Feb. 21, 2020
American Honda Auto Division Chief Arcangeli Steps Down
Henio Arcangeli Jr., senior vice president of the automobile division at American Honda Motor Co., is stepping down at the end of the month after spending fewer than three years at the automaker. Automotive News reports that Shinji Aoyama, president and CEO of American Honda Motor Co. and Honda North America Inc., will concurrently serve as head of the auto sales business unit. A company spokesman said Arcangeli resigned and planned to spend more time with family. The year he joined the company, combined U.S. Honda and Acura sales peaked at 1,641,429. Last year, they remained near that level at 1,608,170 cars and light vehicles, a 0.2 percent increase over the previous year, outpacing the U.S. industry’s 1.2 percent decline. Arcangeli was the keynote speaker at AIADA’s annual luncheon earlier this week, and he spoke at American Honda’s make meeting, telling dealers that Honda plans refreshed and redesigned products, additional support for certified pre-owned sales, and a commitment to dealer profitability, which rose 6 percent on average last year. For the full story, click here.
U.S. Dealership Census Drops for First Time in Six Years
The number of U.S. new-vehicle dealerships fell from 18,294 in 2018 to 18,195 at the start of 2020, marking the first decline since 2013, according to the annual Automotive Franchise Activity Report. U.S. dealership throughput, the average number of new-vehicles sales per dealership, also fell, to 940 in 2019, a decrease of eight units from 2018, according to the report produced by research firm Urban Science. That 0.5 percent decrease "is small and still indicates continued stability overall," the report said. According to Automotive News, California posted the biggest decrease in dealerships in 2019, down 28 to 1,478, followed by Illinois with nine fewer, and Ohio and Missouri with seven fewer each. Texas saw the most growth, with 11 new dealerships in 2019, followed by North Carolina with four, and Pennsylvania and Tennessee with three new dealerships each. The report found that 96 percent of the U.S. dealership networks showed virtually no net change. For more on where dealerships are appearing and disappearing, click here.
Subscription Service Lets Users Drive a Different Nissan Every Day
Nissan is launching a test program of its subscription service, Nissan Switch, in Houston. Car and Driver reports that the service has two tiers and starts at $699 a month. It allows subscribers to switch cars every day and covers insurance and scheduled-maintenance costs. The subscription service is something other manufacturers have been launching in recent years, with varied success. The on-demand service has two tiers, Select and Premium, which cost $699 a month and $899 a month, respectively. After paying a $499 activation fee, subscribers are allowed to pick any of the vehicles available in each tier, with the ability to switch vehicles as often as daily. The monthly fee includes unlimited vehicle swaps, delivery, insurance, roadside assistance, and regular maintenance. Nissan business development VP Andrew Tavi commented in a press release that Nissan Switch is intended to be a "solution" for people who want "a sedan during the week and an SUV or sports car, like the GT-R, on the weekends." Click here for the full story, including what models are included at the different subscription levels.
Coronavirus Exposes Auto Industry’s Lack of Plan B
Inadequate backup plans and limited supply chains have put the automotive industry in an especially tenuous position for surviving the ongoing coronavirus outbreak. Should the situation extend close to the first day of spring, the effects of that lack of preparedness could become especially acute, reports Forbes. China accounts for more than $40 billion in auto parts production, with almost $20 billion to U.S. or U.S.-based companies, according to Razat Gaurav, CEO of Ann Arbor, Mich.-based Llamasoft, which uses data to advise automakers and suppliers on supply chain strategies. “Come mid-March, if we’re still in the same boat there’s going to create shortages in a wide range of industries,” said Gaurav in a phone interview. While most companies have what Gaurav calls “buffer” inventories to tide them for short disruptions, within the next month those backup supplies could run dry. The result, he predicts, is a reconsideration of priorities. For more on the tradeoffs manufacturers may be forced to make, click here.
Why the 2020 Honda Civic Type R's Slight Price Increase Is Entirely Justified
We don't get many front-drive hot hatches here in the U.S., but with the Type R, reports Motor Trend, we get one of the best in the world, a thrilling pocket rocket with one of the most accomplished front-drive chassis in the business. Honda has updated the Civic Type R for the 2020 model year with a host of detail changes designed to make it not only even more fun to drive but also easier to live with. And the good news is that at $37,950, only $695 more than the previous model, it's still a bargain state-of-the-art performance car. Click here to see it. In addition to hardware upgrades, the 2020 Civic Type R, which arrives in U.S. Honda dealerships later this month, also debuts a startling new color, Boost Blue, and an app-based data-logging system, Honda LogR, to help drivers keep track of their own performance behind the wheel. For the full review, click here.
Around the Web
Ranking The 15 Worst SUVs Of All Time [The Things]
These Chinese Car Brands Are Racing to Get to the U.S. First [Automobile Mag]
The FIA's Hypercar Class Is Imploding [Jalopnik]
'No Time To Die' Video Features New Land Rover Defenders in Thrilling Chase Scene [Maxim]
