Trade News

In a tightening horse race, Mercedes-Benz returned to the front in luxury segment sales for the first quarter, powered by strong demand for its luxury crossovers.

But its lead has narrowed from a year earlier.

In the first quarter of 2020, Mercedes was in first place with a comfortable 11,400-vehicle distance from the segment's third-place challenger, Lexus. But for the first quarter of 2021, Lexus was within 4,003 sales of Mercedes. And BMW, now No. 3 in the race, was just 2,820 vehicles behind Lexus.

And if last year was any indicator, 2021 could be another dramatic race. Despite that roomy first-quarter position a year ago, Mercedes ended 2020 in third place behind BMW and Lexus.

The luxury vehicle segment is showing no sign of slowing down, despite the lingering economic effects of the pandemic around the nation. Total U.S. luxury sales rose 20 percent to 547,903 cars and light trucks in the first quarter, significantly outperforming the broad…

WASHINGTON -- U.S. Senate leaders are preparing to introduce legislation on semiconductors, President Joe Biden said on Wednesday as the nation wrestles with an ongoing shortage of the critical technology used in a range of devices from cars to computers.

"We're working on that. (Senate Majority Leader) Chuck Schumer and, I think, (Senate Republican Leader Mitch) McConnell are about to introduce a bill along those lines," Biden said during remarks about his own plan to boost the nation's infrastructure.

Schumer and McConnell's offices did not immediately comment.

The White House is set to hold a virtual summit on the issue on Monday that is expected to include senior U.S. auto executives, including Ford Motor Co. CEO Jim Farley and GM CEO Mary Barra, and White House officials Brian Deese and Jake Sullivan, officials said.

On Monday, a U.S. auto industry group urged the government to help as it warned that the global semiconductor shortage could re…

Pennsylvania-based Kelly Auto Group has added two brands to its portfolio with the acquisition of a Toyota dealership and a Hyundai dealership.

The group bought Freedom Toyota of Hamburg and Freedom Hyundai, both in Hamburg, Pa., on April 1 from Eric Savage and Greg Gagorik.

Terms of the transactions weren't disclosed. The stores have been renamed Kelly Toyota of Hamburg and Kelly Hyundai of Hamburg.

"Our goal has been to expand in the Greater Lehigh Valley and eastern Pennsylvania and we've been watching the steady retail growth along Route 61 in Hamburg since Cabela's opened," said Greg Kelly, president of Kelly Auto Group, in a statement. "Toyota and Hyundai are sought-after brands with large owner bases and impressive product lineups. That combination of great product and great people working at the dealerships made it the perfect time for us to expand to Hamburg."

With the acquisition, Kelly Auto now has eight rooftops.

The group's o…

Industry inventory shortages are wreaking havoc on new- and used-vehicle auto finance trends, which show the average cost of vehicles dropped last month even while the average interest charged on auto loans rose.

The rise in the average interest rate on new vehicles amid declining monthly payments is explained by the inventory constraints hampering truck and SUV sales, said Edmunds senior analyst Ivan Drury. March sales favored Asian automakers, whose product mix tends to transact at lower price points than those of the Detroit 3.

"With the mix changing so drastically year over year, it's not too surprising," Drury told Automotive News. "Because of the shortage, we've seen a reduction in what's out there for consumers, even though credit's cheap."

The average interest rate charged on new-vehicle loans last month rose slightly to 4.6 percent, though it remained down from March 2020's average of 5.8 percent, according to Edmunds. The …

Uber Technologies Inc. said U.S. drivers on their ride-hail platforms should take advantage of pay hikes as trip demand temporarily outstrips driver supply, but warned the windfall will not last.

Uber on Wednesday said it would invest an additional $250 million to further boost driver earnings and offer payment guarantees in an effort to incentivize new and existing drivers.

Dennis Cinelli, Uber's vice president of U.S. & Canada mobility, in a blog post told drivers to take advantage of higher earnings before pay returns to pre-COVID-19 levels as more drivers return to the platform.

Lyft Inc. on Tuesday also said drivers in the company's top-25 markets were earning an average of $36 per hour compared to $20 per hour pre-pandemic. Those numbers include tips, but Lyft did not disclose the share of tips in earnings. Lyft is also offering additional incentives and promotions in select markets.

Uber said drivers spending 20 hours online per week in…

Assurant Inc., one of the leading finance-and-insurance providers, is rolling out electric and hybrid vehicle products in the U.S. The introduction of these new products indicates the company's growing faith in EV adoption in North America.

Unlike some competitors, Assurant hasn't formally introduced F&I products specific to EVs until now. Some EV protections are included in Assurant's service contract products, said Martin Jenns, senior vice president of global transformation for the global insurance company.

"We felt the timing was appropriate, given the pivot we've seen in the market," Jenns said. "While the global distribution of electric vehicles as a percentage of the overall market today is relatively small, we think the timing is good and aligned to the core values of Assurant and our [environmental, social and corporate governance] initiatives."

Assurant launched its electric vehicle product, Assurant EV One, in the U.K.…

The growing movement to impose 36 percent interest rate caps on retail installment loans received a rousing endorsement last week from the National Association of Loan Sharks, "the preeminent trade association for illegal moneylenders."

Though an April Fools' Day joke orchestrated by the American Financial Services Association, the April 1 press release reflects serious industry concerns that interest rate caps restrict financing opportunities for customers on the lower end of the credit spectrum at a vulnerable economic time.

The tongue-in-cheek release highlights how a slate of rate cap legislation could expand opportunities for the fake loan shark association's members.

"These proposals are awful for consumers but great for our business model, ensuring tens of thousands of consumers will not have access to ethical and reliable traditional installment loans, and are now forced to turn to us," a supposed spokesperson said in the rel…

Polestar, the electric performance brand owned by Volvo Cars and its Chinese parent, Zhejiang Geely Holding, has set itself a "moonshot" goal: to create a climate-neutral car by 2030.

With the Polestar 0 project, the EV maker knows it will have to re-think the entire development process as well as shake up the value chain, from suppliers to retailers.

"Can we get there? That is a very relevant question," Polestar Head of Sustainability Fredrika Klaren told Automotive News Europe. "A moonshot goal is something that you use to inspire new thinking, innovation and a sense of urgency. That is what we want to do internally."

Polestar says it intends to reach the goal by eliminating emissions rather than using tactics such as planting trees to offset CO2 produced from the car's creation until it's sold.

"Offsetting is a cop-out," Polestar CEO Thomas Ingenlath said in a statement. "By pushing ourselves to create a completely climate-neutral car, we are…

Shares of lidar sensor startup Innoviz rose on Tuesday, its first day trading as a public company.

The Tel Aviv, Israel-based firm is developing the sensors, which help self-driving vehicles gain a 3D view of the road. The company has a partnership with BMW to sell the automaker its first generation of sensors, which cost around $1,000. Innoviz is working on a second-generation sensor which it hopes to sell for less than $500.

The shares rose 11 percent to close at $10.79 on the Nasdaq stock market in New York.

Innoviz became public on Tuesday after completing a merger with publicly listed blank-check firm Collective Growth Corp. that raised $371 million. Four other lidar firms - Velodyne Lidar Inc., Luminar Technologies Inc., Aeva Technologies Inc. and Ouster Inc. - have all become public in recent months. Rival AEye Inc. also plans to become public via a merger with CF Acquisition III Corp.

"What we need to [do…