HAAH reaches deal with China’s Chery to sell U.S.-made autos

HAAH Automotive Holdings, which is planning to bring Zotye vehicles from China to the U.S. next year, says it has reached a North American distribution deal with another Chinese automaker, Chery Automobile Co.

A U.S.-assembled premium SUV from Chery will be sold and serviced under the brand name Vantas as soon as late 2021, HAAH said in a statement Monday.

U.S. production will begin with semi-knockdown kits. The plan is to eventually transition to full manufacturing, Chris Hosford, a spokesman for HAAH, said in an email. The company is scouting a number of states, including Michigan, for a plant, which would employ about 1,000 to 1,500 workers once fully operational, said CEO Duke Hale during an interview with Detroit radio station WWJ.

HAAH plans to begin recruiting dealers at the NADA Show in Las Vegas this week.

The effort, if carried through, could mark back-to-back debuts of Chinese brands in the United States. HAAH is already working to…

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Daimler to ax 15,000 jobs as cost cuts intensify, report says

FRANKFURT --Daimler is intensifying existing cost-cutting measures and plans to cut up to 15,000 jobs, Handelsblatt newspaper reported, citing company sources.

The maker of Mercedes-Benz cars had said in November that it would cut at least 10,000 jobs and reduce staff costs by around 1.4 billion euros ($1.5 billion) by the end of 2022, a number Handelsblatt said would be significantly exceeded.

Daimler plans to announce the expanded savings at its annual news conference on Tuesday, the paper said, adding that CEO Ola Kallenius would also reduce investments in money-losing projects that are not part of the core business.

Daimler will also slim down its product lineup, the paper said. The convertible and coupe versions of Mercedes' range-topping sedan, the S class, will be axed and the future of the B class is uncertain, Handelsblatt said.

Mercedes has already said it will end production of the X-class pickup at the end of May.

A Daimler spok…

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How GM plant in Spring Hill climbed back

General Motors' collapse in the Great Recession left its mammoth Spring Hill, Tenn., vehicle and engine manufacturing complex without a car to build and with an uncertain future.

A decade later, the site is again pumping, garnering more investment and spurring supply chain growth in the region. Since 2010, GM has reinvested more than $2.3 billion at Spring Hill. And significantly for the site, the investments have targeted flexibility and future auto technologies to keep the plant well positioned.

"Customers' demands have shifted and we've evolved here," Ken Knight, GM Spring Hill executive plant manager for the past eight years, told Automotive News.

Knight said new launches, changing technological trends in the industry and talent are all pushing Spring Hill's mission.

Investments over the past four years have brought key changes.

In 2016, GM committed $788.7 million for a new high-efficiency engine program, a…
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At Ford, bad numbers, exec moves play on repeat

DETROIT — After nearly three years into Jim Hackett's tenure, the Ford Motor Co. CEO's sweeping fitness plan has yet to produce the positive financial results he has promised, and the automaker served notice last week that its turnaround remains at least another year away from bearing fruit.

Amid a growing sense of urgency within the company, Hackett last week again shuffled his senior leadership team, promoting Jim Farley to be his COO — and heir apparent — while parting ways with a seasoned manufacturing guru and dealer ally in Joe Hinrichs.

The executive shake-up, coming as Ford enters a crucial stretch of high-profile product launches, followed another round of dismal financial results that prompted Ford's stock to drop the most in nine years.

Hackett has indicated that his restructuring efforts would take time, but even he has been critical of the financial results produced during his tenure. Net income dropped from $7.7 bi…

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As industry evolves, dealers embrace tech

Editor's note: An earlier version of this story misspelled Aaron Wallace's name.

Aaron Wallace is a fourth-generation car dealer, not a software developer. He's the guy, he says, "with the marker and the white board."

But Wallace also was the guy with an idea. Today, that idea — A2Z Sync, a software platform that enables a one- person, one-price dealership sales model — is a standalone software business that last year exited beta testing and is now being shopped to dealerships across the country.

