Jan. 16, 2019
Global Auto Leaders Urge Trump Administration to End Trade Turmoil
Auto executives gathered in Detroit on Monday called on the Trump administration and Congress to resolve trade disputes, and end the government shutdown, saying political uncertainty is costing the industry. Reuters reports that U.S. trade officials are negotiating a new deal with China in hopes of avoiding new tariffs, while a new regional trade agreement with Canada and Mexico still needs congressional approval. Automakers producing vehicles in the United States are contending with U.S. steel and aluminum prices driven higher by Trump administration tariffs. Toyota Motor Corp’s executive vice president for North American sales, Bob Carter, said the company has had to raise prices three times because of higher tariff costs - even though 96 percent of steel in Toyota U.S. vehicles is from U.S. steel plants. The tariffs boosted industry vehicles prices by about $600 on average, he estimated. For more on how trade turmoil is impacting automakers, click here.
Hyundai Punts on NFL Sponsorship Deal
Hyundai Motor America isn't striking a new sponsorship deal with the NFL when its four-year partnership ends after this season, clearing the way for another automaker to take the mantle. Ad Age reports that Hyundai Motor America CMO Dean Evans confirmed during the Detroit auto show that the automaker doesn't have any plans to re-engage with the league on a new deal. But Evans made clear that NFL programming will still be a key piece of its marketing strategy going forward. Some dealers questioned the effectiveness of the sponsorship over the years because it didn't offer much direct advertising exposure during NFL games on mainstream networks such as Fox, CBS, and NBC. While Hyundai carried the official vehicle and SUV moniker, and Genesis was the official luxury vehicle, rival brands such as Ford and Toyota still filled the airwaves on game days. For more on Hyundai’s decision, click here.
Toyota's Lentz Sees Car Sales Stabilizing, EVs Languishing
Falling car sales are likely to stabilize at their current level of about 30 percent of the overall market, while automakers will struggle to find buyers for all the electric vehicles they plan to introduce over the next three years, says Jim Lentz, CEO of Toyota Motor North America. Lentz said stable fuel prices and improved fuel economy from utility vehicles mean consumers no longer pay much of a fuel economy penalty for choosing a crossover. However, sedans and other cars will continue to have a significant share of the market. Lentz also told the 2019 Automotive News World Congress that the company's 2017 move from California to Texas went about as well as possible. His advice to other companies plotting cross-country moves: "Take time, and make sure you take care of your people." Lentz said Toyota retained 72 percent of its employees in the cross-country move, when most companies average a 75 percent loss of talent during similar periods. To find out what else he had to say, click here.
Best Cars of the 2019 Detroit Auto Show: Motortrend Favorites
As the first major event of the year, the Detroit auto show has historically marked the start of the auto show season. But in 2020, the show will move to June, which likely means 2019 is the last year the Motor City gets to kick things off for the auto industry. Happily, it went out with a bang by hosting big debuts like the Ford Mustang Shelby GT500, sixth-generation Ford Explorer, and the highly anticipated return of the Toyota Supra. Click here to see which cars MotorTrend editors liked most from this year's Detroit show. They include the Infiniti Qx Inspiration Concept, Infiniti's electric crossover concept that was damaged in transit and could not drive onto the stage for its big moment in the spotlight. Click here to see it. This baby FX is the design direction for the brand's future crossovers while playing with ideas like a suede flat tile floor that looks like tile, a lattice glass roof, a marble center console that extends to the second row, Orient Express-type gold table lamps, and a shark nose with no grille up front. For the complete list of favorite vehicles from this week’s show, click here.
Trade War Tops Global Risks for Business Leaders
The threat of a full-blown global trade war and rising political tensions between world powers are the dominant global risks, according to a report by the World Economic Forum ahead of its annual gathering in Davos, Switzerland, next week. The Wall Street Journal reports that in January 2018, President Trump slapped steep tariffs on imports of solar panels and washing machines, turning the ignition on his long-promised “America First” trade policy. Tariffs that the U.S. then placed on steel and aluminum imports and countermeasures by Beijing began an economic standoff that the WEF report says has weakened the outlook for global growth. The report, which analyzed global risks and trends over a 10-year horizon, said that the rate of global growth appeared to have peaked and the slowdown in China’s economy was of particular concern. “We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards,” said Børge Brende, president of the World Economic Forum. For the full story, click here.
CNA National Marks 24th Anniversary as an AIADA Affinity Partner
In 2019, CNA National (CNAN) is celebrating its anniversary as AIADA’s longest-serving Affinity Partner. For 24 years, this affiliation has given our members access to unique F&I solutions that are tailored to meet buyers’ needs as well as services that are designed to improve CSI and profitability. CNAN has also set the standard for claim service excellence, as reflected in its selection as a top provider for 14 consecutive years in the Dealers’ Choice Awards. “CNAN has been an industry leader for more than 35 years and we are honored to be the preferred vehicle service contract provider for AIADA,” said CNAN president and CEO Joe Becker. “Our company is well known for delivering superior service and has never wavered in our dedication to our dealers and their customers.” To learn more, call 800-345-0191 x 450 or connect with CNAN online.
Around the Web
The VW-Ford Pickup Truck Is Coming in 2023, Just Not to North America [Jalopnik]
A Visual Tour of the 2019 Detroit Auto Show [Automobile Mag]
Fiat Chrysler Worried Government Shutdown Could Delay New Products [TTAC]
