Cash for Clunkers: Spanish Citizens Roll Out a Very Different Kind of Program

It’s not so much a program as it is a trend. In Spain, which is currently enduring a second blow from a very resilient coronavirus, people are shunning public transit like their life depends on it. It very well could.

What to do? Simple — search classifieds and backyard sheds for any old heap that’s still roadworthy and drive the hell out of it.

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Report: L.A. Auto Show Ready to Make Its Move

Amid ongoing trade show cancellations that now stretch into the next calendar year, the L.A. Auto Show remains stubbornly fixed, apparently still a go for this November.

No one believes this will come to pass. Not with the current coronavirus situation, not with winter (and a feared second wave) approaching, and not without the appearance of a vaccine or some sort of breakthrough therapeutic drug. So it’s not surprising to hear that organizers might punt the event to late spring.

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Glass Half Full: Subaru's Halfhearted Sales Celebration in a Time of COVID

It hasn’t been a normal year, and all the plans you and I and even Subaru had for 2020 have more or less fallen flat. This year will not see the Japanese automaker grow its volume over 2019 levels. Targets set in the Before Times will not be met.

So why worry? Celebrate what you got.

That’s what Subaru did after tabulating its August sales tally, noting that the figure — representing a year-over-year loss of 17 percent — was actually its best showing so far this year. And once again, Subaru brass north of the border didn’t have to pretend.

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I Need a Track Day. You Probably Do, Too

The news lately seems to be all doom and gloom. The jokes and memes about 2020 continue to fly around the Interwebs. And much of the usual entertainment distractions available to us are on hiatus or heavily restricted, due to the pandemic.

All this makes me want to take a drive to clear my head sometimes. And while testing new cars for a living gives me an excuse to do just that, I think I need more than a relaxed freeway cruise or a blast down a back road to really relieve the stress.

I need to get my ass to the track.

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Detroit Wrapping on Ventilator Production, Returning to Cars

General Motors and Ford Motor Company are about to conclude their prolonged stint of ventilator production. In case you were unaware, these businesses typically manufacturer automobiles (cars, for the layperson) and have allocated a portion of their factory space to build medical equipment that was assumed to be useful during the pandemic. However, the United States now has more ventilators than it knows what to do with, and most of them seem like they won’t be required — so it’s mission accomplished, unless COVID-19 suddenly becomes a much more vicious illness.

Either way, GM and Ford both plan to re-prioritize vehicle production. The Blue Oval moved core staff off ventilator lines and back to their normal places of assembly months ago. Some of the remaining temporary workers hired to assist with the medical equipment are said to have an opportunity building the new Ford Bronco. Meanwhile, GM says it wants to move ventilator production to a facility in Kokomo, Indiana, next month, where it will hand operations over to Ventec Life Systems as it regains the union employs allocated for the project. Temporary hires will be absorbed by Ventec.

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AutoNation Ending Aftermarket Collision Parts Division - Shrewd or Crude?

AutoNation’s collision parts division is scheduled to be eliminated by the end of 2020, freeing up some cash after the two-year endeavor proved less than profitable.

Former CEO Cheryl Miller had made it clear that one of her main goals for the company was to ramp up services in an attempt to enhance revenue and diversify the business. But this tactic has proven perilous for the automotive industry at large, often offsetting opportunities to make money with sizable financial risks.

Mobility is probably the best example of this, as its broad enough to encompass everything from self-driving vehicles to subscription models and relies on the market maturing into something that will presumably see returns on investment years down the line. However, AutoNation’s diversification was far more traditional. It seemed like a sure thing, since the collision parts business was forecast to grow over the next five years. In fact, despite being the the largest automotive retailer in the United States, the company actually owes 46 percent of its gross profit to parts and service. Selling cars (both new and used) only accounts for 24 percent — with the rest coming from finance and insurance.

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2021 Washington Auto Show Pushed Back to March

The 2021 Washington, D.C. Auto Show has been postponed to buy organizers time to prepare for a virus everyone has known about since the start of 2020.

“We believe this scheduling change is in the best interests of our attendees, our partnering auto manufacturers, and the District of Columbia,” Washington, D.C. Auto Show CEO John O’Donnell said in a release on Friday. “Our top priority is to ensure the safety of all involved in this show, and we believe strongly that a two-month delay will better allow us to produce the type of well-rounded and immersive show that our attendees are accustomed to.”

Originally scheduled to open on January 29th, the motor show will now take place between March 26th and April 4th. That’s assuming the event isn’t outright cancelled, anyway. That’s been the trend for automotive trade shows and most major events since we decided “15 Days to Slow the Spread” would just reset at the end of the second week and COVID-19 became Schrödinger’s Virus thanks to some of the least consistent reporting in modern history.

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There's Little Reason to Hunt for Fresh Oil in 2020

Ever since the first major oil fields were discovered at the start of the 20th century, the world has been on a never-ending hunt to see where else black gold might be hiding. Monetizing seepage areas goes back even further. But with global oil demand having dissipated on account of the pandemic, there’s little reason to spend cash on additional procurement.

