Chairman's Blog: Leaving on a High Note
2020 Chairman Jason Courter writes in his final Courter’s Two Cents blog post that he has mixed feelings as his time as chairman draws to a close. On one hand, It is has been a tumultuous 12 months. For dealers, for our industry, and for our country. We’ve had some low moments and some trying days. On the other hand, we are now poised on the brink of a bright new era for our businesses. Today we have a COVID-19 vaccine, an association that has more than proved its mettle during a global pandemic and unprecedented political unrest, and we have a new confidence in our own ability to adapt and survive. This past year has reaffirmed for me the incredible value AIADA offers its members. Think of it this way: AIADA is political insurance. Under the leadership of Steve Gates, a tremendous dealer of multiple international nameplate brands out of Kentucky and Indiana, AIADA will thrive in 2021. Courter says he looks forward to handing him the reins next month. Read more here.
Biden Vows to Replace U.S. Government Fleet with EVs
Automotive News reports that President Joe Biden on Monday vowed to replace the U.S. government's fleet of roughly 650,000 vehicles with electric models as the new administration shifts its focus toward clean energy. "The federal government also owns an enormous fleet of vehicles, which we're going to replace with clean electric vehicles made right here in America made by American workers," Biden said Monday. Biden criticized existing rules that allow vehicles to be considered U.S. made when purchased by the U.S. government even if they have significant non-American made components. Biden said he would close "loopholes" that allow key parts like engines, steel, and glass to be manufactured abroad for vehicles considered U.S. made. Read more here (Source: Automotive News).
Luxury Cars, EVs to Fuel Hyundai's China, U.S. Sales in 2021; Q4 Profit Jumps
Hyundai Motor Co said on Tuesday it expects sales in United States and China to surge this year, driven by the launch of new electric cars and sports utility vehicles (SUVs), after reporting its best quarterly profit in over three years, reports Reuters. Hyundai’s holiday-quarter profit jumped 57% on more demand for premium-margin SUVs, but overall sales volumes fell 5% amid a broader economic weakness due to the COVID-19 pandemic. The promising outlook is a testament to Hyundai’s big electric vehicle (EV) push. The company, which together with affiliate Kia Corp is among the world’s top 10 automakers, is soon expected to introduce an EV-only platform that will use its own battery technology to cut time and costs. On sales, the automaker said it expects a 12% jump in its biggest market, North America, in 2021. Its sales in the fourth quarter ended December slipped 2% in the region. Read more here (Source: Reuters).
U.S. Mounts a Charge to Take on China, the King of Electric-Vehicle Batteries
The auto industry’s quickening shift to electric cars is spurring investment in another emerging industry in the U.S.: manufacturing lithium-ion batteries for those vehicles. According to The Wall Street Journal, China currently dominates the market for producing electric-vehicle batteries. But as automakers spend billions to build more plug-in models in the U.S., investors are increasing their bets on firms looking to expand the supply chain for batteries and related materials in North America—a region that has long relied on imports for such components. Industry executives and lawmakers say the U.S. needs to reduce its reliance on China if it wants to lower costs and remain competitive in making electric vehicles and their batteries domestically. President Biden also has made securing more of this supply chain stateside a priority, as part of a broader effort to accelerate the auto industry’s shift away from gasoline. Read more here (Source: The Wall Street Journal).
Wall Street Rediscovers Detroit – and Shares Surge
General Motors and Ford have experienced a sharp surge in their share prices since the beginning of the year as investors have begun to factor in the accelerating electrification efforts of the two manufacturers. The Detroit Bureau reports that in the wake of a well-reviewed presentation by General Motors CEO Mary Barra at the Consumer Electronics Show earlier this month, Morgan Stanley analyst Adam Jonas said “What they are doing may end up being one of the most profound strategic turnarounds, not just in the auto industry, but in business,” during a CNBC interview. But whether GM, never mind Ford, can catch up to Tesla, with its stock price pushing as high as $900 in recent weeks – and its market valuation running north of $800 billion – is far from certain. While the two Detroit automakers have plans to unleash a wave of new battery cars, they have a long way to go to match the sales of the market leader. And they have numerous legacy issues that could hold them back, including large union workforces, as well as their franchised dealer networks. Read more here (Source: The Detroit Bureau).
Around the Web
That Time a Racing Legend Endorsed Healing Crystals for Cars [MotorTrend]
New DeLorean, and Other Replica Cars, One Step Closer to Reality [Car and Driver]
Surveys Show Who Sings About Pickups the Most [Detroit Free Press]
Volvo Will Give Away Cars Worth $2M if Safety is Scored in the Super Bowl [Autoblog]
