Trade News

Hopes that 2021 would recover much of the auto sales lost to the pandemic in 2020 are fading as the semiconductor shortage continues to bring widespread factory stoppages.

Last month, IHS Markit, which many automakers use as their benchmark for production forecasting, said it was trimming its production forecast by 6.2 percent, or 5 million units, to 75.8 million for 2021.

"The outlook for Q4 now reflects heightened risk as challenges to the supply chain – primarily semiconductors – remain entrenched,” IHS analyst Mark Fulthorpe wrote. 

In its most recent note to investors, IHS said that 9.5 to 11 million units could be lost over the full year. In contrast to earlier statements from automakers and analysts expecting a recovery in the second half of 2021, IHS said Monday that the disruption could continue into the first half of 2022. 

"H2 2022 may be the point at which we look for the stabilization of supply, with recovery efforts now st…

DETROIT — General Motors on Tuesday named its first chief digital officer, Edward Kummer, a longtime marketing leader who has held posts at Nordstrom, Oakley and Walt Disney Co.

Kummer's appointment is effective Oct. 16. He will be responsible for building and delivering GM's digital business and will lead a new team to accelerate software investments to improve the customer experience. Kummer, 58, will report to GM President Mark Reuss.

"We are creating new digital experiences for our customers, both inside and outside of the vehicle, to enhance their lives and keep them connected to an increasingly digital world," Reuss said in a statement. "Edward's proven track record of digital and e-commerce expertise and leadership make him a huge asset for us. He's done great work for companies known for superior customer experience, and we're delighted to have him on our team."

Kummer was most recently president of Nordstrom Rack's online business and Nordstrom'…

WASHINGTON — Volvo Car USA is recalling nearly 260,000 older models in the U.S. for potentially defective driver's side airbags that have been linked to one death, according to a document posted to NHTSA's website Tuesday.

The affected vehicles — an estimated 259,383 — are the S80 sedan from the 2001 to 2006 model years and the S60 sedan from the 2001 to 2009 model years.

The driver's side airbag inflators in those vehicles may explode during deployment, increasing the risk of sharp metal fragments striking the driver or other vehicle occupants and resulting in injury or death.

The airbags contain a certain propellant that can degrade over time after long-term exposure to high temperatures and humidity.

Airbag inflators "exposed to critical environments — hot and humid — frequently during its lifetime are at highest risk," according to the NHTSA document.

Volvo said it is aware of one rupture incident, which resulted in a death. The automa…

Tekion Corp., a cloud-based automotive software provider, has more than tripled its valuation to $3.5 billion after raising $250 million from investors including Durable Capital Partners and Alkeon Capital Management LLC.

Hyundai Motor Co. and existing investors Advent International and Index Ventures also participated, Tekion CEO Jay Vijayan said in an interview. “This funding is a significant validation. It puts us in an extremely strong position and we’ll look to accelerate growth,” he said.

Pleasanton, Calif.-based Tekion plans to add larger automotive vehicles such as RVs and boats to its platform. It is set to expand both domestically and internationally, beginning with France by the second quarter of 2022, followed by the U.K. and Germany, Vijayan said.

Founded in 2016, the startup seeks to enable automakers and their retailers to sell and service cars in a way that reduces friction for consumers, in part by eliminating what can be a “grueli…

DETROIT — General Motors next year plans to open a battery cell innovation lab at its Global Technical Center campus in Warren, Mich., centralizing much of its battery operations and accelerating development of a longer-range battery, the automaker said Tuesday.

The Wallace Battery Cell Innovation Center, named after the late GM battery engineer Bill Wallace, is slated to open in mid-2022 in the Detroit suburb. GM expects the center to triple in size as EV demand increases.

"To put everybody in an EV, we need to make better batteries that cost a lot less. That's why we're investing in this research center and development center," said Tim Grewe, director of global battery cell engineering and strategy.

GM did not disclose the exact investment amount, but Ken Morris, vice president of electric and autonomous vehicles, said the automaker is spending hundreds of millions on the project.

The center will mark GM's latest advancement in battery de…

Group 1 Automotive Inc. on Monday purchased two dealerships in Denton, Texas, that the public auto retailer says will add a combined about $150 million in annual revenues.

Group 1 said it bought Classic Chrysler-Dodge-Jeep-Ram of Denton and Classic Mazda of Denton. Denton is a city north of Dallas and Fort Worth, a market where Group 1 already has 10 dealerships.A purchase price wasn't immediately disclosed.

"We are excited to expand our presence in the fast-growing Dallas-Fort Worth metro market with these strong brands," Daryl Kenningham, Group 1's president of U.S. and Brazilian operations, said in a statement Monday.

Group 1 will rename the stores Denton Chrysler-Jeep-Dodge-Ram and Denton Mazda, a spokesman told Automotive News.

The dealerships were owned by Richard Allen, according to the stores' websites. Pinnacle Mergers & Acquisitions, a Frisco, Texas, buy-sell firm, brokered the transaction.

The Texas acquisitions follow Grou…

TOKYO – Japan’s Woven City, the digitally-driven town of tomorrow that Toyota Motor Corp. is building on the foothills of Mount Fuji, could be a future air hub for the country’s flying cars.

The vision for airborne offerings from the world’s biggest automaker was floated Tuesday in a presentation to local residents on the Toyota’s plans for the futuristic living laboratory.

James Kuffner, a director at Toyota Motor and the CEO of the Woven Planet subsidiary overseeing construction of Woven City, said taking flight was a passion of the founding family.

“It’s been a dream of the Toyoda family to build a flying car,” Kuffner said while outlining plans to develop the Woven City, with its mixed mobility system, green energy grid, sustainable agriculture practices and diverse population of artists, families, entrepreneurs and inventors.

“I used to watch many TV shows about flying cars, and maybe someday Woven City can become the area that introduces fl…