Calif. Locks in Vehicle Emissions Deals with Some Automakers
The California Air Resources Board and major automakers on Monday confirmed they had finalized binding agreements to cut vehicle emissions in the state, defying the Trump administration's push for weaker curbs on tailpipe pollution. According to Automotive News, the agreements with carmakers including Ford Motor Co., Volkswagen Group, Honda Motor Co., and BMW were first announced in July 2019 as voluntary measures prompting anger from President Donald Trump. A month later, the Justice Department opened an antitrust probe into the agreements. The government ended the investigation without action. The 50-page California agreements, which extend through 2026, are less onerous than the standards finalized by the Obama administration but tougher than the Trump administration standards. The automakers have also agreed to electric vehicle commitments. Volvo Cars, owned by China's Geely Holdings, said in March it planned to join the automakers agreeing to the California requirements. It has also finalized its agreement. Read more here (Source: Automotive News).
Veteran Toyota Exec Bill Fay to Retire; Jack Hollis, David Christ Promoted
Longtime Toyota Motor North America executive Bill Fay will retire Sept. 1, causing a chain reaction of executive appointments across the regional operations, Toyota said Monday. According to Automotive News, Fay, 64, most recently senior vice president of automotive operations, has been with the automaker for 38 years in a variety of executive positions. In 2017, just before taking his current role, Fay was general manager of the automaker's Toyota Division. Jack Hollis, 53, succeeded Fay as general manager of Toyota Division and will now succeed him in the automotive operations role, effective Aug. 31, Toyota said in a news release. He will report to Bob Carter, executive vice president of sales at Toyota Motor North America. David Christ, 49, who heads Lexus, will succeed Hollis as group vice president and general manager, Toyota Division, where he will be responsible for leading the mass-market brand's sales, marketing and market representation, as well as guest experience and retention for Toyota's regional sales offices and distributors. Replacing Christ at Lexus will be Andrew Gilleland, 51, the current vice president of sales operations with Toyota. Read more here (Source: Automotive News).
Analysts Offer Contrasting Takes on Auto Sales
WardsAuto reports that analysts for J.D. Power and Cox Automotive offer contrasting takes on U.S. auto sales for the rest of 2020, one more optimistic and one more pessimistic, in separate webinar presentations. The optimist is Tyson Jominy, J.D. Power vice president-data & analytics. During a webinar hosted by The Wall Street Journal, Jominy says a lack of new-vehicle inventory is the biggest factor holding back sales. The pessimist is Charlie Chesbrough, senior economist for Cox Automotive. He’s more worried about consumer willingness and ability to buy. During a webinar hosted by AIADA, Chesbrough says business shutdowns and job losses this year have damaged the U.S. economy and consumer confidence so badly it could be three or four years before auto sales recover to pre-pandemic levels. “The key takeaway is, we’re still in a very, very difficult position economically,” Chesbrough says. “The idea was, even though tens of millions of people were losing their jobs, the hope was that once everything opened back up again, all these jobs would be reopened, too, and everybody would get back to work.” Read more here (Source: WardsAuto).
Asian Automakers Dominate Annual Best for Teens Rankings
With kids in various parts of the country either back in school or preparing to return, the scramble to find a vehicle for them to get there is on for many folks, reports The Detroit Bureau. Finding the right vehicle for a new driver is tough. “Not every car is a good fit for a teen driver,” said Jamie Page Deaton, executive editor of U.S. News Best Cars. “High-performance models can tempt teens to drive beyond their skills, and vehicles without key safety features can leave teens at higher risk for an accident. To help in the search, the magazine has compiled a list of what they believe is the best of the best offerings for young drivers. The editors of the publication selected options from the new and used lots at dealerships. Click here to see the list. “The winners of the Best Cars for Teens awards all have top-of-the-line safety features that can help teens safely develop their driving skills while lowering the risk that they’ll be involved in a collision.” Read more here (Source: The Detroit Bureau).
Why Hertz Landed in Bankruptcy Court When Its Rivals Didn't
Hertz does not have the biggest fleet of rental cars in America, but some would argue that if there can be such a thing as an iconic car rental company, Hertz might be it. But now, reports CNBC, the century-old company is in bankruptcy court seeking protection from creditors, devastated by drops in demand and fluctuations in the used-car market resulting from the Covid-19 pandemic. When the crisis hit, travel industry demand dried up, particularly among the business travelers who are essential to Hertz’s rental business. But the company was also slapped by drops in demand for used cars — Hertz pulls in money from the sale of the rental vehicles it retires every few years. These funds are key to paying back the creditors who own the debt Hertz uses to finance its fleet. Rivals Avis and Enterprise also suffered declining demand, but both had better financial cushions. After the company filed for Chapter 11, shares of Hertz plummeted, reaching a low of 40 cents on May 26. But then an odd thing happened. The stock rallied to more than $6 on June 8, after retail investors poured in, expecting it to climb further. Read more here (Source: CNBC).
Around the Web
Listen: Millennials Are Buying 'COVID Cars' [The Atlantic]
BMW's Most Controversial Cars [CarBuzz]
The Aston Martin Rapide Leads This Month's List of Discounts [Autoblog]
How F&I Can Benefit From a Little Positivity and a Return to 'Normal' [CBT Automotive Network]
