A Historic Step Forward on Trade
The United States-Mexico-Canada Agreement (USMCA) today enters into force, beginning an important new era for our region’s trilateral trade relationship. In response, American International Auto Dealer Association President and CEO Cody Lusk shared the following statement: “America’s international nameplate auto dealers look forward to working with USMCA stakeholders to ensure that the interests of their customers and employees are taken into account as the agreement enters into force. International nameplate auto retail sales, which account for 56 percent of all retail vehicle sales in the U.S. and more than half of all new vehicle dealership jobs, are intrinsically linked to the manufacturing and trade relationships between the U.S., Mexico, and Canada. The successful implementation of USMCA matters deeply to international nameplate dealers and the 578,000 Americans they employ.” Read more here.
Hyundai Sales Fall 22%
Hyundai said retail sales of crossovers rose 34 percent in June with the flagship Palisade setting an overall and retail monthly sales record. Retail volume rose 14 percent for the Santa Fe and 1 percent for Kona, reports Automotive News. U.S. light-vehicle sales at Hyundai fell 22 percent in June, the brand’s second-smallest monthly drop since the coronavirus idled the auto industry and shuttered showrooms coast to coast starting in March. Hyundai said retail sales, up 6 percent to 48,935, rose for the second consecutive month, behind strong crossover volume, which represented 69 percent of retail deliveries. Hyundai was one of just two automakers to cut incentives last month, according to ALG/TrueCar. Fleet sales dropped 93 percent and represented 2 percent of June volume, the company said. Most other automakers will report results for the month and second quarter later Wednesday. Read more here.
Subaru to Switch to Quarterly U.S. Sales Reports
Subaru of America, once a monthly sales streak darling as its U.S. volume rapidly expanded over the past decade, is switching to quarterly sales reporting, reports Automotive News. The automaker will report its June U.S. sales Wednesday, then switch its cadence going forward. The automaker, of Camden, N.J., was one of the few holdouts still reporting on a monthly basis. After Subaru switches to quarterly, Honda, Hyundai-Kia, Mazda, Toyota, and Volvo will remain the only automakers to report monthly. Subaru follows Porsche, Nissan, Mitsubishi and BMW in making the switch this year. Starting in December 2011, Subaru cultivated a 93-month streak of year-over-year sales gains, which was snapped in September when sales dropped 9.4 percent. While Subaru also had a monthly sales decline in December, 2019 was another record year for the brand, with 700,117 vehicle sales, an increase of 2.9 percent. Read more here.
Local UAW Officials Want GM to Close SUV Plant in Texas Due to Coronavirus Concerns
Officials of a local chapter of the United Auto Workers union have asked General Motors to temporarily close its large SUV plant in Arlington, Texas, because of the resurgence of Covid-19 cases in the state, reports CNBC. “Due to the most recent data on the COVID-19 outbreak, the Bargaining Committee has asked General Motors to shut down Arlington Assembly until the curve is flattened for the benefit and well-being of our members,” reads a message on the organization’s website. “Every day we are setting new records in the number of people who are testing positive in the Dallas-Fort Worth area.” Texas Gov. Greg Abbott last week announced he would roll back some of the state’s reopening plans, closing bars and reducing capacity for indoor dining, among other modifications and closures. The announcement followed a 79% increase in Texas’ weekly average of coronavirus cases, averaging 4,757 daily new cases, according to a CNBC analysis of data compiled by Johns Hopkins University. Read more here.
Actor Mark Wahlberg Acquires Another Auto Dealership
Actor Mark Wahlberg, who in 2018 added auto retail to his business repertoire, has expanded his dealership ownership with a Buick-GMC store in Columbus, Ohio, reports Automotive News. Wahlberg and partner Jay Feldman, a Michigan dealer, have purchased Haydocy Buick-GMC. The dealership, renamed Mark Wahlberg Buick-GMC, is across the street from Mark Wahlberg Chevrolet. That's the former Bobby Layman Chevrolet store that Wahlberg and Feldman purchased in July 2018. The latest transaction also included an Airstream and recreational vehicle dealership in Columbus, which has been renamed Mark Wahlberg Airstream & RV. Feldman, CEO of of Feldman Automotive Group with more than 10 locations in Michigan and Columbus, said two years ago that he and Wahlberg were looking for more dealership locations. Read more here.
Webinar: An Update on COVID-19's Impact on U.S. Auto Sales
Cox Automotive Senior Economist Charlie Chesbrough returns to AutoTalk for an update on July 9 at 2:00 p.m. EDT. Topics to be reviewed include:
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Economic forecast and impact going into the third quarter
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Consumer sentiment and buying behaviors
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Stock market, interest rates, and employment
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An outlook for vehicle sales
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Current view of new and used retail sales and price
Around the Web
2021 Porsche Cayenne GTS Coupe First Drive: Ticking Every Box [MotorTrend]
The Cars We Desperately Wanted to Drive in High School [Gear Patrol]
The Best 4th of July Car Deals for 2020 [U.S. News & World Report]
