Trade News

New York State Police arrested a dealership executive from Fuccillo Automotive Group last week on suspicion that he stole more than $1 million from the group last year.

Joseph Pompo, who was corporate director of finance, reinsurance and taxation for the Syracuse, N.Y., dealership group, is accused of forming a reinsurance company using dealership money without his employers' consent, CNY Central first reported.

Pompo, 31, was an Automotive News 40 Under 40 honoree in 2020.

Fuccillo Automotive declined to comment about the arrest.

New York State Police Trooper Jack Keller told Automotive News that dealership group lawyers reported to authorities in December that Pompo had established the company without the consent of owners Billy Fuccillo and Billy Fuccillo Jr.

"They were advised through their bank accounts that he withdrew over $30,000 as dividends earned through the company," Keller said. "He somehow forged the signatures of Billy Fuccil…

Used-car retailer CarMax on Wednesday said it will give bonuses to 22,000 employees.

The company says full-time workers will get $500 and part-time associates will get $250 in recognition of their efforts "to provide excellent customer service and introduce new innovative offerings" in a year affected by the COVID-19 pandemic.

The bonuses will be included in employees' paychecks March 12. Employees hired as of March 1, 2020, are eligible for the full bonus. Those hired after that date will get prorated bonuses.

CarMax, the nation's largest used-vehicle retailer, said the bonuses were going to more than 80 percent of its employees.

"No one could have forecasted the challenges that we all faced," CarMax CEO Bill Nash said in a statement. "Our associates have worked tirelessly to take care of each other and our customers, and this reward is in appreciation of their efforts."

CarMax reported it had 220 used-vehicle locations in the U.S. as of i…

WASHINGTON -- The U.S. Transportation Department will analyze the impact of an electric vehicle battery trade ruling against SK Innovation Co. on President Joe Biden's green transportation goals, the nominee for the department's No. 2 position said.

Deputy Transportation secretary nominee Polly Trottenberg said at a hearing the department would analyze the International Trade Commission's Feb. 10 ruling siding with LG Chem Ltd. that accused SK of misappropriating trade secrets related to EV battery technology.

U.S. Sen. Raphael Warnock, D-Ga., said the ruling "seriously threatens" the viability of SK Innovation's $2.6 billion Georgia plant with 2,600 planned workers, currently under construction.

The senator called the ruling "a severe punch in the gut" for Georgia workers and Biden's push for EVs.

Biden has 60 days to reject or allow the ruling to stand.

SK Innovation told the White House on Feb. 23 Biden's disapproval "is necessary to sup…

Editor's note: Ford revised its statement regarding how many owners would have their first month's payment covered. It is 150.

DETROIT — Ford Motor Co. ate into Tesla’s share of the electric vehicle market in February, but it’s taking longer than expected to deliver some Mustang Mach-E crossovers. Ford is compensating for the delays by doubling thousands of owners’ free charging allotment and covering a few hundred buyers’ first payment.

The automaker sent a letter Tuesday to some 4,500 Mach-E buyers informing them of the delay as their electric crossovers undergo additional quality checks. Ford said the buyers would receive an extra 250 kilowatt-hours of free charging for the trouble.That number includes 1,500 buyers who have already received their vehicle.

Additionally, Ford said it would cover the first month's payment of up to $1,000 for 150 buyers who have experienced more than one delay.

The letter was signed by Andrew Frick, Ford's vice pre…

In a discussion at the American Financial Services Association convention last month on how electric vehicles may modernize the automotive purchasing experience, Satyan Merchant brought up one element of traditional car-buying that remains a sore subject: the financing process.

"A lot of us saw that Super Bowl commercial," said Merchant, senior vice president and automotive business leader at TransUnion. "I'm not going to name any names, but I think it portrayed what some of the view is on how painful the financing side can be."

Online used auto retailer Vroom aired a 30-second ad likening the in-dealership experience to torture. Digital retailing is one method dealers have to combat that comparison, Merchant said.

