Trump Says Tariffs on $200B of Chinese Goods Will Increase to 25%
President Donald Trump said Sunday that tariffs on $200 billion of Chinese goods will increase to 25 percent on Friday, despite repeated claims by the administration in recent weeks that trade talks with Beijing were going well, reports CNBC. The tariff rate on those goods was originally set at 10 percent. Trump had initially threatened to increase the tariffs at the start of the year, but postponed that decision after China and the U.S. agreed to sit down for trade talks. In addition, Trump threatened to impose 25 percent tariffs on an additional $325 billion of Chinese goods “shortly.” The president said that trade talks with China are continuing, but are moving too slowly as Beijing tries to re-negotiate. The U.S. imports goods from China totaling $539.5 billion and the trade deficit stood at $419.2 billion in 2018, according to the Office of the U.S. Trade Representative. If Trump follows through with his threats, virtually all goods imported from China to the U.S. would face some sort of tariff. Read more here.
Pickup Sales Approach New Highs
Has the U.S. reached peak pickup? According to Automotive News, it's a question on the minds of industry executives and dealers as sales plateau and automakers — specifically the Detroit 3 — expand or update their pickup offerings to keep hauling in big profits. Profits from pickups are essential for the Detroit 3 to fuel the sizable investments they're making in new technologies such as autonomous and electrified vehicles. Fewer pickups sold in the coming years would hinder their ability to prepare for radical changes disrupting the industry in the future. IHS Markit's principal automotive analyst, Stephanie Brinley, argues the question isn't whether the industry has reached "peak truck" but rather "sustainable truck, and is that level sustainable? And for how long?" Despite sharp declines for cars, light-duty pickup sales have increased 36 percent since 2013 and could reach record levels this year. That compares with an 11 percent increase for the overall industry during that time. Read more here.
Sedans Ain't Dead, and Some of Them Are Sweet Deals
Relax, America. Nobody’s going to take your sedans away. In fact, there are some great deals to be had on very good cars, thanks in no small part to the surge in SUV sales. There’s been confusion about this since Ford announced it will stop building and selling sedans and station wagons in the United States. The Detroit Free Press reports that consumers can get a terrific sedan for thousands of dollars less than a similarly equipped small SUV. Honda, Nissan, Toyota and Hyundai aren’t about to stop building cars because they sell big numbers and their cars have a reputation that allows them to charge more than Ford and Chevy can, even if it’s not as much as all leading automakers can all charge for small SUVs. Read more about the best sedan deals on the market by clicking here.
Tate's Auto Group Toppled by Financial, Legal Troubles
After years of financial problems, battles with lenders and accusations of deceptive business practices culminated in a March bankruptcy filing, a troubled Southwest dealership group has closed. Automotive News reports that Tate's Auto Group was trying to continue operating while it sought a buyer for its four stores in Arizona and New Mexico. But with a federal bankruptcy judge poised to cut off the cash it was using to stay in business, the retailer laid off employees and shuttered its stores the last week of April. The dealership group's lenders are seeking nearly $30 million and the Federal Trade Commission is accusing it of taking advantage of Native American customers. Tate's Auto co-owner Richard Berry, who had denied the FTC accusations, said in an email to Automotive News last week that the court actions came as a surprise. "We submitted a plan and had been operating profitably during the reorganization period. We had sought only 60-90 days," Berry wrote in the email. "In the end — in spite of the millions of dollars we put back into the company in 2018 to keep it going it just wasn't enough." Read more here.
The 7 Best Used Cars to Buy
There's an old adage that a new car loses 10 percent of its value the moment its first owner drives it off the lot. In fact, according to CARFAX research, that 10 percent depreciation occurs over the first month after the sale. And over the course of its first year, a new car will lose about 20 percent of its overall value. This rapid devaluation is bad news for new car owners, but welcome news to the used car buyer. Business Insider is featuring a list of the best used cars for consumers, including the Hyundai Sonata, Kia Rio, and Toyota Corolla. Click here to see seven of the best used cars you can buy.
Webinar: Let Go and Let Google
Join Google's Senior Automotive Retail Strategist, Kelly McNearney, on Tuesday, May 21st at 2:00pm EDT as she demonstrates how to drive more dealership visits using Google machine learning. Kelly will discuss how dealers need to "let go" of traditional marketing and "let Google" use advanced algorithms, machine learning and data to bring their business into the digital age. To register, click here.
Around the Web
Audi Not Giving Up on Fuel Cells, New Prototype Coming This Year [MotorAuthority]
BMW Preparing 5 Series Carbon Edition [Autoblog]
Here's What Happens When You Bring Back BMW's V-10 M Cars Together on Track [Road and Track]
States Where You're Most Likely to Get a Speeding Ticket [USA Today]
