Chairman’s Blog: On EV Credits, Dealers' Voices Must be Heard
In his most recent blog post, 2022 AIADA Chairman John Connelly writes that while much of America has spent the past few weeks caught up in election fever, global politics continue to churn around us. One rapidly developing truth: through its embrace of new EV tax credit language, our Congress has thrown us into an unnecessary trade dispute with the EU, South Korea, and Japan. Instead of working on solutions that can benefit all automakers, their partners, and American consumers, a strictly partisan Congress passed EV legislation that, ironically, will lead to less EV adoption and less investment in America over the next few years. Over $63 billion dollars in federal, state, and local taxes were generated by International Automakers and Auto Dealers in 2021 — clearly our businesses are important to America, and we should have a voice in the best way to implement our shared goals of protecting our environment while also having the best auto industry available in the world. To read the full blog post, click here.
Nissan Dealers Warned of Production Cuts at Key U.S. Plant
The semiconductor shortage continues to be a drag on auto production nearly two years after the global crisis flared up during the pandemic. Automotive News reports that Nissan on Tuesday warned U.S. dealers of production stoppages at its North American vehicle assembly plants through the end of the year. "External factors continue to impact our business," Nissan division's U.S. sales chief, Judy Wheeler, said in a memo obtained by Automotive News. "Due to supply chain disruptions related to ongoing semiconductor chip shortages in the industry, Nissan is adjusting production schedules" for November and December. The work interruptions will primarily affect Frontier, Titan and Altima output, "with minor adjustments in other models," the memo said. Since January, Nissan has pulled about 20,000 vehicles from production because of chip-related stoppages, according to AutoForecast Solutions data. Nissan projects overall dealer shipments to increase "quarter over quarter" despite the planned production cuts. For the full story, click here.
It's Not Just Buying a Car — Owning One is Getting Pricier, too
Vehicle prices are still sky-high these days, even as the market frenzy cools – averaging more than $48,000 for a new vehicle and $28,000 for used. The story has been repeated countless times over the last two years: supply chain shortages meant fewer cars, which meant skyrocketing prices, contributing substantially to inflation. But, according to NPR, that is only part of the picture. When it comes to owning a car, inflation also has dinged the budget of almost every adult in the United States, regardless of how much they make, where they live, or what they do for work. Even Americans with paid-off vehicles are seeing costs creep up. "Even if you're not buying something new or used, your continued relationship with your car is getting more expensive," said Ivan Drury, director of insights at the automotive data site Edmunds. Maintenance and repair: Rising faster than inflation. Insurance premiums: On the rise. Fuel? Gasoline and diesel are both significantly higher than pre-pandemic levels. To read, or listen to the full breakdown of consumer costs, click here.
All-Electric GV70 Joins Genesis Lineup
The gasoline-powered GV70, the best-selling Genesis model this year, is now joined by the ’23 Electrified GV70, the brand’s third battery-electric vehicle. Wards reports that Genesis has not released U.S. technical specifications for the Electrified GV70, but does say it will be all-wheel drive and share many of the performance features of the GV60 EV SUV and G80 Electrified sedan. That would mean it would have one-pedal and i-Pedal driving, 0-60-mph (97 km/h) times around 5 seconds, and 400V and 800V charging that will add a 10-to-80 percent battery charge in 18 minutes on a DC fast charger at 350 kW. This will be the first Genesis produced outside of South Korea, and the first battery-electric vehicle produced at Hyundai’s Montgomery, AL, factory. The Electrified GV70 will share a similar design and look with the gasoline-powered GV70, save for bespoke wheels, and the front grille being closed off with an inverted G-Matrix pattern that hides the charge port door. The signature two-line quad horizontal LED headlamps and taillamps wrap the fenders. Production begins in December for an early 2023 release in eight states. For more, click here.
EV Registrations in U.S. Rise 57% in September as Tesla Rivals Turn Up Pressure
Tesla has parlayed early-mover advantage into a mile-long lead over the auto industry in electric vehicle sales. But the Empire is beginning to strike back with a battalion of competitively specced and priced electric models. Automotive News reports that automakers have introduced nearly 15 EV models in the U.S. since the beginning of 2021, with eight launched this year, according to EV subscription startup Autonomy. The conga line of new vehicles is putting pressure on Tesla, which saw its share of new-vehicle registrations slide 2.8 percentage points to 65.4 percent through September, according to data from Experian Automotive. While Tesla dominates the segment, its year-over-year registrations grew 50 percent in the year's first nine months. In contrast, legacy automakers and non-Tesla startups saw a 71 percent surge in EV registrations through September, with 183,750 registrations among 22 brands. Click here for luxury brands listed by new-vehicle registrations. Based on the current sales trajectory and new introductions from legacy automakers, Autonomy predicts Tesla's share of EV sales in the U.S. will drop just below 50 percent in the first quarter of 2023 and fall to about 40 percent by the end of next year. For more on this trend, click here.
Around the Web
Safford Automotive Buys 16 Brown's Cars Stores in Largest Dealership Acquisition of 2022 [Auto News]
What Happened When I Mistakenly Filled a Diesel Cadillac Escalade With Gasoline [Jalopnik]
NYC Thieves Steal Over 2 Dozen Cars Worth Hundreds of Thousands From Luxury Dealership Overnight [FOX News]
Want To Adopt a Highway? Here’s How the Iconic Program Really Works [The Drive]