Merchant said retailers can build trust by ensuring their digital processes are accurate and transparent. The process needs to identify the consumer and provide monthly payments and trade valuations that don't change at…

Millions of Americans face foreclosure and eviction, and credit bureau TransUnion is concerned that automotive loans and leases could be the next troubled consumer segment.

The Consumer Financial Protection Bureau said in a report this week that 11 million Americans face eviction after struggling to scrape together rent or mortgage payments. Acting Director Dave Uejio said in a statement the U.S. has "very little time" to prevent millions of families from losing their homes.

Satyan Merchant, senior vice president and automotive business leader at TransUnion, told Automotive News last month that a large portion of consumers coming out of accommodation status between March and May have mortgage accounts in forbearance as part of the Coronavirus Aid, Relief and Economic Security Act and other marketplace extensions.

"For many consumers, that's a substantial amount of a monthly payment they may not be making," he said.

The o…

Consumer Reports said it is launching a program to add a "CR Recommended" label to vehicles and other consumer products that meet its safety, performance and reliability criteria.

The consumer research nonprofit organization — often considered a key influencer in many auto purchasing decisions — said one of the main goals is to break through a flood of fake product reviews that circulate online and confuse customers.

"Misinformation permeates the marketplace," CEO Marta Tellado said in a statement. "Far too often, science is misrepresented as science fiction, data is distorted, and reviews are rigged."

A car, appliance, food item or other product achieves "recommended" status when it passes tests and meets other criteria. The rating goes on Consumer Reports' website. Manufacturers can then display the "CR Recommended" label on their websites, on product packaging or in stores.

The organization says it tests more than 2,000 products annually.

An Ohio state senator has introduced a bill that proponents say would allow electric-vehicle startup Lordstown Motors to sell directly to consumers in the state.

Trade groups representing franchised dealerships and automakers said Tuesday they oppose the measure.

The legislation, introduced Tuesday, would allow a manufacturer to own, operate or control "one or more licensed motor vehicle dealerships if, as of [Jan.] 1, 2021, the manufacturer is a manufacturer of all-electric motor vehicles with corporate headquarters and manufacturing facilities in this state," according to the bill language.

Its sponsor, Republican Ohio Sen. Michael Rulli, said at a news conference last month previewing the bill that "this piece of legislation is designated just for Lordstown Motors."

"They're the company that's making EVs in Ohio, and that's what this piece of legislation is intended for," he said during the news conference. Rulli could not immediately be reache…

General Motors and Toyota Motor Corp. employees in Texas will keep face masks on at work, the automakers said on Tuesday, even as the state lifted most of its coronavirus-related restrictions allowing businesses to reopen at full capacity as of next week.

Toyota, which has its U.S. headquarters and a factory in Texas, said it was looking into the move by Gov. Greg Abbott to roll back the mask mandate, and it doesn't contemplate any immediate changes.

Abbott's executive order lifts all mask requirements statewide and forbids any local jurisdiction from penalizing residents for not wearing a face covering.

"The early read is – no change for us," Toyota spokesman Scott Vazin said.

Toyota's plant in San Antonio builds full-size pickup trucks. The company has about 7,000 employees in Texas, including 4,400 at its Plano headquarters.

GM, which employs about 13,500 people in Texas, said it would also maintain status quo in the state, with regards …

Karma Automotive has appointed veteran designer David Hilton to the new role of head of global design.

Hilton, 50, a Detroit native, most recently was director of advanced design for Chinese automaker GAC Group in Shanghai, where he worked from 2018 until last year. He also held senior design positions at Changan Auto and Nio in China.

Hilton has a bachelor's degree in industrial design from the University of Cincinnati and he studied fine art at Detroit's Center for Creative Studies, now known as the College for Creative Studies.

He landed his first automotive job at Ford Motor Co. in 1991. His work there includes the 2000 Mondeo, the 2002 Focus RS high-performance hatchback and the 2007 S-Max midsize minivan sold in Europe. He also worked for Volkswagen in Brazil and Mazda in Japan as part of the automakers' exchange programs with Ford, according to his LinkedIn profile. He spent three years as the chief designer of Ford Racing until his departure towa…