Trade News

CDK Global Inc. is expanding its online sales capabilities with the acquisition of digital retailing provider Roadster, the company said Wednesday.

The Hoffman Estates, Ill., dealership management system giant said in a regulatory filing that it is acquiring Roadster, of Palo Alto, Calif., for $360 million in an all-cash deal, and Roadster will become a wholly owned subsidiary of CDK.

CDK said the deal closed Wednesday.

"Consumers have shown they are increasingly more willing to purchase big-ticket items online, and this trend has quickly accelerated during the pandemic," CDK CEO Brian Krzanich said in a statement.

"To meet their expectations, the automotive industry requires integrations of the right technology, data and infrastructure to better connect its online and in-store experiences. Roadster's consumer-focused approach and innovative technology will significantly contribute to our modern retailing efforts to create a seamless omnichannel v…

A Connecticut dealership group is suing to stop a Tesla service center and showroom from going up in the region.

Hoffman Auto Group — which is listed in two lawsuits as Jetobra Inc. — wants a Hartford Superior Court judge to overrule the town's decision that would let the service center and showroom be built, according to a report from the Hartford Courant.

The matter of Tesla operating in the state is contentious. The electric vehicle maker is pushing for changes to state laws that would allow it to sell vehicles directly to consumers.

Hoffman says in two complaints that allowing a Tesla brick-and-mortar goes against Connecticut state laws that prevent automakers from skipping franchised dealerships to sell directly to buyers.

Hoffman said in a statement to the Hartford Courant that it was committed to defending "Connecticut's pro-consumer franchise system." Tesla's proposed part showroom, part service center would strip consumer protections fro…

Move over, In-N-Out Burger. Elon Musk, CEO of Tesla Inc., is one step closer to opening a diner.

On May 27, Tesla filed applications with the U.S. Patent and Trademark Office to use its “T” logo design and two other iterations of its “Tesla” stylized logo for use in the food industry.

All three applications are for “restaurant services, pop-up restaurant services, self-service restaurant services, take-out restaurant services.” They are filed under a provision of trademark law indicating that Tesla intends to use the mark but has not yet done so. If the application is approved, the registration will not take effect until it is used.

The prolific Musk has talked about opening a diner in southern California for years. In 2018, he tweeted about planning to put an “old-school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in LA” shortly after J.B. Straubel, Tesla’s chief technology officer, told attendees at a …

BorgWarner Inc. has landed a deal to supply Hyundai Motor Group with its integrated drive module as the supplier looks to grow its electric vehicle platforms business.

BorgWarner's new module, iDM146, will power the South Korean automaker's upcoming A-segment electric vehicle with its electric motor, gearbox and integrated power electronics, according to a Wednesday news release.

Vehicle production is expected to start mid-2023. Terms of the deal were not disclosed.

"We have enjoyed nearly two decades of partnership with the Hyundai Motor Group and couldn't be more excited about this next step — working on our first electrification project together," Stefan Demmerle, president and general manager of BorgWarner PowerDrive Systems, said in the release. "I am especially enthusiastic about the fact that this is the first iDM product combining the portfolios of BorgWarner and legacy Delphi Technologies after the acquisition, reaping the benefits of the two or…

LOS ANGELES — BMW has a plan to help its dealers cover the big expense of tooling up to sell electric vehicles and equipping showrooms and service departments with vehicle chargers.

While some automakers have required dealers to shoulder those new costs, BMW will help finance the investment from an existing retailer-funded program that pays for dealer-based initiatives, technology and training. The brand's 349 U.S. dealers already pay a flat fee into the Cost Per Vehicle fund on every vehicle they order from the factory.

"There isn't really any out-of-pocket [cost]; that's money that's already in the fund," BMW North America sales boss Shaun Bugbee told Automotive News on the sidelines of a media event here on Tuesday. "The fund is to benefit all dealers. All dealers will be participating in electric mobility."

It is no small matter.

