Trade News

Remarketing industry veteran Tom Caruso died Monday at 62 after a battle with cancer.

He began his career in 1980 as fleet manager of Concord Auto Auction, becoming general manager in 1984. He was key in winning numerous local and national accounts, which led to its acquisition by ADESA in 1992.

Caruso later became executive vice president of ADESA, overseeing half of the company's U.S.-based operations, before being promoted to COO and then CEO in 2009. He retired in March 2020 as executive vice president and chief client officer for KAR Global, ADESA's parent company.

“What always set Tom apart ... was not what he accomplished, but how he accomplished it," KAR Chairman Jim Hallett said in a statement. "Tom was a true servant leader who believed deeply in the power of people -- the ability to get anything done through partnership, collaboration and trust.

"He approached every challenge with enthusiasm and an eagerness to work with others to find …

Prime Subaru of Manchester, N.H., has filed a protest with the state's Motor Vehicle Industry Board over Subaru of New England's refusal to approve Group 1 Automotive Inc. as buyer of the dealership — the last remaining store in the Prime Automotive Group portfolio.

The protest, dated Dec. 10, seeks a hearing and cites violations of law between the distributor and dealership and breach of its dealer agreement. The store asked for the hearing because it claims distributor Subaru of New England refused "to consent to the sale" to Group 1 and because of "its contingent exercise of a right of first refusal."

Manufacturers and distributors have the right to decline an original buyer on a proposed dealership transaction and instead assign the sale to a buyer it chooses, but have to keep the same terms of the deal.

Prime Subaru said Subaru of New England provided a "turndown letter" on Oct. 28, and reaffirmed its decision in a Nov. 9 letter, according to the …

The widespread supply-chain bottlenecks that have left new-vehicle showrooms empty for months will put a big dent in December sales even as inventories slowly rebound.

Deliveries of new cars and light trucks are on track to drop an estimated 23 to 29 percent this month from a year earlier, TrueCar, J.D. Power and LMC Automotive forecast this week.

Core retail sales are projected to drop 20 percent to 1,105,800 from December 2020, J.D. Power and LMC said Thursday.

The final month of the year, fueled by heavy marketing promotions, outgoing model closeout offers and holiday deals, is traditionally a blockbuster one for automakers.

But while many automakers are advertising this year, there simply are not enough new vehicles available to meet consumer demand, prompting many shoppers to wait on the sidelines until selection improves and prices moderate.

Thomas King, president of the data and analytics division at J.D. Power, said monthly retail …

DETROIT -- A brutal year for automotive suppliers has had an unexpected upside.

The same problems that have pummeled their business, from soaring commodity costs to supply chain issues, have also given them a newfound power at the negotiating table with their automaker customers.

While automakers have maximized on a surge in demand by converting low vehicle inventory into record sticker prices and strong profits, suppliers have suffered the brunt of financial losses. But, the supply chain crisis has laid bare the interdependency of each tier from top to bottom and underscored the importance of players big and small.

Suppliers have arguably never had as much negotiating power with automakers, experts say. Now they are using that leverage to change the way they do business with OEMs, which are feeling the pressure to acquiesce if they want to keep getting parts to make cars, according to industry executives and observers.

"Historically, the automak…

Tesla Inc. has agreed to take the majority of battery-ready graphite from a production facility planned in Louisiana, as it races to secure supplies of the key material in a market dominated by China.

Melbourne-based Syrah Resources Ltd. will supply Elon Musk’s company with graphite anode material for an initial four years, with an option to buy additional volumes subject to further expansion at Syrah’s Vidalia plant, the Australian company said in a statement. The Louisiana facility is planned to process graphite from Mozambique to become the first U.S.-based source of graphite anodes for the country’s fast-growing EV and lithium-ion battery manufacturing industry.

The deal with Tesla would help underpin a final investment decision on the production plant expected next month and help secure local supply, Syrah’s Managing Director Shaun Verner said by telephone. China produces almost all of the graphite used in producing materials for anodes, demand for which i…

As Joni Mitchell can attest, not everyone wants jolly elves and merry reindeer in their holiday media. Some people want a good Christmas cry. For those looking for a river to skate away on, behold Chevrolet’s “Holiday Ride.”

