Beltway Talk Podcast: Why Dealer Involvement REALLY Matters
AIADA Chairman Howard Hakes is featured on the latest Beltway Talk podcast. In this episode, he explains why it’s so important for dealers to make an effort to get involved in what’s happening to their businesses on a federal level. “A lot of the people are just, ‘Oh, Howard, you’re taking care of that, appreciate what you’re doing for us.’ I say, ‘Well, I need you to be part of us now’.” Click here to listen to the latest Beltway Talk podcast to find out what Hakes is up to on behalf of the industry this spring and why he needs his fellow dealers to come to Washington in April.
Trump: Trade Gap, Not Autos, Poses National Security Threat
President Donald Trump says imports of autos and auto parts do not pose a national security threat, but the U.S. balance sheet with the rest of the world does, reports Politico. "Well, no," Trump told Fox Business Network's Maria Bartiromo in an interview aired Friday when asked whether the automotive imports pose a national security threat. "What poses a national security risk is our balance sheet. We have to have — we need a strong balance sheet. Otherwise, you don’t have national security." Last year, the Commerce Department launched an investigation into whether imports of autos and auto parts pose a national security threat to the United States. A positive finding would allow Trump to impose restrictions on the imports, similar to the tariffs and quotas he imposed last year on steel and aluminum imports. Whatever the finding, Trump indicated he still remains interested in imposing tariffs on cars from Europe and possibly other destinations — unless those companies invest more in the U.S. Read more here.
If you’re a dealer, join AIADA in Washington on April 9-10 for our special Tariff Fly-In. You’ll have an opportunity to learn about what our industry is dealing with in 2019 and meet with your legislators on Capitol Hill on the auto tariff issue. Don’t wait – click here for more information and to register, or call 1-800-GO-AIADA.
Automotive News' Top 150 U.S. Dealership Groups
Fears about industry disruption and how it will affect automotive retail aren't spooking some big retailers from investing more of their profits in the traditional dealership model, reports Automotive News. The resulting acquisitions helped several dealership groups boost new-vehicle sales last year and climb Automotive News' annual list of the top 150 dealership groups based in the U.S. Consolidation activity has defined the buy-sell market for the past five years, and desirable economics drove a healthy number of deals last year, said Erin Kerrigan, managing director of Kerrigan Advisors in Irvine, Calif. According to Kerrigan, there were 216 dealership buy-sell transactions in 2018, up from 202 in 2017 but down from 221 in 2016. "Many of the buyers that we talk to today really have a clear sense that they are going to make a tremendous amount of money by consolidating this industry," Kerrigan told Automotive News. Read more, and check out the list of top dealership groups, here.
Porsche Sketches a Future Built of Brick and Mortar
While the auto industry mulls ideas of less expensive dealerships and online-only sales models, Porsche is steering in the opposite direction with a boisterous store redesign plan that is as much about customer engagement as it is about selling cars, reports Automotive News. The German sports carmaker's Destination Porsche retail concept expects to transform its dealerships into part showroom, part experience center and part hangout space. It is a template of how brick-and-mortar retail might flourish in the age of Amazon. The first Destination Porsche concept store opened March 15 in Palm Springs, Calif. The dealership, owned by indiGO Auto Group, of Houston, was constructed within a year and will be a blueprint for Porsche's retail design language in stores worldwide. "If we provide a great brand experience, that will keep our customers coming back for more and will drive more prospects to the showroom," Porsche Cars North America COO Joe Lawrence told Automotive News. Read more here.
Volvo Cars to Slow or Stop Drunk or Dangerous Drivers
Volvo Cars is planning to fit its next generation of autos with cameras and sensors that will detect drunken or distracted drivers and intervene to stop dangerous rides, reports The Detroit News. From the early 2020s, Volvos will have the ability to notice if a driver is clearly intoxicated or erratic and allow the car to intervene if the person behind the wheel doesn’t heed warning signals. The auto could then limit the speed, alert an assistance service or, “as a final course of action,” slow down and park, Volvo said. The initiative follows an earlier announcement from Volvo that the company will introduce a 112-mph speed limit on all models from 2020. Chief Executive Officer Hakan Samuelsson hopes that the measures will save lives and make car insurance less pricey for Volvo buyers. The company is also hoping that insurance companies will be able to offer more favorable insurance policies to Volvo owners who use its safety features. Read more here.
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