China Hits U.S. with Tariffs on $75B Worth of Goods, Reinstates Auto Levies
U.S. stock futures dove Friday after China announced retaliatory tariffs on $75 billion in U.S. goods and reinstated levies on American auto products, reports The Washington Post. The levies will range from 5 to 10 percent and will be put in place in two rounds, on Sept. 1 and Dec. 15 — the same dates on which President Trump’s latest tariffs on $300 billion in Chinese goods are slated to take effect, the Chinese finance ministry said in a statement. A 25 percent tariff on automobiles and a 5 percent tariff on auto parts will go into effect on Dec. 15. Dow Jones industrial average futures, which had been predicting a 100-point gain at markets’ open, sank immediately following the announcement of China’s retaliation and now point to a 150-point loss. Read more here.
Communications System for Nissan-Infiniti Dealers Back Online
Nissan North America said a key communications system that Nissan and Infiniti dealers rely on for several critical operations has been restored. According to Automotive News, the system – which helps dealerships order cars and parts, obtain product rebate information, check on recalls, and file warranty claims – was fully operational as of 7 p.m. EDT on Wednesday, the automaker said. A power outage on Saturday at a Nissan North America data center in Denver had shut down the system for about four days. Most Nissan communications systems in the U.S., Canada, and Mexico were affected, the automaker said. Some operations had been restored during the day on Wednesday, Nissan said. "Some of our dealer business applications have run in a reduced capacity using manual processing," Nissan said on Wednesday. Read more here.
AAA Says Expect Relief at the Pump This Fall
With fewer than two weeks left in the “summer driving season" ending Labor Day weekend, you might wonder where gas prices are headed this fall.You can look forward to less pain at the pump, experts say, but be ready for higher prices if hurricanes make their way to shore, reports USA Today. Across most of the country, motorists are forecast to enjoy savings of more than 25 cents per gallon compared to this summer, according to the American Automobile Association, which issued its fall gas price forecast on Thursday. AAA expects prices this autumn could average $2.40, down from $2.75 around July 4. The national gas price average has already fallen 15 cents from five weeks ago, and that trend is poised to continue because of seasonal trends like a decrease in demand after Labor Day and the shift to cheaper-to-produce winter-blend gasoline in September. Read more here.
How Toyota Got So Big and Why It Wants to be Less 'Boring'
Toyota might be the biggest automaker nobody notices. The company was a relative latecomer to the automotive business, but it leapfrogged many American and European rivals to become one of the largest automotive manufacturers in the world, reports CNBC. It sells the vast majority of its vehicles under just two brands — Toyota and Lexus — in contrast to highly diversified competitors such as Volkswagen. But while it is the biggest, its conservative cars have not traditionally captured the attention lavished on more daring competitors. Now, the automaker is sinking money into sports cars such as the two-seat Supra, and performance brands such as Gazoo Racing and Toyota Racing Development. It’s all part of a plan to get drivers excited about Toyota in a time when automakers are trying to plan for a potentially turbulent future in transportation. Read more here.
VW Targets Higher Profit as E-Car Costs, Uncertainty Weigh
Volkswagen AG’s namesake brand expects to lift profit margins over the next few years despite an expensive shift to electric cars and growing economic headwinds in Germany and abroad, reports Bloomberg. VW, in the midst of the auto industry’s most ambitious electric-car push, is sticking with a target of selling 1 million battery vehicles by 2025, Ralf Brandstaetter, the unit’s chief operating officer, told reporters on Thursday. The brand is sticking with a goal of 6% operating-profit margins in 2022, up from 5.2% in the first six months this year. The sales goal, which would move VW well past Tesla Inc., “is the guiding star of our strategy,” Brandstaetter said. Luring buyers toward e-cars – from tech-savvy youngsters to traditional loyalists – will be critical for the VW group to turn its 30 billion-euro ($33 billion) spending spree into a success and avoid steep European Union fines for breaching emission limits. Trade woes and recession fears are adding to the urgency and forcing VW to become more efficient after a decade of rising demand. Read more here.
The Economics of College Football: Season II
With fall rapidly approaching, the opening kickoff to the 2019 season is upon us. This year we will preview a selected matchup each week, including a brief history of the teams on the gridiron, as well as an analysis and forecast of the respective economies of each school's state and hometown. In total, we will write about schools from 26 different states. View Commentary
Florida vs Miami: Kickoff Comes Early this Year
The college football season kicks off early this year, with the Camping World Kickoff game, which will be played the evening of August 24th in Orlando's Citrus Bowl. While Gainesville is more reminiscent of 'old Florida' and Miami is more representative of Florida's global connections, Orlando is more reflective of Florida's future. View Commentary
Around the Web
The Porsche Taycan Interior is Futuristic, But Familiar [Autoblog]
24 Most Comfortable Luxury Cars in 2019 [U.S. News & World Report]
What's the One Car Every American Can Agree On? [Jalopnik]
Aston Martin Launches Architectural Service to Design Homes Focused Around Your Car [Dezeen]
