Dec. 6, 2019
Beltway Talk Podcast: November Sales Review with Cox Automotive's Charlie Chesbrough
Cox Automotive's Charlie Chesbrough is joining AIADA's Beltway Talk podcast for his monthly round up of auto industry sales figures. In this episode, find out who is up and who is down in the U.S. auto market, as well as how incentives are playing a role, where fleet sales stand, and why dealers should be optimistic heading into the final weeks of 2019. Listen in and subscribe to AIADA's Beltway Talk podcast by clicking here.
Toyota, Lexus Adjust Auto Show Strategy to Aim at Consumers
Toyota and Lexus will remain active in auto shows around the U.S. but aim their displays and their spending more directly at consumers and less at the media, brand leaders told Automotive News on Thursday. "We are making adjustments," said Bob Carter, head of sales for Toyota Motor North America. "Auto shows are still a critical part of the business, and they're critical from a consumer perspective. Most buyers — 35 percent of the people who are going to buy a car in the next 12 months — stop by an auto show. It's a very important place to communicate." Carter said he was "shocked" by Mercedes-Benz's decision to skip the 2020 New York auto show, given the size of the market and its importance to the luxury segment. He said Lexus and Toyota would continue to have a presence in New York and other large and regional shows, but that the automaker may aim its marketing dollars more at experiential marketing at the shows — including ride-and-drives at auto shows — instead of press conferences. For more on Toyota’s plans, click here.
Auto Execs Controlling What They Can When it comes to Trump’s Trade War
As President Donald Trump potentially delays a new trade deal with China until after the 2020 election, the automotive industry isn’t expected to make any knee-jerk reactions. Since Trump was elected, automakers have had to walk a fine line when it comes to business decisions and how to react to his tweets, unexpected comments and, many times, attacks. Automakers sold roughly 28 million automobiles in China in 2018, compared with about 17 million in the U.S. — the second-largest auto market. Several auto executives during the L.A. Auto Show last month told CNBC that they are controlling what they can when it comes to the Trump administration’s trade war with China, tariffs, and other political and regulatory uncertainties. “To be honest, I don’t really worry much because I can’t influence it,” said Daniel Weissland, president of Audi of America. “I think as a company you always need to be ready to react. Things can change within days, easily, and we see that almost every day. So, I think you need to have a certain flexibility.” For more from auto execs, click here.
Volkswagen Group Names New Design Chief
The Volkswagen Group on Thursday named Klaus Bischoff as its new design chief. According to Motor Authority, Bischoff has been with the automaker since 1989 and since 2007 has been in charge of design for passenger cars at the Volkswagen brand. He starts his new role at the top of the design ladder on April 1, 2020. In his new role, Bischoff will be responsible for design across VW Group's diverse range of brands. Fortunately, he has plenty of experience, having been in charge of exterior, interior and concept car design departments throughout his career. Bischoff replaces Michael Mauer, who has been filling in since famed designer Walter Maria de Silva stepped down from the role in late 2015. Mauer has been heading the design teams at both VW Group and the Porsche brand and now will concentrate his efforts once again at Porsche. Replacing Bischoff in the head design role at the VW brand is Jozef Kaban, the man responsible for the exterior of the Bugatti Veyron. For the full story, click here.
Most Polled Auto Dealers Say They Fluctuate Parts Pricing
A study indicates car dealers price auto collision parts like they price vehicles: It varies. Just like a vehicle price can go up and down depending on factors such as time of month, parts prices often are adjusted for various reasons. According to Wards, a survey of 337 franchised auto dealerships revealed that 85 percent using online platforms for pricing and procuring collision parts report they vary pricing to match local conditions, expand geographical market, and become more competitive. They also say they employ conquest-style pricing on more parts, even without manufacturer support programs. Dealers who utilize flexible pricing report a “win” rate of 55 percent on their quotes compared with 41 percent for dealers who stick with fixed prices. For more, including why dealers say they allow discretion in pricing quotes, click here.
Around the Web
What it’s Like to Drive 300 mph, From the Guy Who Did It [Detroit News]
Nissan Still Hasn't Sold All 50 Of Its Radical GT-R50 [Jalopnik]
China-Built Tesla Cars Secure New Energy Vehicle Subsidies [Reuters]
'More to Come' on Hoffa Disappearance, US Attorney Says [Detroit Free Press]
