Nissan to Boost U.S. Dealer Incentives, Ad Spending

First Up 02/14/20

Nissan to Boost U.S. Dealer Incentives, Ad Spending

Nissan will boost its marketing outlays by nearly 60 percent from last year and more than double the dealer sales-volume bonuses to help drive foot traffic at stores and lift dealer profitability, reports Automotive News. The financially embattled automaker is facing rebellion from dealers, some of whom are walking away from the sales incentive program after Nissan decoupled some bonus money from hitting volume-based targets. The incentive program changes, announced to Nissan's U.S. dealers Thursday, came on the same day Nissan Motor Co. cut its full-year operating profit forecast by 43 percent. Nissan posted a net loss of ¥26.1 billion ($238 million) for the October-December quarter — a performance that contrasts sharply with upbeat forecasts from rivals Toyota Motor Corp. and Honda Motor Co. Read more here.

House Democrat Group: Auto Tariffs Not Justified on Imports, Urge Trump to Abandon Threat 

A group of Democratic U.S. House representatives wants President Donald Trump to release the results of an investigation into imported automobiles and abandon the threat of auto tariffs, which experts warn could add thousands of dollars to new car prices, reports The Detroit Free Press. Nine members of the New Democrat Coalition, in a letter to the president Thursday, said he is abusing his authority by continuing to keep the report secret. The investigation report could be used as the basis for imposing Section 232 tariffs, which fall under the Trade Expansion Act of 1962. White House economic adviser Larry Kudlow, in an interview with Bloomberg TV last week, said a decision on tariffs related to imports from the European Union is on hold pending a possible trade deal, according to Reuters. Read more here. 

Tesla Shares Rise, Reversing Early Losses Following $2 Billion Stock Offering

Tesla plans a $2 billion common stock offering, an announcement coming just two weeks after CEO Elon Musk said the electric carmaker would not take advantage of its surging stock price to raise more capital. According to CNBC, shares of Tesla initially fell after the announcement, dropping as much as 6% in premarket trading. But the stock reversed those losses, climbing 2% in the middle of the day as analysts and investors cheered the move as a way to shore up its balance sheet and possibly further its expansion plans. Shares hit a high of $818 in intraday trading. Musk himself will buy as much as $10 million of stock in the offering, while Tesla board member Larry Ellison will purchase up to $1 million. The company will offer 2.65 million Tesla shares through underwriters Goldman Sachs and Morgan Stanley, with expected gross proceeds of $2.3 billion before discounts and expenses. Read more here. 

Coronavirus Epidemic Further Dents China's Auto Market

Automakers in China are struggling to restart factories as the coronavirus epidemic rages on, dashing hopes of a rebound in the world’s largest market for vehicles, reports The Wall Street Journal. With the Chinese auto sector already battling a two-year sales slump, vehicle makers are now facing a collapse in first-quarter sales that could blight their entire year, even if customers return to dealerships later in 2020. Sales in January are estimated to have dropped 18% from the same period a year ago to 1.94 million vehicles, the government-backed Chinese Association of Automobile Manufacturers said Thursday. The association released an estimate since some companies couldn’t submit data amid the virus outbreak. But the worst likely has yet to come: Sales will decline by around 40% in the January-to-March period from a year earlier, with production volumes falling by up to 60%, research firm Jefferies said. Read more here. 

These Are the Safest Cars You Can Buy in 2020

The Insurance Institute for Highway Safety (IIHS) has released its list of the safest vehicles to buy in 2020. Sixty-four models received the organization's Top Safety Pick award, with 23 of those qualifying for the Top Safety Pick+ designation, reports Fox News. All of the Top Safety Picks earned Good ratings in the six different crash tests they are subject to, while Top Safety Pick+ vehicles also have Good or Acceptable headlights and either standard or optional front automatic emergency braking systems. IIHS recently added the headlight and active safety requirements, along with tougher passenger-side crash standards, to press automakers to improve safety in these areas. Mazda topped all automakers with five Top Safety Pick+ awards, while the Hyundai Motor Group – including Genesis and Kia – had the most overall in both categories with 14 combined. Read more here. 

See You in Las Vegas!

It's not too late to make plans to gather with other leading dealers on Monday during the NADA Show to celebrate AIADA's 50th year.

This special event will include: the passing of the Chairman's Gavel from 2019 Chairman Howard Hakes of California to 2020 Chairman Jason Courter of Washington, a special ceremony honoring past chairs, and keynote remarks by Henio Arcangeli, Jr., Senior Vice President of the Automobile Division of American Honda Motor Co. Registration will be available at the door or click here.

While you're in Las Vegas, make sure to check out AIADA's Affinity Partners. Click here for a quick reference guide on where to find them at NADA 2020!

Around the Web

Glickenhaus Gets Closer to Sending Its 007 Hypercar to LeMans [Car and Driver]

NASA Seeks Industry Help for New Lunar Rovers [MotorAuthority

2021 Toyota Supra Adds a Four-Cylinder and More Power for the Inline-Six [Autoblog]

U.S., Chinese Companies Partner to Start Up New Premium Brand Vantas [The Detroit Bureau]

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