November 3, 2016
VW Confirms Friday Board Meeting to Discuss Overhaul
Volkswagen Group's supervisory board will meet on Friday to discuss restructuring of the automaker, the premier of the German state of Lower Saxony, VW's second-biggest shareholder, confirmed today. Automotive News reports that VW's management and labor leaders are seeking to agree on cost cuts and investments that will form part of the automaker's efforts to revive its fortunes more than a year after the diesel-emissions scandal broke. Friday's meeting is necessary because of the sheer number of issues facing the board on Nov. 18 when it is scheduled to ratify spending plans for the multi-brand group through 2021. Herbert Diess, head of VW's namesake brand, wants to cut annual costs at the division by 3.7 billion euros ($4.11 billion) through 2021 in a so-called future pact with workers, sources familiar with the negotiations told Reuters last month. For more on VW’s board meeting, click here.
Kia Concept Cars Imagine a Self-Driving World for SEMA
Kia is already getting a head start on the age when cars drive themselves and passengers are free to lounge around in back as they pursue their hobbies and sports. According to USA Today, for the SEMA aftermarket auto parts show in Las Vegas, the South Korean automaker has created a series of concept dream cars – each with its own vibe and theme. “This year’s SEMA show gives us the opportunity to ponder what the future of living the autonomous life may one-day resemble," says Michael Sprague, executive vice president of Kia Motor America, in a statement. The cars on display include the Niro hybrid equipped for triathletes; a School of Rock version of the Sedona themed around music education; the Sorento Ski Gondola for skiers; the Soul First Class for urban hipsters; and the Telluride, a three-row luxury SUV concept. For more on Kia’s concept cars at SEMA, click here.
Cars Hit Fuel Economy Record in 2015
Cars hit a new fuel economy record in 2015 while outperforming mandated greenhouse gas emissions limits, the Environmental Protection Agency (EPA) said. According to The Hill, model-year 2015 cars averaged a carbon dioxide emissions standard that was 7 grams per mile higher than what the EPA required for that year, which was a 13 gram per mile improvement over the 2014 requirement. A separate EPA report released Wednesday concluded that average fuel economy was 24.8 miles per gallon, 0.5 mpg higher than the previous year. The EPA held up its reports as proof that the federal government’s efficiency and greenhouse gas standards, jointly enforced by the EPA and the Department of Transportation, are working. For more on vehicle fuel economy in 2015, click here.
Not Dead Yet—TPP Could Pass in Lame Duck Congress
The Trans-Pacific Partnership will have enough votes for ratification by Congress after the election, U.S. Trade Representative Michael Froman told CNBC this week. The 12-nation free trade agreement has been a signature economic objective of President Barack Obama and had initial support from Republicans on Capitol Hill, including House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell. "If they [House and Senate leaders] bring it forward, I think we can get the votes there," Froman said on "Squawk Box." "This trade agreement eliminates 18,000 taxes on our exports. And members of Congress are starting to see that." If the U.S. doesn't set the rules of the road in the global economy, China will, he warned. "They are going to move ahead and get access to these markets at our expense. Our market share is actually going to decline in some of these fast-growing, large markets." Read more about hopes of passing TPP during a lame duck session of Congress here.
Moving Target: Dealer Welcomes Newcomers to Town
The average American will move about 11 times in his or her lifetime, according to the U.S. Census Bureau. According to Automotive News, for auto dealers, that statistic represents an opportunity to connect with newcomers, potentially bringing in new revenue and building loyalty. The question for dealers, though, is how to bring those newcomers into the showroom or service center. Dick McKean, executive manager of Lake Norman Infiniti in Cornelius, N.C., about 20 miles north of Charlotte, found an answer through Our Town America, a direct-mail provider of so-called new-mover marketing. Our Town America works with businesses to deliver discount offers and gift certificates to a recent mover's new address. McKean said his dealership has used Our Town America's services to great effect over the past 14 months, sending coupons for 10 percent off service costs, free oil changes, and no-cost alignments to new residents in the region. For more on how one dealer is using new resident mailings to his advantage, click here.
Retaliation Exposure
Insurance companies are aware of the need to protect employers from alleged employment-related claims, and typically offer standard ERPL policies to cover the more “conventional” allegations. However, retaliation claims often are not included in their ERPL policies, which can leave an employer exposed to a type of allegation that is becoming more commonplace. Fortunately, when you need help with your human resources policies Federated Insurance can help you design insurance and risk management programs that address your dealership’s specific needs.
Federated’s ERPL policy now includes retaliation as an endorsement.
Federated’s P&C clients can log in to the Federated Employment Practices Network® (FEPN), an on-demand, online source for answers to human resources questions. FEPN offers access to HR materials, news, a state-specific employee handbook builder, online harassment training—and much more.
ERPL clients have exclusive access to a network of independent employment law attorneys who are available to give advice on specific questions.
Federated Insurance supports AIADA members through value-added risk management services and customized insurance programs. Clients are encouraged to utilize Federated’s Shield Network® and the Risk Management Resource Center. Learn more from your local Federated representative.
Around the Web
Welcome to the Age of the Performance SUV Drag Race [Jalopnik]
A Father, a Son, & the Porsche They Went in on Together [NY Times]
12 Affordable Classic Cars [WSJ]
Sensuous Giulia Drives Alfa's Return to the States [WardsAuto]