June 14, 2016
Are Free Trade Deals Bad for America?
The collapse of the free trade consensus in the United States has been stunningly swift, driven in part by the rise of China and by the persistence of massive annual bilateral trade deficits with Beijing. The segment of the Democratic Party supported by organized labor that has always been protectionist has now been joined by Trump, according to a piece by Bill Powell at Newsweek. This political hostility toward free trade is all the more striking because the vast majority of economists, whether they lean left or right, agree that open trade is a net economic benefit for any country that practices it. Indeed, there may still be a bigger consensus on this than on anything else in mainstream economics. The fact is, according to Powell, restricting trade will have large negative consequences, in particular among the low- and middle-income families, the ordinary Americans in whose name Clinton and Trump claim to be running. If only we were having an election in which facts mattered. Read more from Powell on why free trade deals are not bad for America here.
Nissan Develops New Ethanol Fuel Cells to Jump Infrastructure Hurdle
Nissan Motor Co. has developed a new kind of fuel cell drivetrain for cars that taps an onboard tank of ethanol instead of pressurized hydrogen, delivering a cheaper and safer ride that it says is more user friendly. According to Automotive News, the new technology, dubbed an e-bio fuel cell, aims to combat a common hurdle to deploying traditional hydrogen fuel cell vehicles: the lack of a hydrogen fueling infrastructure. Nissan’s system uses bio-ethanol, derived from renewable crops such as corn or sugarcane, and that refueling infrastructure already largely exists. E-bio fuel cells should also be less costly than traditional hydrogen systems because they don’t require the expensive carbon-fiber storage tanks for pressurized hydrogen or costly precious metals such as platinum as catalysts for electricity generation. Nissan aims to bring the technology to market in fleet vehicles by around 2020. Click here for more on Nissan’s new ethanol fuel cell technology.
Few Auto Insurers Cut Rates for New Safety Devices
Most insurers aren’t yet ready to give a break to car owners who invest in automatic braking or other new electronic technologies such as lane departure warning or blind spot detection. According to The Detroit News, many companies are still compiling their own data to confirm the devices stop crashes, while others say automakers don’t always make it clear which models have the new technologies. The Associated Press found that of the 11 biggest U.S. auto insurers, only two offer discounts for the new electronic devices. But experts say that because they are so effective in reducing crashes, it’s just a matter of time before widespread rate cuts arrive. “We certainly are seeing significant effects from automatic emergency braking,” said Russ Rader, spokesman for the Insurance Institute for Highway Safety, an industry research group. “To the extent that vehicles get into fewer crashes, that will ultimately be reflected in the rate you pay.” For more on how insurance companies are dealing with new safety technology, click here.
Non-BMW Dealers Can Buy Off-Lease Vehicles from BMW Financial
BMW Financial Services has opened its online remarketing channel to all dealers in preparation for an increase in off-lease vehicle volume, reports Automotive News. The captive’s BMWGroupDirect.com is now accessible to non-BMW franchised dealers as well as independent used-only dealers who have valid AuctionACCESS accounts. AuctionACCESS allows dealers to buy used vehicles online and is accepted at over 250 auctions in North America, according to its website. BMWGroupDirect.com is powered by RMS Automotive’s web-based vehicle portfolio management system. RMS Automotive is a unit of Cox Automotive, which also owns Manheim, the nation’s largest auto auction. Previously, BMWGroupDirect.com was open exclusively to BMW franchised dealers, Nina Englert, BMW Financial vice president of sales and marketing, said in a statement. “Given the changing dynamics facing the grounding dealer and with more off-lease inventory entering the market, we needed to take our upstream remarketing program to the next level,” she said. Find out more about how non-BMW franchise dealers can buy off-lease vehicles from the brand here.
Rental Cars Still Going Strong in Age of Uber
Rental car companies are expanding their fleets and seeing an uptick in revenue despite the growing popularity of ride-hailing services such as Uber, reports USA Today. But industry watchers warn that the industry could see its market share shrink — rapidly and dramatically — if it doesn’t continue to innovate. Laura Bryant, spokeswoman for Enterprise Holdings, noted that ride-hailing services are just one more option in the array of choices travelers long have had for getting around town. “There are many diverse components that make up a city’s transportation infrastructure, from trains, subways and ride hailing, to shuttle buses and car rental," Bryant says. Still, she says, “if you look beyond the big headlines and social media buzz, you’ll find evidence that the car rental industry continues to perform year after year . . . There’s a lot of car rental growth still happening." For more on why the rental car industry is still going strong in spite of new challenges from companies like Uber, click here.
Webinar: The 2016 Mid-Year Review--What's On the Horizon?
In December 2015, AIADA's AutoTalk hosted a group of auto analysts who shared their projections for the 2016 auto market. Now, six months later, AIADA is following up on those predictions and looking ahead to the remainder of the year. Join analysts from Dealertrack, ADESA, and Wells Fargo for a special AutoTalk presentation that asks how the market is shaping up and what clouds may be forming on the sales horizon. Attendees for the FREE webinar will have exclusive access to expert analysis covering subjects including incentives, leasing, the new car market, the model mix, fuel prices, interest rates, wholesale pricing, delinquency rates, and more. To register for the 10:00am EDT session, click here. To register for the 4:00pm EDT session, click here.
Around the Web
Kia GT Spied Looking Like a Rakish, Sexy Forte [Autoblog]
Songs About Cars and Sadness [The Guardian]
10 Coolest Cars You Can Own for Less Than $20K [The Street]
Mazda Hoping for 'CX-Mine' Response to CUV [WardsAuto]