Combine that with the green movement doing everything it can to convince governments there’s only one ethical way to handle energy, and we’re likely to be moving into an era where fossil fuels sell for less but cost more to harvest/utilize thanks to carbon emission regulations.

This has left oil companies pondering the true value of seeking new sources of oil, with some having already decided there’s no point.

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Stand by Your Brands: Tata Motors Says It's Keeping JLR Around

Following a failed bid to secure a helping hand from the UK government, rumors arose that Jaguar Land Rover owner Tata Group was considering selling its controlling stake in the British automaker.

The so-called rescue package didn’t see the light of day because the government felt Tata wasn’t exactly in dire financial straits. If it wanted to rustle up some dough, it would have to look elsewhere. On Monday, Tata made it clear: Jaguar Land Rover will not become an orphan again.

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U.S. Subcompact Car Market Share Fell by Half Since 2016; Subcompact Crossover Segment Tripled Since 2013

No Yaris. No Fiesta. No Sonic. No Mazda2. No Fit.

America’s subcompact car segment is decimated. According to Tyson Jominy, the vice president of data and analytics at J.D. Power, 40 percent of last year’s subcompact sales are gone. Jominy doesn’t mean “fewer sales.” He means that the nameplates responsible for 40 percent of the sales are gone.

And is it any wonder? As recently as 2014, subcompact cars produced 3.8 percent of all U.S. auto sales. Collectively, the few remaining subcompact cars now account for just 1.4 percent of the American light vehicle market.

At the current rate of decline, fewer than 1 percent of the vehicles sold in America in 2022 will be subcompact cars. But we all know the current rate of decline is hardly an accurate harbinger. If subcompacts own 1 percent of the market in 2021, we’d be surprised.

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Getting Back to Normal? Far From It - U.S. Rife With Gloomy Consumers, Young Car Buyers Lowering Their Expectations

Consumer spending and confidence are not hitting record highs. Go figure. As the pandemic rages and a vast swath of formerly gainfully employed Americans find their financial future much hazier then before, new car sales are suffering. It doesn’t bode well for sales volume during the remainder of the year.

Of course, that pain is not spread evenly among all automakers, but let’s set the OEMs’ concerns aside for a moment. What are actual buyers and doing — and thinking?

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GM Shares Dystopian Safety Tech, Ford Says Remote Work May Continue Into 2021

General Motors said it plans to share some of the safety technology it developed as a countermeasure to the coronavirus pandemic this week. These include a thermal scanning kiosk that uses infrared imaging to take temperatures of people as they stream into facilities, as well as a touchless printer app designed to keep staff from repeatedly touching the control panel. However, it’s the third item, GM’s contact-tracing software, that’s the most novel and controversial.

Practically every company in the world is working on ways to better track people, and their efforts have only accelerated during the pandemic. The presumption here is that by knowing every person someone has come into contact with, you can effectively track the progress of a virus. Despite sounding terrifyingly dystopian just a few years earlier, the notion has become a favorite among tech giants — most of whom are working on their own version.

GM’s involves a wristband, integrated into iOS and Android devices, that keeps tabs on how close employees are to each other. The company has since added support for Bluetooth beacons.

“We believe our application advances the state of the art when it comes to mobile apps for contact tracing, which is the subject of massive software development efforts across multiple industries today,” Tony Bolton, GM’s chief information officer of Global Telecommunications and End-User Services, said in a release.

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The Struggle Continues for Hertz, Now Seeking a Bankruptcy Loan

Colossal rental car provider Hertz is on the hunt for life-sustaining cash, but raising it itself now seems out of the question. Hertz Global Holdings, which filed for bankruptcy in May, recently moved ahead with a plan to raise a cool half-billion through a stock sale, only for the Securities and Exchange Commission to step in and say “hey, whoa, no more of that.”

Left with no other option, Hertz is now seeking a bankruptcy loan.

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Crossover Injection Aids Kia's COVID Recovery

U.S. sales results, at least those that we know of, were a mixed bag in July. Automakers foreign and domestic are busy replenishing inventories drained by a two-month shutdown of U.S. manufacturing; for many, the restocking can’t come soon enough.

At Kia Motors’s West Point, Georgia plant, production of the Telluride crossover got underway again in May, and the automaker can barely keep up with demand. Cox Automotive (via CNN) reported two weeks ago that the country’s Kia dealers report an average 15-day supply of the unexpectedly popular model. That’s tight, to say the least.

But the Telluride isn’t the only vehicle lifting Kia’s fortunes in the wake of the shutdown.

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Toyota Maintains Black Ink in Last Quarter

An ongoing pandemic and serious North American sales hit weren’t enough to bring Toyota to a loss in the quarter ending June 30th.

The automaker posted its weakest fiscal first-quarter return in nearly a decade, but last quarter’s operating profit, despite plunging 98 percent on a year-over-year basis, still came out in positive territory. While the road ahead is rocky and paved with uncertainty, Toyota says it was surprised as how quickly it bounced back.

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  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?