Dealers Challenge Hyundai Upgrades
Eight state dealer associations are pushing back on Hyundai and Genesis facility programs as costly and coercive at a time when auto retailers are struggling with the coronavirus impact and consumers are increasingly doing their vehicle shopping online and not in showrooms, reports Automotive News. In a letter addressed to Hyundai Motor America CEO José Muñoz and Genesis Motor America CEO Mark Del Rosso, the leaders of the dealer associations from states including California, Texas and Florida are seeking changes in Hyundai's Accelerate and Genesis' Keystone store-upgrade programs. The programs, which tie dealer compensation to facility and other targets, were introduced to dealers by Muñoz and Del Rosso in January. The efforts were partially suspended after economic activity in the U.S. plunged as a result of the coronavirus. The automakers plan to eventually reinstate the programs as sales normalize. Read more here (Source: Automotive News).
Wall Street Pushes for GM to Spin Off Its Electric Vehicle Business
Pressure is mounting from Wall Street for General Motors to spin off its electric vehicle business to better position the operations against Tesla and a fleet of expected startup companies, reports CNBC. The new company would likely be valued at a minimum of $15 billion to $20 billion, and could potentially be worth up to $100 billion, according to Deutsche Bank analyst Emmanuel Rosner. GM’s total market cap currently stands at $43 billion. “Spinning it off essentially creates value, it could unlock a massive amount of value, actually,” he said Monday during CNBC’s “Power Lunch.” The less GM retains of the electric vehicle operations, “the better it would be for value creation,” according to Rosner. GM shares closed Monday up 7.7% after Deutsche Bank upgraded its short-term rating on GM to a buy and were little changed in midday trading Tuesday. Read more here (Source: CNBC).
Daimler Loses Ruling in German Patent Dispute with Nokia
Nokia Oyj won a court ruling in a patent dispute with Daimler, giving the Finnish company leverage in a long-running fight over mobile technology in automobiles, reports Automotive News Europe. Daimler, owner of the Mercedes-Benz brand, violated Nokia’s mobile-technology patents, judges in Mannheim, Germany, said Tuesday. The ruling goes to the heart of how technology must be licensed for mobile-telecommunication systems that are standard features in most modern cars. “We cannot understand the verdict of the Mannheim court and will appeal,” Daimler said in an emailed statement. The court said it had to side with Nokia because Daimler wasn’t willing to abide by existing rules for so-called standard essential patents. The ruling potentially could allow Nokia to stop Daimler from selling vehicles in Germany, but doing so would require Nokia to post collateral of 7 billion euros ($8.3 billion) in a separate proceeding. Daimler said it didn’t expect Nokia to seek a sales ban. Read more here (Source: Automotive News Europe).
Auto Sales Down 1.2 Percent: What's the Story Behind the Numbers?
A recent CNBC article revealed that retail sales increased by 1.2 percent for July. Although it is below the 2.9 percent increase projected by analysts, it does reveal an important fact: individuals are still buying retail items, even in the midst of the pandemic. Most industries experienced a surge in sales (for example, electronics saw a 22 percent increase in sales). However, motor vehicle parts and dealers saw a 1.2 percent decrease. What’s the story behind this number, and how can dealers prepare for the future? CBT Automotive Network has some key takeaways. The 1.2 percent decrease may feel like a slam for dealers. However, there are some bright spots. According to the Independent Commodity Intelligence Services, new light-vehicle sales rose by 14 percent in July compared with June. While new car sales are down by 11 percent compared with 2019, the month-to-month rise is an important note. Even though unemployment is still over 10 percent, consumers are still purchasing vehicles—even higher-priced new ones. Read more here (Source: CBT Automotive Network).
Bollinger Moving HQ, Doubling Workforce
Bollinger Motors, the small Detroit electric vehicle startup, is getting a bit bigger as it “ramps up towards production” and moves to a new headquarters, reports The Detroit Bureau. Launched by Robert Bollinger, a serial entrepreneur who has had a decidedly eccentric career in marketing, advertising, organic hair care products, and natural farming, the company is working on both a heavy-duty electric SUV and pickup, the B1 and B2. The company had been running with a sparse workforce, outsourcing some key operations, but had planned to increase staff before the coronavirus pandemic hit. What Bollinger isn’t confirming is a hard date to launch production, however. In an interview last March, the company’s founder told TheDetroitBureau.com that the target was “2021, yeah, before the end of the first half of the year.” As with other manufacturers, Bollinger is struggling to keep things on target due to the pandemic. Complicating matters is the fact that its development efforts are reliant on partners who also must cope with the impact of the disease. Read more here (Source: The Detroit Bureau).
Around the Web
Fiat Chrysler Drops Provocative Hints About the New Jeep Grand Wagoneer [USA Today]
Mercedes-AMG Project One Hypercar Caught Testing [The Detroit Bureau]
Will Smith and Kevin Hart Set for 'Planes, Trains, and Automobiles' Remake [CNN]
After an Injury, This Car Fan Designed a New Way to Drive [WSJ]
