January 20, 2010

Russ off the Cuff: Game Changer
Last night, Republican Scott Brown beat Democrat Martha Coakley in a stunning upset in the U.S. Senate race in Massachusetts. According to AIADA Chairman Russ Darrow, Brown's victory, by a solid five percentage points, reflects Americans' frustrations with the political status quo, and changes the landscape of our political universe. Brown, who campaigned as a regular "every man" and promised voters he would challenge President Obama's health care plan, is a game changer. Like a field goal before the end of a quarter, or a 3-point shot with seconds left on the clock, Brown has turned the tide in the match. This is good news for dealers, and for small business owners everywhere. Actually, this is good news for EVERY American. Brown's victory, by a solid margin, follows similar races in Virginia and New Jersey where a Republican upset a favored Democratic candidate. Americans are trying to tell folks in Washington something. Is Washington listening? This is not a Republican vs. Democrat conflict. This is a call for those in power to remember who they're representing. Hint: It's not a political party. Hopefully, Brown's victory will mark a return to rational open debate and sensible compromise. Click here for AIADA Chairman Russ Darrow's complete remarks on what the Massachusetts Senate race means for auto dealers everywhere.

Auto Makers Add to Haiti Relief Effort
The auto industry stepped up efforts this week to help with relief work in Haiti, where death toll estimates now run as high as 200,000 after last Tuesday's earthquake. According to Automotive News, American Honda Motor Co., Inc. said today its North American companies are donating more than $300,000 to the Red Cross. The company also said it is contributing portable generators, water pumps, and other Honda products. The largest automotive contributor to the effort so far has been Toyota Motor North America Inc. Toyota said Friday that it is donating $500,000 to the American Red Cross, Save the Children, and Doctors Without Borders. Hyundai Motor Co., pledged yesterday to give $100,000 to the International Committee of the Red Cross. Nissan donated $30,000 to the Red Cross last Thursday. It says it eventually will provide more than $100,000 for the Haitian earthquake relief effort. Nissan's program includes a $25,000 cash donation from Nissan North America and a $5,000 cash donation from Nissan Canada Inc. The automaker also will match the first $25,000 in employee donations, for a combined employee-company contribution of up to $50,000, and will give $52,000 to Habitat for Humanity International to construct 13 houses in Haiti as rebuilding programs get under way. Click here for more on what auto makers are doing to help relief efforts in Haiti.

U.S. Sees More Auto Exports to Japan after Rule Change
According to AFP, the United States on Tuesday welcomed changes made to Japan's "Cash for Clunkers" auto stimulus program, saying they opened prospects for more U.S. auto exports into the Asian economy. "I welcome the objective of the modifications that Japan made today to its automotive 'Cash for Clunkers' program," said US Trade Representative Ron Kirk. "Today's announcement opens opportunities for US autos imported using Japan's Preferential Handling Procedure certification process to qualify under that program," he said. Japan's move came ahead of a congressional hearing Thursday on "Japanese and South Korean barriers to US auto imports." USTR has been raising concerns about access for US automobiles to Japan's eco-friendly vehicle purchase program, U.S. officials said. Of specific concern has been that US autos imported using Japan's PHP import certification process were not eligible to qualify under Japan's purchase program, the officials said. Korean and European vehicles were eligible for the program because they entered under traditional import procedure and were subject to emissions tests. The change Japan announced Tuesday opens opportunities for autos imported using the PHP process to qualify, taking into account U.S. fuel economy ratings for specific automobiles. For more on what changes to Japan's scrappage program means to U.S. auto exports, click here.

Chinese Car Maker Back at Detroit Auto Show
China's carmakers are becoming regular fixtures at international auto shows, and China's BYD Auto Inc. is back in Detroit for the second year in a row. According to The Detroit News, BYD, which stands for "Build Your Dreams," is displaying its e6 battery-powered electric sedan at the North American International Auto Show and hopes to sell it in the U.S. later this year. Click here for a photo of the e6. BYD is one of China's most ambitious carmakers, proclaiming at the show's preview for media that it aimed to become China's No. 1 automaker by 2015 - and the world's biggest by 2025. While some scoff at China's auto makers and their self-proclaimed ambition, others caution that while Chinese auto makers may stumble at the outset, as the Koreans and Japanese before them did, they will become serious global competitors - and sooner, rather than later. About half a dozen Chinese automakers, including Shanghai Automotive Industry Corp., BYD Auto, Geely Automobile Holdings and Chery Automobile, have the ambition and potential to develop the capabilities to produce vehicles that can be sold anywhere in the world, analysts say. This year, BYD is the only Chinese carmaker staging a full display at the Detroit show. Click here for more on Chinese auto makers and their plans for the global auto market.

'Green' Rental cars Cost More, are Hard to Find
According to USA Today, for all the talk about hybrids and other types of "green" cars these days, few travelers are actually driving them out of rental agency lots. Part of the reason is the perception that hybrids are small and uncomfortable. Part of it is cost. And part of it is that few are available. Less than 5 percent of the 1.3 million cars available for rent each day in the USA are hybrids, according to one analyst. Less than a quarter of the nation's rental fleet is made up of so-called "flex-fuel" cars that can run on E85, the reduced-emissions fuel that contains 15 percent corn-based ethanol and which is sold at only about 1 percent of the nation's service stations. A recent online inquiry with Hertz for a two-day rental in Portland, Ore., brought back an offer of a Nissan Altima hybrid at $285.80, excluding taxes and fees. That's $11 more than the two-day price quoted for a Chevrolet Impala. After driving 200 miles and filling up the tank with gasoline priced at $2.86 a gallon, the cost gap narrowed to $1.64. Click here for a chart comparing rental costs between hybrid and conventional vehicles at one major rental car provider. For more on the lack of hybrid and other "green cars" at car rental counters, click here.