Kia Begins U.S. Output of Sportage Hybrid, Easing Tariff Hit
With production of the hybrid version of Kia’s top-selling model, the Sportage crossover, shifting from South Korea to Georgia, Hyundai Motor Group expects to see its $5 billion tariff bill ease. The first Sportage hybrid rolled off the line June 2 at Hyundai’s Metaplant, the first Kia-badged vehicle built here. Kia will no longer have to pay a 15 percent U.S. tariff on the Sportage hybrid, which was built at Kia’s AutoLand plant in Gwangju, South Korea, reports Automotive News. The Sportage is also the first hybrid vehicle built at the Georgia plant. The Metaplant was originally conceived as an EV-only facility, but Hyundai, like many other automakers, revised its plans after federal electric vehicle incentives ended last fall and sales nosedived. Kia announced the Sportage Hybrid would be added to the Metaplant’s product mix last year. The Hyundai Ioniq 5 and Ioniq 9 are also built at the highly automated factory. U.S. sales of the Sportage have climbed 5.9 percent to 78,912 through May. Kia doesn’t break out sales of the hybrid version, but reported deliveries increased 117 percent in April and 171 percent in May. Click here for the full story.
US Pushing for 50% American Content Rule for Autos, Carney Says
The White House is pushing for new rules on auto production that would require at least 50 percent U.S. components for vehicles manufactured in the North American trade zone, Canadian Prime Minister Mark Carney confirmed. Canadian-made vehicles already hit the 50 percent threshold, on average, Carney told Bloomberg in Ottawa on Tuesday. But many Mexican vehicles do not.The US-Mexico-Canada Agreement, which was negotiated during President Donald Trump’s first term, includes provisions that require 75 percent of a vehicle’s value to come from North America to qualify for tariff-free treatment, among other rules. But the president imposed new tariffs on foreign autos early in his second term, saying the policy would give auto manufacturers an incentive to move jobs to the U.S. Carney made the remarks on the same day his minister responsible for U.S. trade, Dominic LeBlanc, is set to meet with U.S. Trade Representative Jamieson Greer in Washington. The meeting comes as a scheduled review of the USMCA gears up. In a letter to Greer and Mexican Economy Minister Marcelo Ebrard, LeBlanc confirmed that Canada wants to renew the agreement for another 16 years. Click here for the full story.
A Family Affair: Three Generations of Growth at Vaden Automotive
For a family-owned dealership group, growth is rarely just about adding stores. It’s about knowing what works, building the right team and leaving a legacy. Vaden Automotive in Savannah, Georgia, is doing all three. On today’s episode of CBT News’ Inside Automotive, Jane Vaden Thacher, President of Vaden Automotive, and her son Jack Thacher, the group’s Director of F&I, join us to discuss the expansion, digital retailing, affordability pressures and the family legacy they are working together to grow. The Vaden Automotive story goes back more than 55 years. Dan Vaden opened his first Chevrolet dealership on what was then a rural road just outside of Savannah in 1968. The store grew to become the largest dealership in southeast coastal Georgia. What he started then has grown into a thriving family business. His daughter Jane worked her way up through the business, from the service department to president, and today leads a group of 14 dealerships and roughly 880 employees across coastal Georgia and South Carolina. Vaden Automotive’s most recent additions include a Chevrolet store in Hinesville, acquired last November, and a new Hyundai point in Brunswick. Click here for the full interview.
Volvo XC60 PHEV Electric Range to More Than Double
Volvo is sharpening the appeal of its best-selling nameplate in one of the industry’s toughest segments. After giving the 2026 XC60 a light refresh, Volvo is expected to release a meaningful update for the midsize crossover in early 2027 that includes styling changes, powertrain tweaks and improved technology.The standout upgrade is a beefier battery for the XC60 T8 plug-in hybrid that is expected to more than double — and potentially nearly triple — its current 35-mile electric-only range, people with knowledge of the plan told Automotive News.That would vault the XC60 past the segment-leading Mercedes-Benz GLC 350e’s 54 miles and address a key criticism of the current T8. The range boost aligns with Volvo’s evolving powertrain strategy.The automaker in 2024 pivoted away from its plan to go all-electric by 2030 in favor of a more pragmatic approach. While still committed to full electrification long term, Volvo is doubling down on high-performing plug-in hybrids to better match real-world customer needs, varying infrastructure levels and disparate regulatory requirements around the world. Click here for the full story.
Hyundai to Deploy Atlas Humanoid Robots in U.S. Manufacturing Push
Hyundai is planning to deploy its Atlas robots in the U.S. as the automaker continues to deepen its North American manufacturing footprint. The humanoid robots, developed by Hyundai Motor Group’s robotics and AI unit, Boston Dynamics, are designed to automate higher-risk and repetitive manufacturing tasks, said Hyundai, reports CDG.For context, Atlas robots feature human-scale hands with tactile sensing and can lift up to 110 pounds.The robots can operate autonomously in industrial environments ranging from -4 Fahrenheit to 104 Fahrenheit.The initial deployment is planned for Hyundai’s manufacturing plant in Georgia beginning in 2028.Hyundai aims to build a facility capable of producing 30,000 robots annually by 2028.While the deployment will have little direct impact on dealership operations, it reflects Hyundai’s broader push to strengthen manufacturing efficiency, expand domestic production, and invest in advanced technologies. Those efforts could help support product availability, cost control, and long-term competitiveness. Hyundai’s robot deployment is the latest in a series of moves aimed at expanding and modernizing its North American manufacturing operations. Click here for the full story.
Federated Insurance’s Claim of the Month – Taking Employee Complaints Seriously
A new employee came to the general manager of an auto dealership to make a complaint regarding the dealership’s office manager. They stated that the office manager had belittled them, threatened violence, and had created a toxic environment. Others came forward with similar statements, noting that the office manager had mocked employees. The general manager spoke to the two employees at the same time, advising that they didn’t have to like each other, but they did have to get along. Shortly after, the new employee resigned and filed a lawsuit, citing threats of violence and a hostile work environment.
CLAIM AMOUNT: $120,000
Risk Management Tips to Consider:
• Implement and Enforce a Fair Complaint Process: Give employees a clear way to report concerns without fear of retaliation. Investigate each complaint quickly, fairly, and the same way each time. Document each step and any action you take. In high-risk cases, involve HR or legal counsel.
• Train Managers and Employees: Teach harassment prevention, discrimination awareness, proper hiring and termination practices, and documentation standards on a regular basis.
• Enforce a Professional Environment: Communicate to employees that they should avoid sarcasm or gossip, limit personal topics, and use polite language. Remind supervisors that their behavior shapes workplace culture.
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