Trump Expected to Delay Auto Tariff Decision for 6 More Months
President Donald Trump is expected to announce this week that he is putting off a decision on whether to impose tariffs on European Union autos for another six months, a person familiar with the decision said. According to Politico, that would avoid a new bruising dispute with one of the United States' biggest trading partners, just as Trump is trying to put out another trade fire by striking an initial deal with China. But it would also set the stage for Trump to revisit the controversial trade issue in the throes of next year's presidential campaign. In May, Trump said the Commerce Department had determined that imports of autos and auto parts were a threat to national security. He instructed U.S. Trade Representative Robert Lighthizer to negotiate deals with both the EU and Japan to address the impairment and report back to him within 180 days on the progress. That deadline is on Wednesday. The person familiar with the decision cautioned there is always uncertainty surrounding Trump’s final determination when it comes to trades and tariffs. But barring some unforeseen development, the president is expected to announce another six-month delay, the person said. Read more here.
Mini Might Welcome Non-BMW Retailers
With one exception, all of Mini's 121 U.S. dealers are also BMW franchisees, reflecting BMW's desire to keep its small-car brand within the family. That could change now, reports Automotive News. Mini's new Americas boss, Michael Peyton, intends to take a more brand-agnostic approach with the line and says he is open to bringing non-BMW retailers into the house. "There's a new sheriff in town," proclaimed Peyton, 51, a former Ford and Harley-Davidson exec who took over as vice president of Mini of the Americas in July. When looking to expand, or replace an underperforming dealership, Peyton said he will seek the "best operator" in the market. A "handful" of non-BMW dealers have expressed interest in Mini franchises, he said. "For markets where Mini needs to perform better, I've got to make sure I'm looking at who the right operator is, regardless of what franchise they have," Peyton told Automotive News in his first media interview during an event last week at BMW's U.S. manufacturing plant. "If it's the BMW dealer that's the best dealer in the area, fantastic. But if the best dealer is with another brand, then it's OK to look at them as a potential operator." Read more here.
Nissan Profit Plunges 70% on Falling Sales, Foreign Exchange and Rising Costs
Nissan Motor Co. reported a 70 percent drop in operating profit in the latest quarter as falling sales, unfavorable foreign exchange rates, and rising costs undercut earnings, though the company said it is seeing improvements in North American performance. According to Automotive News, operating profit dropped to 30 billion yen ($278.0 million) in fiscal second quarter ended Sept. 30, the scandal-tainted Japanese automaker said Tuesday in its quarterly results. Net income fell by more than half to 59 billion yen ($546.8 million) in the July-September period. Nissan's revenue decreased 6.6 percent to 2.63 trillion yen ($24.4 billion) in the three months, and global retail volume declined 7.5 percent to 1.27 million vehicles. Read more here.
Ferrari CEO Races to Build Company's Brand
Louis Camilleri’s appointment as Ferrari NV’s chief executive in July last year surprised many, including himself. Fifteen months on, his imprint on the Italian luxury sports car maker is becoming evident, reports The Wall Street Journal. Mr. Camilleri is grappling with the rise of electric vehicles and the advance of autonomous-driving technology, while also seeking to return Ferrari’s storied Formula One racing team to success after a barren decade. On Monday, he laid out his plan to turn Ferrari into a luxury-goods brand that makes a range of products from apparel to leather accessories, a goal his predecessor, Sergio Marchionne, aspired to but failed to achieve. After Mr. Camilleri’s appointment following the death of Mr. Marchionne, many in the car industry assumed he was a placeholder until a true successor to the charismatic Mr. Marchionne could be found. Since taking over, the 64-year-old Mr. Camilleri has largely stayed out of the spotlight, shunning the media and commenting publicly about the business only during quarterly conference calls and once at the presentation of a new industrial plan. Read more here (subscription required).
Dealers and Auctions Cope with Industry-Wide Shortage of Service Technicians
Keeping his service departments running like a well-tuned engine has always been important to Bill Wallace, owner of Wallace Automotive Group in Stuart, Fla. But, reports Auto Remarketing, it takes on even more urgency now. New-car margins continue to be narrow, new-car sales are slowing and fierce competition for consumer dollars is putting even more pressure on Wallace and other franchise dealers to wring more profits out of their fixed operations. And it’s happening at a time when there is an industry-wide shortage of auto service technicians. It’s a part of retail automotive that is still profitable for franchise dealers, so it’s crucial that dealers get their share of that business, said Wallace, who sells 14 brands at 11 dealerships. That means “making sure your website information is clear, concise and intriguing and then delivering on that with a good product in terms of good service and taking care of people,” he said. Read more here.
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Around the Web
Mercedes-Maybach GLS to Debut at 2019 Guangzhou Auto Show [MotorAuthority]
2021 Kia Optima Revealed in K6 Form for South Korea [Autoblog]
Aston Martin is Producing Its First Motorcycle [USA Today]
Ford, UAW Revise Tentative Deal Giving Some Workers More Money [The Detroit Bureau]
