Beltway Talk: AIADA Chairman Jason Courter on Selling Cars Amidst a Pandemic
In this episode of Beltway Talk, Washington state Honda dealer and AIADA Chairman Jason Courter discusses what it’s like operating a dealership at ground zero for COVID-19 in the United States. Listen to find out how he is tackling new restrictions on his stores, protecting his employees and customers, and keeping AIADA focused on its core mission in Washington, D.C. Listen in and subscribe here.
Mexico Scrambles to Meet U.S. Demand
Mexico's auto industry is scrambling to meet U.S. demand for supplier parts and high-demand vehicles after falling weeks behind in battling the coronavirus pandemic and restarting its manufacturing base. But to catch up, it must navigate both delicate economic conditions and steadily rising COVID-19 deaths, reports Automotive News. The challenges there, in America's largest base of imported U.S. vehicle content, are myriad. Mexican parts suppliers face liquidity issues that could get worse as orders stack up. Local auto sales have collapsed. Health experts don't agree on Mexico's new phase of reopening the economy. And with coronavirus infections spiking, Mexico's restart may be vulnerable to another shock that could ripple through U.S. and Canadian auto factories. Read more here.
Nissan Plots an Infiniti Reboot to Cap Revival
Not long ago, the Infiniti premium brand aspired to move upmarket in the glow of Mercedes-Benz through a then-celebrated tie-up between Nissan Motor Co. and Daimler. But the Japanese automaker, now wallowing in red ink and with Infiniti still groping for traction, is making an overhaul of the brand a centerpiece of its drastic new U.S. revival plan, reports Automotive News. Under the strategy, Infiniti will no longer be a mini-Mercedes. It will be "Nissan-plus." COO Ashwani Gupta outlined the Infiniti revamp last week as Nissan unveiled a revised four-year midterm plan. Nissan's wider restructuring road map cuts billions in costs, slashes production capacity, and trims the lineup to reemerge as a smaller, more profitable company. But part of that will mean high-end Infiniti will share platforms, powertrains, and assembly plants with the mass-market Nissan brand in a move to boost product development efficiencies by as much as half. Read more here.
Dealers Warn Buyers: Get Your New Car Before They're Gone, Supply Vanishing
Sheena Leaman took the keys to her 2020 Chevy Equinox and breathed a sigh of relief. According to The Detroit News, she is one of many car shoppers who has been uncertain about what to expect from the impact of newly relaxed stay-home restrictions related to the coronavirus and how it might affect her shopping choices. Meanwhile, car dealers say they're overjoyed to see people, but they're now coping with a rapidly shrinking supply of vehicles. The Detroit Three stopped car production from mid-March to mid-May because of the pandemic. And now, well, pickings are slim. And this is why Ford, General Motors, Fiat Chrysler, and the overall auto industry are adding production shifts to ramp up their factories as quickly as possible. Dealers noted that the process hasn't been without challenges, including disruption at Ford plants. Getting parts from Mexico has caused delay, too. Read more here.
Led by Tesla, Electric Vehicle Sales Are Predicted to Surge in 2021
According to CNBC, a new report by Cairn Energy Research Advisors, a research firm focused on the battery and EV industries, predicts a surge in electric vehicle sales in 2021 as countries around the world push new programs to encourage consumers to buy battery powered vehicles. Cairn estimates global sales of EVs in 2021 will jump 36% and top 3 million vehicles for the first time ever. “There’s pent-up demand for electric vehicles,” said Sam Jaffe, managing director of Cairn Energy Research Advisors. “We will see a combination of factors make 2021 an inflection point for the sale of electric vehicles.” Jaffe believes the two biggest factors that will spark demand for electric vehicles are the markets in Europe and China. Production of electric vehicles is estimated to climb to at least 1.3 million and could reach 1.5 million depending on market conditions this year, according to Bernstein analyst Mark Newman. Read more here.
AutoTalk Webinar: An Update on COVID-19's Impact on U.S. Auto Sales
Cox Automotive Senior Economist Charlie Chesbrough will return to AutoTalk on Thursday, June 4 at 2:00 p.m. EDT for an update. Topics to be reviewed include:
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Economic forecast and impact going into the second 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 prices
Around the Web
The Best SUVs to Buy in 2020 [MotorTrend]
2021 Acura TLX Challenges What We Thought We Knew About Sedans [MotorAuthority]
CDC Says Cars Are Better Than Mass Transit During COVID-19 Crisis [Car and Driver]
The Z is Back! Nissan Video Delivers First Images of the Next Gen Sports Car [The Detroit Bureau]
