June 15, 2015
House GOP Eyeing Another Shot at Trade Bill
House Republicans could take another shot at passing Obama’s trade agenda this week, just days after Democrats handed Obama a stinging defeat by blocking the package. According to Politico, House Democratic sources suggest any vote switching en masse is very unlikely at this point. Still, House Republicans are planning to use the bully pulpit to pressure Democrats into voting yes on the trade assistance program known as TAA, which offers help and retraining for American workers displaced by free trade. Republicans and Obama need to pass the TAA bill to clear a fast-track authority measure that the president needs to complete a huge 12-nation Pacific trade deal. But House Democrats, who largely oppose the new trade deal, moved to block the TAA measure as a way to scuttle the entire package. GOP sources say the House is likely to vote again on trade early this week, although it’s unlikely Republicans will make major changes to either measure. AIADA supports the fast-track package in the House. Dealers should continue to call their representatives and let them know why free trade—and fast track authority—is essential to their businesses and the international nameplate auto industry. Click here to look up your representative then call the Capitol switchboard at (202)225-3121. For the latest on GOP plans to bring another trade vote this week, click here.
Honda Opts for Insider as CEO Amid Car-Safety Crisis
Honda Motor Co. is turning to an insider who’s spent his entire career at the company to navigate out of a global auto safety crisis, reports BloombergBusiness. Takahiro Hachigo this week becomes the eighth president of one of Japan’s most renowned companies. By replacing Takanobu Ito, whose tenure was plagued by recalls and rupturing Takata Corp. air bags, he upholds a 41-year custom of Honda presidents hand-picking their successors from within. Hachigo’s supporters say he’s a listener willing to seek consensus, traits that his more autocratic predecessor lacked. Honda has so far relied on incremental steps, such as delaying new models and doing post-production checks to improve quality, rather than more radical changes such as severing ties with Takata. Koichi Fukuo, who was in charge of product quality at Honda before becoming president of its research and development arm, said insufficient communication contributed to the company’s quality problems. The easy-going Hachigo will help improve internal communication, said Fumihiko Ike, Honda’s chairman. “He listens to people,” Ike said. “The atmosphere at the company will change.” For more on Honda’s new president and the hurdles he faces in leading Honda through its airbag problems, click here.
VW Group to be Revamped Into Four Holding Companies, Report Says
Volkswagen's corporate structure will be reorganized into a decentralized system with four holding companies for the group's 12 brands, reports Automotive News, citing a German paper. Former BMW manager Herbert Diess will be in charge of the holding company that will include the VW, Skoda, and Seat passenger car brands, the business daily Handelsblatt said today in a report. The high costs of the German factories in VW's core business is an area with the biggest need for reform, the paper said. The Audi, Lamborghini, and Ducati brands will form another holding company led by current Audi CEO Rupert Stadler. Porsche, Bentley, and Bugatti will be grouped together in a single unit under current Porsche boss Matthias Mueller and VW Commercial vehicles will form another division with the Scania and MAN heavy truck brands with former Daimler trucks boss Andreas Renschler in charge, Handelsblatt said. The reorganization would overturn former VW Chairman Ferdinand Piech's strategy of giving individual brands autonomy to encourage competition between them. Many industry watchers said Piech made VW Group difficult to control and slow to react to market changes. The group has 600,000 employees worldwide and 119 factories. For more on structural changes at Volkswagen, click here.
New Infiniti N.A. Chief Sees Positive Trend
May brought Infiniti only a modest uptick in U.S. sales, but Infiniti's North American chief will take it, reports Automotive News. "We want things to get moving in the right direction," says Randy Parker, who was named Infiniti Americas vice president in February after a year of sluggish results. "Getting where we want to be is going to happen one step at a time." May's step forward was a 17 percent sales improvement for the Q50 sedan. "We have new products coming up next year," says Parker, who was tapped for the job after working as vice president of the Nissan brand's 12-state West region. "We've been a little quiet in recent months. But if you haven't noticed, we're playing the underdog right now. Some of our portfolio is older and will be phasing out." Parker, 48, a former General Motors and General Motors Acceptance Corp. manager who joined Nissan in April 2013, says Infiniti will work on "improving our blocking and tackling, doing better marketing, and making sure our dealers have the tools they need to get better." For more on Infiniti’s new North American chief, click here.
Alfa Romeo's Topless 4C Spider is Sexy but Pricey
Just in time for summer, Fiat Chrysler's Alfa Romeo is bringing out the wide-open-skies version of the 4C sports car. But this roadster is going to be a pricey little affair. The 2015 Alfa Romeo 4C Spider will roll into showrooms at a base price of $65,495, including delivery costs, reports USA Today. That's a big premium on the base price of the coupe, at $55,495, but less than the coupe's "launch edition," the initial cars in the U.S. that started at $69,995, also including shipping. Click here for a photo. Alfa says the Modena, Italy-made 4C is a sports car, with an impressive power-to-weight ratio due to extensive use of carbon fiber for lightness and a turbocharged intercooled engine with direct-injection. The car also includes a twin-clutch transmission and four adjustable drive modes: all-weather, natural, dynamic and race. "Spiders have always been at the very core of the 'great Alfa Romeos,' and our all-new 4C Spider builds on the brand's motorsport and technology heritage for an open-air experience that is pure driving exhilaration," said Reid Bigland, head of Alfa Romeo North America, in a statement. For more on Alfa Romeo’s plans for its 4C Spider, click here.
Around the Web
Webinar Tomorrow: Prepare for Changes in Dealership Payment Acceptance [Register]
Legendary Car Design Celebrated [Detroit Free Press]
How Tomorrow's Car Shoppers Are Changing the Sales Process [CBT News]
10 Things for Every Gearhead to do Before They Die [Forbes]