Automakers, Dealers Back Coalition Urging Rollback of Trump-Era Tariffs
Industry groups representing automakers and dealers of imported vehicles are supporting a newly relaunched coalition that is calling for the rollback of certain tariffs imposed by the Trump administration, reports Automotive News. The Tariff Reform Coalition — a group of 37 associations including Autos Drive America, the American Automotive Policy Council and the American International Automobile Dealers Association — urged policymakers on Wednesday to remove Section 232 tariffs on imported steel and aluminum and reassess Section 301 tariffs on imports from China. "At a time when so many businesses and workers in the United States are suffering from the COVID-19 pandemic, we urge the Biden administration to reconsider the Section 232 and Section 301 tariffs that are causing serious damage to those already struggling," said Rufus Yerxa, president of the National Foreign Trade Council, one of the coalition's members. Read more here (Source: Automotive News).
Beltway Talk Podcast: Charlie Chesbrough's Spring Sales Round Up
In the newest episode of AIADA’s Beltway Talk podcast, Cox Automotive’s Charlie Chesbrough offers listeners an overview of the first quarter of 2021, and some idea of what the rest of the year holds for the auto retail industry. Listen and subscribe to future episodes here.
U.S. Says Promoting Chip Cooperation with Taiwan is a Priority
The United States and Taiwan are natural partners when it comes to semiconductors and promoting this cooperation is a U.S. priority, the de facto U.S. ambassador in Taiwan said on Thursday. Reuters reports that Washington has increasingly viewed tech-powerhouse and democratically ruled Taiwan as a key part of its strategy to shift global supply chains away from China, especially when it comes to technology and chip companies. Speaking at the groundbreaking ceremony for a new chip fabrication plant for Powerchip Semiconductor Manufacturing Corp in central Taiwan, Brent Christensen, director of the American Institute in Taiwan (AIT), said he was there “to restate the U.S. government’s focus on supply chain security”. Christensen pointed to last year’s launch of the U.S.-Taiwan Economic Prosperity Partnership Dialogue as a way the two can “build a coalition to counter the PRC’s unfair economic and investment policies”, referring to the People’s Republic of China. Read more here (Source: Reuters).
Advisors See Continued Demand for Dealership Acquisitions
WardsAuto reports that high demand for dealership acquisitions is likely to continue in 2021, according to firms that broker buy-sells. Erin Kerrigan, founder and managing director of Kerrigan Advisors, says in a recent presentation she expects a record year. “Inertia is increasingly considered to be a bad strategy,” she says during a recent webinar hosted by AIADA. “Dealers feel they either need to commit to growth or sell their business.” There were 289 buy-sell dealership transactions in 2020, up 24% from 2019, Kerrigan says in her quarterly Blue Sky Report summarizing the year and the fourth quarter of 2020. Cliff Banks, president of Banks Media Enterprises and creator of The Banks Report on dealership buy-sells, agrees demand is high for dealerships. “Right now, Q1 is as active as we’ve seen the market, since the Great Recession,” says Banks, a former Wards editor, in a phone interview. Read more here (Source: WardsAuto).
Porsche Shuns New VW Group Platform for its Own Premium Solution
Porsche executives said the brand will use its PPE architecture for future battery-powered cars rather than switch to parent Volkswagen Group’s newly announced SSP underpinnings, reports Automotive News. Porsche has been developing PPE (Premium Platform Electric) with sister brand Audi since 2018. The architecture is focused on providing fast acceleration, longer range and shorter charging times. The first model to use PPE will be the full-electric Porsche Macan SUV, which will go into production in the second half of next year. Audi's first PPE vehicle will be the Q6 e-tron SUV, a sister model to the Macan EV. VW Group CEO Herbert Diess said on March 16 that the automaker will develop the highly flexible Scalable Systems Platform (SSP) by the middle of the decade. "By the end of this decade, we will be able to roll out SSP across all vehicle classes,” he said during the VW Group’s annual press conference last week. Read more here (Source: Automotive News).
GM Forced to Cut Production of Midsize Pickups Due to Chip Shortage
General Motors will suspend production of its midsize pickup trucks due to a global semiconductor chip shortage. It’s the latest shutdown as the automaker prioritizes production of its larger, more profitable full-size pickups and SUVs, reports CNBC. Downtime at the Missouri plant will start Monday and run through April 12, according to a message sent to employees on Wednesday by the United Auto Workers union local. The plant produces GMC Canyon and Chevrolet Colorado pickups. Van production at the facility will not be impacted, GM said. GM will also pull ahead scheduled downtime for the plant by two weeks to May 24 through July 19 to “allow for more time to build product” during the second half of 2021, the union said. GM spokesman David Barnas confirmed the plans. In addition to the pickups, Barnas said GM will extend downtime at a car plant in Michigan by two weeks to mid-April. GM has temporarily shuttered or cut production at several plants that produce cars or crossovers to prioritize production of its full-size pickups and SUVs. Read more here (Source: CNBC).
Carfax Recognizes Nation's Top-Rated Used-Car Dealers
CARFAX is honoring an exclusive group of dealers rated highly by verified customers in its second annual Top-Rated Dealer Program. The 2020 CARFAX Top-Rated Dealers received an average of 4.6 stars out of a possible five stars. “CARFAX has more than 2.2 million verified customer ratings and reviews for dealerships around the country,” said Bill Eager, CARFAX Vice President of Dealer Business. “The Top-Rated Dealer program recognizes the best of the best for exceptional service and customer care.” This month, CARFAX Top-Rated Dealers around the country received word of this honor. As winners, they have access to a suite of custom CARFAX Top-Rated Dealer digital assets that help them share their excellent ratings from CARFAX.com in their online presence, including social media using #CARFAXtoprated. Their 2020 CARFAX Top-Rated Dealer badge will also be visible to customers on their CARFAX Vehicle History Reports. Additional award materials will be provided in the coming months. To learn more about the CARFAX Top-Rated Dealer program call (833-807-8899) or visit the CARFAX for Dealers website.
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