11 GOP Governors From Auto States Oppose EV Tax Credit Legislation
Eleven Republican governors from states with auto manufacturing and distribution plants are opposing proposed legislation in the Democrats' massive spending bill that would give consumers an extra incentive to buy union-made electric vehicles, reports Automotive News. In a letter sent Wednesday to U.S. House and Senate lawmakers, the governors said they are "deeply concerned that Congress is considering legislation that gives union labor a competitive advantage over nonunion labor" in the EV market. At issue is a proposal led by Rep. Dan Kildee, D-Mich., for inclusion in the reconciliation bill that is being negotiated by Democrats. The legislation would boost consumer tax credits to as much as $12,500 for EVs assembled in a factory represented by a labor union with U.S.-produced batteries. In September, top U.S. executives from 12 international automakers including Toyota, Honda, and Volkswagen pressed House lawmakers to support broader tax credits for EVs in the bill and to oppose "policies that slow progress toward meeting our nation's climate goals." AIADA also urged House leaders to oppose the EV tax credit proposal in a separate letter sent last month. Read more here (Source: Automotive News).
Dealers and their employees should contact their Members of Congress and urge them to oppose this proposal that will divide American workers and play politics with car sales. Click here to learn more about the issue and to contact your legislators.
Global Chip Crisis Hits Automakers Hard
Continuing disruptions from the Covid-19 pandemic and a worsening global semiconductor shortage hammered the automotive industry in the third quarter as the world’s largest car makers reported steep falls in earnings and production and dealers struggled to source models, according to The Wall Street Journal. In Europe, the two largest manufacturers, Volkswagen AG and Stellantis, said Thursday that production of new vehicles plunged 35% and 30% respectively in the three months to Sept. 30, as the dearth in semiconductor components caused unfinished cars to pile up in factories. The supply of chips needed for core components for vehicles slowed to a trickle in the third quarter, affected by disruptions of chip production in Asia and the U.S. from the impacts of the pandemic, fierce storms in Texas, and the fallout from a fire at a supplier in Japan earlier this year. Read more here (Source: The Wall Street Journal).
1 of 20 Compact Crossovers Earned 'Good' Rating in Toughened IIHS Side-Crash Test
Only 1 out of 20 vehicles in the "small SUV" category evaluated in a new, tougher side crash test received an overall "good" rating, the Insurance Institute for Highway Safety said Wednesday, reports Automotive News. The 2021 Mazda CX-5 compact crossover was the only vehicle to earn the good rating in the institute's first tests of 2020-21 model-year vehicles since introducing the updated side test, which uses a heavier barrier traveling at a higher speed to simulate the striking vehicle. Automotive News classifies the CX-5 and most of its competitors in the segment as crossovers. Nine vehicles — the 2021 Audi Q3, Buick Encore, Chevrolet Trax, Honda CR-V, Nissan Rogue, Subaru Forester, Toyota RAV4, Toyota Venza, and Volvo XC40 — earned "acceptable" ratings from IIHS. Eight others — the Chevrolet Equinox, Ford Escape, GMC Terrain, Hyundai Tucson, Jeep Compass, Jeep Renegade, Kia Sportage, and Lincoln Corsair — earned "marginal" ratings. Read more here (Source: Automotive News).
Bidding War Over a 2-Year-Old Minivan? Used Car Market Goes 'Bananas' Over Lack of Supply
The 2019 Honda Civic that kicked off a used-car auction earlier this month would have been nothing special before the pandemic, reports The Washington Post. But as automotive dealer Brad Wimmer watched, the online bidding quickly became, to quote him, “bananas.” As a new car, the Civic would have had a sticker price of around $21,000. But within seconds at the wholesale auction, the two-year-old model, with 4,000 miles, sold for $27,200. Soon after, a Nissan Rogue fetched what it would have cost new in 2018. The unraveling of the used-car market is the most tangible result of a problem that has plagued the global economy for the past year: a dire shortage of computer chips that has hobbled auto manufacturing. The crisis has created a political headache for the Biden administration as inflation fears surge, and troubles for consumers as they realize that the used-car market is no longer a low-price option. Read more here (Source: The Washington Post).
Last Chance: Nominate a Dealer for the 2022 David F. Mungenast Sr. Lifetime Achievement Award
Tomorrow is the last chance to nominate a dealer for the David F. Mungenast Sr. Lifetime Achievement Award, which is presented each year during AIADA’s Annual Meeting and Luncheon to a member of the international nameplate auto retail industry who embodies an unrivaled commitment to his/her dealership and employees, community, and family. AIADA needs your help to select the 2022 winner of the David F. Mungenast Sr. Lifetime Achievement Award. Click here to download the nomination form. Please consider the requirements to nominate an outstanding member of our industry for this award, and return the form for your nominee to AIADA by mail, e-mail, or fax no later than tomorrow, October 29, 2021. The winner will be announced at AIADA’s 52nd Annual Meeting and Luncheon on March 13, 2022 in Las Vegas.
Around the Web
Study Reveals the Used Cars That Are Still "Deals" in a Rough Market [Jalopnik]
Some Cars Are More Seductive Than Art. Should They Be Included in Art Museums? [WaPo]
These Cars Retain Their Value Best After 5 Years [Motor1.com]
Spotify Car Thing's Wait-List Signups Surpass 2M [Road Show]
