Dealers Make an Impact
This summer AIADA is launching an effort to encourage dealers, dealership employees, and industry partners to engage with us, and with Congress, to show how Dealers Make An Impact on their communities, and how, even without flying in to DC, dealers can make an impact on decisions in Washington right from their dealership floor. Check out the video by AIADA President and CEO Cody Lusk about what to expect in the coming months.
Senate Passes Sweeping Bill to Help U.S. Compete with China, Boost Chip Manufacturing
The Senate overwhelmingly passed an expansive bill to invest almost $250 billion in bolstering U.S. manufacturing and technology to meet the economic and strategic challenge from China, reports Automotive News. The 68-32 vote on the legislation Tuesday was a rare spot of bipartisanship in an otherwise polarized Senate and a clear indicator of the concern in both political parties that the U.S. risks falling behind its biggest global competitor. The legislation authorizes $190 billion in spending, much of it aimed at increased R&D at universities and other institutions. It also includes $52 billion in emergency outlays to help domestic manufacturers of semiconductors expand production, a provision that gained new urgency with a global shortage of chips that has idled U.S. automotive plants and disrupted the production of consumer electronics. The bill’s fate in the House is uncertain. Read more here (Source: Automotive News).
A Risk in the EV Battlefield: Setting Residuals
Automotive News reports that as automakers large and small rush into the battery-electric business, they face what may be an even trickier issue than where they're going to get all their batteries: setting residual values on vehicles without a lot of history. For companies with captive finance arms such as Toyota — which will reenter the BEV market in the U.S. next year with a production vehicle based on its RAV4-sized bZ4X compact-crossover concept — the residual value equation can present challenges. The biggest one: estimating future demand for vehicles that now represent less than 2 percent of the overall market. "We've been financing [electrified vehicles] for over 20 years, so we're not scared about financing them," said Mark Templin, CEO of Toyota Financial Services. "The only tricky part is setting residuals, because you don't know what the future value of those BEVs is going to be in the marketplace." Read more here (Source: Automotive News).
Ferrari Turns to Chip Firm for Its New CEO as the Industry Looks to Reinvent Itself
Ferrari has appointed electronics pioneer Benedetto Vigna as its new chief executive as the company gears up for the age of electric vehicles, reports CNBC. Vigna will join Ferrari on Sept. 1 from semiconductor firm STMicroelectronics, where he is currently the head of its sensors group. The Italian sportscar maker announced the appointment in a statement on Wednesday. It comes after former CEO Louis Camilleri stepped down for personal reasons in December after a reported battle with Covid-19. Ferrari said the 52-year-old Italian has experience working for some of the world’s leading technology companies. But his appointment has come as a surprise to many given he has not previously worked for an automotive company or a luxury brand. “The appointment is highly unexpected and, in our view, reflects the need to ‘reinvent’ Ferrari and the difficulty of securing candidates willing to take on the task,” Jefferies analyst Philippe Houchois said in a note. Read more here (Source: CNBC).
Lordstown Motors Says It Doesn't Have Cash to Start Commercial Production
Electric-truck startup Lordstown Motors Corp. disclosed that it doesn’t have sufficient cash to start full commercial production and has doubts about whether it can continue as a going concern through the end of the year, reports The Wall Street Journal. The disclosure Tuesday marks the latest trouble for Lordstown Motors, one of several electric-vehicle and battery startups that went public last year through reverse mergers with special-purpose acquisition companies, or SPACs. Lordstown Motors amended its annual report to include the going-concern notice, which can flag survival problems for businesses. The warning comes as new challenges emerge for the two-year-old company that is trying to convert a former General Motors Co. plant in Ohio to produce electric pickup trucks. It has said its first model, the Endurance, will start production in September. Read more here (Source: The Wall Street Journal).
Around the Web
BMW Takes Wraps Off Slew of 2022 Models [The Detroit Bureau]
CPO Used Car, Truck, or SUV: Should You Buy One? [CNET]
How to Steer Clear of Pricey Car Rentals This Summer [WSJ]
Bugatti Chiron Super Sport Revealed a Long-Tail, High-Speed Grand Tourer [Autoblog]
