Trade News

Volkswagen of America has informed its U.S. dealers that the global chip shortage “and other supply chain related issues” will force extended production hiatuses at its massive plant in Puebla, Mexico, along with an earlier hiatus announced for its assembly plant in Chattanooga, Automotive News has learned.

In letters to dealers this week, VW told dealers “Despite monumental efforts to avoid additional shut downs, Volkswagen will have to temporarily suspend production at our Puebla assembly plant for just over three weeks in June and early July, impacting the production of Jetta, Tiguan and Taos.”

VW is launching its compact Taos crossover next month and the Tiguan is receiving a refresh for the 2022 model year, with new vehicles expected to arrive in the fall. The Tiguan is VW’s top-selling vehicle in the U.S.

In the dealer letter, shared with Automotive News, the brand said it would “continue our planned market introduction of the Taos in early June …

Olivier Francois has a passion for building brands.

Now he gets to indulge in it even more as the marketing chief of Stellantis, which combined the nine brands of Fiat Chrysler Automobiles he knew well with five more from PSA Group.

Francois, known for ambitious Super Bowl ads and a knack for blending musical acts into campaigns at FCA, will have to juggle marketing strategies for an even more diverse set of brands. They come with varying degrees of acceptance depending on the market, so the challenge for Francois and his team will be to carve a space for each brand.

Among his top priorities is to continue elevating the rugged Ram brand, which has been meshing more luxury with proven work credentials in its haulers. The latest Ram campaign uses the Foo Fighters rock band to pitch an inspirational message that honors everyday rock stars such as parents, coaches and mentors who have stepped up during the pandemic.

Francois, 59, spoke with Staff Repo…

YouTube and online forums are the go-to destinations for DIY vehicle troubleshooting these days. But things are different in the rarefied world of luxury sports car buyers, according to Porsche retailer Robert DiStanislao.

In the pursuit of selling six-figure cars, about a year ago the dealer launched a high-touch service for a clientele that has neither time nor patience to futz around on the Internet.

Porsche of the Main Line in Newtown Square, Pa., has a full-time employee dedicated to simply answering customer questions about their new vehicle — from reprogramming the dashboard clock to pairing a smartphone to the infotainment system.

"And we'll go to their home or office and do it for them," added DiStanislao, president of RDS Automotive Group, which sells several luxury brands, including Lamborghini, Maserati and McLaren.

Porsche requires dealerships to walk customers through their vehicle at delivery. But that o…

MISSOULA, Mont. — When the Nissan Pathfinder was last redesigned, in 2013, it was in the top third of the three-row crossover segment, with a respectable 6.5 percent share.

Things look different as the fifth-generation Pathfinder prepares to rumble into dealerships next month.

The Pathfinder's share has slumped by more than half to 2.9 percent, according to AutoForecast Solutions, as the midsize crossover has aged and new challengers have emerged. Volkswagen and Hyundai didn't have competitive entries before, but now the Atlas and Palisade, along with the Kia Telluride and Subaru Ascent, have crowded the field.

"The new Pathfinder has some fierce rivals to beat to find its way back onto American shopping lists," noted Sam Fiorani, AutoForecast vice president.

But Mike Colleran, Nissan North America senior vice president in charge of sales and marketing, says the automaker is ready for the challenge.

"We think we've got the right solution,…

LOS ANGELES — Mazda is discontinuing two of its slowest-selling models in the U.S., the entry-level CX-3 subcompact crossover and the Mazda6 sedan, as it shifts the product lineup to a new generation of vehicles that better reflect its premium intentions.

Mazda said in a brief statement Friday it will stop selling the CX-3 and midsize Mazda6 after the 2021 model year because of evolving consumer tastes.

The move was not unexpected.

Last year, Mazda introduced a new CX-30 crossover as a larger subcompact above the smaller CX-3 and loaded the new model with premium features on higher trims. On base trims, the aging CX-3 was only $1,260 less expensive than the fresher CX-30, which has been a runaway hit for the brand.

Through April, Mazda sold 2,406 of the CX-3 and 20,121 CX-30s, according to the company. The CX-3, introduced in 2015, was the only Mazda model that posted a year-over-year decline in the first four months of the year.

Korean supplier Duckyang Industrial is set to invest $10 million to open a manufacturing facility in Braselton, Ga., the company's first such facility in the U.S.

The planned 230,000-square-foot plant will add an estimated 285 jobs in production, maintenance, logistics and warehouse management to the region's economy.

It will manufacture battery modules and energy storage systems for SK Battery America, a Commerce, Ga.-based developer of lithium ion batteries for electric vehicles. SK Battery America is a subsidiary of the Seoul-based conglomerate SK Innovation.

"By entering the U.S. electric vehicle battery market with SKBA, we will have the opportunity to cooperate with many other automotive companies, including Hyundai and Kia Motors, that already have a manufacturing base in the U.S.," Duckyang CEO Dong-in Son said in a statement.

A Duckyang official did not confirm when production would start.

Duckyang, headquartered in Ulsan, South Ko…

Wejo Ltd., the British automotive-data startup backed by General Motors, is in talks to go public through a merger with Virtuoso Acquisition Corp., a blank-check firm, people with knowledge of the matter said.

Virtuoso is seeking to raise new equity to support a transaction with a combined enterprise value of more than $1 billion, according to one of the people, who asked not to be identified discussing private negotiations. Terms could change and, as with all transactions that aren’t yet finalized, it’s possible the talks could collapse.

A representative for Virtuoso declined to comment and Wejo didn’t immediately respond to requests for comment.

Founded in 2014 and led by CEO Richard Barlow, Wejo describes itself as a connected-vehicle data specialist. It says its technology interprets information from more than 10 million vehicles.

In addition to GM, the company’s investors include Hella Ventures, Platina Partners, DIP Capital and the U.K. gove…

U.S. Commerce Secretary Gina Raimondo and South Korean President Moon Jae-in announced an agreement to deepen cooperation in a range of industries including electric-vehicle batteries, semiconductor producers and pharmaceutical companies making COVID-19 vaccines.

“The importance of this bilateral relationship for both nations cannot be overstated,” Raimondo said. “As we recover from the pandemic, our countries will benefit from deepening that collaboration, particularly in sectors that are critical to the future of our economies.”

The U.S. has sought help from allies including South Korea to alleviate a semiconductor shortage that’s led to idling of auto plants across North America. South Korea is also eager to secure supplies of COVID-19 vaccines that the U.S. has recently allowed to be exported.

Raimondo on Friday morning held a roundtable on supply chain issues with South Korean Minister of Trade, Industry and Energy Moon Sung-wook. The meeting was at…

U.S. Commerce Secretary Gina Raimondo and South Korean President Moon Jae-in announced an agreement to deepen cooperation in a range of industries including electric-vehicle batteries, semiconductor producers and pharmaceutical companies making COVID-19 vaccines.

“The importance of this bilateral relationship for both nations cannot be overstated,” Raimondo said. “As we recover from the pandemic, our countries will benefit from deepening that collaboration, particularly in sectors that are critical to the future of our economies.”

The U.S. has sought help from allies including South Korea to alleviate a semiconductor shortage that’s led to idling of auto plants across North America. South Korea is also eager to secure supplies of COVID-19 vaccines that the U.S. has recently allowed to be exported.

Raimondo on Friday morning held a roundtable on supply chain issues with South Korean Minister of Trade, Industry and Energy Moon Sung-wook. The meeting was at…

Anne Smart, vice president of public policy at ChargePoint, says the Biden administration's infrastructure proposal will help accelerate the deployment of electric vehicle charging stations and drive the adoption of EVs.

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