bloomberg Intelligence analyst Michael Dean.

After weeks of restrictions, governments and corporations are sketching out exit strategies. Still, efforts to get the economy back on track are likely to be gradual and may encounter setbacks if the …

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Mazda comes ashore in U.S. with R100 in 1970

Mazda prepares to enter the U.S. market, with the first batch of R100 imports departing Hiroshima, Japan, on April 14, 1970. The shipment was scheduled to arrive at the Port of Seattle.

The U.S. was Mazda's second North American market after Canada sales were launched in 1968.

The company initially shipped 60 R100 coupes to the U.S. in 1970, and it introduced the rotary-powered RX-3 here in 1972.

Mazda first showed the R100 at the 1967 Tokyo auto show along with the new Cosmo.

The subcompact R100 was priced at $2,495 and featured a rotary engine.

SPECIAL REPORT: Mazda's first 100 years

No automaker had perfected the engineering and manufacturing of the rotary engine, which spins a rotor in a circle rather than pistons going up and down. The engine provides strong power and smooth operation in a compact package. With the rotary engine, the R100 weighed about 1,775 pounds and averaged 23 mpg.

To promote one of its first vehicles…

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Using video to help stay connected

I got the idea for a story about how dealerships were using digital video in their marketing strategies before the NADA Show in February.

Then the world changed.

Some dealers have said they are pulling back on their advertising to conserve cash as sales collapse and service demand falls off during the COVID-19 outbreak, either because customers are reluctant to venture to a dealership while practicing social distancing or because state and local governments closed showrooms to the public.

I started asking dealers how they're adapting to a virtual world when the physical one is limited. Over the past few weeks, I've heard about social media videos promoting online transactions and remote deliveries, virtual finance and insurance conversations, even staff video chats.

There still is a story to tell about dealers' videos — just not the one I'd envisioned.

Like many of you, I've been following social distancing guidelines to slow the spread of …

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Start of new Toyota-Mazda plant production delayed by COVID-19

The start of production at the joint-venture Toyota-Mazda assembly plant in Huntsville, Ala., will be delayed until later in 2021 because of setbacks related to the coronavirus pandemic.

"On April 9, we informed state and local government officials in Alabama, along with our key suppliers, how the COVID-19 pandemic is impacting our ability to maintain critical equipment delivery schedules, creating labor shortages and slowing construction," Toni Eberhart, a spokeswoman for Mazda Toyota Manufacturing, said in a statement emailed to Automotive News.

"As a result, we will delay the start of production of the Mazda Toyota Manufacturing plant to a time period later in 2021. We are eager to keep the project moving forward and appreciate the ongoing support of all key stakeholders."

The plant was to begin production of 150,000 units each of a Toyota and a Mazda crossover yet to be named, beginning in 2021. Eberhart declined to comment on when production would s…

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