The addition of high-speed charging stations and upgrades to electricity infrastructure can cost hundreds of thous…

WASHINGTON -- Two prominent transportation advocacy groups on Wednesday challenged the Federal Communications Commission’s November decision to shift much of a key spectrum block set aside for auto safety to accommodate the burgeoning number of wireless devices.

The Intelligent Transportation Society of America and the American Association of State Highway and Transportation Officials brought a legal challenge in the U.S. Court of Appeals for the District of Columbia seeking to reverse the FCC's reallocation of 60 percent of the 5.9 GHz band spectrum block.

Last year, the U.S. Transportation Department said the FCC plan was "a particularly dangerous regulatory approach when public safety is at stake."

The spectrum block was reserved in 1999 for automakers to develop technology to allow vehicles to talk to each other to avoid crashes but has so far gone largely unused.

The FCC, which did not immediately comment, voted to shift 30 megahertz of …

As the average amount paid for new and used vehicles pushed even higher in the first quarter amid historic inventory shortages, the average loan-to-value ratio rose slightly.

Credit bureau Experian anticipates the second quarter will feature even higher loan-to-value ratios, driven up by surging transaction prices amid the microchip shortage.

"It's today's market that's feeling that more than what we saw in Q1," said Melinda Zabritski, Experian's senior director of automotive financial solutions.

The average amount financed on a new vehicle reached $35,392 in the first quarter, up from $33,833 in the first quarter of 2020. The average loan-to-value inched up to 110.18 percent for vehicles originated in the first quarter from 110.03 percent.

Loan-to-value is the ratio between the amount of credit extended for a vehicle purchase and the value of the vehicle at the time of purchase. The value of the loan often exceeds the pr…

Credit bureau Experian has launched a new employment verification product, Experian Verify, to more accurately convey employment data to lenders and increase their pool of potential customers.

The new solution was launched among Experian clients in April, in conjunction with the acquisitions of data providers Tax Credit Co. and Emptech. The suite of products offers Experian Verify and Experian Verify Premium, according to Michele Bodda, president of Experian Verifications, Employer Services and Mortgage.

"Our clients had been seeking a solution to some of the legacy systems out there," Bodda said. "Leveraging the most accurate traditional credit data, and then expanded data like verified income and employment, allows lenders to form a really precise picture of an individual's financial situation so that they can lend responsibly."

The solution can be used across credit products, including credit cards and mortgage, auto and personal loans, but also for …

Toyota Motor North America said it added a data privacy portal to its Toyota and Lexus apps.

The company says implementing the Toyota Data Privacy Portal is the latest step it is taking to make consumer data "more accessible and transparent" and follow privacy protection benchmarks it and 19 other automakers submitted to the Federal Trade Commission in 2014.

The portal can be accessed for vehicles with connected services capabilities that were built in the 2013 model year or later, the company said in a statement Tuesday. The portal can be found in the "account settings" section of the Toyota and Lexus apps.

Consumers who own multiple Toyota or Lexus vehicles can customize privacy and data-sharing settings for each of their vehicles, according to the automaker. In addition, a consumer who shares information with a third party — such as an insurance company — will be able to see what specific data they are sharing within the app.

Adding the portal …

Auto dealers are getting better at protecting their computer networks from cyberattacks, an information technology consultant who works with dealerships told me last week.

They're investing in phishing training, a process that tests whether employees click on suspicious emails and trains those who do on proper security practices. More are carrying cyber insurance. They're talking to colleagues in industry peer groups about best practices.

And yet, said Erik Nachbahr, president of Helion Technologies, just as dealerships have improved their defenses against hackers, the hackers have started using a different playbook.

It used to be that cybercriminals would deploy automated programs that would lock up files once someone clicked a malicious link or attachment in an email, he said. Then antivirus software and firewalls got better at blocking them. So the hackers evolved. Now, Nachbahr says, when they gain access to the networks, they're embedding themselves…