Trade News

Editor's note: This article has been updated to correct the age of Mamadou Diallo. He is 46.

LOS ANGELES — Corporate changes at Honda Motor Co. are not only happening in Japan with a new CEO announced Friday, but also at the company's U.S. headquarters in California with a new vice president of operations and new sales chief at the Acura division.

Mamadou Diallo, 46, assistant vice president of national sales at Acura, has been promoted to vice president of auto operations starting April 1. Replacing him in the sales post will be Emile Korkor, 43, currently assistant vice president of Acura Sales and Marketing in Canada, the company told Automotive News.

Diallo joined American Honda Motor Co. in 2001 and has received regular promotions within the Acura sales division. He was named to his current post in October 2019. Korkor started at Honda Canada in finance in 1990 before moving to product planning and Acura sales. He has been in his current post s…

German auto supplier Continental will not propose any dividend for 2020 because it had chalked up a net loss for the year, it said Friday.

The company, which is due to release preliminary full-year results on March 9, added that it remained committed to a mid-term dividend policy of paying out 15-30 percent of net income to shareholders.

Continental, of Hanover, Germany, ranks No. 4 on the Automotive News list of top 100 global suppliers, with 2019 sales to automakers of $35.3 billion.

Slippery roads. Cold. Burst pipes. Days of wintry weather and its effects have left Texas dealerships reeling as they try to return to normal business operations.

Historic snow, ice, water shortages and below-freezing temperatures forced dealerships and manufacturing plants in Texas and throughout the country to close during the week. In Texas, residents are dealing with water outages and a power grid that collapsed under a spike in energy demand.

It's not unlike the aftermath of a hurricane, said Darren Whitehurst, president of the Texas Automobile Dealers Association.

"The dealerships that have been open — I don't think they've been getting much traffic," he said.

Much of Texas is under boil-water notices, Whitehurst said. Dealerships in the region are looking forward to warmer temperatures slated to arrive over the weekend, he added.

"There's certainly a resiliency, and they do a lot in their communities," Whitehurst said. "I think you'l…

Al Maroone, the son of Lebanese immigrants who founded a dealership group that became a major building block of megaretailer AutoNation Inc., died Wednesday at his Florida home. He was 98.

Maroone, who grew up in a poor section of Buffalo, N.Y., with six siblings, purchased a small Ford dealership in nearby Middleport in 1955, pooling money borrowed from his father's life savings, his sister's pension and his father-in-law's remortgage. Maroone focused on ways to differentiate his dealership from competitors and eventually expanded Maroone Automotive Group in Buffalo and into South Florida.

By 1997, the dealership group operated seven stores generating $700 million in annual revenue, and Maroone was running the business with his son, Mike Maroone, when Florida businessman Wayne Huizenga came calling. Huizenga, a legendary entrepreneur who built Waste Management and Blockbuster Video into behemoths by acquiring a string of mom-and-pop businesses, was applying th…

Apple Inc. is in discussions with multiple suppliers of self-driving car sensors known as lidar, according to people familiar with the matter, a key milestone toward development of its first passenger vehicle.

The technology giant is in active talks with a number of potential suppliers for these laser-based sensors that allow a car’s computer to “see” its surroundings, said the people, who asked not to be identified due to the private nature of the discussions. The company has been working on a driverless vehicle project for several years and has developed on its own most of the necessary software, underlying processors and artificial intelligence algorithms needed for such a sophisticated system.

As it’s done with the iPhone, Apple is looking to outside vendors to supply critical hardware for a planned autonomous vehicle, the people said. The ongoing discussions are a sign that Apple has yet to settle on a preferred supplier for lidar and that it’s likely mul…

Renault CEO Luca de Meo warned that a global shortage in semiconductors could result in more plant closures and dent the French carmaker’s production this year.

Securing enough chips is “a daily fight,” de Meo said Friday when presenting the company’s full-year results. The semiconductor bottleneck is expected to peak in the second quarter and could shave 100,000 cars off Renault’s output this year, the company said. Renault sold 2.95 million vehicles in 2020.

Renault is the latest automaker to warn of lasting effects from the supply-chain snarls that are reverberating throughout the industry, idling factories and adding to damage from the pandemic. The French company has already idled plants in Europe and northern Africa this year.

General Motors has predicted the shortage will shave $1.5 billion to $2 billion off its adjusted earnings in 2021. Ford Motor Co. said first-quarter production could be cut by as much as a fifth and reduce adjusted earnings b…

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Franchised new-vehicle dealers will face challenges amid a decade of general stability. Industry consultant Glenn Mercer outlines key findings from the latest ''Dealership of Tomorrow'' report.

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Fourth-quarter net income at Canadian supplier Magna International Inc. surged 68 percent from a year earlier due in part to better-than-anticipated vehicle production.

The company reported net income of $738 million for the quarter ended Dec. 31, compared with $440 million during the same quarter in 2019. Revenue rose 12 percent from a year earlier to $10.57 billion.

Earnings and sales came in ahead of expectations, Magna said, thanks to vehicle production in the quarter being “better than anticipated,” as well as “higher than anticipated equity income” and “strong operating performance.” Global light-vehicle production rose 4 percent from the year-earlier quarter, according to the supplier.

The results reflect the relative resilience of new-vehicle demand in key markets, including North America, amid the COVID-19 pandemic. It was the second straight quarter in which Magna reported hundreds of millions of dollars in net income, after posting a $647 mill…

Kia's minivan is getting a complete makeover with a new name. And Kia won't be calling the new Carnival a minivan, officially.

Billed as a multipurpose vehicle, the 2022 Carnival is a replacement for the Sedona.

The new name aligns the U.S. with the rest of the world, where Kia's minivan has been sold as the Carnival. In 2020, Kia's midsize sedan, the Optima, was rebranded the K5 to match the name marketed elsewhere.

The Carnival will be unveiled Feb. 23 and will be the first vehicle in the U.S. to feature Kia's new logo and badging.

Kia said the Carnival MPV will push "the boundaries of design and innovation to become a multifaceted and unexpected companion."

Based on a preview image released by Kia, it will offer three rows of seating, room for seven or eight passengers and "bold and boxy" styling that resembles the brand's latest utility vehicles such as the Telluride, Sorento and Seltos.

The changes are designed to rema…

Daimler CEO Ola Kallenius said the success of the latest Denza crossover will determine the future prospects of the Chinese electric-car brand with partner BYD Co., following years of lackluster sales.

“The cash investment is behind us” for the model, Kallenius told reporters Thursday. “Now we look how Denza develops and then we’ll make decisions.”

Tepid demand for Denza’s EVs has raised concerns as the maker of Mercedes-Benz cars works to lift returns. BYD declined to comment.

Daimler and BYD established the brand a decade ago to tap growth in the Chinese new-energy vehicle market. While sales have taken off, fierce competition in price-sensitive volume segments is posing a challenge with regard to profitability.

“We hold the view that only EVs geared toward the higher end of the market makes economic sense,” Sanford C. Bernstein analyst Arndt Ellinghorst said in a note.

Kallenius has taken a number of steps to overhaul the world’s largest…