Creating a technology company wasn't what Wallace set out to do. Originally, he was trying to solve his own business problem — scaling a new customer-friendly finance-and- insurance model beyond a single BMW store in his family's Schomp Automotive Group in the suburbs of Denver.

Wallace isn't the only dealer dabbling in software to find solutions. Dealers and retail consultants say it's necessary for dealerships to embrace technology to evolve with a tra…

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Hinrichs’ goodbye letter to Ford team: ‘Leadership is about service’

DETROIT -- Joe Hinrichs, whose is abruptly retiring after 19 years with Ford Motor Co., wrote a 1,000-word farewell letter thanking his team and encouraging them to continue working to improve the company's outlook and performance.

The letter, obtained by Automotive News, summarized many of the highlights since Hinrichs, 53, was named Ford's president of worldwide automotive operations in May 2019 and suggests he had no plans to retire as recently as last month, detailing a January meeting in which they "committed to each other that we would all work together to make this a great year."

A Ford spokesperson declined to comment.

His retirement was announced as part of a management shakeup that will elevate Jim Farley to COO and expand the role of Hau Thai-Tang, Ford's product development and purchasing boss. Hinrichs has not responded to a request for comment. His retirement is effective March 1. 

The letter touched on Ford's troubled launch o…

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Dealerships boost efforts to monitor online reviews

The first email Jeff Dyke, president of Sonic Automotive Inc., opens every morning isn't from a fellow corporate executive or a manager at one of the retailer's 96 franchised or used-only EchoPark stores. Instead, it's a message containing the latest online reviews from Sonic's customers.

Dyke said he and Sonic CEO David Smith wake each day eager to assess the public dealership group's results as compiled by Reputation.com, a software vendor that monitors online customer reviews.

"Tomorrow morning at 4:30, sure as heck, I'll get three Reputation.com emails, and we'll open them up," Dyke told Automotive News. "There'll be 100 in there or whatever, and [we] review them all. Anybody who puts something out there, we're reading about it."

Dealership operators weren't always so obsessive about online reviews.

Before search engines and rating sites, customers who took dealership complaints to cyberspace were more or less sh…

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Rivian’s electric delivery vans for Amazon take shape

Amazon offered a sneak preview of its electric delivery vans from suburban Detroit startup Rivian, touting the vehicle's adaptable features and environmental friendliness.

The van had been seen only in artist renderings, but last week, Amazon released photos showing a scale model and a full-size clay mock-up of the EV and a behind-the-scenes video shot in the Rivian design studio. The tech giant said in a company blog that its goal is to reduce its carbon emissions, "raise the bar for driver safety" and optimize design. Amazon placed the order for 100,000 delivery vans from Rivian, of Plymouth, Mich., in September.

Much of the preview focused on the vehicle's design, which includes a massive windshield.

There is also a digital instrument cluster and central display screen that are integrated with Amazon's logistics management and routing and package delivery technology.

The company said the logistics management, and …

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Supply chains brace for coronavirus impact

North American purchasing and production managers spent last week attempting to prepare for the coronavirus as it spread worldwide.

The worsening health crisis stirred concerns over China as a source for critical auto parts used around the world. Two weeks ago, industry executives worried about the coronavirus' impact on domestic vehicle production in China. Last week, those worries escalated to the possibility of a production impact outside of China — including in North America.

Hyundai Motor Co. last week said that a shortage of Chinese-made components is already forcing it to temporarily halt production at its South Korean factories.

Others moved into contingency planning without yet knowing the extent of the virus.

"Our supply chain and engineering teams are working around the clock to develop and execute contingency plans, and we are doing everything possible to mitigate the impact of the virus," General Motors…

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WEEKEND DRIVE PODCAST: 2020 Automotive Hall of Fame inductees

Why a designer, manufacturing chief, parts boss and car-crazy comedian are being inducted into the Automotive Hall of Fame.

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