Bank of America ‘Car Wars’: Automakers Pull Back Hard on EVs, While Dealers Need to Tap Lost Service Via Connectivity
Automakers are canceling large numbers of future electric vehicle programs and will grow the number of hybrid offerings over the next four years, while new-vehicle launches slow dramatically because of industry uncertainty. Meanwhile, dealers have an opportunity to perhaps double their most profitable revenue streams because of untapped connectivity capacity, according to a widely watched annual industry report from Bank of America. Car Wars is an annual study of the automotive product pipeline and the resulting impact on both carmakers and car retailers, reports Automotive News. This year’s study covers the next four years, model years 2026 through 2029, and shows that the tumult caused by slowing EV adoption rates, tariffs and regulatory hurdles is causing automakers to retrench into their traditional strengths, said John Murphy, senior automotive analyst with Bank of America Securities.“We expect 159 models to be launched over the next four years,” Murphy said. “That’s a dramatic decline from above 200 last year, and really is an indication that a lot of what’s going on [with automakers’] EV investments.” Click here for the full story.
BMW to Build Electric Ix5 and Ix7 in U.S. Despite Tariff Shifts
German luxury automaker BMW is moving forward with plans to build fully electric versions of its iX5 and iX7 SUVs at its Spartanburg assembly plant in South Carolina, despite recent disruptions from U.S. trade policy changes under President Donald Trump. The electric iX5, expected to launch as the iX5, will enter production in August 2026, followed by the iX7 in 2027. According to CBT News, both models will continue using BMW’s cluster architecture (CLAR) but integrate technologies from the brand’s Neue Klasse electric platform, including an 800-volt architecture and next-generation battery cells. The decision is part of a broader $1.7 billion investment in BMW’s North American manufacturing operations. Of that, $1 billion will be used to upgrade the Spartanburg plant for EV production, and $700 million will go toward building a new battery assembly facility in nearby Woodruff, SC. The new facility will produce sixth-generation cylindrical battery cells developed in partnership with Envision AESC. Click here for the full story.
Top 150 Auto Retailer Adds Infiniti Store Among Latest Buy-Sell Deals Tracked Across 8 States
Ten dealership transactions, the latest tracked by Automotive News, closed in 2024 through early May and included stores in Alabama, Georgia, Kansas, Maryland, Michigan, New Jersey, Oklahoma and South Carolina. In a deal that closed last month, Tony Crowdis took ownership of former National Association of Minority Automobile Dealers Chairperson Damon Lester’s only dealership, Nissan of Bowie in Maryland. Crowdis in September also bought a Chevrolet dealership in Maryland.In addition to Nissan of Bowie, two other Nissan stores were among the deals Automotive News added to its buy-sell database. Two Chrysler-Dodge-Jeep-Ram stores also traded hands, including Paul LaFontaine Jr. purchasing a dealership in Imlay City, Mich., in May.Another Chevrolet store changed ownership while other transactions involved Ford, Hyundai, Infiniti and Subaru brands. Nielsen Automotive Group in August bought an Infiniti store in Denville, N.J. The group last March added a Nissan dealership in the same city. Nielsen Automotive, of East Hanover, N.J., ranks No. 139 on Automotive News’ list of the top 150 dealership groups based in the U.S., retailing 7,303 new vehicles in 2024. Click here for the full story.
Maserati Ready to Present New Business Plan Very Soon, Brand Boss Says
Maserati plans to present a new business plan shortly, soon after parent company Stellantis’ new CEO Antonio Filosa officially starts in his job later this month, the head of the struggling luxury carmaker said on Thursday. The loss-making Italian brand, the only one in the luxury segment for the world’s fourth largest automaker, has no new model launches scheduled at the moment, with Stellantis reviewing Maserati’s strategies after a previous business plan was put on hold last year. Maserati CEO Santo Ficili said the plan was being finalized and would not just include new products but also redesign relations with dealers and the assistance network, reports Reuters. “We have clear ideas about what we want to do, we hope we can be ready very soon,” Ficili said at the Motor Valley Fest in the Italian city of Modena, where Maserati is headquartered. “Let’s wait for Antonio to take up his job,” he added. Stellantis last week named its North American chief Filosa, an Italian national, as its new CEO. “Antonio loves the (Maserati) brand, I am sure we’ll do great things,” Ficili said, adding Maserati will continue to design, engineer and manufacture all its models in Italy. Click here for the full story.
Why It’s So Hard to Make a Reliable Self-Driving Car
Two decades ago, the U.S. military kicked off the race to build self-driving cars by sending a fleet of fledgling robot vehicles across the Mojave Desert in its seminal Darpa challenge. By 2015, autonomous vehicle technology was being widely pursued, and the industry was abuzz with predictions that driverless cars would soon be everywhere. It didn’t happen. Some legacy carmakers and startups abandoned their efforts, citing excessive costs and complexity. Regulators stepped up scrutiny of the emerging technology after crashes involving cars equipped with partial-automation systems. The companies still making progress are proceeding with caution, aware of the heavy reputational damage when someone is injured or killed by a self-driving car, reports Bloomberg. Waymo, a venture of Google parent Alphabet Inc., introduced its driverless taxi service to a fourth major U.S. city in March through a partnership with Uber Technologies Inc. Tesla Inc. is planning a long-delayed robotaxi service confined to Austin, Texas, in June. It aims to start with roughly 10 or 20 Model Y cars operating under remote supervision — a far cry from what CEO Elon Musk pledged in 2019, when he said the carmaker was a year away from putting 1 million robotaxis on the road. Click here for the full story.
Federated Insurance’s Claim of the Month – Loaner Vehicle Coverage and Safety
A customer was driving a loaner vehicle provided by an insured dealership while their vehicle was being repaired. The customer was allegedly texting and driving when they struck a pedestrian in a crosswalk. The pedestrian was hospitalized for severe injuries and multiple broken bones. The customer had signed a loaner vehicle agreement and provided a valid driver’s license. However, after the accident, the customer’s insurer denied coverage because their insurance policy had been canceled before the incident occurred. A claim was filed against the dealership since the customer was considered a permissive user of the loaner vehicle at the time of the crash. The customer later argued they were unfamiliar with the loaner vehicle, which they claimed affected their response time when braking. CLAIM AMOUNT: $850,000 Risk management advice: • Verify that each customer’s insurance is valid before loaning vehicles out. • Go over all operational and emergency features with customers before releasing loaner vehicles. • Only top management should have the authority to release vehicles for temporary use. • Ensure that loaner vehicles are for only customers who have personal vehicles in for repairs or service work. Click here to learn more.
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