Honda Focuses on Deliveries, Rather Than Recession Talk, as Profits Fall
Straining under a pile of back orders, Honda says its top priority is getting cars to U.S. customers rather than worrying about recession talk or more stringent electric vehicle credits. Many uncertainties still loom over the auto sector, Honda Chief Financial Officer Kohei Takeuchi said. Risks include rising inflation and interest rates in the U.S., and a semiconductor shortage that Honda predicts will run into early 2023. Meanwhile, tougher North American manufacturing requirements for a new EV tax credit mean most of today's EVs won't be eligible, he said. Takeuchi said higher inflation and interest rates will "eventually have an impact on the economy." But Honda has an ultra-lean U.S. inventory of just 20,000 vehicles in the market, and its first move will be filling orders reports Automotive News. "Rather than taking immediate measures with a recession in mind, we have to focus on delivering our vehicles to customers," Takeuchi said. Honda has been raising U.S. prices in line with inflation. But if a recession strikes, Honda should be able to weather the storm by further controlling fixed costs, Takeuchi predicted. Click here to learn more about Honda’s plans.
Biden Signs Bill Aimed at Boosting U.S. Chip Production, Competitiveness
President Joe Biden on Tuesday signed into law a bill that will provide billions of dollars to boost domestic semiconductor production, including dedicated funding for microchips used by the auto industry. The bipartisan bill — known as the CHIPS and Science Act, or CHIPS-plus — provides more than $52 billion in government subsidies for U.S. semiconductor research, design and production. Of that funding, $2 billion is designated for the production of mature node, or "legacy chips," used by automakers and parts suppliers. Automotive News reports it also includes a 25 percent tax credit for investments in semiconductor manufacturing through 2026 and invests billions of dollars in science and technology innovation to strengthen economic growth, job creation and national security. "America invented the semiconductor ... and this law brings it back home," Biden said in remarks Tuesday from the White House. "It's in our economic interest, and it's in our national security interest, to do so." Click here for the full story.
Volkswagen, Mercedes-Benz Reportedly Quitting Russia
Global automakers continue scaling back their presence in Russia as the country’s war with Ukraine causes it to become more isolated economically. The latest automaker reportedly looking to withdraw from the market is Volkswagen Group, Russia’s largest foreign investor, which may be planning to sell its plant in Kaluga. Wards reports indicate the automaker has begun a search for bidders for its flagship Russian plant. The list of potential buyers is headed by Asia Auto, which has a license to produce Volkswagen and Skoda cars. The deal is valued at $458.7 million-$611.6 million. Meanwhile, Mercedes-Benz reportedly is considering selling unsold vehicle inventories now belonging to its distributor, Mercedes-Benz Rus, to a local dealer. The sale is on hold because of Western sanctions, however. The automaker has refused to comment. The deal would not involve the sale of Mercedes-Benz’s Russian plant, whose operations currently are suspended. Click here for the full story.
BMW M4 CSL to Make U.S. Debut at Monterey Car Week
BMW will have a busy few days in California in August as it celebrates the 50th anniversary of the M brand at the famed Monterey Car Week. There, it will display a number of race cars, performance cars, and, for the first time in the United States, the M4 CSL reports Carscoops. The new model gets another 40 hp over the M4 Competition and loses 240 lbs, as compared to the already high-performance coupe. That was enough to get the M4 CSL around the Nürburgring in 7:20.2, the fastest lap time a production BMW has ever clocked around the fearsome track. The new model just kicked off production in July and will be limited to just 1,000 examples. That may, in part, explain why it has a price tag of $140,985 (with $995 destination fee) in the U.S. The M4 CSL will be presented at the Legends of the Autobahn event on Thursday, August 18 at the Pacific Grove Golf Links. Click here to learn more about the M4 CSL.
How GM Brandon Apon Is Modifying Recruiting Strategies to Attract More Staff
It’s crucial for car dealers and managers to understand what’s going on in each department of the dealership. For Brandon Apon, the General Manager of Mall of Georgia Mazda (Hendrick Automotive Group), working in most of his store’s departments has helped him also better connect with his employees. Today on CBT News’ Inside Automotive, Apon, who was recently named to Automotive News’ 40 under 40 list, joins the show to discuss his business today as well as his recruiting and hiring methods. Apon was recruited directly into Hendrick Automotive Group after his time at Liberty University, where he played football and obtained a business marketing degree. He recounts having “no real knowledge of the car business” but thinking his personality and desire to connect with people would help him in the retail automotive industry. After selling cars for a year and a half, Apon reports he moved into a “team leader role” for three years before entering his current position as General Manager in 2018. He was 27 years old but says, “age is just a number,” and he’s had excellent leaders who have helped him from the beginning. Click here for the full story.
Around the Web
The Most Satisfying 10-Year-Old Sedans Are Japanese [Carbuzz]
Here’s Why Mercedes-Benz Launched a ‘Go-anywhere Car' [Motoring Research]
McLaren Makes a Push Into Fashion, Will Sell $450 Sneakers [Autoblog]
4 Simple Tips to Improve Your Dealership’s Reconditioning Process [CBT News]
