December 1, 2011

UAW Pickets Hyundai Dealers in Korean Worker Protest
The UAW's protest at more than 80 U.S. Hyundai Motor Co. dealerships on Wednesday is to show support for Korean workers, not to target the automaker's U.S. employees for a membership drive, a union spokeswoman said. "This has nothing to do with the domestic organizing campaign," Michele Martin, a UAW spokeswoman, said. "Hyundai is not the target." Automotive News reports that UAW President Bob King has said he planned to organize the U.S. operations of one international automaker this year. King said in March that restoring the union's bargaining clout depends on organizing non-union factories of automakers such as Hyundai and Toyota Motor Corp. "At this point, our hope is to make a decision about who we're going to target by the end of the year," Martin said. "But obviously, we won't have the organizing campaign completed by the end of the year." Regional UAW representatives have been training union members on how to conduct informational picket campaigns at the showrooms of international automakers, Martin said. The union has not yet said which dealers will be targeted for the campaign, though UAW Vice President Joe Ashton said Nov. 21, "we're very close to doing that." For more on the UAW’s picket of Hyundai dealerships yesterday, click here.

Toyota Gains From U.S.-S. Korea Trade Pact
The biggest beneficiary of the new trade agreement that will end South Korea’s tariffs on U.S.-made cars may be Toyota. According to Bloomberg, the automaker is looking to profit as it fights a rising yen blamed for an operating loss in its fiscal first half. Japan’s biggest carmaker began exporting Sienna minivans from Princeton, Indiana, to South Korea this month and may do the same with Camry sedans next year. Until this month, the 17 Toyota and Lexus models sold in South Korea were all from Japan. The dollar has declined against the won in the past year while the yen has gained. “Because of a more favorable dollar-won exchange rate compared with the yen-won rate, Japanese carmakers can shift sourcing to the U.S., allowing them to lower their prices in Korea,” said Christian Yang, an analyst at consultant IHS Automotive. “Japanese imports look to gain market share through more aggressive pricing against domestic competitors.” Cars built in the U.S. can be sold at lower prices than those built in Japan, Satoshi Ozawa, Toyota’s executive vice president, said Nov. 8. For more on how Toyota is benefitting from a new trade deal between the U.S. and South Korea, click here.

Fed: More Than Half of Districts Report Strengthening Auto Sales
According to the Federal Reserve’s latest Beige Book, vehicle sales increased in a number of districts. Officials revealed Wednesday that gains in auto sales were reported in Philadelphia, Cleveland, Richmond, Atlanta, St. Louis, and Minneapolis. They indicated Chicago also reported gains in sales during October, but noted the pace of sales slowed in November and that dealers suspected consumers may be waiting for potential end-year deals. According to Auto Remarketing, as a whole, the Fed determined overall economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve Districts, except St. Louis, which reported a decline in economic activity. “District reports indicated that consumer spending rose modestly during the reporting period,” officials shared. “Motor vehicle sales increased in a number of Districts, and tourism showed signs of strength. Business service activity was flat to higher since the previous report. “Manufacturing activity expanded at a steady pace across most of the country,” they continued. “Overall bank lending increased slightly since the previous report, and home refinancing grew at a more rapid pace. Changes in credit standards and credit quality varied across districts.” Click here for a regional breakdown of the Beige Book’s auto sales figures.

Green Cars in Spotlight at Waning Japan Auto Show
Green cars rolled into the spotlight at the Tokyo auto show as Japan's automakers look to fuel-efficient technology to reinvigorate growth after tough times. The showcase for Japan's pillar auto industry was holding its preview for media on Wednesday ahead of opening to the public on Saturday. The Detroit News reports that plug-in hybrids and electric cars are center stage at the Tokyo Motor Show. The show has been scaling back in recent years because of the waning importance of Japan as an auto market. Carmakers are increasingly looking to China, India, and other nations with greater growth potential. Japanese automakers have had a tough few years, but green technology remains a strong selling point for carmakers such as Toyota Motor Corp. which pioneered broad consumer acceptance of gasoline-electric hybrid cars with its Prius. Honda Motor Co. said it will start selling an electric version of its Fit subcompact in the U.S. and Japan by the middle of next year. It showed concept cars such as the AC-X plug-in hybrid, EV-STER electric roadster convertible, and a tiny electric car called Micro Commuter. For complete coverage of the green vehicles making a showing at the Tokyo Auto Show this week, click here.

12 Great Cars (You Can't Get in the U.S.)
This time of year the airwaves are filled with commercials in which a lucky spouse find a new car parked outside with the obligatory red bow on the roof. But how about something different, like finding your beloved a one of a kind – a car model from an established manufacturer that isn't for sale in the U.S.? As big an auto market as we have, CNN Money reports that there are a lot of cars sold around the world that you just can't get here. They may be perceived as uneconomical or unappealing to American buyers, or they're unable to meet safety, crash, or emission regulations. But it's a big and varied world out there. Toyota alone sells more than 70 different global nameplates. To make things easier, CNN Money has narrowed down the list to a dozen cars from international automakers that would look pretty sweet wrapped up for a holiday down the road. Click here to check out the list that includes the Alfa Romeo 159, Audi A1, BMW 5-Series Sport Wagon, and the Citroen C6.

Register Today: Getting the Best ROI for Your Employee Benefits Program
As a dealer responsible for the employment of tens or hundreds of employees and as an individual trying to build an enduring and ongoing business, the current economy and regulatory environment may be keeping you up at night. Fee disclosure requirements for plan sponsors and participants in 401(k) plans are driving a more regulatory and competitive marketplace, and one which requires additional fiduciary oversight of service providers. We are at a point where rising health plan costs and government-mandated reforms have combined to create an increasingly complex health insurance marketplace. So what can you do? Join AIADA and our Affinity Partner, Northwestern Mutual, on December 15 at 11 a.m. (EST) to learn valuable views and strategies to help you stay ahead of the curve on healthcare and find out more about strategically-designed retirement plans to meet your fiduciary requirements. Find out what best practices dealers are using to maintain margins, recruit and retain the best employees, and increase their overall savings to benefits plans by ROI. This webinar is hosted by Richard Cafeo, Director of Retirement Plan Services and Tony Hines, Benefits Specialist, both with Northwestern Mutual – the Reston Financial Group. Together, they have over 29 years of experience with employee benefits. Register today!

Around the Web 
Jeremy Clarkson Picks the Year's Best Cars [Jalopnik]
2011 Tokyo Auto Show: Nissan Townpod [Edmunds Inside Line]
Automakers Take Aim at Drowsy Driving [MSNBC]
Meet VW's Hybrid SUV Mish-Mash [DriveOn]