Chairman’s Blog: Invested in America
History Repeats Itself
Chairman John Connelly is back with one final blog post. During this past week, I read Destiny of the Republic, the story of the history, election, and death of President James Garfield. It is a fascinating account and I highly recommend the book. Garfield was selected to be the Republican nominee for President in 1880 after 36 ballots at the convention in Chicago. That probably sounds familiar if you paid any attention to the recent, and fascinating, Speaker of the House elections. While that process only took 15 ballots compared to Garfield’s 36, it was definitely compelling! As we know, history repeats itself in all aspects of life. When we think something is new, more often than not it happened in the past with much greater stakes — how quickly we forget! AIADA was started in 1970 by a group of automobile dealers that banded together to protect their interests against government policies that would have put international nameplate dealers out of business. I had the great pleasure of serving as AIADA Chairman, like my dad in 1978, and soon we will get to welcome New Jersey dealer Mike DeSilva as our new Chairman, a role his dad held in 2010. Click here to read the full blog post.
Electric Vehicles Accounted For 10% of Global Auto Sales Last Year — This Could Quadruple By 2030
While Tesla's stock is tanking, the electric vehicle industry appears to have achieved a key milestone ahead of schedule last year, and it could be poised to surpass even more expectations in the decade ahead. There were 7.8 million electric vehicles sold worldwide in 2022, a 68 percent increase from 2021, reports Autoblog. The uptick helped electric vehicles achieve a roughly 10 percent global market share in the automotive industry for the first time. While 10 percent is only a modest share of the total market, the industry is growing faster than some had predicted. In 2021, for instance, the International Energy Agency projected that it would take until 2030 for the EV industry to reach between 7–12 percent of global auto sales. Europe and China have led the way, where electric vehicles already account for 11 percent and 19 percent of total car sales. "Last year, every fourth vehicle we sold in China was a plug-in, and this year it will be every third auto," Ralf Brandstätter, the head of Volkswagen AG's China business, said. "We haven't reached the tipping point yet, but we're expecting to get there between 2025 and 2030." Click here for the full story.
Nissan Directors Endorse Steps to Reach Deal with Renault
A Nissan board committee reviewed proposals from Renault and endorsed pressing ahead on final terms for a reshaped alliance with its French partner. Renault Chief Executive Luca De Meo is scheduled to travel to Japan this month for talks with Nissan CEO Makoto Uchida, the second time he will have visited since the two sides began talks in October about a restructured partnership. The Nissan board-level review also marked progress after three months of working-level negotiations aimed at restructuring a partnership that dates back to 1999, when Renault bailed out Nissan. On Monday, Uchida briefed Nissan's independent directors on progress in the negotiations, such as recent proposals from Renault intended to address concerns by the Japanese automaker over safeguards for its technology, including hybrid systems, as the French company restructures, the people with knowledge of the meeting told Reuters. The two companies are discussing reducing Renault's stake in Nissan from the current 43 percent to 15 percent, equal to Nissan’s stake in Renault. The 28 percent stake in Nissan that Renault would sell would be transferred to a trust. Click here for the full story.
Akio Toyoda Wants to Convert Old Cars to EVs to Fight Climate Change
Rather than wait until EVs eventually replace all the gas- and diesel-burning vehicles on the road, Toyota CEO Akio Toyoda believes we can speed up the process of going green by converting old vehicles to run on either batteries or hydrogen fuel cells. Toyoda, the grandson of Toyota’s founder, has become a controversial figure of late, questioning whether EVs are the best solution to global warming. Along with battery-electric vehicles, he’s betting on a mix of conventional and plug-in hybrids, as well as fuel-cell electric vehicles — or HEVs, PHEVs and FCEVs. Now, he’s added a new wrinkle to the debate. “If only new cars are electrified, we aren’t going to be able to achieve carbon neutrality,” Toyoda said during an appearance at this month’s Tokyo Auto Salon. “We also have to consider vehicle units in operation.”
There currently are about 1.3 billion passenger vehicles on the road worldwide, with nearly 300 million in the U.S., reports The Detroit Bureau. Last year saw nearly 70 million new vehicles sold globally, with industry data showing the EV share had risen to around 13 percent. Click here for the full story.
Porsche’s Propulsion Future Includes Hydrogen, Green Fuel
Porsche has developed a hydrogen-powered internal-combustion engine the company says not only matches the power and performance of a gasoline-fueled 4.4L V-8, but reduces fuel consumption and has emissions close to ambient air. When Porsche began the work on the engine in 2022 in computer simulations, it used the gasoline engine as a benchmark for how well the hydrogen engine had to perform to meet Porsche standards. There is plenty of debate around hydrogen as a fuel stock for light vehicles, but there is momentum behind building out hydrogen infrastructure to support vehicles such as heavy trucks. Wards reports predominant thinking in the industry is that compressed hydrogen and fuel-cells are a good substitute for diesel-powered vehicles, while batteries are a good substitute for gasoline-fed vehicles. The investment in hydrogen infrastructure to facilitate expansion of hydrogen as a fuel to displace fossil fuels where suitable — to produce and distribute — is being funded these days by the U.S. government, the European Union, China, and Great Britain. According to Porsche, the modifications required to the ICE engine include a higher compression ratio and other proprietary changes to make it work with compressed hydrogen gas. Click here for the full story.
CNA National’s Flexibility with Reinsurance Sets It Apart
One thing CNA National is known for is its flexible offering with participation programs. The company’s four distinct options help dealers meet their financial goals and maximize profits. Visit the reinsurance landing page to learn more about Dealer Equity (the “retro” program), Controlled Foreign Corporation (CFC), Non-Controlled Foreign Corporation (NCFC) and Dealer Owned Warranty Company (DOWC). “It’s not a one size fits all approach,” says Todd Sands, vice president of sales. “Our programs offer variety to dealers in order to ensure their unique needs are met.” CNA National has proven itself a top reinsurance provider, receiving Dealers’ Choice Awards in this category for the past 14 years. To learn how the company can help you earn more income and set you up for long-term success, call (800) 345-0191 x450 or click here.
Around the Web
2023 Kia Telluride Review: Still the Smartest Three-Row Buy [Autoblog]
Subaru Reveals its Insane Race Cars for the 2023 Season [Carbuzz]
2024 Hyundai Kona Design Fully Revealed and Engines Detailed [motor1.com]
