Jan. 15, 2019
Shutdown Adds to Industry's Trade Headaches
Tariff exemption requests from companies that can’t find the proper grade of domestic steel are on hold. Automotive News reports that the furloughs of "nonessential" personnel because of the partial government shutdown have stalled several functions that, if not essential, are still important to the auto industry. The industry has worked through previous shutdowns, but one area in which this shutdown's effects are being felt acutely is trade, because of the Trump administration's new tariff policies. Many automakers and suppliers are applying for product-specific exemptions from tariffs on steel and aluminum and $250 billion worth of Chinese-made goods, including auto parts. But no one is there to process those requests. At NHTSA, all vehicle safety activities — rulemaking, enforcement, data analysis and consumer testing — are suspended, according to its shutdown plan. For other areas in which the shutdown is affecting the auto industry, click here.
2020 Toyota Supra debuts in Detroit
The lead-up to this one has been long in the making, with plenty of hype and spy shots and teasers — even a NASCAR tie-in. Finally, the wait is over, as Toyota has given the 2020 Supra coupe its official debut at the Detroit Auto Show, with sales starting this summer. AutoBlog reports that this is the two-seat sports car enthusiasts have been waiting for, with 335 horsepower, 50:50 weight distribution, a long distinctive hood and personal input directly from Toyota President Akio Toyoda, who tested the car on the Nürburgring. Click here to see it. The Supra is powered by a BMW-sourced 3.0-liter twin-scroll turbocharged inline-six engine with a variable intake valve lift system. It will start at $50,920, including $930 in destination fees. It will offer navigation and a JBL sound system as a $2,640 option. The 3.0 Premium starts at $54,920. The Driver Assist Package for the 3.0 Premium adds another $1,195. For more on the Supra, including the special Launch Edition versions, click here.
Auto Dealerships Become ‘Click and Mortar’ Spots
Brick and mortar – a term referring to a physical retail presence – has given way to a more modern car dealership setup: click and mortar. “We live in a click-and-mortar world,” says Matt Weinberg, a senior vice president at Drive Motors, a company that offers online buying features on websites of client dealerships. He tells Wards that the physical dealership still plays a vital role, even though it has a digital supporting cast. “Most people still want to visit the store for the ‘fit and feel’.” They do plenty of digital shopping and research both before and in between dealership visits. Consequently, digital car shopping isn’t as linear as some people may think. Some people go online, then visit the dealership, then go back online before finally pulling the purchase trigger and returning to the dealership. “Before and after a showroom visit, some people will go to the dealer website,” Weinberg says. Click here for an action plan for dealerships navigating this new reality.
Volkswagen Will Add 1,000 Jobs at Tennessee Plant
Volkswagen is investing $800 million in its plant in Chattanooga, Tennessee, a move that will add 1,000 jobs to the factory, the company announced Monday. It plans to build electric cars there. CNN reports that Volkswagen's investment in Tennessee comes weeks after General Motors announced plans to close three North American plants and shift its production focus away from sedans, to free up money to develop to electric and self-driving vehicles. The move also comes amid talks between Volkswagen and Ford about pooling resources to make the next generation of vehicles. The new Tennessee jobs and production should begin in 2022, according to the company's statement. "The US is one of the most important locations for us and producing electric cars in Chattanooga is a key part of our growth strategy in North America," said VW CEO Herbert Diess. For more on VW’s plans, click here.
Kia Forges Bold Telluride to Fill Key Product Void
The burly Telluride, Kia's largest utility vehicle to date, will join the increasingly crowded market for three-row crossovers later this year, giving the Korean brand an entry in a key light-truck segment. According to Automotive News, the Telluride will square off against rivals such as the Ford Explorer, Toyota Highlander, Chevrolet Traverse, Buick Enclave, and Mazda CX-9. Kia said the eight-seat crossover was designed specifically for the U.S. at its Irvine, Calif., design center. The brand aimed to give the Telluride the same presence as the "big, bold and boxy" SUVs of years past that had a "go-anywhere, do-anything attitude." Click here for a photo. Kia Motors COO Michael Cole said during the Los Angeles Auto Show that the Telluride is one of the vehicles, along with the Stinger sport sedan, that will show consumers that Kia isn't a company that only builds "rational products." The brand, he said, wants to convey that it can produce "emotional products with outstanding quality, durability, reliability, great technology." Click here for the full story.
Around the Web
Here's Proof a Lexus can be Loud Enough to Re-Arrange Your Whole Face [Jalopnik]
Subaru's STI S209 is America's Most Hardcore WRX Yet [Cnet]
Hyundai Puts Jason Bateman in Super Bowl Ad [Ad Age]
Volkswagen, Ford Team Up on Pickups, Electric Vehicles [WSJ]
