June 27, 2016
International Trade Makes America Work
As the reality of this year's presidential matchup sinks in, the auto industry is confronted with these immutable facts: Democrats have their candidate; Republicans have their candidate; and supporters of free trade are left with heartburn. According to AIADA President Cody Lusk, in an Automotive News opinion piece, the 2016 campaign has turned political norms on their heads, so maybe we shouldn't be surprised to see so many so wrong about something so simple. And the facts are simple. First, trade is beneficial to America and Americans. Second, global trade between nations will continue with or without us. And finally, it's a whole lot better for the U.S. to be part of trade negotiations than on the outside looking in. Trade has already made America great. And today, it's what makes America work. Read more of Lusk’s column at Automotive News on why trade is what is powering America by clicking here.
Auto Stocks Fall on News of Brexit
Automotive stocks took a bigger hit than the market as a whole Friday, after the surprise upset by British voters to leave the European Union, reports The Detroit News. The development could cause carmakers and auto suppliers to potentially lose billions of dollars in profits and lead to cuts in jobs and production, analysts say. Industry forecaster LMC Automotive expects car sales in England will decline this year and next, culminating in a 15 percent fall in 2018. Adding to their woes, automakers face currency fluctuations as the pound fell to a 30-year-plus low vs. the U.S. dollar. And free-trade policies could change, adding costly tariffs on vehicles built in England and exported to other countries. Delphi Automotive suffered a 12.2 percent drop. Southfield-based Lear Corp. fell 9.6 percent and Bloomfield Hills-based Penske Automotive was down 10.35 percent. Auburn Hills-based BorgWarner Inc. fell 9.5 percent and Detroit-based American Axle & Manufacturing Holdings Inc. was off 6.3 percent. For more on how auto stocks have been impacted by last week’s Brexit vote, click here.
Why Brexit Will Raise Trade Barriers
One lesson of Friday’s shock Brexit referendum result is that financial markets overestimate the political power of economic self-interest. European industry can expect to suffer, says The Wall Street Journal. Britain is a major market for French and German car makers. Munich-based BMW sells 11 percent of its cars in the U.K. The U.K. makes a lot of cars, too. Roughly 45 percent of them are exported to other EU countries. Brexit will hit the U.K. automotive industry, which constantly complains of a shortage of engineers. Moreover, the European Union needs to play hardball to defend itself against further fragmentation. A joint statement from top EU politicians Friday hoped for a “close partner” in Britain, but concluded that any agreement “will have to reflect the interests of both sides and be balanced in terms of rights and obligations.” For more on how the European auto industry will be impacted in the long-term by Brexit, click here.
Mercedes Execs to Sample Retail Experience
In 2012, Dietmar Exler spent a week at Mercedes-Benz of Baton Rouge in Louisiana. It opened his eyes. Now Exler, the newly minted CEO of Mercedes-Benz USA, wants all top managers at the brand's U.S. sales arm to experience life in a dealership, too. According to Automotive News, through summer and fall, Exler's roughly 35 senior managers will spend five-day stints in dealerships around the country. The aim: By immersing themselves in day-to-day dealership operations, the factory execs will see how the decisions they make in the home office play out on retailing's front lines. "Dealers are our franchisees, our partners and our customers. The better we understand, the better for us," said Exler, who became the brand's U.S. chief in January. "The real win to me is, if people come back four or six months later and they're looking at a new process, redesigning something, changing something, whatever, they ask themselves, "How does it affect selling cars? How does it affect the processes in the dealership?'" Find out more about why Mercedes-Benz execs will be spending more time in dealerships here.
Survey: Older Drivers Want Car Tech to Stay Behind the Wheel
In the quest to be able to keep driving as they grow older, more Boomers are anxious to try the latest in car safety tech that might help them stay behind the wheel, a new study finds. According to USA Today, some 76 percent of drivers age 50 say they would look for a car with the latest safety features, finds the online survey by insurer The Hartford. "Our findings indicate that some drivers, age 50-plus, would be more willing to drive in certain situations if they had particular technologies," said Jodi Olshevsky, a gerontologist who is executive director of The Hartford Center for Mature Marketing Excellence. They study suggests "they associate advanced technologies with enhanced safety.” They are looking for advanced safety features like blind-spot warning, crash mitigation, lane departure warnings and advanced headlights. Some of new technologies pave the way toward self-driving cars, which are still a few years away. For more on what older drivers expect out of their vehicle technology, click here.
CNA National Earns 12th Consecutive Top Provider Award
For the 12th year in a row, dealers nationwide have voted CNA National as the best in the industry. In the 2016 Dealers’ Choice Awards, the company captured a first-place Diamond Award for “Best Service Contract Provider” and a third-place Gold Award for “Best Reinsurance Provider.” CNA National has been named the Best Service Contract Provider from 2005-2010 and 2012-2016, and the Best Reinsurance Provider from 2011-2013 for a grand total of 20 Dealers’ Choice Awards—significantly more than any other vehicle service contract provider. “We are grateful to be recognized by our dealers yet again,” says Joe Becker, CNA National’s president and chief executive officer. “For a dozen years, dealerships have consistently found CNA National to be a premier F&I partner, and we work very hard to ensure that we live up to our reputation.” To learn more about how you can work with the best in the industry, contact us at (800) 345-0191 x450 or visit www.cnanational.com.
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