Feb. 14, 2019
Mazda's Moro: New Crossovers Could Give U.S. Sales Big Boost
Mazda has just three crossovers on sale in the U.S. market, but that's going to change, vows Masahiro Moro, CEO of Mazda North American Operations. The brand now has two new crossover models in the pipeline, Moro told Automotive News last week at the Chicago Auto Show. One is the as-yet unidentified vehicle that will be produced at a U.S. assembly plant that has begun construction in Huntsville, Ala. The other is a crossover that Mazda will unveil next month at the Geneva auto show. Last week, Mazda released a teaser image of the crossover that will be shown at next month's Geneva auto show. Moro confirmed that it will be sold in the U.S. but said that Mazda has not determined when. He emphasized that it will be a different product from the crossover planned for production in Alabama, although the two vehicles will share some architecture. For the small Japanese brand, two crossover additions could have a significant impact on U.S. sales. In 2018, Mazda sold 150,622 CX-5s in the U.S., which accounted for of the brand's total of 300,325 sales. For more on Mazda’s plans, click here.
The Tariffs No One Seems to Want Edge Closer to Trump’s Arsenal
No American industry is lobbying hard for them. Most economists think they’re a bad idea. Even some trade hawks in President Donald Trump’s administration see them as a roadblock in his overhaul of the global trading system. That’s helps explain why tariffs on imported vehicles and auto parts -- the next possible salvo in Trump’s trade war -- are causing auto-parts supplier Michael Haughey to hold back on any major expansion right now. “We’re not doing anything dramatic to really grow our business,” Haughey, president of Tennessee-based North American Stamping Group, told Bloomberg. “We’re not hiring those extra people, we’re not growing and spending the extra capital money in anticipation that we might have to hunker down for a while.” To hear BMW North America CEO weigh in on the tariffs, click here. Soon, the Commerce Department will deliver to Trump the results of an investigation into whether the U.S. car imports represent a threat to national security, potentially leading to levies of as much 25 percent on imported vehicles and parts.
Now is the time for dealers to fight back. Register today for AIADA’s DC Fly-In and make sure that lawmakers understand how 25 percent tariffs could impact your business.
Top 10 Cars to Buy Used Over New
According to the latest study by automotive research firm and car search engine iSeeCars.com, the average one-year-old used car costs 23.2 percent less than its new version. However, some models provide more substantial savings for used car shoppers with price differences as high as 38.5 percent or $24,690 between their new and lightly used versions. iSeeCars.com analyzed over 7 million new and used cars sold from August 2018 to January 2019, comparing the prices of new cars to lightly used cars. It identified the top ten used cars that have the greatest price differences from the new versions of the same vehicle. The analysis comes as a follow-up to a recent study that identified The Best Cars to Buy New Over Used. The list of cars that have the greatest change in price between their gently used and new versions includes a mix of vehicles: six cars, three SUVs, and one minivan. The car with the largest price difference between its new and gently used version is the Ford Expedition full-size SUV at 38.5 percent, or $24,690. For the full list of the top ten cars to buy used over new, and the best cities to score a great used deal, click here.
U.S. Carmakers Bracing for a Downshift This Year, But Here's What Sold Like Hotcakes in 2018
Industry analysts anticipate U.S. auto sales will drop to 16.8 million units this year, down roughly 500,000 units from 2018's total and off nearly 4 percent from a record 17.5 million units sold in 2016. The Washington Business Journal reports that this year is expected to mark the first time since 2014 that U.S. new-vehicle sales will fall below 17 million units. “The U.S. auto industry is really reaching a post-peak tipping point,” said Zohaib Rahim, an analyst with Atlanta-based Cox Automotive Inc. The anticipated falloff follows a strong 2018 in which U.S. auto sales were up 0.4 percent from the prior 12-month span. The Ford F-Series line of pickup trucks was once again the nation's best-selling vehicle last year, with more than 909,000 total sales. Rahim credited last year's tax-reform law, which led to a one-time increase in disposable income for many Americans, for driving much of 2018's auto-sales bump. Industry analysts say ongoing trade tensions are a prime driver behind this year's anticipated sales decline, and the challenges are global in scope. Click here for the full story.
6 Surprises from the 2019 J.D. Power Vehicle Dependability Study
The much-anticipated J.D. Power 2019 U.S. Vehicle Dependability Study was released yesterday, and it is full of surprises that suggest the auto industry is moving in some unexpected directions. The study, now in its 30th year, gauges vehicle reliability by measuring the number of problems experienced during the past 12 months by original owners of three-year-old model-year vehicles, in this case 2016 model-year vehicles. According to Forbes, the results indicate some common perceptions about which vehicles are dependable and which are not are essentially misperceptions. Some vehicle brands with strong reputations for quality and reliability have slipped below industry average, while other brands that have been tagged as problematic are actually quite reliable. For all six surprises, some good, some bad, which include brands MINI, Honda, and Porsche, click here.
CNA National Has Ride-Share Drivers Covered
Buyers who plan to use their vehicles for ride-sharing may find that their vehicle service contract is void due to commercial use. But, that’s not the case with CNA National. The company’s latest coverage includes transporting people for hire, as long as the vehicle is titled in a personal name and operated by one individual or related individuals. Additional highlights include flexible terms up to 10 years and 150,000 miles; generous reimbursement amounts for towing, rental car, and travel and lodging; and multiple deductibles, including a “disappearing” option that encourages customers to return to the selling dealer for repairs. To learn more, call 800-345-0191 x 450 or connect with CNA National online.
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