Jan. 31, 2019
U.S. Lawmakers Move to Curtail President's Power to Levy Tariffs
U.S. lawmakers on Wednesday introduced legislation to limit the president’s power to levy import tariffs for national security reasons. Reuters reports that the bills face an uncertain future but underscore bipartisan concerns on Capitol Hill over the rising costs of the Trump administration’s trade policies. The United States in 2018 slapped duties on aluminum and steel from other countries, drawing criticism from lawmakers who support free trade and complaints of rising supply chain costs across business sectors. Click here for coverage of the bill in Automotive News’ First Shift. The bills would require Trump to have congressional approval before taking trade actions like tariffs and quotas under Section 232 of the Trade Expansion Act of 1962. The law currently allows the president to impose such tariffs without approval from Capitol Hill. According to Inside U.S. Trade, in a letter to Capitol Hill signed by 30 groups, lawmakers are encouraged to halt the administration's “sweeping use” of Section 232 of the Trade Expansion Act of 1962. The American International Automobile Dealers Association, Association of Global Automakers, and Grocery Manufacturers Association are among the signatories. Click here for more.
It's a Mercedes-Benz Super Bowl: New Ad, New Car, Great Timing, Name on Stadium
Mercedes-Benz is doing the obvious in jumping back into Super Bowl advertising on Sunday during a Big Game that will be played at Mercedes-Benz Stadium in Atlanta, two weeks after the National Football Conference championship was played in Mercedes-Benz Superdome in New Orleans. Forbes reports that by highlighting its new A-Class sedan in the upcoming advertisement, the brand also is doubling down on a bet that it first made with a Super Bowl commercial in 2013: using marketing's biggest stage to introduce a crucial new entry-level vehicle. "Having the Super Bowl inside Mercedes-Benz Stadium gave us a little bit more than a gentle nudge to say this is going to be one of the great years to do a Super Bowl ad," said Mark Aikman, general manager of marketing services for Mercedes-Benz USA. Already, Mercedes-Benz has tipped its hand that the rapper Ludacris will be central to the A-Class ad. The brand has rolled out a video of Ludacris driving up to an Atlanta school in his Mercedes and giving away two tickets to the Super Bowl. For more on Mercedes’ Super Bowl strategy, click here.
Cold, Shutdown Hinder January Sales
New U.S. light-vehicle sales are expected to be little changed in January from the start of 2018, though the record cold sweeping through the Midwest during the all-important closing stretch of the month makes a decline more probable. In addition, Automotive News reports that while the lengthy government shutdown that hurt business at dealerships near Washington has ended, the temporary nature of the resolution is unlikely to get federal employees in a buying mood. A forecast from J.D. Power and LMC Automotive calls for sales to decline 1 percent and for a seasonally adjusted, annualized rate of sales of 16.8 million, the lowest since August. Cox Automotive projects a volume increase of 0.2 percent, or fewer than 2,000 vehicles. Edmunds says it sees sales rising 1.3 percent, but its forecast was issued last week, before the extent of the frigid weather became clear. (At Chicago's O'Hare International Airport on Wednesday morning, the temperature was 22 degrees below zero with a wind chill factor of minus 49.) For more on sales expectations, including how individual brands may fare, click here.
Car-Care Tips for When it Gets Really, Really Cold
Cars, like people, don’t function as well in cold weather. Your car doesn’t like it any more than you. Because most employers frown on hibernating, the Detroit News has compiled a list of precautions to increase the odds of your car functioning in extreme cold. First, battery power: Mechanics recommend changing the battery every three years, though you could get away with five years, depending on how much you drive and how you drive. Have a mechanic check its condition. Second, don’t forget to fill your fluids: Spend a buck and get a “winter blend” type of windshield wiper fluid. Finally, Tire pressure: Having the correct tire pressure is essential for proper handling. A temperature change of just 10 degrees can cause a 10 percent reduction, or constriction, of air in tires. Check the optimal tire pressure of your vehicle on the label inside the driver’s door frame or in the owner’s manual. For more tips, including how to handle wipers, lock freeze, and oil, click here.
Volvo to Dealers: 'Take a Breath' Over Subscription Services
Anders Gustafsson, CEO of Volvo Car USA, told dealers Saturday to "take a breath" over subscription services. Volvo’s North American leader opened its make meeting with the message that Volvo isn't backing away from its commitments to the dealers. According to Automotive News, less than two weeks ago, the California New Car Dealers Association, filed a petition with the Department of Motor Vehicles to halt Care By Volvo, the brand's controversial subscription program. The association, which represents 23 Volvo dealers in the automaker's biggest market in the U.S., says Care By Volvo violates state law meant to prohibit manufacturers from competing with their franchisees. A launch date for a 2.0 version of the vehicle subscription business has yet to be determined. Matthew Haiken, chairman of the Volvo Retail Advisory Board, said dealers still have time to talk through the program with Volvo to make sure it's sustainable for their businesses. "He's not nervous about lawyers — he's nervous about hurting the relationship with the dealers," Haiken said of Gustafsson. For the full story, click here.
ADESA Raises $77,000 During Charity Auction at NADA Show 2019
The annual ADESA charity auction at NADA Show 2019 raised $77,118 for Canine Companions for Independence (CCI). This was the eighth year ADESA raised money for the NADA Foundation’s Frank E. McCarthy Memorial Fund and CCI—which provides assistance dogs free of charge to veterans, children and adults with disabilities. At the start of the auction, a coalition of 11 dealers from NADA contributed $37,000 to the organization. Then, the bidding began for a completely customized, four-seat Yamaha golf cart. Joe Verde of the Joe Verde Group had a winning bid of $20,000. Verde, a longtime ADESA charity auction supporter, immediately donated the golf cart to be auctioned again. During the second round of bidding, Greg Noonan of Insight Media Enterprises had the final winning bid of $18,000. Many others kindly added cash donations during the event for an additional $2,118 in donations. To date, the ADESA charity auction at NADA has raised more than $460,000 for the NADA Foundation and Canine Companions for Independence. Click here for more.
Around the Web
The Genesis Essentia Is the Concept of the Year [Automobile Mag]
Study Reveals the Most Dangerous European Country to Drive In [Fox News]
Female Defensive Back in Toyota Super Bowl Ad [Detroit News]
