Light Trucks Drive Toyota, Hyundai, Subaru, Kia to Gains
It looks like January may have been a decent month for U.S. auto sales, reports Automotive News. With the help of crossovers and other light trucks, gains were posted nearly across the board for the companies that have decided not to abandon the industry’s long tradition of monthly sales reports. They ranged from a 22 percent surge at Mitsubishi to a 0.5 percent advance at Subaru, sandwiched around a 6.3 percent advance from Toyota Motor Corp. The only company to record a decline: American Honda, with a 4.3 percent dip. The way things are going, there may be more sales day no-shows. Jaguar Land Rover waited until today to disclose that it, too, would be joining a movement that was led by General Motors in 2018 and had snowballed its way through most of its rivals by last month. And Mercedes-Benz said it would not release January figures but fell short of saying it was all-in on quarterly reporting. Read more here.
China's Coronavirus Crisis Could Cripple U.S. Car Production
The impact of the coronavirus will clearly be felt by the Chinese economy, the auto industry, in particular, with estimates of lost production running anywhere from 1 million to as much as 1.7 million vehicles before things return to normal. But, reports The Detroit Bureau, the longer the shutdowns continue, the more likely the impact will be felt abroad, especially in the U.S., where automakers have become increasingly dependent upon Chinese-made car parts. “The concern is not the zombie apocalypse with people dying in the streets. The concern is that a huge chunk of the global economy gets put out of commission as people wait it out,” wrote Patrick Chovanec, managing director at Silvercrest Asset Management in New York, in an advisory on the epidemic. While Chinese plants ship relatively few vehicles abroad, at least when compared to Mexican, Japanese, Korean and German factories, China annually exports about $70 billion worth of car parts and accessories globally, roughly 20% going to the U.S. Read more here.
Larry H. Miller Dealerships Buys 2 New Mexico Stores
One of the nation's largest privately owned dealership groups has acquired two more dealerships in Albuquerque, N.M., reports Automotive News. Larry H. Miller Dealerships said on Monday that it bought Mark's Casa Chevrolet and Mark's Casa Chrysler-Jeep from Mark Wiggins and partners. The stores will be renamed Larry H. Miller Casa Chevrolet and Larry H. Miller Casa Chrysler-Jeep. The purchase also included two collision centers. Larry H. Miller has had a presence in Albuquerque since 1988. It now has seven dealerships in the market — including two Toyota stores, a Hyundai-Genesis outlet, a standalone Hyundai store and a Chrysler-Jeep-Dodge-Ram dealership — and more than 700 employees. "As we approach 32 years of doing business in Albuquerque, we're excited to add additional high-performing stores to our family of dealerships," Dean Fitzpatrick, president of Larry H. Miller Dealerships, said in a statement. "The team at Mark's Casa have built a strong brand and reputation over the years. We look forward to welcoming their employees to our group and continuing with our vision to be the best place in town to work and the best place in town to do business." Read more here.
Hyundai Halts Korea Output as Virus Causes Parts Shortage
Hyundai Motor Co. is halting production in South Korea this week because of a component shortage caused by the coronavirus, the first global automaker to suspend output outside China because of the outbreak. According to Bloomberg, the carmaker has been hit by a shortage of a wiring component made at a South Korean supplier’s plant in China, which has been halted after a worker was infected by the virus, Hyundai Motor’s labor union said. Production may resume from Feb. 11 or 12, a union spokesman said by phone Tuesday. A company spokesman confirmed the suspension without giving details. The stoppage comes as Hyundai Motor is trying to ramp up production of new sport utility vehicles and a revamped version of its most popular Sonata sedan. “The company is reviewing various measures to minimize the disruption of its operations, including seeking alternative suppliers in other regions,” Hyundai Motor said in an emailed statement. “Hyundai Motor will closely monitor developments in China and take all necessary measures to ensure the prompt normalization of its operations.” Read more here.
The Auto Industry Wanted Easier Environmental Rules. It Got Chaos.
When Ford Motor Co. Executive Chairman Bill Ford Jr. called the president last spring, he was hoping to defuse what was looking like a lengthy legal battle over the nation’s fuel-economy regulations for vehicles, reports The Wall Street Journal. The Trump administration wanted to significantly ease U.S. environmental rules. California had sued to stop that. The car industry was caught in the middle. Mr. Ford, calling from his Dearborn, Mich., office, urged the president to broker a compromise with California, according to people with knowledge of the conversation. President Trump was puzzled and told Mr. Ford his view was out of step with his industry peers. “He basically said: ‘You’re on your own’ ” to Mr. Ford, one of the people briefed on the call said. The call was part of a nearly yearlong push to fend off the expense and delays of competing fuel standards, but Ford miscalculated the White House’s appetite for a deal. Its efforts ultimately backfired, putting it at odds with the administration and other big carmakers. Read more here.
February Webinar: Tax Reform Reversal or Status Quo?
Join AutoTalk for an early February program on Tuesday, February 11th at 2:00 p.m. ET and listen in as experts from Moss Adams help you navigate planning for the uncertainty and how to maximize today's tax environment.
They will also discuss:
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Areas That Are Highly Susceptible to Reversal in a New Administration
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How Can I Hedge Against Future Changes?
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What Steps Can I Take Now To Ensure I Am Maximizing The Current Tax Environment?
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