Lithia hits ‘No. 1 target’ Canada in pending purchase

After half a decade scouting the nation to the north, U.S. megaretailer Lithia Motors Inc. is set to expand its empire into Canada with the purchase of an Ontario-based luxury dealership group.

The pending acquisition of Pfaff Automotive Partners fulfills a longtime goal of Lithia CEO Bryan DeBoer. It will make Lithia the second public dealership group operating in Canada, and it could prod other U.S. dealership groups to consider moves into the smaller but similar market.

DeBoer confirmed to Automotive News last week that the retailer has acquisitions of Canadian dealerships, among others, under contract and slated to close within the next 90 days. Those deals are expected to add $2 billion in annual revenue to Lithia, the second-largest dealership group in the U.S.

"Canada is our No. 1 target," DeBoer told analysts last week. "We've spent the last five years getting to know the dealer body there and have pretty good relationships with most of the lar…

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Canadian Infiniti stores can join with Nissan

Over the past decade, with rising sales and a promising product road map, Infiniti steered its Canadian dealers to build standalone stores to differentiate themselves from mass-market Nissan.

Since then, Infiniti sales have fizzled, and the product rollout has slowed. Deliveries in Canada tumbled to 5,783 last year after peaking at 12,581 in 2018.

Infiniti is now reversing course — telling the 37 retailers that they may abandon their flashy stores and move operations under their Nissan brand rooftops.

The intent is to help them lower overhead, combining Infiniti and Nissan service departments and back-office operations to achieve better economies of scale, Infiniti Canada Managing Director Steve Rhind told Automotive News last week.

He said the rooftop consolidation plan is not mandatory.

"This is something that we're making an option for dealers," he said. "We are working with them when they want to do it…

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With few cars to sell, where do ad dollars go?

There are two schools of thought on how dealerships should approach advertising in a time of low inventory.

One, said Sariah Heaton, marketing director for Jerry Seiner Dealerships in Salt Lake City, is to pull back on spending while dealerships have so few cars to sell.

"A lot of dealerships are really, really slashing their budgets down because the demand is there either way," she said, "and we are subscribing to that for the most part."

The second: Keep a foot on the pedal and stay top of mind with consumers through brand awareness messaging until vehicle supply normalizes.

For a second year, dealership marketers are evaluating their advertising strategies in a challenging sales environment. But unlike last year, the point isn't to contain costs to survive showroom and factory closures and plunging demand. Instead, profitability is setting records, and demand for new models is so hot that vehicles are selling before…

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Soaring catalytic converter thefts irk dealers, drivers

A nationwide surge in catalytic converter thefts during the pandemic has been costly to consumers and prompted some dealers to beef up overnight security on their lots. One frustrated used-car purveyor even spent his 67th birthday hiding inside a car to run surveillance.

Masoud Bayati has already had more than 40 catalytic converters cut out from beneath cars at M&B Auto Sales in Jackson, Miss. On July 9, Bayati used his gun to scare away someone trying to break into the lot, the Clarion Ledger reported.

Reports of catalytic converter thefts have skyrocketed as the value of the precious metals inside them has soared. The National Insurance Crime Bureau said there were about 108 thefts a month in 2018, 282 a month in 2019 and 1,203 a month in 2020. More than 2,347 incidents were reported in December 2020 alone, and USA Today reported that nearly 26,000 of the parts were stolen from January through May 2021, a rate of more than 5,000 a month.…

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Trade issues with China proved too big for HAAH

LOS ANGELES — HAAH Automotive Holdings' decision to give up trying to import Chinese cars to U.S. showrooms is the latest in a history of would-be distributors that have underestimated the difficulty of such an endeavor.

But HAAH's failure also is likely to dampen future attempts by others — at least in the current political climate.

HAAH CEO Duke Hale told Automotive News that his seven-year labor proved impossible, given rocky U.S.-China relations. In addition to growing political and economic skirmishes between the two nations, Chinese vehicles now bear a 27.5 percent tariff to enter the U.S.

"All of our big investors, all of them, have moved away from the deal because of U.S.-China relations," Hale said. "They do not see it as the right place to invest."

