Trade News

Volkswagen of America has issued a stop-sale on the all-wheel-drive versions of its new Taos compact crossover, telling dealers this week to halt sales of the models because "an issue may cause the vehicle to shut off while in use."

U.S. dealers were informed of the unidentified problem Monday, Mark Gillies, a spokesman for VW, confirmed, adding that the German company "is now following the required NHTSA reporting time frame." He said he was unaware of any injuries related to the unexpected shutdowns.

The notice sent to dealers said customers with Taos vehicles equipped with VW's 4Motion awd system alleged that their vehicle's engine "has shut off unexpectedly when coming to a stop." The notice said that VW was "working on a repair to address the issue; at this time a repair is not available."

VW launched the 2022 Taos in the second quarter and sold 4,939 in its first months on dealer lots. The Taos is one of two VW compact crossovers, along with t…

Two dealership groups have expanded their presence in Colorado, while a relatively new group owned by the founder of Bad Boy Mowers made its second dealership acquisition in the central U.S.

Here's a look at three transactions involving import-brand stores. One deal involved an Automotive News top 150 dealership group.

Schomp Automotive Group bolstered its Denver-area presence on Monday when it bought its first Nissan dealership.

Schomp of Highlands Ranch, Colo., acquired Empire Littleton Nissan from Chris Lenckosz and renamed the store Schomp Nissan.

"It's in Denver, so we see it as sort of a tuck-in to our existing operations," said Michael Dunlap, Schomp's vice president of business development.

Dunlap said Schomp has seven other dealerships in the Denver area.

"We already have sort of the headquarters and the scale to be able to absorb it. It's in the south side of Denver where our home base is; where we already have three store…

The EV revolution is closer than it appears, with automakers rapidly developing a slew of new vehicles that will wow consumers. But anxiety around charging and range is likely to hold buyers back until private and public stakeholders ramp up infrastructure, according to panelists at an automotive forum Thursday.

Within a few short years, automakers and suppliers will improve battery technology, and range could eventually become a nonissue as ultrafast chargers add 500 miles worth of electrons in minutes. But current conditions are not yet ideal for broad electric vehicle ownership, said speakers at the Management Briefing Seminars.

"The way we look at that is if you are going to make the transition from internal combustion to EV, it comes without compromise," said Mark Hanchett, CEO of EV startup Atlis Motor Vehicles. Standing in the way is charge time, range, the impact of towing on EV driving distance, and charging infrastructure, he said.

"Overcoming …

Vehicle listings company CarGurus has rebounded from the early months of the coronavirus pandemic, with both revenue and profit soaring in the second quarter.

The Cambridge, Mass., company on Thursday reported revenue of $217.7 million in the quarter ended June 30, up 130 percent from the same quarter a year earlier. Subscription revenue generated by its listings marketplace rose 80 percent to $144.2 million — $134.1 million of that in the U.S.

The company said consolidated net income more than tripled to $27.4 million from $7.1 million a year earlier. That came as CarGurus restored some of its operating expenses, particularly around sales and marketing — spending the company had cut back in recent quarters.

"Our core listings business demonstrated durability and resiliency, despite industrywide macroeconomic headwinds, while growth accelerated in digital wholesale with our CarOffer platform," CEO Jason Trevisan said in a statement. "Now, more than ever,…

The Biden administration Thursday proposed new mileage standards and limits on greenhouse gas emissions from cars and trucks that exceeded what some environmentalists feared would be issued.

The fuel economy and emissions requirements proposed by the Environmental Protection Agency and Department of Transportation would strengthen mandates eased by the Trump administration -- and, over time, mark a return to a more stringent path charted by former President Barack Obama in 2012.

It would mandate fleet-wide vehicle mileage of 52 mpg by 2026, up from 40 mpg this year. The EPA said its proposal would result in a 10 percent reduction in vehicle emissions in model year 2023 and then a 5 percent greater emissions reduction improvement each year after through 2026.

“It’s definitely an improvement” over previously reported versions, said David Cooke, a senior vehicles analyst with the Union of Concerned Scientists. “It’s better than what we thought. It’s still…

Sending a truck trundling down a highway without a human aboard would constitute a major development for most autonomous vehicle companies. For Plus, it's less a milestone and more a milepost.

