Major Automakers Fear Trump 'Grenade' – Imposing U.S. Auto Tariffs
Major automakers are bullish on the outlook for the U.S. economy and auto sales, but one big question remains – will President Donald Trump throw a grenade into the sector by imposing sweeping tariffs of up to 25 percent on car and auto parts imports? According to Reuters, the industry is in “wait-and-see mode,” but the tariffs would be a bad idea, Bob Carter, head of U.S. sales at Toyota Motor Corp, told Reuters on Wednesday. “If the tariff happened on the auto industry, quite frankly that’s pulling the pin out of the grenade,” he said at a conference on Tuesday held in conjunction with the New York International Auto Show. Trump is supposed to make a decision by mid-May, but some officials think the administration will find a way to delay final action, using the threat as leverage to try to win concessions on autos in trade talks with Japan and the European Union. Joe Eberhardt, chief executive of Jaguar Land Rover North America, said a 25 percent tariff on all imported vehicles would cost the company “billions.” If the tariffs were on parts, it would also hit U.S. automakers hard, he noted. “We just hope that reason will prevail,” he said. Read more here.
Higher New Vehicle Prices Are Juicing Used-Car Market, Study Says
The average monthly payment on a new vehicle last year rose 4 percent from 2017 to $547.75, according to Cox. Automotive News reports that as new-vehicle prices rise, more consumers continue to shift to the used-vehicle market, according to a Cox Automotive study. In another finding, the study said new- and used-vehicle customers who handle at least part of the process online are more satisfied with their overall dealership experience. Last year, nearly two in three car buyers shopped primarily in the used-vehicle market amid inflating new-vehicle payments, according to Cox Automotive's 2019 Car Buyer Journey study. New-vehicle payments increased at twice the rate of used-vehicle payments last year. The average monthly payment on a new vehicle rose 4 percent from 2017 to $547.75, according to Cox. For used vehicles, the average monthly payment rose 2 percent to $411.04. "It just goes to show you that consumers' wallets are getting squeezed," Isabelle Helms, vice president of research and market intelligence for Cox Automotive, told Automotive News on Wednesday. Read more here.
Subaru Premieres Next-Generation 2020 Outback
Subaru debuted its all-new 2020 Outback as the automaker continues to improve U.S. sales with its crossover-heavy lineup, reports The Detroit News. The Outback wagon is Subaru's top-selling vehicle in the U.S. Through the first quarter of the year, the automaker sold nearly 42,000 of them, which was down slightly from last year as buyers opted for the newer Forester. Overall Subaru sales were up to 156,754 through March, up 4.7 percent for the year. The new Outback aims to continue that momentum when it goes on sale in the fall. The automaker is planning seven trim levels. It comes with standard symmetrical all-wheel drive, and Subaru's driver-assist technology suite. The exterior gets some changes to give the Outback a more rugged look. It also gets new engine options. Subaru is offering a turbocharged engine standard on the Onyx Edition XT, Limited XT and Touring XT models. It's a 2.4-liter boxer engine that delivers 260 horsepower at 5,600 rpms and 277 pound-feet of torque at 2,000 rpms. That steps up from the standard 2.5-liter boxer engine that delivers 182 horsepower at 5,800 rpms and 176 pound-feet of torque at 4,400 rpms. Read more here.
Convertibles Aren't Quite Dead Yet
If passenger vehicles are dying, where does that leave convertibles? According to USA Today, from the 1960s to the early 2000s, ragtops were forged into the collective imagination as symbols of freedom and rebellion. But over the past several years, they have largely become status symbols that motorists consider too impractical for daily driving. And carmakers have clearly taken notice. As consumer behavior has shifted from cars to SUVs, automakers have increasingly reduced their droptop offerings. Despite the fall in annual sales, a few automakers are holding on to the droptop, showing off a slew of modern options at virtually every price point. From models that can lower their tops in just a few seconds to options that allow you to raise and lower the lid while the car is in the drive, modern tech has transformed what you can get out of the seasonal cars, some of which was on display at the New York Auto Show. Read more here.
Hyundai Aiming for Entry-Level and Used-Car Buyers with New, Under $20K SUV
Hyundai is hoping to make the SUV more accessible to entry-level buyers, reports CNBC. The automaker’s latest offering is the compact Venue, expected to be priced under $20,000 for the base model. That price tag brings it under the Hyundai Kona, which is larger than the Venue. “It’s pretty darn small but it’s a perfect entry-level vehicle for someone who might have, in the past, only had sedans to choose from,” Hyundai America COO Brian Smith said in an interview with CNBC’s Phil LeBeau from the New York International Auto Show on Wednesday. Hyundai is also targeting used-car buyers with the Venue. “There are many used-car buyers who are just used-car buyers, but interestingly 40 million people a year end up buying a used car and half of them thought about buying new first,” Smith said on “The Exchange.” The cost also addresses another issue: burgeoning auto loans. The average monthly payment is now $554, compared with $527 a year ago, according to Edmonds. Read more here.
Around the Web
2021 Porsche 911 Targa Spy Shots [MotorAuthority]
The 6 Best Cars and Concepts from the New York Auto Show [Popular Mechanics]
How to Protect Your Car During a Hail Storm if You Don't Have a Garage [KSAT]
Chicago Car2Go App Reportedly Hacked, Some 100 Cars Missing [Autoblog]
