Beltway Talk: Get to Know JAMA's Manny Manriquez
On the latest Beltway Talk Podcast, Manny Manriquez, General Director of the Japanese Automobile Manufacturers Association Washington, D.C., office, gets into the fundamentals of what it means to run an association focused on Japanese nameplate brands in today’s political climate, why you should never be on time for a meeting with your Japanese coworkers, and what challenges and exciting opportunities he sees for Japanese manufacturers moving forward. In his conversation with AIADA’s Hannah Oliver, he covers trade, a driverless future, and what it means when your boss tells you to “go to the gemba.” Click here to listen to the current episode and subscribe.
U.S. Auto Industry Faces 30% Drop by 2022, Analyst Predicts
The U.S. auto industry is heading toward a nearly 30% decrease in sales by 2022, a Bank of America Merrill Lynch analyst predicts. The Detroit News reports that softening vehicle sales since 2016 will continue as cyclical demand softens. And that will challenge automakers as they balance their core market of traditional vehicle sales with investments into the industry's autonomous, connected and electric future, said John Murphy, a senior auto analyst. Despite pressures of lower volume down to approximately 14 million vehicles sold in 2022, Murphy predicted, automakers must resist temptations to lower prices as they had during the economic downturn in 2007, 2008 and 2009. Keeping vehicles at profitable margins will help investments in new technology — or else risk putting automakers behind their competitors that now include Silicon Valley tech companies with millions in their coffers. Read more here.
Alliances Between Rival Carmakers Define Future of Auto Industry
Automakers are forging alliances once thought unimaginable as the industry grapples with the high-cost of developing the technology that will define the future of driving while managing a slowdown in vehicle sales and increasingly stringent regulatory environments in key markets. Fox Business reports tha ton top of those issues, trade uncertainty caused by President Trump’s aggressive negotiating tactics with Canada, Mexico, China, and others is hanging over the future of complex production lines developed years before manufacturing begins. The confluence of headwinds is weighing on share prices. General Motors and Ford's stock are both down 18 percent from last year, while Fiat Chrysler's is 5.5 percent lower. It's also bringing together unlikely partnerships, both between competitors and with Silicon Valley companies that are taking their first foray into the automotive industry. Read more here.
Hacker Gained Access to Customer Data at 130 Dealerships, FTC Says
DealerBuilt, an Iowa dealership software provider, reached a settlement with the Federal Trade Commission Wednesday over a 2016 breach of customer data that allowed a hacker to gain access to the personal information of about 12.5 million consumers stored by 130 dealership clients. According to Automotive News, the dealership management system provider agreed to a settlement with the FTC over the attack and will "take steps to better protect the data it collects," the FTC said. The agency said in a statement that LightYear Dealer Technologies, known commercially as DealerBuilt, failed to properly encrypt sensitive data and conduct necessary vulnerability and penetration testing. The breach will be resolved with a final consent agreement, which won't be made public unless it is accepted by the FTC. As part of the proposed consent agreement, DealerBuilt is required to implement a security program in accordance with the Safeguards Rule, and is prohibited from handling consumer data until the program is in place. Read more here.
Hyundai Backs Aurora to Develop Driverless Systems for Kia and Hyundai Models
Hyundai Motor Group is investing in Aurora, a developer of self-driving technology for autos, with a plan to bring the systems to Hyundai and Kia models, reports CNBC. The companies have been working for the past year to develop and integrate the “Aurora Driver” into Hyundai’s NEXO fuel cell vehicles as well as on other projects. It’s an extension of an existing partnership and furthers the work that large auto manufacturers are doing with developers of driverless technology. General Motors acquired Cruise in 2016, and Ford took a stake in Argo.ai the following year. Aurora still aims to provide autonomous systems to many different players. On Monday, Aurora announced a partnership with Fiat Chrysler to develop self-driving vehicles for corporate clients. It also works with Chinese electric vehicle maker Byton. Read more here.
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