WEEKEND DRIVE PODCAST: Can Ford capitalize on connectivity?

Will incoming Ford COO Jim Farley's turnaround plan solve the automaker's growing woes? Plus, the illusion of semi-autonomous tech.

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Tenneco board changes draw ire of activist investor

Auto parts maker Tenneco Inc. shuffled its board Friday in a move that could provoke a fight with former Icahn Enterprises executive Dan Ninivaggi, who in January demanded the board make more-sweeping changes or risk a proxy battle.

Dennis Letham, a 12-year veteran board member, will become lead director effective April 1 in a move that also shifts board member committee responsibilities, the company said in a statement Friday. It’s the second change to Tenneco’s board this month, following a Feb. 5 decision to appoint former General Motors CFO Chuck Stevens as a director.

The Lake Forest, Ill., supplier of mufflers and other automotive components described the moves as governance improvements designed to enhance independent oversight of the board.

But Ninivaggi, who used to run Icahn Automotive Group for billionaire Carl Icahn, has sought more extensive structural changes. He has urged Tenneco’s directors to sell all or part of the company and use the p…

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Kia to recall 193,000 vehicles for potential fuel leak, fire risk

Kia is recalling nearly 142,000 Optima sedans and more than 51,000 Sedona minivans in the U.S. due to fuel line issues that could increase the risk of fire.

The recalled Optimas are from the 2013-14 model years, and the Sedonas are from the 2011-12 model years.

"The low-pressure fuel hose may deteriorate and crack over time due to heat generated within the engine compartment," according to Kia's statement on the Optima recall. The recalled Optimas are equipped with 2.4-liter gasoline direct-injection or 2.0-liter GDI Turbo engines.

In the recalled Sedonas, the fuel rail may develop a small, heat-induced crack, which may lead to a fuel smell and eventually a fuel leak that could increase the risk of a fire, according to Kia's statement.

Kia said it is not aware of any fires or injuries.

The Center for Auto Safety has been advocating for the recall since 2018, the group said in a statement.

"It is long past due for these almost 20…

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GM adding 1,200 jobs to raise output of crossovers, Cadillac sedans

General Motors on Friday said it will add 1,200 jobs at two plants in Lansing, Mich., to increase production of the Chevrolet Traverse, Buick Enclave and a pair of new Cadillac sedans.

GM plans to add 800 workers for a third daily shift at the Lansing-Delta Township crossover plant and 400 jobs to bring back the second shift at Lansing-Grand River Assembly, which makes the Cadillac CT4 and CT5. The new shifts will begin in the second quarter, GM said.

The new jobs will come about three years after the Delta Township plant eliminated its third shift and after running the Grand River plant on one shift for a little more than a year.

GM's contract with the UAW, ratified in October, includes a commitment to create or retain 5,000 jobs at the automaker's Delta Township and Spring Hill, Tenn., plants with investments totaling $1 billion. The labor contract doesn't specifically call for new jobs at Lansing-Grand River, which makes the Chevrolet Camaro in additi…

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U.S. regulators to rate new auto tech, but Europe leads in safety testing

Autopilot, Super Cruise and Drive Pilot are different names given to technology that automates steering and braking in a growing number of vehicles, but none of it can safely "pilot" cars without regular human intervention.

These systems and the potential for consumers to misunderstand and misuse them are putting pressure on regulators everywhere to overhaul safety testing and consumer rating systems that have not kept up with the pace of deployment of new semi-automated driving technology.

That may be especially true in the United States, where the National Transportation Safety Board chided regulators this week for lagging their European counterparts in efforts to ensure consumer and road safety.

The acting head of the U.S. vehicle safety regulator said on Wednesday that his agency would make changes this year to a testing program that assigns safety grades to new and future vehicles.

"We’re raising the bar for safety technologies in our new veh…

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Polestar CEO calls out industry, government, consumers for slow EV pace

Polestar CEO Thomas Ingenlath dreads the thought of spending time has grown frustrated with defending Volvo’s decision to launch a stand-alone electrified brand.

“How long will we have to explain that it's not a crazy idea to create a new electric car company,” asked Ingenlath, who has led Polestar since its creation in mid-2017. “That type of discussion has me fed up. We shouldn't still be questioning this.”

Ingenlath believes the industry, government, consumers and even the media need to do more to accelerate the shift to emissions-free driving. That way the discussion about becoming carbon neutral can evolve. He explains why in an interview with Automotive News Europe Managing Editor Douglas A. Bolduc.

Why do you feel the shift toward electrified cars is stuck in first gear?The pace and the way electrification is being implemented is not satisfying and it's certainly too slow. We really should be talking about the next step.

What needs to change?…

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Scaled-back Colorado EV bill clears Senate

Colorado state senators on Friday passed a bill allowing Rivian and other electric vehicle manufacturers to sell directly to consumers in the state — but they struck a provision that would have allowed all automakers, including those with franchised dealers, to do the same.

