Buy-Sell Action Likely to Rebound After Falloff
Automotive News reports that the number of dealership buy-sell transactions fell sharply in the second quarter from a year earlier, according to two publications that track the number of deals. Erin Kerrigan, managing director of Kerrigan Advisors, a sell-side firm in Irvine, Calif., that publishes the Blue Sky Report, said deals often take six to nine months to put together and close. Kerrigan thinks the sell-off in the stock market late last year and lower stock prices for the public auto retailers then were factors in the buy-sell slowdown. Her firm estimated 49 transactions — which could involve multiple stores in one deal — closed during the quarter. For the first half of 2019, 103 buy-sell deals closed, down nearly 10 percent from a year ago, according to the Blue Sky Report. Kerrigan expects the pace of transactions will lead to a sixth-consecutive 200-plus year. Read more here.
Gasoline Pump Prices in U.S. Set to Jump After Saudi Attack
The attack on an oil facility in Saudi Arabia that sent futures prices soaring Monday will likely begin filtering through to gas stations later this week, according to price tracker GasBuddy. The Detroit News reports that the average U.S. retail gasoline had risen just one cent a gallon since Sunday, even as futures on the New York Mercantile Exchange jumped as much as 20 cents on the back of drone strikes on Saudi oil production. The impact at the pump should start to become more pronounced late Tuesday or Wednesday, according to Patrick DeHaan, senior petroleum analyst at GasBuddy. That’s after gasoline distributors adjust prices to match gains in futures and regional spot markets. He said an increase of 15-30 cents per gallon in average U.S. pump prices is likely during the repairs in Saudi Arabia. Read more here.
Subaru Sells 10-Millionth Vehicle in America
The attack on an oil facility in Saudi Arabia that sent futures prices soaring Monday will likely begin filtering through to gas stations later this week, according to price tracker GasBuddy. The Detroit News reports that the average U.S. retail gasoline had risen just one cent a gallon since Sunday, even as futures on the New York Mercantile Exchange jumped as much as 20 cents on the back of drone strikes on Saudi oil production. The impact at the pump should start to become more pronounced late Tuesday or Wednesday, according to Patrick DeHaan, senior petroleum analyst at GasBuddy. That’s after gasoline distributors adjust prices to match gains in futures and regional spot markets. He said an increase of 15-30 cents per gallon in average U.S. pump prices is likely during the repairs in Saudi Arabia. Read more here.
EVs, Batteries Could Draw Bulk of $7B GM Pledge to UAW
A new family of electric vehicles, an all-electric pickup truck, and an advanced battery system could draw much of the $7 billion that General Motors has pledged to invest in the United States as parts of contract talks with the UAW, reports Automotive News. The automaker and the union were continuing talks late on Monday to resolve a strike by 48,000 hourly workers that shut down the company's highly profitable U.S. operations. GM said on Saturday it would make investments in eight facilities in four states, but did not specify timing, location or products other than the electric pickup and a battery cell plant. Much of that investment is likely earmarked for the production of electric vehicles at two Michigan plants and battery cells in Ohio, sources said. GM plans to begin building at least five new electric vehicles in the United States by 2023: two for Cadillac, one for Buick, and two for Chevrolet, including a replacement for the Bolt EV. Sources said all of those vehicles are likely to be assembled at GM's Orion Township plant north of Detroit. Read more here.
Details on Car Tariffs Fuzzy as U.S., Japan Head for Trade Deal
U.S. President Donald Trump has said Washington and Tokyo have reached an initial trade deal that he and Japanese Prime Minister Shinzo Abe are expected to sign in New York later this month. Full details of the agreement have not been disclosed, according to Reuters. Below are some key elements that are known - and unknown - about the pending agreement. Japanese officials from Abe on down have said that under a September 2018 agreement, the United States would not impose added auto tariffs while trade talks were under way. A preliminary deal announced on Aug. 25 included reduced U.S. tariffs on unspecified industrial products but Lighthizer said these did not include autos. Tokyo has sought removal of a U.S. 2.5% tariff on autos and auto parts. Read more here.
Webinar Today: Auto Market Trends & Outlook
Join AIADA’s AutoTalk today at 2:00pm EST as Jonathan Smoke, Cox Automotive's Chief Economist, reviews:
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Key economic and automotive market trends
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Latest forecasts
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Economic fundamentals and the impact key trends have on new and used car sales, including vehicle prices and affordability
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Wholesale market supply
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Auto loan rates
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Consumer credit access
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Ongoing trade concerns and the challenges impacting dealers
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