April 13, 2021
Nissan Clings to Incentives for Dealers on Pickups
Even after killing its long-controversial stair-step dealer sales incentive program this month, Nissan is continuing with a volume-based program for full-size pickups that some retailers say favors high-volume stores. Automotive News reports that Nissan is offering dealers cash incentives based on the number of Titan pickups they sell. Under the program that runs through May 3, stores can earn $2,500 or $4,000 — or nothing — per pickup depending on how many 2020 and 2021 Titans they sell. Some retailers argue the incentive program is not fair because the volume targets are not adjusted for market size. Nissan provides a bonus on the Titan to "help dealers compete with other, larger-volume brands and win sales in the full-size pickup segment," a company spokesman said. Nissan cannot compete with Ford and Chevy in full-size pickups unless it heavily incentivizes dealers, a retailer said. "This is the fuel that keeps the Titan moving off the lot," he said. For the full story, click here (Source: Automotive News).
More Than a Vending Machine
For most of his career as a dealer, he’s been endangered, writes AIADA Chairman Steve Gates in his newest “Out of the Gates” column. He should be extinct. And he will be. Any day now. At least, that’s what you might think if you believed commercials like this one aired that during the Superbowl. Wall Street-backed start-ups that think they’ve cracked the code to auto retailing are a dime a dozen – but are they a threat to dealers? Gates writes that he sleeps just fine at night. Buying a vehicle is the second biggest purchase, after a home, most consumers will make in their lifetime. They still want to touch metal, kick tires, and test-drive their options. They want to know there is a brick and mortar store where they can ask actual humans questions, look for advice, get their oil changed, and learn about recalls. International nameplate dealers alone employ 564,000 workers with a payroll of $34 billion. They sponsor the local Little League and food bank. They pay taxes that go right to local schools and roads. They care what happens in your town because it’s their town. And that’s something that no vending machine can ever say. Read the rest of Gates’ entire column here.
U.S., EU Rules as EV Batteries Reach End of Road
The electric vehicle continues to grow as a mode of transportation. By 2030, the International Energy Agency estimates there could be 200 million battery or plug-in hybrid electric light-duty vehicles globally. Add to that the heavy-duty electric vehicles coming online this decade, and, says Wards, it is clear we have entered a new era. EV battery packs do not last forever, and their component parts will be at a premium. That begs the question: how to manage used battery packs that reach their end-of-life. Handling, transportation, recycling and stewardship of used EV batteries implicates waste management, raw materials conservation and global economics. The still-evolving regulatory landscape governing these issues in the U.S. and the European Union will be critically important to vehicle and battery manufacturers, fleet owners and battery recyclers. Industry often outpaces regulators. This means the technology may exist in a regulatory gray area for a time or new technologies may be clumsily pigeonholed into old regulatory frameworks. Click here to find out what that might mean for EV retailers and consumers (Source: Wards).
White House Zeros in on Chip Shortage in Meeting with Executives
President Joe Biden told a meeting with executives from major companies to discuss the global chip shortage on Monday that he has bipartisan support for legislation to fund the semiconductor industry. Automotive News reports that he will urge Congress to invest $50 billion in semiconductor manufacturing and research as part of his broader focus on rebuilding U.S. manufacturing as a powerhouse for the world's largest economy – and a source of good-paying jobs, a senior administration official said. "Today I received a letter from 23 senators, bipartisan and 42 House members, Republican and Democrat, supporting the chips for America program," Biden said at the beginning of the meeting. The White House meeting is billed as the "CEO Summit on Semiconductor and Supply Chain Resilience" and includes White House national security adviser Jake Sullivan and National Economic Council Director Brian Deese. Read more here (Source: Automotive News).
Intel in Talks to Produce Chips for Automakers Within Six to Nine Months, Says CEO
The chief executive of Intel Corp told Reuters on Monday the company is in talks to start producing chips for car makers to alleviate a shortage that has idled automotive factories. Chief Executive Officer Pat Gelsinger said the company is talking to companies that design chips for automakers about manufacturing those chips inside Intel’s factory network, with the goal of producing chips within six to nine months. Gelsinger earlier on Monday met with White House officials to discuss the semiconductor supply chain. Intel is one of the last companies in the semiconductor industry that both designs and manufactures its own chips. The company last month said it would open its factories up to outside customers and build factories in the United States and Europe in a bid to counter the dominance of Asian chip manufacturers such as Taiwan Semiconductor Manufacturing Co and Samsung Electronics Co Ltd. Read more here (Source: Reuters).
