Senate Approves NAFTA Replacement
The U.S. Senate on Thursday approved President Donald Trump’s replacement for the North American Free Trade Agreement. But it remains to be seen if the pact will force enough changes to shift production of vehicles from Mexico to the United States. The Detroit News reports that the U.S. Senate approved the United States-Canada-Mexico Agreement by vote of 89-10. Under the USMCA, automakers will have to produce cars with 75% of parts originating from the U.S., Canada or Mexico to qualify for duty-free treatment. The requirement, referred to as “rules of origin,” is an increase from 62.5% under current NAFTA rules. In addition, 40-45% of an auto's content must be made by workers earning at least $16 per hour. Vehicles not meeting the requirements will be subject to a 2.5% duty. “Passage of USMCA puts an end to the cloud of uncertainty dealers have been operating under for nearly two years,” said AIADA President and CEO Cody Lusk. “Once it is signed by the president, and its rules pertaining to autos are finalized, this agreement should provide a framework under which the auto industry in America can continue to grow. Today’s vote is a vote for stability and security for America’s auto dealers and their customers.” Read more here.
Lebanon Pressed Ghosn to Not Accuse Specific Japanese Government Officials
Lebanon asked Carlos Ghosn not to identify Japanese government officials in his internationally televised news conference last week, where the fallen auto executive lashed out against Nissan Motor Co. and those he says were behind a plot to have him arrested for financial crimes, people familiar with the matter told Bloomberg. Automotive News reports that the Lebanese government, pushed by Japanese diplomats, exerted pressure on Ghosn before he spoke to reporters on Jan. 8 in Beirut so that he wouldn’t divulge names or the details of how he escaped Japan, said the people, asking not to be identified given the sensitivity of the issue. Lebanon agreed to talk to Ghosn as a way of maintaining good diplomatic relations with Japan, they said. Ghosn intended to name names in the government but understood and agreed to stay quiet, according to the people. The former chief of Renault SA and its alliance with Nissan and Mitsubishi Motors Corp. blames his arrest and prosecution in Japan in 2018 on a conspiracy between the Yokohama-based automaker and the government. Read more here.
Nissan Recalls Nearly 308K Vehicles to Replace Dangerous Takata Airbag Inflators
Nissan is recalling nearly 308,000 vehicles in the U.S. to replace dangerous Takata air bag inflators that can explode and hurl shrapnel, reports The Detroit Free Press. The Nissan front passenger inflators are among 10 million from 14 different automakers that Takata is recalling. It's the last recall that the bankrupt Takata agreed to in a 2015 settlement with U.S. safety regulators. The Nissan recall covers certain 2001 through 2003 Maximas, 2002 through 2006 Sentras, 2002 through 2004 Pathfinders, and 2007 through 2011 Versas. Also included are 2001 through 2004 Infiniti I30 and I35s, 2002 through 2003 QX4s, 2003 through 2008 FX35 and FX45s and 2006 through 2010 M35 and M45s. Dealers will replace the inflators starting Feb. 10. Read more here.
Fiat Chrysler, Foxconn Team Up for Electric Vehicles
Fiat Chrysler Automobiles plans to develop electric vehicles with contract-electronics giant Foxconn Technology Group, according to a regulatory filing, as the Italian-American auto maker looks to make up ground in the market for battery-powered cars. The Wall Street Journal reports that Foxconn said in a filing in Taiwan on Thursday that it is establishing a joint venture with Fiat Chrysler to develop and produce electric vehicles as well as operate internet-connected vehicles. Foxconn’s ownership in the joint venture would be 40% or less, the Taiwan-based company said. For Foxconn, the move comes as it seeks to expand beyond electronics and boost profitability. Formally known as Hon Hai Precision Industry Co., Foxconn is the main assembler of Apple Inc.’s iPhones, sales of which have been slowing as customers hold on to smartphones longer and competition heats up from Chinese cellphone makers. The tie-up with Foxconn could boost Fiat Chrysler’s efforts to sell electric vehicles in China, where global car companies are pouring investment into battery-powered cars to meet government regulations. Read more here.
CFPB Taps Auto Legal Expert for Consumer Finance Task Force
The Consumer Financial Protection Bureau selected Hudson Cook attorney Jean Noonan to serve on a four-member task force to examine federal consumer finance laws, reports Automotive News. The task force, which will report directly to CFPB Director Kathleen Kraninger, is seeking ways to harmonize laws surrounding consumer finance, identify gaps in borrowers' knowledge of consumer financial laws, and educate shoppers on financial markets and products. "It is a true honor to participate in this historic undertaking by the Bureau," Noonan said in a statement. "I look forward to collaborating with the other members of the Taskforce who share my deep interest and experience in the field to help the Bureau to enhance and fortify our consumer financial laws and regulations." Jean Noonan, a partner at notable auto dealer law firm Hudson Cook, will serve on the Consumer Financial Protection Bureau's four-member task force charged with examining federal consumer finance laws. Read more here.
Webinar: From Search to Sold | How your online reputation can aid your customer's journey
The customer journey is evolving. "Dealership near me" searches have become the norm. Technology has played a huge part in that. Customers look to the top results in Google and trust reviews as much as a friend's recommendation. Join AIADA's AutoTalk on Tuesday, January 21st at 2:00 p.m. EST to hear Cam Hale, Director of Sales at Podium, discuss:
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What happens after you've been found?
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How easy is it for a customer to connect with your dealership?
Customers demand convenience, and businesses that don't adapt will be left behind.
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