The Colorado Senate voted 22-12 on the bill, which now goes to the state House for consideration.

Before the bill's passage, lawmakers removed its most controversial language, which would have allowed automakers to own, operate or control a dealership "that sells electric motor vehicles of a line-make manufactured by the manufacturer." That had sparked fierce pushback by the Colorado Automobile Dealers Association, which opposed the idea of automakers with franchised dealership networks opening factory stores that would compete directly with dealer-owned stores.

“I want to say thank you to this entire chamber for everyone giving this bill the time and attention that it needed to …

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VW proposes 35% dividend increase after profit surges

FRANKFURT -- Volkswagen Group said its full-year operating profit rose 22 percent to 17 billion euros ($18.5 billion) in 2019, helped by strong sales of higher-margin cars including utility vehicles.

Sales revenue is expected to grow by up to 4 percent this year and deliveries to customers will be in line with the 2019 level of 10.98 million units, VW in a statement on Friday.

VW will propose a dividend of 6.50 euros per ordinary share, up from 4.80 euros in the year-earlier period.

VW said market share rose in almost all regions, resulting in the rise in operating profit to 16.9 billion euros, up from 13.9 billion euros in 2018.

VW forecast a group operating return on sales in the range of 6.5 percent to 7.5 percent in 2020 compared with 7.6 percent in 2019, but said this depends on the development of geopolitical tensions and conflicts as well as epidemics including the coronavirus.

In the U.S., VW sales in 2019 improved 2.4 percent to 65…

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Hyundai wins $5 million from importer in parts case

Hyundai Motor Co. and its American subsidiary were awarded $5 million and a permanent injunction in a federal lawsuit against a Miami company accused of selling knockoff parts in the U.S. under the Hyundai name.

In a statement, Hyundai said Direct Technologies International Inc. imported "Hyundai-branded service and collision parts intended for sale and use in foreign countries" and "that many of DTI's parts were counterfeits or defective parts that were sourced from unscrupulous trading companies in the Middle East, Vietnam, and Russia."

The U.S. International Trade Commission is investigating the case at Hyundai's request. A spokeswoman said the commission could not comment because the investigation is ongoing.

Automotive News on Thursday morning reached out to DTI for comment on the judgment but has not received a response.

"This case is a win for Hyundai owners who want peace of mind that Hyundai-branded parts used on their cars are appro…

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As Geneva goes dark, automakers improvise to unveil latest models

FRANKFURT -- Automakers scrambled to reorganize press conferences and vehicle presentations after Swiss authorities forced the cancellation of the Geneva car show on Friday in an effort to contain the coronavirus.

More than 160 exhibitors were scheduled to show off their latest cars, light trucks and services at the 90th Geneva Motor Show, which was due to start on Monday and last until March 15.

BMW and Mercedes-Benz said they would use live-streaming to present the BMW Concept i4 and a revamped Mercedes E-Class respectively.

Ferrari does not plan to arrange alternative events, and Fiat Chrysler said it had no plan B, but that it was considering ways to show off a new electric Fiat 500.

Aston Martin CEO Andy Palmer said in a tweet that the automaker would broadcast its press conference from its Gaydon, England, headquarters on Wednesday. 

French brand DS, part of PSA Group, said it was seeking a venue near Paris to showcase a new co…

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Pentagon reverses guidance on Military Lending Act rule

The Department of Defense reversed its guidance on the Military Lending Act, clearing confusion that has prevented automotive dealers from selling guaranteed asset protection, or GAP, to military members and covered relatives.

The Pentagon said Thursday it was withdrawing part of a previously amended Q&A published in the December 2017 Interpretive Rule that tried to define the scope of motor vehicle financing exclusion in the Military Lending Act.

The department granted a joint petition filed by the National Automobile Dealers Association and the American Financial Services Association to withdraw Q&A 2, which "interpreted the MLA in a way that effectively prevented auto dealers from making [GAP] waiver coverage available to service members," NADA said in a news release.

The change is a victory for dealers, many of whom effectively halted GAP sales for fear of running afoul of the rule.

"We are thrilled with the decision by the administrat…

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Lyft hikes price of e-bike rentals, but riders aren’t on board

The mobility-services industry is facing scrutiny left and right these days.

On Tuesday, NHTSA ordered a suspension of passenger operations for 16 autonomous shuttles operated by French manufacturer EasyMile in 10 U.S. states, pending an examination of "safety issues related to both vehicle technology and operations."

That same day, we learned, from a study by the Union of Concerned Scientists, that ride-hailing services such as Uber and Lyft are increasing carbon emissions and creating more pollution than private car rides and are drawing passengers away from public transportation.

And now, trouble in the world of micromobility: Lyft is under fire because, starting Monday, March 2, it plans to start charging per-minute fees to rent electric bikes in the San Francisco Bay Area. Riders already pay $15 for a monthly membership or $149 annually. For that, they get unlimited 45-minute trips on classic pedal bikes, and until now, e-bikes. But startin…

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