Beltway Talk Podcast: Volkswagen Sees Retailers as Industry "Champions
The newest episode of Beltway Talk features Anna Schneider, Senior Vice President, Industry-Government Relations and head of Public Affairs for Volkswagen Group of America. She discusses Volkswagen’s wild year (and role as a major mask-producer in 2020), what she needs the Biden administration to understand about international auto manufacturers, and what’s coming for VW’s dealers in 2021 and beyond. Listen in here.
Renault CEO Warns Semiconductor Crunch Will Ripple Through 2022
Renault CEO Luca de Meo said the effects of the global semiconductor shortage will be felt through next year, a warning that doesn’t bode well for a recovery in auto production, reports Automotive News. Major suppliers have cautioned Renault that the shortage is "a structural thing that will be with us through 2022," de Meo said Wednesday on the sidelines of a French parliamentary hearing. "There will be tension in the system even if production capacity is improving," he said. "We have managed in the first half, but of course we have lost volumes," de Meo said. What is frustrating for the industry is that visibility on supplies "changes every week," he said. De Meo's comments indicate the supply crunch, which many automakers including Renault expected to peak during the second quarter, could continue to weigh on auto output for longer. Read more here (Source: The Detroit Bureau).
Borrowing is Back as Sign-Ups for Auto Loans, Credit Cards Hit Records
Americans are borrowing again, in some cases at levels not seen in more than a decade, reports The Wall Street Journal. Consumer demand for auto loans and leases, general-purpose credit cards, and personal loans was up 39% in April compared with the same period last year, according to credit-reporting firm Equifax Inc. It was also up 11% compared with April 2019, according to Equifax, which measured how often lenders checked consumers’ credit reports to make loan decisions. Lenders are meeting the moment. Equifax said lenders extended a record number of auto loans and leases in March, the latest month for which data are available. They also bumped up credit-card originations, issuing more general-purpose credit cards than any other March on record. It is quite the reversal from 2020, when many people shunned credit cards, personal loans, and other types of debt. Read more here (Source: WSJ).
Your Next Car May Anticipate Your Needs – And Let You Add Features on the Fly
The next time you buy a car and fret about whether or not to splurge on that snazzy new feature, fear not: Chances are you’ll be able to download it later, reports The Wall Street Journal. In the past, the ordeal of deciding which features you could afford and which you could live without may have been painful and time-consuming, mainly because you would be stuck with whatever suite of options you chose until the time came to buy another car. Those days are quickly fading as cars morph from vehicles to get around town to artificial intelligence-enabled, smartphone-like connected devices packed with software for work and play. In the near future, cars won’t only be able to constantly update and adapt to situations months and years after the time of purchase, they will be able to use AI to anticipate the needs of drivers and passengers and tailor their offerings accordingly. This also has the potential to create a new business model for automakers, with car owners paying on-demand fees or monthly subscriptions to get access to new features. Read more here (Source: WSJ).
America's Top 10: The Bestselling Vehicles in the United States
With the first half of the year now in the history books, it’s interesting to note that while the Pandemic changed much in Americans’ lives, it did little to change their automotive preferences, reports The Detroit Bureau. Toyota nabbed four of the ten most popular vehicles, Honda two. Nissan, GM, Ford and Stellantis round out the list. Notably, the list mirrors the current new car market, with cars accounting for 30% of the slots, with the remainder consisting of trucks and SUVs. Check out the full list here (Source: The Detroit Bureau).
Around the Web
New Bill for EV Tax Credits is Seriously Flawed [CarBuzz]
Out of Control Car Prices Are Real and Cutting Into Sales [Jalopnik]
Flying Cars Are Real. One Just Completed a 35-Minute Test Flight. [USA Today]
