German Carmakers Caught in the Middle of Looming Tariff Threats

First Up 06/12/18

Beltway Talk: A New Podcast From AIADA
Announcing Beltway Talk, an exciting new podcast from AIADA, examining the intersection of politics and the auto retail industry. Each episode will examine recent events in Washington, D.C., and how they impact America's international nameplate auto dealers. From policy and legislative topics like trade and regulation, to trends in advocacy and social media, Beltway Talk will provide listeners with a regular overview of the political and legislative issues driving our industry. In our latest episode, AIADA Chairman Brad Strong breaks down how he maintains a relationship with his member of Congress, how he got involved in AIADA, and some of his favorite sales memories. Visit to listen and subscribe

German Carmakers Caught in the Middle of Looming Tariff Threats
BMW AG and Mercedes-Benz maker Daimler AG face a double whammy of trade risks in an intensifying spat between the European Union and the U.S. Both carmakers ship significant numbers of vehicles from the E.U., and also export from U.S. plants. According to Bloomberg, U.S. president Donald Trump renewed threats to impose tariffs on auto imports, hitting out at the bloc’s standard 10 percent import tariff on cars – higher than a 2.5 percent American duty on auto imports and 25 percent on sport utility vehicles. With Trump extending tariffs on steel and aluminum imports to include the EU on June 1, and a heated meeting of G7 leaders in Canada over the weekend, Germany said Monday that retaliatory action on U.S. products could be ready by July 1. As a result, German carmakers have to worry not only about the potential for higher costs when they ship cars to the U.S., but also any retaliatory measures that affect the cars they produce in North America and send to the EU. Read more here

Ford Explorer, Jeep Grand Cherokee Get Worst Ratings in Crash Test
The Ford Explorer and Jeep Grand Cherokee fared worst among midsize SUVs in the latest crash test results from the Insurance Institute for Highway Safety, reports The Detroit Free Press. In fact, damage to the Ford Explorer caused the structure to collapse, and both the Grand Cherokee and Honda Pilot showed the possibility of head injuries. The ratings were based on results from the passenger-side small overlap test. A small overlap crash happens when the front corner of a vehicle strikes another vehicle or an object such as a utility pole or tree, according to a news release. “Although some vehicles in this group offer very good protection, in other models, the airbags, safety belts and structure showed serious deficiencies,” said Insurance Institute Chief Research Officer David Zuby. “In those SUVs, a front-seat passenger would be at risk of injuries to the head, hip or leg in a right-side small overlap front crash.” Read more here

BMW Global Sales Fell 2% in May on China Tariffs, German Diesel Bans
BMW Group said its global vehicle sales fell 2.1 percent to 204,041 in May, weighed down by China tariffs, the launch of a new model, and a 14 percent drop in German registrations as cities such as Hamburg started banning older diesel vehicles from key streets. Automotive News reports that BMW said plans to retool its China factory to produce the X3 SUV locally, rather than importing it from the United States, had hurt availability of this volume model in the world's largest car market. Furthermore, customers in China have held back orders after the country announced it will lower tariffs on imported cars from to 15 percent from 25 percent from July 1 onwards. BMW brand sales fell 1.8 percent last month, while Mini registrations were down 4.4 percent. Read more here

China's Next Big Thing? Used Cars.
China's huge bet on new-energy vehicles has understandably gotten the world's attention. But a less flashy phenomenon now underway may be at least as consequential for the environment in the near term: China is finally getting into used cars. According to Bloomberg, a familiar ritual in most countries, buying vehicles secondhand had until recently been all but unknown in China. In most markets, sales of used cars outpace those of new ones by a wide margin, usually two-to-one or more. About 39 million used cars were sold in the U.S. last year, for instance, compared to 17 million new ones. In China, the opposite prevailed: 29 million new cars sold, and just 12 million used ones. Many Chinese-made cars now match or exceed global quality standards, and thus are lasting longer. The government has begun lifting restrictions on used-car sales between provinces, while consumers are getting over their secondhand hang-ups and recognizing that used cars are a good value. Read more here.  

AIADA Teams with DealerOps® to Provide Dealer-Centric Data Intelligence and Analytics
AIADA is proud to announce a new affinity partnership with DealerOps®. DealerOps® is an industry leader focused on data intelligence and analytics that empowers dealerships to better understand what is happening within their stores by utilizing a cloud-based platform to deliver on-time and in-demand DMS reporting, application development, and in-depth analytics to franchise automotive retailers. AIADA President and CEO, Cody Lusk, states, “In today’s data-driven dealership environment, executives look toward automated business intelligence to track outcomes, forecast business plans, and build winning strategies to remain ahead of the competitive curve. Historically, these activities have been thought of as high touch, repetitive, error prone, and out dated. DealerOps® is the only company endorsed by AIADA in this unique space." The DealerOps® Platform allows dealership management teams to quickly analyze complex data and garner critical enterprise-wide insights in a simple, consolidated, and comparative platform. The software helps all employees – from the CEO to the front-line worker – optimize business performance and processes by connecting them to the right data and people to improve business results. Learn more here. 

Around the Web

The Best Deals in Off-Lease Used Cars [Forbes]

2019 Audi S6 Spy Shots [MotorAuthority]

2019 718 Porsche Boxster Spyder Spied [Autoblog]

7 Off-Roaders That Can Be Driven Right Off the Lot [USA Today]