Porsche Adds Sporty Coupe to Cayenne Lineup

First Up 03/22/19

'Hope for the Best': How Alabama's Soaring Auto Industry Could Be Stifled by Trump Tariffs
Toyota is an economic powerhouse in Alabama, promising yet more hundreds of millions in new investment, reports AL.com. Donald Trump is a political darling among Alabama conservatives, and a heavy favorite to again win this deep red state in 2020. But these two titans could be on a collision course if uncertainty over a potential 25 percent tariff on foreign automobiles and auto parts isn’t resolved soon. Some Alabama lawmakers are already urging “patience” in the aftermath of Toyota North American executive Jim Lentz’s warning last week that the company could reconsider its planned $750 million investments in five Southern states if the tariff threats become reality. Lentz’s bracing words come as automakers around the U.S. continue to deal with last year’s 25 percent tariff on imported steel and 10 percent tariff on aluminum. Those tariffs have cost Ford and General Motors $1 billion each, and one analyst predicts Ohio would go into a recession if auto tariffs are added. Read more here. 

Take action on this serious tariff threat to our industry by attending AIADA's Fly-In on April 9-10 in Washington, D.C. Find out more and register by clicking here.

Volvo CEO Predicts Huge Increase in Plug-In Hybrid Vehicle Sales
Volvo expects a huge increase in sales of its plug-in hybrid vehicles by year-end after underestimating demand for its growing family of electrified models, reports Automotive News. “By the end of the year we should be up to 20 to 25 percent,” Volvo CEO Hakan Samuelsson said during a roundtable discussion with journalists this week. In the model lines where plug-in hybrids are currently available, this includes the XC90 and XC60 SUVs and the V90 and V60 station wagons, those variants account for about 10 percent to 15 percent of Volvo's global sales. Volvo didn’t have enough batteries, electric motors, and the other key components needed to make its plug-in hybrids, Samuelsson said. “We are not happy because we could sell more [plug-in hybrids],” he said. “We underestimated the demand.” Samuelsson said Volvo is currently “ramping up all the components” it needs to produce its plug-in hybrids -- as well as its recently added family of mild hybrid powertrains. Read more here. 

Feds Investigate UAW 'Flower Funds' in Corruption Probe
Federal agents are investigating whether senior United Auto Workers staff were forced to contribute money to funds originally established to buy flowers for auto workers' funerals, and whether union executives pocketed the cash, The Detroit News has learned. Investigators are questioning whether UAW leaders threatened to send high-level staffers back to the assembly line if they failed to contribute to so-called flower funds controlled by union presidents, vice presidents, and regional directors, three sources familiar with the investigation said. The investigation, one of several avenues being pursued in an ongoing probe of corruption within the U.S. auto industry, is the latest inquiry by the government into secretive, loosely regulated pots of money controlled by union leaders. Read more here. 

Porsche Adds Sporty Coupe to Cayenne Lineup
According to Automotive News, Porsche aims to reignite sales of the popular Cayenne crossover with a sportier coupe variant that will square off against the Mercedes-Benz GLE Coupe and the BMW X6. The German automaker hopes to lure the sport-ute crowd and boost profitability with what it refers to as the "sportiest-looking model in the segment." Porsche Chairman Oliver Blume, in a statement Thursday, calls the Cayenne Coupe "more progressive, athletic, and emotional.” The Cayenne Coupe is expected in U.S. showrooms this fall. It will start at $76,550, including $1,250 for shipping. The Cayenne Turbo Coupe will start at $131,350, including shipping. Both Cayenne Coupe models are priced higher than the standard Cayenne. The Cayenne Coupe is a competitive response to similar coupe-crossovers from Audi, BMW, and Mercedes-Benz. BMW created the coupe-crossover segment with the X6. Read more here. 

Ford Names Former Snap, Amazon Exec Tim Stone as Financial Chief
Ford has hired Tim Stone, the chief financial officer from social media company Snap, to replace current CFO Bob Shanks, who is retiring at the end of 2019, the company said Thursday. CNBC reports that Stone started as CFO at Snap in May 2018, according to his LinkedIn page. Before that he was a 20 year veteran of Amazon. Given the continued integration of tech and the auto industry, hiring someone with tech and finance expertise like Stone has looks like a good move for Ford. GM is partnering with Amazon via GM's OnStar service and perhaps Stone can help Ford have more ties to Amazon and other tech firms over time. Ford shares were flat in premarket trading Thursday. The automaker's stock price has sunk more than 22 percent in the last 12 months, but climbed 11 percent since the beginning of the year. Read more here. 

Around the Web

BMW Plans 12 All-Electric Models by 2025 [Green Car Reports]

Best Compact SUVs for the Money in 2019 [Road Show]

Best Luxury Cars and SUVs [Consumer Reports]

Toyota's Next Big Vehicle is Over the Moon [USA Today]

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