Jan. 23, 2019
Auto Investors Should Buckle Up for Tariff Threats
It hasn’t been an easy six months for auto investors, but one thing they haven’t had to worry about is President Trump threatening a 25 percent tax on imported cars. According to the Wall Street Journal, that may be about to change as trade talks between the U.S. and the European Union shift up a gear. The EU on Friday unveiled its starting point for negotiations, the U.S. having published its ambitions earlier this month. The White House agreed not to levy any more tariffs on EU products during the talks. It has a similar understanding with Japan, with which President Trump is also pursuing a trade deal. But the U.S. and EU negotiating positions look uncomfortably far apart. President Trump is due to decide next month whether to impose a 25 percent tariff on imported cars on national security grounds. He seems likely to find some way to draw the threat out and dangle it over the coming EU trade negotiations. Auto investors should buckle up for a bumpy ride. For the full report on what’s a stake, click here.
Ghosn Agrees to Resign as Renault Chairman and CEO, Reports Say
Renault Chairman and CEO Carlos Ghosn has agreed to resign his posts, reports said, ahead of a meeting of the board Thursday to discuss how to replace the embattled executive. Automotive News reports that the Renault board is preparing to name new leadership as it negotiates with Ghosn over the terms of his departure. Renault board members and Ghosn’s legal team are reviewing issues including his non-competition agreement and pension benefits, Bloomberg reported. Ghosn is ready to resign under the right conditions, a source said. A spokeswoman for the Ghosn family declined to comment. Renault confirmed that an emergency board meeting was planned for Thursday, but a spokesman did not respond to questions about its agenda or Ghosn's replacement. The board will consider the proposed appointment of outgoing Michelin CEO Jean-Dominique Senard, 65, as chairman and the promotion of Ghosn's deputy Thierry Bollore, 55, to CEO, three sources said. For more on what’s ahead for Carlos Ghosn, click here.
TrueCar’s No-Haggle Promise Meets a Chorus of Grumbles
When it was time for Abbi Vakil, a hardware engineer in Silicon Valley, to replace his car, he turned to a company he saw as a tech disrupter, TrueCar. From its ads, he expected the service to help him find a car at the lowest price and without negotiation. “TrueCar advertised all over the place,” he told the New York Times, “so I thought I’d plug everything into TrueCar.” But what Mr. Vakil experienced, he said, was not what the ads promised. Before he could see prices for a BMW i3 and a Chevy Volt, he had to share his contact information with TrueCar, resulting in calls from seven dealerships, he said, initiating the very haggling he had hoped to avoid. And then there was the price. Ultimately, he leased a Volt for a lower monthly payment than the TrueCar guaranteed price. “I saved about 60 bucks a month — it’s a meal,” he said. A study from a nonprofit consumer group and a lawsuit in federal court against TrueCar, as well as myriad complaints on Twitter and web forums, suggest that Mr. Vikal’s experience is not rare, and that shoppers as well as dealers say they have been let down by TrueCar’s service. For more on what dealers have experienced, click here.
These Are the Cars You're Most-Likely to Keep for 15 Years
If you’re thinking about buying a Toyota or Honda, choose wisely because there’s a good chance you’ll be driving it for a very long time. A new study conducted by used car marketplace iseecars.com found that 14 of the top 15 cars that the most original owners keep for 15 years or more were from the two Japanese brands, with the Subaru Forester sneaking onto the list to keep it interesting. Among the 750,000 1981-2003 model year cars sold last year that it looked at, a whopping 18.5 percent of Toyota Highlander owners had made it to the crystal anniversary, followed by the Prius at 16.2 percent and Sienna minivan at 16.1 percent. According to Fox News, Toyota, Honda and Subaru made up the top three brands that saw this kind of loyalty across their lineups, with Hyundai and Nissan rounding out the top five. Click here to see how the overall top 15 stacked up by percentage of 15-year owners, all well above the average of 7.5 percent.
Safety Advocates Urge U.S. to Clear the Way for Smarter Headlights
Many U.S. motorists are driving blind, and they probably don’t even realize it. The LA Times reports that their headlights rely on antiquated technology that fails to properly illuminate the roadway but manages to blind oncoming drivers. That could change, however, if the federal government allows a new generation of headlights on the road. Known as adaptive driving beam technology, or ADB, the systems use computers and light sensors to adjust the cone of light that enables the driver to see the road in front of the vehicle. With ADB, the headlamp can remain on high and its beam can remain focused on the roadway ahead. But the beam is also reshaped or dimmed to avoid creating glare for oncoming drivers. When one vehicle is trailing another, its ADB system can also detect the vehicle ahead and adjust the lights so as not to disturb the leading driver. It’s a step forward from automatic systems in use today that click between high beam and low beam. For more on what this technology could mean for drivers, click here.
AIADA Affinity Partner Happenings at 2019 NADA Convention
AIADA's Member Benefits Program is one of the most valuable services AIADA provides to its members. AIADA partners with best-in-class companies to provide members with exclusive values on the goods and services they need to succeed in a competitive business environment. While you're in San Francisco, make sure to check out AIADA's Affinity Partners. Click here for a quick reference guide on where to find them at NADA 2019!
Around the Web
2019 Honda Ridgeline AWD Black Edition First Test [Motor Trend]
This Lego 2019 Chevrolet Silverado 1500 Looks Just Like the Real Thing [Car & Driver]
All the Unusual Features You Look for When Buying a Car [Jalopnik]
Watch Honda Driver Masterfully Steer His Way Out Of A Crash Twice [Car Scoops]
