Chairman's Blog: The Bad Kind of Scary
AIADA Chairman Howard Hakes writes in today’s blog post that Halloween may not be a traditional “sales” holiday, but it is fun way to engage with the community. A good scare, after all, gets the blood pumping and makes you feel alive. Most of the time. As our politics in D.C. get uglier, Americans in general seem to be increasingly indifferent to what’s happening in our capitol. And that’s truly frightening. When we don’t care, and engage with our lawmakers, we’re giving them free reign to do whatever insane thing they like. Dealers are fortunate to have AIADA. By supporting AIADA, you are supporting our advocacy efforts in D.C., and you can be confident that we have your back. Supporting AIADA means staying current on your dues, looking into holding a dealer visit with your elected officials, and attending our events where you can educate yourself on the most pressing issues of the day. After all, what’s your alternative to involvement? Sticking your head in the sand? Crossing your fingers and hoping you don’t wake up tomorrow with a lot full of tariffed vehicles that cost 20 percent more that yesterday? No way. Read the rest of Hakes’ blog post here.
Dealers Upbeat on Valuations, Survey Finds
The majority of dealers surveyed by Kerrigan Advisors think the value of their dealership or group will remain the same or increase in the next 12 months, as dealers have high expectations for brands such as Subaru and are less bullish on franchises such as Nissan, reports Automotive News. Twenty-six percent of dealers expect their store value to increase in the next year, 60 percent expect it to stay the same, and 14 percent predict a decline, according to the first Kerrigan Dealer Survey, published this week by Kerrigan Advisors and based on responses from 650 franchised dealers — domestic, import, single points and groups — from around the U.S. They were surveyed from June 6 to Sept. 30. Erin Kerrigan, managing director of the sell-side firm in Irvine, Calif., said that despite some economists predicting a recession in the next year or two, "I was very pleased with how few dealers thought the value [of their dealership] would go down." Read more here.
Electric Vehicle Prices Finally in Reach of Millennial, Gen Z Car Buyers
CNBC reports that members of the millennial and Gen Z generations care more than past generations about climate change, but younger Americans have been slow to show that belief in one important way: electric car buying. Only 10% of electric vehicle buyers are between the ages of 25 and 34, according to Cox Automotive. A big reason: price. But with global auto manufacturers including GM, Volkswagen, Nissan, and Kia coming to market with more electric car offerings, the situation is changing. The cost gap between electric models and gas models is beginning to shrink, according to Rachelle Petusky, the manager of research and market intelligence for Cox Automotive Mobility. And that shift is going to accelerate. “Going to be even more so the case in the next two to three years,” she said. Read more here.
De Nysschen Role at VW Gives Keogh Relief
CEO Scott Keogh is reorganizing Volkswagen of America using his onetime boss — luxury veteran Johan de Nysschen — as a relief valve and focusing his own efforts on the things he knows and does best: marketing and selling automobiles and working with dealers, reports Automotive News. The management restructuring comes as Keogh, 50, finishes his first year since his promotion to lead the Volkswagen brand across the U.S., Mexico, and Canada; Volkswagen Group of America, which includes VW's sibling brands; and production, engineering and purchasing on the continent. The change splits responsibilities, Keogh explained, into two silos roughly delineated by the point at which a dealer might receive a vehicle from the factory. De Nysschen, 59, was hired by Volkswagen on Sept. 26 for a new position, COO of Volkswagen of America. He headed Cadillac from 2014 to 2018. De Nysschen had immediately preceded Keogh as president of Audi of America before leaving in 2012 to head the Infiniti brand. Read more here.
UAW Leaders Facing Tough Ratification Vote on New GM Deal
The United Auto Workers faces a surprisingly difficult ratification fight over its tentative labor pact with General Motors despite making significant financial gains for new hires and temporary workers, reports The Detroit Bureau. Union members displaced by GM’s decision to close the big assembly plant in Lordstown, Ohio, are vowing to oppose the tentative contract, which does nothing to break the 2015 contract and close the plant, which built the compact Chevrolet Cruze. The frustration about the Lordstown issue contributed to the UAW’s decision to remain on strike until the contract is officially ratified. More than a dozen displaced Lordstown workers stood outside the room where the UAW’s GM National Council met in Detroit to give voice to their complaints about the tentative agreement’s failure to address the issue. Read more here.
Around the Web
This Rural Neighborhood is Home to Two Barn-Find Jaguars [Road and Track]
Cars with the Most Comfortable Front Seats [Consumer Reports]
Land Rover Road Rover Reportedly a Road-Biased Electric SUV [MotorAuthority]
The Subaru Outback is Pretty Much the Entire Wagon Market [Autoblog]
