Fleet Gains Keep Sales Pace Above 17 Million
The numbers looked ugly, but U.S. auto sales weren't really that bad in September, considering hefty fleet volumes and a shift in the calendar, reports Automotive News. The industry's seasonally adjusted, annualized selling rate came in at an estimated 17.16 million, according to the Automotive News Data Center. That would be the fourth-highest level of 2019 so far and the strongest of the third quarter, even though volume declined for the first time since June, with September sales falling 12 percent to 1.3 million. Total sales in the third quarter were effectively flat, at 4.3 million. Cox Automotive Senior Economist Charlie Chesbrough said the strong growth rates the industry had in recent years have slowed. This suggests that affordability issues are deterring consumers, he said, because "they just aren't able to keep up with the market." Chesbrough joined AIADA’s Beltway Talk podcast last week to discuss sales figures. Listen here. Read more about September auto sales by clicking here.
VW in Talks to Share Its Electric Know-How
Volkswagen AG is in talks with other manufacturers on sharing the key technology underpinning its future Porsche and Audi electric car models, part of an effort to build scale and spread development costs, reports The Detroit News. “There’s definitely interest,” Ulrich Widmann, head of development at Audi for the joint engineering project, said at a press briefing in Munich. “We’re having conversations. Sharing technology to generate scale effects is the only way to achieve the turnaround in electric cars, both economically and ecologically.” Widmann declined to identify manufacturers who have shown interest in adopting the so-called PPE platform, which is being developed by Porsche and Audi as the basis for their purely battery-powered models starting in 2021. Read more here.
UAW Says GM Labor Talks 'Have Taken a Turn for the Worse'
CNBC reports that the United Auto Workers’ strike against General Motors could continue for the foreseeable future, as the union on Sunday said talks between the sides have “taken a turn for the worse.” UAW Vice President Terry Dittes, in a letter to members on Sunday, said the union plans to continue to negotiate but a Sunday morning proposal from GM was inadequate and “reverted back to their last rejected proposal and made little change.” The offer, he said, was a counter proposal from an “extensive package” the union provided to the automaker on Saturday night. “The Company’s response did nothing to advance a whole host of issues that are important to you and your families!” Dittes wrote. “It did nothing to provide job security during the term of the Agreement.” GM, in response to the letter, said the company continues “to negotiate in good faith with very good proposals that benefit employees today and builds a stronger future for all of us. We are committed to continuing discussions around the clock to reach a resolution.” Read more here.
Ghosn Whistleblower Faces Pressure to Leave Nissan
Bloomberg reports that a central figure at Nissan Motor Co. who was instrumental in the downfall of former Chairman Carlos Ghosn and a key go-between in the automaker’s talks with partner Renault SA is under pressure to leave the company following a pay scandal. The push to oust Hari Nada, 55, which has the support of Renault, may lead to him being forced to resign and could come as soon as this Tuesday’s board meeting, the people said, asking not to be identified because the information isn’t public. He is cooperating with Japanese prosecutors under a plea-bargaining agreement in their case against Ghosn for financial crimes, people with knowledge of the matter have said. A lawyer who studied in the U.K. and Japan, Nada is a senior vice president at Nissan and worked in the chief executive’s office under Ghosn and his successor, Hiroto Saikawa. He was recently implicated in a scandal at the company involving excess stock-linked compensation, which led to Saikawa’s resignation last month. Nada is expected to be a key witness in Ghosn’s trial next year. Read more here (subscription required).
The 10 Cars Owners Ditch After Less Than a Year
Automotive research firm iSeeCars.com has compiled a list of the top ten cars most commonly resold as "used" within the first year of ownership. Business Insider reports that iSeeCars.com analyzed over 46 million new car sales from the 2014 to 2017 model years that were sold between July 2013 and December 2018. Eight out of ten on the list are German and British luxury cars. The other two are Nissans. The list tops off with the Mercedes-Benz C-Class: 12.4% are resold used within the first year. This is 3.7 times more than the average for all vehicles. On average, 3.4% of new vehicles are resold within the first year of ownership. The list also includes a BMW, two Land Rovers, a Mini, two BMWs, two Nissans, and a Jaguar. Check out the list of the most commonly resold cars within the first year of ownership here.
Webinar: 2020's Buy/Sell Market - Expectations and Predictions for Next Year
This year's buy/sell market is extremely active and valuations remain high. Join Erin Kerrigan of Kerrigan Advisors TOMORROW, Tuesday, October 8th at 2:00pm EDT as she discusses:
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2019's buy/sell activity
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Expectations and predictions for next year
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Franchise valuation expectations in 2020, particularly for import franchises
If you are looking to expand your group or expecting to sell next year, this is a webinar you will not want to miss! To register, click here.
Around the Web
Why Higher Trims on Used Cars Are Better Than on New Cars [Fox Business]
Driver's Ed for Robotaxis [CNN Business]
11 Vintage Cars That Make Good Investments [Business Insider]
Volvo, Geely to Merge Combustion Engine Operations [Reuters]