A self-driving big rig operated by the company drove a 20-mile stretch of the Wufengshan highway near China's Yangtze River delta last month, the company's first such truck demonstration conducted in China.

Plus CEO David Liu welcomed the development, but in an industry prone to hype, was more circumspect in declaring it some sort of feat.

"I think this showcases that, you know, the future is kind of here," he told Automotive News. "But there is still a lot of work to be done."

A video of the demonstration showed the tractor-trailer changing lanes and showcased the Level 4 automated technology at work. Plus had obtained a special permit from the local government to conduct the demonstration.

Demonstrations are nice, but for driverless technology…

DETROIT — Secretary of Energy Jennifer Granholm touted President Joe Biden's ambitious goal — half of all vehicles sold in the U.S. will be emissions-free by the end of the decade — as she toured General Motors' electric vehicle assembly plant here Thursday.

"We've got the Detroit 3 at the White House, and we're here showing exactly what they're talking about," Granholm said, referring to the CEOs of GM and Ford, and the COO of Stellantis' North America unit, who joined Biden on the South Lawn of the White House for Thursday's announcement.

Factory Zero, formerly called Detroit-Hamtramck Assembly, will soon begin building GM's next generation of EVs, starting with the GMC Hummer pickup this year. GM also plans to build the electric Chevrolet Silverado, GMC Hummer SUV and Cruise Origin at the plant. All of the EVs will be powered by GM's proprietary Ultium batteries, which can offer a range of more than 400 miles on a full charge, GM estimates.

"The envi…

TRAVERSE CITY, Mich. — U.S. electric vehicle sales will continue to grow, but automakers won't meet an ambitious new federal goal aimed at helping address climate change and countering China's rapid rise as a leading EV and battery hub, according to forecasters.

The Biden administration on Thursday set a nonbinding sales target: Battery-electric or plug-in hybrids will account for half of all new light vehicles sold in 2030, a goal supported by major U.S. and foreign automakers as well as the UAW.

LMC Automotive expects about 24 percent of sales will be EVs by 2030, while IHS Markit estimates 32 percent, and Wells Fargo forecasts 16 percent. IHS says when combined with plug-in hybrids, the tally rises to 38 percent, while LMC says the combined total will be about 30 percent, both still well short of the 50 percent mark.

"You have to get consumers on board," Stephanie Brinley, principal analyst of the Americas at IHS Markit, said on a panel Thursday …

Online used-vehicle retailer Carvana reported its first quarterly profit since going public in April 2017.

The company posted net income of $45 million in the second quarter, a turnaround from a loss of $106 million in the year-earlier period.

Carvana has boosted unit sales and revenue by triple digits in several quarters over the last several years while aggressively expanding. Critics have in the past noted that the company was not profitable, but investors have so far bet that it would achieve profitability once it reached scale.

In the second quarter, Carvana sold 107,815 retail units, nearly double what it sold in the same period last year. Revenue nearly tripled to $3.3 billion. It marked the first quarter that retail unit sales topped 100,000 and that revenue exceeded $3 billion.

In a letter to shareholders, the company said it would have sold more vehicles if it had had more cars and trucks to market, reflecting low inventories that…

Automotive supplier Tenneco Inc. on Thursday posted a net loss of $10 million in the quarter ended June 30, compared with a net loss of $350 million in the pandemic-scarred year-earlier period.

Revenue at the ride-control and emissions systems producer rose 74 percent to $4.58 billion in the period. Adjusted earnings before interest, taxes, depreciation and amortization grew to $356 million, up from $8 million in the year-earlier period.

Cost-saving programs such as Accelerate+ helped drive margin expansion and cash generation.

"The global Tenneco team remained focused on driving operational improvements while managing through challenging market conditions, and our cash flow conversion focus continued to deliver net debt reduction," Tenneco CEO Brian Kesseler said in a news release.

The company said it expects its net debt to fall below $4.2 billion by year end.

Tenneco's net sales and operating revenues for its segments all improved year-o…