Automakers Speak with One Voice on Pollution Standards – and AIADA Joins Them
AIADA was founded in 1970 with one simple mission: to protect international brand dealers from anti-trade protectionism that threatened their livelihoods. In addition, writes Chairman Howard Hakes in his latest blog post, over the past 50 years our mission has expanded to encompass much more than just trade. This summer, important moves are being made on environmental policy. On June 6th, 17 auto manufacturers, including Ford, GM, Honda, and Toyota sent a letter to President Trump in response to his signature effort to roll back existing tailpipe pollution standards. The president wants to freeze mileage at the 37 mpg standard for six years; California and 13 other states want to continue to work to the Obama-era goal of 54.5 mpg by 2025. AIADA supports all 17 manufacturer signees on the letter as they ask the White House and state leaders to work together to achieve one national mileage standard that is “practical, achievable, and consistent across the 50 states.” Only then will our brands have the certainty and stability they need to design and build the best possible vehicles for all Americans. Read more here.
Workers at Volkswagen Plant in Tennessee Vote Against Union
The United Auto Workers (UAW) suffered another crushing defeat at Volkswagen AG’s factory in Chattanooga, Tenn., as workers rebuffed for a second time the union’s efforts to organize the plant’s blue-collar workforce, reports The Wall Street Journal. The results announced Friday night showed workers voting 833-776 against joining the UAW, which has endured years of membership declines and struggled to expand its influence in the industry beyond Detroit’s Big Three auto companies. Roughly 1,600 ballots were cast in the three days of voting, the company said. The defeat also extends a multiyear losing streak in the union’s attempts to organize its first foreign-owned car factory in the U.S. South. While the foreign-car companies build millions of vehicles each year in the U.S., none of their assembly plants are unionized. Most reside in right-to-work states, where antiunion sentiment runs strong. Read more here.
Inventory Levels Dip to Lowest Since January
U.S. vehicle inventories, though still elevated, inched down in May to their lowest point since the start of the year as automakers and dealers cleared unsold cars and light trucks with the help of strong sales over Memorial Day weekend, reports Automotive News. Dealers and automakers began June with an estimated 3,992,100 vehicles on hand in the U.S., a 65-day supply, according to figures compiled by the Automotive News Data Center. On a days' supply basis, stocks were flat from the same point in 2018 but down sharply from 78 days a month earlier. The number of vehicles fell below 4 million for the first time since Jan. 1, when inventory was estimated at 3,921,000 units. While sales of cars seem to have stabilized across the broader U.S. market — they represented just less than 29 percent of total light-vehicle sales in May — the inventory of cars now lags the market. Automakers and dealers opened June with an estimated 1,022,500 unsold cars, a 59-day supply that represents about 26 percent of total inventory. No automaker or brand had less than a month's supply of inventory, with Subaru again running the leanest levels. Read more here.
$17K Hatchback from Vietnam Rolls Out to Take on Ford and Toyota
Vietnam is getting into the car business with its own brand, reports The Detroit News. Real-estate conglomerate Vingroup JSC’s auto unit VinFast marked the rollout of its first vehicles from its assembly line on Friday, embodying the aspirations of the fast-developing country’s government to build a modern manufacturing sector. “This makes a great contribution to the national economy,” Vietnamese Prime Minister Nguyen Xuan Phuc said in a speech during a ceremony at VinFast’s complex of six automated factories constructed in 21 months in the northern port city of Haiphong. “It affirms the Communist Party’s policy that the private sector is a very important driver of the economy. I want VinFast to go to the regional and global markets.” VinFast, which will start delivering cars to customers Monday, wants to be the first Vietnamese company to succeed at challenging foreign competitors such as Toyota Motor Corp., Ford Motor Co., and Honda Motor Co. in one of the world’s fastest-growing economies. Read more here.
FTC Data Breach Deal Sets Precedent
In October 2016, hackers gained access to the personal information of more than 12.5 million dealership customers at 130 stores through a vulnerability in the dealership management system provided by software vendor DealerBuilt. Over 10 days, reports Automotive News, sensitive customer information — Social Security, driver's license, and credit card numbers, and addresses and birth dates — were siphoned out of DealerBuilt's directories associated with five dealership clients. In all, 9.75 gigabytes of data containing the personal information of 69,283 consumers were downloaded. Last week, DealerBuilt, of Mason City, Iowa, settled with the Federal Trade Commission for allegedly failing to properly encrypt sensitive data and conduct necessary vulnerability and penetration testing, the agency said in a statement. The settlement, according to legal experts, sets a precedent for treating service providers as financial institutions under the FTC's Safeguards Rule, which requires companies to take steps to protect sensitive digital information. But it doesn't transfer risk from auto dealers to those service providers in the event of a breach. Instead, experts said, the settlement expands responsibility to multiple parties. Read more here.
Beware of Auto Dealership Fraud Schemes
Laramie Sandquist of Federated Insurance joins AutoTalk on Tuesday, June 18th at 2:00pm EST to discuss how dealers are getting schemed on both cars and money, including some of the latest trends. He will offer some practical advice on how to prevent dealers from being a victim of fraud. To register, click here.
Around the Web
Show Us Your Most 'Dad' Car [Jalopnik]
Brighter, No Glare Headlights Are Coming [Detroit Free Press]
Toyota Cars Will Now Turn Themselves Off if You Forget [CNN Business]
