Chairman's Blog: One Year In – And No Sign of an Auto Tariff Resolution
AIADA Chairman Howard Hakes writes in this week's Hakes’ Takes blog post that while new tariffs on Chinese goods, which will indeed the auto sector, are in the spotlight this week, those of us in the auto industry are still carefully watching another trade crisis unfold: This week, we will hit the 90 day mark from when the Department of Commerce submitted to the White House the results of its national security investigation into imported autos and auto parts. Thanks to the hard work of dealers who attended our AIADA fly-in last month and urged their legislators to sign onto a letter condemning the 232 tariffs, last week 159 Members of Congress sent a bipartisan letter to Economic Policy Council Director Larry Kudlow, urging the Administration not to damage the auto industry and the U.S. economy by imposing harmful tariffs. For this upcoming anniversary of the (insulting) national security investigation into our products, dealers want, and deserve, official acknowledgement that our stores and our products are NO threat to the American way of life. We need a commitment from President Trump that auto tariffs - a massive tax hike on Americans looking for safe transportation – are off the table. That would be the best anniversary gift of all. Read more here.
Tim Scott Warns White House is Playing 'Russian Roulette' with Auto Tariffs in S.C.
The Trump administration is “playing a game of Russian Roulette” with potential plans to impose steep tariffs on imported cars and auto parts, says U.S. Sen. Tim Scott, a South Carolina Republican who said he fears the tariffs would hurt his state. According to McClatchy DC, Scott said he believes President Donald Trump has used some economic sanctions “artfully.” But as part of a meeting with a small group of Republican senators at the White House last week, Scott said he told the president directly that slapping tariffs of up to 25 percent on imported cars and parts from Europe could “ultimately harm South Carolina’s economy.” Trump is set to decide soon, possibly in a matter of days, whether to impose these tariffs under so-called “Section 232 authority,” which he and members of his economic team believe could motivate international partners to come to the table and agree to a better trade deal for the United States. Read more here.
German Auto Sector Could Drop as Much as 12% if Trump Announces Tariffs, Analyst Says
Germany’s automotive sector could fall as much as 12 percent over “three bad trading days,” if President Donald Trump imposes tariffs on European car manufacturers, one analyst told CNBC. Trump has until Friday midnight (Washington time) to decide whether to impose duties on car imports. This would likely hurt Germany, the EU’s traditional growth engine, given that it is one of the largest direct car exporters to the U.S. The German stock market could fall as much as 6 percent and its automobile and components sector, specifically, could see losses of up to 12 percent, according to Christoph Schon, executive director of Axioma, a risk management solutions provider. He told CNBC over the phone that the losses could happen over a period of three trading days, or over five to 10 sessions. Read more here.
Nissan Plans to Retrench in Post-Ghosn Era
Nissan Motor Co. Chief Executive Hiroto Saikawa laid out his vision for the company without Carlos Ghosn, its ousted former chairman, including a grim outlook for the current year, reports The Wall Street Journal. The company’s operating margin, a measure of how much money it makes selling cars, is expected to fall to 2 percent in the year ending March 2020—the lowest level in a decade. U.S. sales are expected to fall sharply for the second year in a row as Nissan chooses to sell fewer vehicles and trim production of pickup trucks in the U.S., although that is one of the hottest-selling vehicle segments in the U.S. Mr. Saikawa said Tuesday at a news conference that the steps were necessary to undo the legacy left by Mr. Ghosn, who was arrested on Nov. 19 and charged with financial crimes. He says he is innocent and is awaiting trial while living in a house in central Tokyo. Read more here.
These Are the Deadliest Cars on the Road
Vehicular safety remains a paramount concern among car shoppers, and with good reason. According to the Insurance Institute for Highway Safety (IIHS), 34,247 fatal motor vehicle crashes occurred in the U.S. during 2017, claiming 37,133 lives. That comes to 11.4 deaths per 100,000 people. And that’s despite every new vehicle being equipped with at least half a dozen airbags and with growing availability of high-tech accident avoidance systems. As it turns out, some vehicles are historically responsible for more highway carnage than others. Forbes is listing the 14 vehicles from the 2013-2017 model years at the end of this post that suffer the highest fatality rates in the industry, as compiled by the car-search website iSeeCars.com, based on data from the U.S. Department of Transportation's Fatality Analysis Reporting System. They’re each at least two times as likely as the average auto to be involved in a deadly accident. Read more here.
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