Uchida: U.S. Revival Key to Nissan's Global Fate
Nissan CEO Makoto Uchida, fighting a forecast for the company's biggest-ever operating loss, says he won't be able to restore profitability without reigniting growth in the key U.S. market. According to Automotive News, Uchida's comeback strategy hinges on improved dealer relations, a flood of better product, and smooth launches for those upcoming vehicles. "If we cannot make sure that the U.S. operations recover, we will not be able to pursue what we have set out in Nissan Next," Uchida told Automotive News last week. "That's where we really need to rectify ourselves in terms of operations and reestablish our brand image," he said. "We want to respect what the dealer is doing and grow together.” Turning Nissan around in the U.S. won't be easy, as dealers complain about seesawing incentives, more stringent factory audits and plunging sales amid the COVID-19 pandemic. Read more here (Source: Automotive News).
Reuters Factbox: What Impact Would a Biden Presidency Have on the Auto Industry?
A central piece of Democratic presidential candidate Joe Biden’s bid for the White House is a drastic change in U.S. environmental policy. Reuters is featuring a detailed look at Biden proposals that would impact automakers should he defeat Republican President Donald Trump on Tuesday. Biden’s climate plan includes the promise to reinstate and advance more stringent fuel economy standards that were implemented during the Obama administration but rolled back by Trump. Biden has also said he wants to encourage consumers to buy electric cars through tax credits. And, it is not clear how Biden would wind down the trade war with China, which has restricted the flow of U.S. exports of vehicles and auto parts. The Biden team has said he would “re-evaluate” tariffs on imports of Chinese-made vehicles, parts and materials. Biden is also expected to seek membership for the United States in the Trans-Pacific Partnership (TPP). Read more here (Source: Reuters).
GM Names Former Delta Airlines Executive Paul Jacobson as New CFO
General Motors ended its search for a new chief financial officer landing on Paul Jacobson, who held the same position at Delta Air Lines. Jacobson fills the void created in early August when Dhivya Suryadevara left after holding the job for two years. According to The Detroit Bureau, Jacobson starts Dec. 1, taking over for John Stapleton, who was filling in on an interim basis and will remain in his previous role as North America chief financial officer. Suryadevara left GM for the same role at Stripe, an online payment startup. “Paul is a great addition to the GM senior leadership team and is dedicated to leading the company for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders,” said Barra. Read more here (Source: The Detroit Bureau).
U.S. Household Spending Rose 1.4% in September
U.S. households boosted spending for a fifth straight month, helping the economy dig further out from the deep hole created by the pandemic, reports The Wall Street Journal. The Commerce Department said personal-consumption expenditures—a measure of household spending on goods and services—rose 1.4% last month. Consumers have increased spending since the summer, although the pace of gains slowed into early fall. Consumers last month doled out more on autos, clothing, and footwear, continuing a trend of robust outlays on goods due to pent-up demand from pandemic-related economic disruptions. Goods spending rose 2%, on a seasonally adjusted monthly basis. Spending on services was up 1.1% over the month, with higher outlays on health care, fitness, and entertainment. Services businesses were hit particularly hard by the pandemic, and service-sector spending remains below pre-pandemic levels. Read more here (Source: The Wall Street Journal).
Pickup Truck Buyers: 'This is What I Need' During Coronavirus Pandemic
The Detroit Free Press reports that attitudes of pickup truck owners have shifted in a big way with COVID-19, based on a new study from CarGurus.com. "We learned how the pandemic may have helped to spur pickup truck purchases," said Madison Gross, director of customer insights at the automotive research and shopping site. Part of the reason is the time to do more home improvement projects and the need for a vehicle to haul bulky stuff. If people were pondering a truck, they pulled the trigger. "According to the study, 26% of pandemic truck buyers said they hadn’t intended to buy one before, yet they opted to do so. Younger shoppers helped fuel this demand, noting that trucks offered a fun escape and a way to treat themselves, and stimulus checks helped them make these purchases," she said. Read more here (Source: Detroit Free Press).
Webinar: An Update on COVID-19's Impact on U.S. Auto Sales
Cox Automotive Senior Economist Charlie Chesbrough returns to AutoTalk on Thursday, November 12 at 2:00 p.m. EST for an update.
Topics to be reviewed include:
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Economic forecast and impact as we close out the year
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Consumer sentiment and buying behaviors
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Stock market, interest rates, and employment
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An outlook for vehicle sales
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Current view of new and used retail sales and prices
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