Honda Tempers ‘Out of Whack’ Expectations for EV Demand in U.S.

First Up 01/14/22

Through our Dealers Do Good campaign, AIADA is recognizing dealers for the good things they do for the communities they serve. If you’re a dealer doing good, let us know here, tag us on Facebook or Twitter, or join the conversation with the #DealersDoGood hashtag.

Today we want to highlight two dealerships that made the holiday season immeasurably brighter for their communities. In Olympia, WA, Capitol City Honda teamed up with 4 The Love Foundation by donating $10,000 to deliver Thanksgiving meals to 1,000 Thurston County families in need this holiday season. Their motto? "We take pride in supporting our local community." Click here for a picture.

In the same spirit, Penz Auto Group in Rochester, MN, distributed $9,000 to various charities and families in need throughout the holiday season. Read about their efforts here.

AIADA Presents Lifetime Achievement Award to Auto Dealer Mike Maroone

The American International Automobile Dealers Association (AIADA) on Thursday announced Florida and Colorado auto dealer Michael E. Maroone as the recipient of the 2022 David F. Mungenast Lifetime Achievement Award. The award is presented by AIADA’s Board of Directors annually to an industry leader who possesses a similar community spirit and devotion to the international nameplate auto industry as its namesake. “Mike perfectly embodies the community-minded, forward-thinking spirit of this award,” said AIADA President and CEO Cody Lusk. “The auto retail industry in the United States owes a great deal of thanks to Mike, and dealers like him, who have spent their careers improving the lives of others and raising the bar for how vehicles are sold in the United States.” For more on his career and accomplishments, click here. Maroone will be presented with the David F. Mungenast Lifetime Achievement Award on March 13 in Las Vegas during AIADA’s 52nd Annual Meeting and Luncheon. For more on the event, please visit

Canada to Join Mexico Against U.S. in Auto Trade Rules Dispute

Canada intends to sign onto Mexico's complaint against the U.S. over its interpretation of rules of origin in the automotive industry, Trade Minister Mary Ng said on Thursday. Automotive News reports that Mexico asked last week for a dispute settlement panel under the terms of the U.S.-Mexico-Canada trade pact. It wants to clear up disagreements over how to apply automotive sector content requirements under the treaty. The USMCA, which replaced the longtime NAFTA trade pact in July 2020, says 75 percent of a vehicle's components must originate in the three nations to quality for tax-free status, up from 62.5 percent under NAFTA. Mexico and Canada favor a more flexible interpretation of the regulations than the U.S., which sought an overhaul of NAFTA in order to protect U.S. manufacturing jobs. "The interpretation that the United States adopted ... is inconsistent with USMCA and the understanding shared by the parties and stakeholders throughout the negotiations," Ng said in a statement. For the full story, click here.

Honda Tempers ‘Out of Whack’ Expectations for EV Demand in U.S.

Honda Motor Co. expects to announce a decision soon on where it will manufacture electric vehicles for the U.S. market, but says questions remain about how much demand there is for battery-powered cars and trucks. According to Bloomberg, Honda has accelerated plans to electrify its lineup, but remains cautious about adoption rates. “We’ve told our Honda dealers that initially this is going to be very regional” for EV sales, Dave Gardner, executive vice president of Honda’s U.S. subsidiary, said at a briefing. “What is the consumer uptake? Right now, I think that’s something that’s a little out of whack” with automakers’ efforts to rush EVs to market, he said. Honda is looking to the U.S. government to help boost demand for EVs through financial incentives, but has joined other foreign brand automakers opposing the Biden administration’s plan to steer the biggest discounts to vehicles made in U.S. factories with organized labor. That would likely prevent Honda customers from receiving the maximum subsidy since its U.S. plants are non-union. “It shouldn’t matter which American is building the vehicle,” Gardner said. For more on Honda’s perspective, click here.

BMW Cautious On Bringing Batteries In-House Despite Rising Sales

BMW won't scale up its own battery cell production for electric cars until the technology has developed further, the German company said on Thursday, taking a more cautious approach than some rivals despite record brand sales in 2021. Reuters reports that the automaker, which was also upbeat about hitting the top end of its 9.5-10.5 percent profit margin estimate for 2021, currently buys battery cells from CATL, Samsung, and Northvolt among others, but is building its own pilot plant. "We have secured our needs for the next few years very well with the partners we have," finance chief Nicolas Peter told Reuters, adding BMW wouldn't rush to scale up its own cell production. "We are not yet at the point where we can say what technology will accompany us for the next 10-15 years," he said. "That's why it's important to invest a lot of resources with worldwide partners in battery cell development." BMW is working to build battery assembly sites at every factory but will rely on partners for cells, Peter said. For more on BMW’s plans, click here.

Around the Web

Hey Europe, Our 2023 Honda HR-V Looks Better Than Yours [Motortrend]

Is The Kia EV6 The Best Electric Vehicle On The Market? [Car Scoops]

10 Least-Satisfying Cars to Own [AutoBlog]

When Do You Know It's Time To Part Ways With Your Car? [Jalopnik]