White House Wants Direct Control Over Where Cars Are Made
The Trump administration wants to dictate how and where global auto companies make cars and parts to secure duty-free treatment under the new NAFTA — in its most direct intervention yet to manage trade and production, according to people familiar with the effort. According to The Detroit News, the issue is being discussed between Trump administration officials, congressional staff and domestic and foreign automakers in the context of the legislation that lawmakers will vote on for the trade deal to take effect. The White House wants specific language that would allow it to unilaterally administer the production rules for companies. But the companies, lawmakers and even the U.S. International Trade Commission in an economic analysis have cautioned that the rules are so strict that they would result in higher car prices and lost sales. Read more here.
AIADA Partnership with Podium Aims to Help Dealers Manage Online Reviews
Monitoring and managing online customer feedback is a crucial step in protecting a dealer’s reputation. Auto Remarketing reports that is according to Cody Lusk of the American International Automobile Dealers Association, which on Thursday announced a new affinity partnership with Podium, which collects and manages business reviews and messages in one central inbox. “By allowing dealerships to become immediately available via messaging, not only are they able to mitigate risks of negative reviews, but dealerships are actually providing the type of positive and seamless modern buying experience consumers have come to expect,” Lusk, who is AIADA president and chief executive officer, said in a news release. According to Auto Remarketing, dealerships will be able to contact customers who have recently visited the dealership’s site, completed a test drive, or made a purchase, AIADA said. The dealer can automatically invite the customer to leave a review minutes after the customer purchases a vehicle. Read more here.
Calif. Wildfires, Blackouts Impact Some Dealerships
The wildfires burning across California and the rolling blackouts to prevent power lines from igniting additional blazes are putting a crimp on business at auto dealerships in hard-hit areas. According to Automotive News, a brush fire driven by strong Santa Ana winds broke out in West Los Angeles on Monday near Santa Monica, prompting widespread evacuations on hillsides adjacent to busy Interstate 405, state and local officials said. American Honda's North American headquarters, just off I-405 in Torrance, is about 20 miles south of the Getty fire. The automaker said in a statement to Automotive News that the headquarters was not affected, and that the Honda Performance Development in Santa Clarita, near the fading Tick fire, was operating normally. Dealerships, on the other hand, have been affected by the fires and fire-prevention measures, such as the decision by private electricity providers in California to cut energy to millions of customers in areas at high risk related to heat and wind. Read more here.
Volkswagen Warns Auto Industry Downturn is Worsening
Volkswagen AG warned Wednesday that the downturn in the global car market was worsening, but maintained its outlook for profit and revenue as the world’s biggest auto maker by sales continued to sell more higher-priced sport-utility vehicles. The Wall Street Journal reports that Volkswagen’s gloomy outlook comes amid a spate of profit revisions and downbeat assessments of the industry by leading manufacturers such as General Motors Co., Ford Motor Co. and Renault SA, who cited trade conflicts, Brexit and economic slowdown in China, the U.S. and Europe. Auto sales world-wide are expected to decline 4% this year, after a 0.5% decline in 2018. Meanwhile, pressure is mounting on manufacturers to achieve scale, cut costs and generate more cash to finance investment in electric vehicles and new self-driving technology. Read more here (subscription required).
Fiat Chrysler, PSA Confirm Talks on Potential Tie-Up
Fiat Chrysler Automobiles and PSA Group said they are in talks about a possible combination, in a potential deal that would reshape the global auto industry and create a European powerhouse to rival Volkswagen Group, reports Automotive News. "There are ongoing discussions aimed at creating one of the world's leading mobility groups," FCA said in a statement Wednesday, confirming media reports. PSA issued a similar statement. A deal could be announced as early as Thursday, a source familiar with the discussions told Reuters. A Fiat Chrysler spokesperson declined to comment on a timeline. A merger of the Italian-American automaker and PSA, the No. 2 for car sales in Europe, would create a global company with a current stock-market value of $47 billion — about the same size as Japan’s Honda Motor Co. The talks come several months after Fiat Chrysler and PSA, led by CEO Carlos Tavares, explored a partnership on pooling investment to build cars in Europe, and following the collapse of negotiations between Fiat Chrysler and French competitor Renault in June. Read more here.
Webinar: How to Protect Your Used Car Margins
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Around the Web
2020 Toyota Land Cruiser Heritage Edition is Even More Capable and Luxurious [Car and Driver]
This Might Be a Next-Gen Nissan Z Car Mule [Autoblog]
Fiat Chrysler Shares Surge on Report of Merger Talks with French Automaker [CNBC]
