September 14, 2016
Obama Makes Last-Ditch Push for Vote on TPP
The Obama administration is enlisting business leaders in a last-ditch effort to win Republican support for its signature Pacific trade agreement after the election, reports The Wall Street Journal. A business-led advisory committee known as the President’s Export Council is expected Wednesday to call on Congress to pass the Trans-Pacific Partnership (TPP) agreement in the “lame duck” session at the end of the year. Getting a majority of the House and Senate to back the 12-nation deal remains a high hurdle. The opposition in the presidential race makes it almost impossible Congress will vote on the TPP before the election, but President Barack Obama and other officials eyeing the pact as a legacy are promoting the possibility of a 2016 vote after the election. “A new administration comes in—it doesn’t matter which one—trade is not going to be an immediate priority for the next couple of years,” said United Parcel Service Inc. Chief Executive David Abney, a member of the council. For the latest on attempts to pass TPP this year, click here.
Mercedes Extends Global Luxury Sales Lead Over BMW in August
Mercedes-Benz extended its global sales lead over rival BMW after its August registrations increased at a faster pace, reports Automotive News. Mercedes brand's worldwide sales rose 12 percent to 156,246 last month, while BMW brand sales increased 5 percent to 142,554 vehicles. Audi trailed its German premium rivals with its August sales up 2.9 percent to 132,350. Through August, Mercedes brand sales increased 12 percent to 1.32 million. BMW brand's sales rose 5.5 percent to 1.28 million, while Audi's volume grew 4.9 percent to 1.23 million. The result gave Mercedes a 44,124 overall lead over BMW in August, up from 30,442 the month before. Mercedes has benefited from the launch of its latest-generation E class, from strong demand in China where brand sales rose 25 percent in August, and from record sales of its SUVs. Daimler said sales of Mercedes' SUVs jumped 40 percent to a new high of 56,286 units in August. For the latest on the global luxury sales race, click here.
Lithia Buys Carbone Auto Group
Lithia Motors has expanded its East Coast operations, announcing Tuesday that it acquired the nine-store Carbone Auto Group that operates in New York and Vermont. According to Auto Remarketing, Carbone generates an estimated $600 million in annual revenues through an exclusive market strategy. The news release of the acquisition notes that Carbone gives the group a foundation to expand the exclusive market strategy throughout the Northeast. “Combined with DCH Auto Group's metropolitan market strategy, this further expands our growth potential across the United States,” the retailer said in a news release. Lithia plans to optimize the current franchise and operations of Carbone into 13 stores. There will be two stores each of Honda, Subaru and Ford franchises and one store each of Toyota, Chevrolet, GMC/Buick/Cadillac, Chrysler/Jeep/Dodge/Ram, Nissan, Hyundai, and BMW. For 2017, Lithia is looking for Carbone to bring in $0.20 to $0.25 in earnings per share. For more on Lithia’s acquisition of Carbone Auto Group, click here.
Ultraluxury Brands Go Big
Ultraluxury brands are expanding into SUVs and crossovers, reacting to the growing demand in the United States for these larger vehicles, reports Automotive News. The big question is whether the market can support four six-figure vehicles. The makers say yes. Bentley was the first with its Bentayga SUV that launched this year and will likely spawn a coupelike version. Aston Martin, Lamborghini, and Rolls-Royce all will launch crossovers in the next few years. The move into utilitarian vehicles doesn't mean these brands are abandoning their core products or big sedans. Rolls-Royce will redesign its flagship Phantom in 2018. Bentley may launch a low-volume sedan based on the Mulsanne. Aston Martin will replace its Lagonda flagship. And Lamborghini may revive plans for a sedan based on its Estoque concept. Ferrari is sticking to its sports car roots but has freshened its four-seat grand tourer and renamed it GTC4Lusso. For more on how ultraluxury brands are expanding, click here.
Volkswagen Not Sure It Will Bring Diesel Cars Back to U.S. Market
The Wall Street Journal reports that the head of Volkswagen AG’s North American operations indicated the German automaker is uncertain when or if it will bring diesel engines back to the U.S. car and light-truck market. Hinrich Woebcken said on Monday U.S. emissions regulations are tightening, making it more difficult for light-vehicle diesel engines to legally meet requirements. For now, the company will focus on gasoline-powered vehicles and a gradual roll out of hybrid-electric and all electric cars. Mr. Woebcken said sales of non-diesels have exceeded Volkswagen’s expectations, even though it has lost U.S. market share due to the company’s reliance on diesels that are no longer sold here. He said the company will evaluate the potential for a return of its diesel vehicles to the U.S. on a “product by product and package by package” basis. The technology, which requires extensive and costly treatment to meet emissions standards, remains popular in Europe, he said. Read more about VW’s plans for diesels in the U.S. market here.
AIADA Announces Special AutoTalk Election Series
As the election season heats up join AIADA for a special AutoTalk Election Series. AIADA will kick off the series on September 20 with Rep. Mike Kelly, a past auto dealer and current U.S. Representative. Sessions will be held at 10:00 a.m. and 4:00 p.m. EDT. Rep. Mike Kelly was first elected to Congress in 2010, and represents Pennsylvania’s third district. A long time auto dealer, his dealerships, including Hyundai and Kia franchises, currently employ more than 100 people from the region, and are leaders in the local and national automotive industry. Rep. Kelly is a member of the House Ways and Means Committee, the oldest committee of the United States Congress, which oversees trade policy among other issues.
To register for the 10:00 a.m. EDT session click here.
To register for the 4:00 p.m. EDT session click here.
Around the Web
The Year's Fastest Street Cars on America's Toughest Track [Car and Driver]
There Are Now Over 500K Plug-In Vehicles in the U.S. [Autoblog]
Competition to Reinvent the Car is Getting Fiercer [WSJ]
Apple is Said to be Rethinking Self-Driving Car Strategy [CNBC]