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.
Trump Car Tariffs Would Be a 'First-Order Slap in the Economic Face,' Citi's Buiter Says
The global economy would be hit hard if President Donald Trump decides to impose steep tariffs on imported cars, Citi’s Willem Buiter told CNBC on Thursday, with Germany likely to bear the brunt of any losses. “If we get in a position of tariffs under the section 232 act that the U.S. is threatening with, for which it has given a reprieve until November, then that would be serious,” Willem Buiter, special economic adviser at Citi, told CNBC’s “Squawk Box Europe” on Thursday. “That would mean tariffs for car imports, for car parts imports, and that would hit Germany the most of any of the large industrial nations. That would be a first-order slap in the economic face,” he added. Read more here.
Trump to Press for Trade Deal in Trip to Japan
President Trump travels to Japan this week to keep up the pressure for a trade deal that has raised hackles among Japanese companies, while showing he is still aligned with Tokyo on North Korea policy, reports The Wall Street Journal. The president’s trip, beginning with his arrival in Tokyo on Saturday, is also set to include a visit to the final day of the sumo tournament under way in the city, where he will present the winner’s trophy, according to Japanese officials. And he will meet Emperor Naruhito, making Mr. Trump the first foreign leader to see the emperor since he took the throne May 1. Last week, Mr. Trump put off a decision for six months on whether to impose new tariffs on automobile and auto-part imports from Japan and other countries. But he said the quantity of auto imports was so great “as to threaten to impair the national security of the United States.” At The Wall Street Journal’s CEO Council event in Tokyo on Tuesday, Clete Willems, deputy director of the White House’s National Economic Council until a few weeks ago, said that autos need to be handled delicately but that under a staged approach the two sides could reach agreement on less contentious items first. Read more here.
Alfa Romeo, Honda Tops in Consumer Trust
Automotive News reports that AMCI Global's latest Trusted Automotive Brand Study found that automakers' traditional focus on quality, satisfaction, and elimination of problems does little to build customer trust in a brand. Instead, according to the study, automotive brands need to focus on three pillars of trust – competency, integrity, and empathy. Alfa Romeo, with a score of 51 on a 100-point scale, was consumers' most trusted luxury brand in 2019 because of its new business model that gives consumers control over the kind of experience they want, Beavis said. The study found most of the luxury brands had significant improvement in the last year because they relied less on tactics that erode trust to stimulate sales. Meanwhile, Honda ranked highest among mass-market brands because of its concern shown for customers during the Takata airbag recall, AMCI said. Read more here.
Fiat Hoped to Spark America's Small Car Revival. Instead, It Lost Out to SUVs.
When the Fiat 500 made its American debut in 2012, the two-door vehicle and its Italian siblings were billed as the saving grace for an American automaker that had failed to make compelling small cars on its own. But today, reports USA Today, Fiat models, including newer offerings like the 500X subcompact SUV and the 124 Spider convertible, are few and far between on American roadways. Those vehicles have fallen far short of expectations for a brand that was once billed as Chrysler’s ticket to a small-car renaissance in America following its near liquidation in 2009. Today, their maker – Fiat Chrysler Automobiles – is thriving, thanks largely to its Jeep SUVs and Ram trucks. But the company's Fiat brand is withering away. Brought back to the U.S. in the wake of Italian automaker Fiat's 2009 deal to take control of bankrupt Chrysler as part of a federal bailout, the Fiat brand has encountered a series of obstacles. Plunging interest in passenger cars, a lack of body style variety, a reputation for poor quality and a general lack of consumer awareness have collectively undermined the Italian brand. Read more here.
Around the Web
Mercedes-Benz Unveils Experimental Safety Vehicle [WardsAuto]
The Best Time of Year to Buy a Car Probably Isn't When You Think [Life]
2019 Honda CR-V Recalled for Sudden Airbag Deployments [Autoblog]
Toyota to Offer Replacement Parts for Classic Supra [MotorAuthority]
