Chairman's Blog: Partners United
It’s that time of year again – national dealer meeting season – writes AIADA Chairman Howard Hakes in his latest Hakes Takes blog. A couple of weeks ago he was in Las Vegas for Toyota’s annual national dealer meeting where the true highlight was being reminded of what bonds dealers and manufacturers together: a dedication to our customers and to our products. With robust brand partnerships in mind, Hakes recommends you check out the recently launched AutoFuture.org. The site highlights the strong relationship between dealers and Japanese brand manufacturers, and shows clearly how positive an impact we have on America’s economy when viewed as vital components of one giant industry instead of isolated pieces. AIADA has long viewed our manufacturer partners as allies in our mission to preserve and promote dealer interests in Washington, D.C. Moving forward, we must continue to collaborate on the big issues that unite us, and in so doing secure our future as job creators, revenue generators, and sources of the vehicles American customers want to drive. Read the rest of Hakes’ latest blog post here.
UAW, GM Dig in for Long Haul
The UAW's last national strike against General Motors was over so fast that workers barely had time to ponder the consequences of missed pay, and minimal production losses were quickly made up. But this time, with no quick resolution, both sides spent last week digging in for what could become a battle of attrition between union members whose pay and insurance have been cut and an automaker whose dealer body and supplier network already have begun feeling squeezed, reports Automotive News. Most forecasters and Wall Street analysts agree it would take weeks, if not months, to truly dent GM's bottom line, even as the company loses an estimated $50 million to $100 million each day production is idled. Inventory levels, well above the industry average, can keep dealership lots full for the foreseeable future, but some dealers have voiced concern that parts shortages could soon cripple their service departments. Read more here.
U.S.-Japan Trade Talks Will Bring Peace of Mind to Farmers, Automakers
Reuters reports that Japanese foreign minister Toshimitsu Motegi said trade talks with the United States will bring peace of mind to farmers and automakers, according to an interview with public broadcaster NHK aired on Sunday ahead of a key bilateral meeting this week. Motegi handled talks with U.S. Trade Representative Robert Lighthizer under his previous role as economy minister and is expected to meet him ahead of a summit between U.S. President Donald Trump and Prime Minister Shinzo Abe. “(We) have been holding negotiations on the basis of trust,” Motegi told NHK in the interview. “I don’t have any worry at all about the things ahead.” Trump and Abe are expected to secure a deal on farm tariffs and digital trade when they meet in New York this week. Full details of the prospective trade agreement have not been disclosed. Read more here.
2020 NACTOY Vehicle of the Year Nominees Announced
Nominees for the 2020 Car, Utility and Truck of the Year Awards were announced Friday, and Detroit SUVs and pickups were heavily represented. As U.S. automakers abandon car segments, only one Detroiter is in the running for Car of the Year, but the mid-engine Chevy Corvette is the early front runner against a herd of international makes, reports The Detroit News. The trophy for best truck is sure to reside in the Motor City since all five semi-finalists are American-made: Chevrolet Silverado Heavy Duty, Ford Ranger, GMC Sierra Heavy Duty, Jeep Gladiator, and Ram Heavy Duty. In the utility category, nominees include: Audi E-Tron, Cadillac XT6, Chevrolet Blazer, Honda Passport, Kia Telluride, Hyundai Palisade, Subaru Outback, and Volvo V60 Cross Country. The NACTOY jury is made up of 50 independent journalists from print, online, radio, and broadcast media across the U.S. and Canada, including the author of this article. Read more here.
GM Buyers and Owners Could Soon Start Feeling Impact of UAW Strike
The strike against General Motors by 48,000 United Auto Workers Union members is set to enter its second week unless negotiators break through a series of reported logjams over the weekend, reports CNBC. The walkout is costly for both GM and the UAW, but the longer it drags on, the more likely it is to be felt by consumers, as well, both those looking to buy one of the automaker’s new products as well as owners of vehicles needing repairs. In the weeks leading up to the contract deadline, Detroit’s largest automaker beefed up production to help pad dealer inventory, industry analysts noted. But that will only carry things for so long, especially with high-demand models, as well as hot new products like the 2020 Chevrolet Corvette. Complicating matters, the closure of GM parts distribution warehouses is already posing problems, especially for owners needing collision and recall repairs. Read more here.
Around the Web
Is Nissan About to Reveal the Electric Car Everyone Really Wants? [Gear Patrol]
Why Americans Don't Buy Electric Cars [Forbes]