The four-minute version of the ad received 4.8 million page views on YouTube as of Thursday.

The short film, created with agency Commonwealth/McCann, boasts Academy Award-winning talent at its helm — direction by Tom Hooper (“The King’s Speech”), cinematography by Claudio Miranda (“Life of Pi”) and score by Rachel Portman (“Emma”).

The four-minute spot is a real tear-jerker: based on true events, it captures the story of a man who passes each day taking a peek at his dusty 1966 Chevy Impala, recounting bittersweet memories of his late wife. Portman’s melancholic guitar sweeps into yearnful strings as the man tearfully remembers their fond times together, depicted in textured flashback scenes.

Here’s where things really get e…

Two groups on Automotive News' top 150 dealership groups list bought stores this month to grow in Kentucky and Colorado, respectively.

Here's a look at the deals involving domestic and luxury brands.

Jeff Wyler Automotive Family Inc. on Monday acquired its second Mercedes-Benz store when it bought Mercedes-Benz of Louisville from Peterson Automotive Collection, owned by David Peterson.

"We know and love the community and take great pride in continuing the Mercedes-Benz legacy in Louisville," David Wyler, president of Jeff Wyler Automotive, said in a statement. "It is an honor and a responsibility we do not take lightly."

Jeff Wyler Automotive, of Milford, Ohio, also owns Mercedes-Benz of Fort Mitchell in Kentucky, near Cincinnati.

In July, Hudson Automotive Group, of Charleston, S.C., said it planned to buy all three Mercedes-Benz dealerships from Peterson Automotive Collection, which included two locations in Ohio, in addition to the Lo…

Vehicle auction and remarketing company XLerate Group said Wednesday it has signed an agreement to acquire America’s Auto Auction, another major auction company.

Once combined, Carmel, Ind.-based XLerate and Dallas-based America's Auto Auction will have 39 auction sites spread across 19 states. The deal is expected to close by the end of the year.

Financial details of the transaction were not disclosed. Members of XLerate’s executive team, including CEO Cam Hitchcock, will step in to oversee the company.

"The independent vehicle auction sector is poised for significant growth, as consumer demand expands, and technology continues to enhance the remarketing process," Hitchcock said in a statement.

Hitchcock said the two companies will work to develop a platform that “further redefines the remarketing industry” and leverages physical and digital aspects of the auction process.

Brightstar Capital Partners, a private equity firm based in New Yor…

CarMax's success procuring and selling vehicles helped the company achieve record net revenue of $8.53 billion during the third quarter, a 64 percent increase from a year earlier.

"Our solid execution, customer-centric omni-channel strategy, and macro factors are driving strong performance across our diversified businesses," CarMax Inc. CEO Bill Nash said in a statement Wednesday. "Our top line momentum continued into this quarter and we achieved record levels of third quarter unit sales in both retail and wholesale, generating all-time record revenues. We also bought more cars from customers than ever before."

CarMax increased retail sales 17 percent year over year to 227,424 vehicles during the third quarter. Wholesale volume rose 49 percent to 187,630 vehicles.

On the supply side, CarMax nearly doubled the amount of vehicles it purchased directly from customers during the quarter. The company said it acquired about 194,000 of those 383,215 vehicles th…

Ford Motor Co. is recalling 184,698 F-150 vehicles from the 2021 and 2022 model years because the driveshaft, which transfers torque to other parts of the vehicle, may become fractured.

In a safety recall report filed with NHTSA, the automaker said heat and noise insulators on the underbody of the vehicle could loosen and make contact with the aluminum driveshaft, which could damage it.

A compromised driveshaft could cause a loss of drive power and increase the risk of a crash, Ford said. A broken driveshaft dragging on the ground may interfere with wheels turning properly, which could lead to a loss of vehicle control.

Ford said dealers will inspect and repair the driveshaft if needed and fully attach underbody insulators. The automaker said owner notification letters were expected to be mailed Jan. 31. Dealers were notified Tuesday.

As of Dec. 7, Ford had received 27 reports of fractured aluminum driveshafts possibly related to sagging underbody…