Hale told dealers early last week that HAAH would be liquidated through bankruptcy after failing to raise about $200 million needed to move ahead with his plan to …

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EV tech is made easy on Pacifica Hybrid site

CHICAGO — In a world where shopping for electrified vehicles can be confusing, Chrysler has created a website to promote the benefits of its Pacifica Hybrid in simple ways.

The automaker uses everyday items to help people understand how long the lithium ion battery will last.

The microsite, whypacificahybrid.com, says the plug-in minivan's battery could outlive a couch, laptop computer, microwave, pool liner or clothes dryer. The same page informs consumers that the Pacifica's battery can be recharged thousands of times and has a 10-year/150,000-mile battery warranty.

The site, launched this month, aims to dispel myths around EVs while making the pitch for the Pacifica Hybrid as Stellantis moves to electrify 98 percent of its lineup by 2025.

"There's a lot of different technology, so it's good to be able to have the site that answers questions," Josh Culbert, a product manager for Stellantis, told Automotive News at the Chicago Auto Show. "One of…

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As new rivals enter EV segment, Tesla’s share of registrations drops

Tesla Inc. continues to dominate in the burgeoning electric vehicle market, but its share of the segment has slipped, as has its grip on the sales charts.

Through May last year, Tesla made four of the top five new EVs registered with state governments, according to data gathered by Experian. This year, it has two of the top 10.

On top of production slowdowns that have snarled Tesla's output of the Model S sedan and Model X crossover, the brand faces increased competition from rivals' offerings, such as the Ford Mustang Mach-E and the Porsche Taycan. While Tesla's new-vehicle registrations through May rose 81 percent, the EV total jumped 116 percent.

"As this vehicle type becomes more mainstream and there's just more choices out there for consumers, I think that's why we do expect to see Tesla's share — not their volume, because that's going to grow as they add more products — but their share of the segment is going to fall," said Jeff Schuster, presiden…

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GM, Cruise demand Ford drop ‘BlueCruise’ name for hands-free driving

DETROIT -- General Motors and its Cruise automated driving subsidiary said early Saturday they have asked a U.S. federal court to stop Ford Motor Co. from using the name "BlueCruise" to market its hands-free driving technology.

In a statement and documents released shortly after midnight, GM said Ford's use of the BlueCruise name infringed on GM's Super Cruise and other GM trademarks for automated driving, such as Hyper Cruise, as well as Cruise's trademarks.

"While GM had hoped to resolve the trademark infringement matter with Ford amicably, we were left with no choice but to vigorously defend our brands and protect the equity our products and technology have earned over several years in the market," GM said in its statement.

Ford, in a statement, called GM and Cruise's claim "meritless and frivolous." GM filed the suit in U.S. District Court for the Northern District of California, which is based in San Francisco.

"Drivers for decades have unde…

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Cool idea … but will they buy?

Not all the hot new technical innovations these days are about advanced autonomous driving and futuristic artificial intelligence-infused components.

There also are windshield wipers.

"You still have to change your wiper blades, right?" reasons Jean Marie Thrower, an industry business development adviser who works with auto suppliers in different segments. "Maybe it's not as sexy as autonomous driving, but automakers still want to hear about it."

Thrower, a former Army Airborne logistics officer and former Visteon steering operations manager, represents the other side of the industry's innovation wave. It's one thing to dream up and perfect a technological breakthrough — it's another to sell it.

For the past three and a half years, Thrower has been assisting ClearBlade Inc., a Denver startup that is standing by to produce original equipment double-bladed wiper systems for automakers.

ClearBlade claims that its twin-blade design — with outl…

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Ford dealership targets 48 hours to get used vehicles ready to sell

When Nick Anderson isn't working as general manager of Chuck Anderson Ford, he's often at a nearby track racing his Dodge Viper Competition Coupe.

In both roles, he's learned speed is key.

Anderson knew he could squeeze more profit out of the Excelsior Springs, Mo., store's used-vehicle operations if he could quicken the pace at which the cars move from acquisition to customer purchase. That meant convincing his service, sales and marketing teams to move faster.

"Our sales were strong, but the bottleneck in the whole operation was the time it took to get our used cars front-line ready," he told Automotive News. "It's not that [employees] don't care; it's just not necessarily their job to think about the big picture. Incentivizing them to buy into the big picture makes everybody more money."

He started paying service techs at the retail rates used for customer repairs if they could move used vehicles through the syst…

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