BMW Offers Up Official “Spy Shots” of Plug-In XM SUV
It’s always a challenge trying to snap spy shots of upcoming products, so we have to appreciate it when a manufacturer provides some images of their own, BMW sending over “official spy shots” apparently showing a camouflaged production version of the Concept XM SUV, a 750-horsepower plug-in hybrid. Revealed ahead of the L.A. Auto Show, the prototype turned the controversy dial up to 11, as The Detroit Bureau originally reported, with a design as wild as the various one-off “art cars” the Bavarian automaker has unleashed throughout the years. The production version of the Concept XM will be only the second unique model ever for BMW’s high-performance M brand, coming over 40 years after the legendary M1 ended production. It also will be the first “electrified” M model; and by that we mean a true M, not one of the halfway M Sport offerings. Why release spy shots now? The production version of the Concept XM is now undergoing extensive testing at the Nürburgring, it seems, and spy photographers literally pop out of the woods to snap shots of anything interesting racing by. BMW decided it’s better to release some images of its own choosing. Click here to view pictures.
VW Dealers Want Answers on Scout EV Brand After Being Caught Off Guard
Volkswagen dealers were left angry, shocked and suspicious by surprise news that the brand's German parent plans to build a new company in the U.S. to sell an electric pickup and SUV under the Scout name, not least because Volkswagen AG was silent on how it intends to retail the vehicles. The lack of information from Wolfsburg immediately after the May 11, announcement left some dealers wondering whether VW CEO Herbert Diess — who often speaks glowingly of Tesla and Elon Musk — might be looking to emulate Tesla's direct-sales model for Scout vehicles or set up new franchises that would bypass their stores. "That's what it feels like to me," one VW dealer told Automotive News after the announcement, on condition of anonymity. "If we were going to have any involvement, they would have told us something. But they haven't said a word to us, either before or after the announcement." VW Group said it will build a "separate, independent company" to resurrect the Scout name, which it acquired last year as part of its heavy-truck subsidiary's purchase of Navistar. Click here for the full story.
Storm Season is Approaching, is Your Dealership Prepared for it?
The Atlantic hurricane season typically begins in June, and experts forecast 19 tropical storms, nine of which could spin into hurricane status. The season for severe storms that culminate in tornadoes and damaging hail is already underway in the southern plains. Every year, hundreds of thousands of vehicles are lost to severe weather. Cases like Hurricanes Harvey and Irma in 2017 have tallied losses of more than 600,000 vehicles — and that doesn’t count the uninsured vehicles. CBT News reports dealers have insurance to cover against Acts of God in most cases, but this year is different. It’s not because there are more storms than average or expectations of catastrophe, but because the auto industry is different from a year ago, never mind five years ago when Harvey made landfall. For the average car dealership, much has changed in a short time. Average used car values have skyrocketed, with average used car prices climbing from $20,879 in March 2020 to $30,815 in May 2022. In 26 months, a used car price increase of nearly 50 percent could tally up to an expected inventory value difference of $1 million for a store that carries 100 used units. Click here for the full story.
Carvana's Dealer License Suspended in Illinois
Carvana Co. is under scrutiny once more, this time in Illinois, where state officials last week suspended the online used-vehicle retailer's license to sell cars and trucks. Illinois Secretary of State Police temporarily blocked Carvana's dealer license on May 10 because the company failed to properly transfer titles for vehicles it sold and misused issuing out-of-state temporary registration permits, said Henry Haupt, an Illinois Secretary of State spokesman. The Secretary of State's police department opened an investigation into consumer complaints about Carvana in February, Haupt told Automotive News. The investigation spans about 90 signed complaints, Haupt said. He said he couldn't provide an exact date as to when Carvana might see the suspension lifted. Carvana will need to "resolve the issues at hand" before that can happen, Haupt said. A Carvana spokeswoman did not immediately respond to a request for comment. Click here to learn more about Carvana’s suspension in Illinois.
Driving Force: San Antonio Picks Up Speed in Auto Industry
For years, San Antonio city leaders had tried and failed. Throughout the 1980s and 1990s, they wanted to bring an automotive plant to the region — the gold standard in economic development, a win that could generate thousands of jobs and boost tax revenue. But it wasn’t working. Automotive supply lines at the time were centered around Detroit and other parts of the Midwest, not South Texas. Automakers such as Saturn, Mercedes-Benz and Hyundai all rebuffed San Antonio’s recruitment pitches. And then Toyota came along. In early 2003, the Japanese automaker announced it would build a pickup factory in San Antonio. The Longview News Journal reports local and state officials put together a package of subsidies worth more than $100 million to attract Toyota to the South Side. Toyota’s factory, which cost about $2 billion to build and began producing full-size Tundras in 2006, effectively launched the auto industry in the region. And its growth has exploded in recent years. “What Toyota does is demonstrate that this is, in fact, a viable location for an automotive plant,” said David Marquez, director of community and economic development for Bexar County. “It fits our community.” Click here for the full story.
Around the Web
Honda Adds a Sport Trim to Odyssey Line for New Model Year [The Detroit Bureau]
Ferrari's First SUV is Nigh and a V-12 Engine Looks Likely [Car and Driver]
Renault Sells Russia's Avtovaz Stake [Reuters]
These 15 Used Vehicles Still Cost a Lot More Than the New Versions [Fox News]
