Beltway Talk Podcast: Q&A with Global Automakers' Don Stewart
During a crucial week for autos and trade, Beltway Talk sat down with Don Stewart, Global Automakers’ new Executive Vice President of Public Affairs, to talk tariffs, dealer engagement, and what exactly the Washington Nationals need to do to pull out of their spring slump. Stew’s extensive experience on Capitol Hill (paired with a brief but unforgettable stint as a dealership ‘lot boy’) gives him a unique perspective on the auto industry and what dealers can do to move the needle on issues important to them. Click here to listen in and subscribe.
Moody's Downgrades Nissan's Credit After S&P's Negative Outlook
Nissan Motor Co.’s credit rating was cut a notch by Moody’s Investors Service, which cited Nissan’s weakening profitability and margins over the past two years. According to Bloomberg, the issuer rating was lowered to A3 from A2, the rating company said in a statement Friday. Moody’s had placed the Yokohama-based automaker on negative watch in February. The latest downgrade comes days after S&P Global Ratings placed the automaker’s rating on negative watch, saying there is a more than a one-in-three chance of a further delay in Nissan’s profit recovery. Earlier this month, Nissan cut its full-year earnings forecast after third-quarter profit missed analysts’ estimates, adding to the fallout from the arrest of former chairman Carlos Ghosn. Read more here.
Premium Automakers Can't Afford the Luxury of Current Business Model, Analyst Says
Sales of premium cars probably have peaked globally, threatening the business model of Germany's luxury automakers, according to analyst Philippe Houchois, managing director of Jefferies Group. Automotive News reports that Houchois said he was "neutral" on all three German automakers, meaning he doesn’t recommend investors buy shares. It was unusual, he said, for the bank not to recommend a "buy" on any of the automakers. "The premium business model as we have seen it, of model proliferation and people paying more because of the social status of those cars, is probably reaching a peak," Houchois told the Automotive News Europe Congress here on Wednesday. "We think the German premium business model is at risk" of no longer continuing to grow, Houchois said. Read more here.
Consumer Reports: Tesla Automated Lane Changes Are Risky
A new automatic lane-change feature of Tesla’s Autopilot system doesn’t work well and could be a safety risk to drivers, according to tests performed by Consumer Reports. The magazine and website tested “Navigate on Autopilot” and found it less competent than human drivers, cutting off other cars without leaving enough space. The Detroit News reports that Senior Director of Auto Testing Jake Fisher said in a statement Wednesday that the system doesn’t appear to react to brake lights or turn signals, and it can’t anticipate what other drivers will do. “It’s incredibly nearsighted,” Fisher says. “You constantly have to be one step ahead of it.” Consumer Reports says automakers should be required to make public validated evidence of a new system’s safety before releasing it on public roads. The tests raise more questions about the safety of Tesla’s Autopilot system and CEO Elon Musk’s statement that Tesla will have fully self-driving vehicles ready sometime next year. Read more here.
Welby Promoted to Top Infiniti U.S. Sales Job
Infiniti has elevated Bob Welby to U.S. sales chief and No. 2 executive for the critical U.S. market. According to Automotive News, starting June 1, Welby takes over as senior director of operations, where he will oversee sales, client experience, training, model line management, pricing, and incentives, Infiniti said Wednesday. Welby, 46, succeeds Jeff Pope, who was named Infiniti Americas group vice president in April and now runs the brand's North America business. Welby will report to Pope. Welby, director of chief marketing management for Infiniti in the U.S., previously held positions in sales operations and marketing. He joined Nissan North America in 1996, starting in the Northeast Region, and moved to Infiniti in 2012. In his new role, Welby will be charged with protecting and growing Infiniti's position in the U.S., the brand's biggest market. The market accounts for 70 percent of its global sales. Read more here.
10 States Where Gas Prices Are Highest
Your summer ride might be a little more joyful now that gas prices may have already peaked for the year. As the Memorial Day weekend kicks off the summer travel season, American motorists are poised to benefit from declining gas prices, reports USA Today. While gas remains expensive in certain pockets, including $4-per-gallon California, the national average is falling. The national average is unlikely to hit $3 per gallon for the fifth straight calendar year, said Patrick DeHaan, head of petroleum analysis at fuel-savings app GasBuddy. "It’s another great year to hit the road," he said. "Gas prices remain affordable in most areas, unless you’re in California." The national average on Thursday was $2.85, down 1 cent from a week ago and down from $2.89 in early May, AAA spokesperson Jeanette Casselano said. Click here to find out where the highest gas prices are this Memorial Day weekend.
Around the Web
7 Great Used SUVs for Small Families [Cars.com]
The Car Connection's Safest New Cars of 2019 [The Car Connection]
15 Best New Car Deals for Memorial Day Weekend [WTOP]
The Audi TT Will Die in Favor of a New Electric Car [Road and Track]
