February 24, 2016
Obama Optimistic on TPP, Pushes for Votes
Politico reports that President Barack Obama says he is “cautiously optimistic” that Congress can pass the Trans-Pacific Partnership (TPP) this year and touted the benefits of increased trade this week to the home states of Senate Finance Committee Chairman Orrin Hatch and House Speaker Nancy Pelosi, two of the biggest potential obstacles to getting the deal done this year. “Governor [Gary] Herbert and I were talking about this a little bit yesterday,” Obama said at the White House in remarks to the National Governors Association, directing his initial comments on TPP to the governor of Hatch’s state. “When I visited Utah, you told me how much of Utah’s economy depends on exports and international trade. And that's true for so many of us.” Obama acknowledged hang ups that are keeping Republican leadership from fully supporting the pact. Obama said he looked forward to sending implementing legislation to Congress and pushing to round up votes for the deal. Pelosi and most other California Democrats voted last year against giving Obama trade promotion authority to finish the TPP. For the latest on TPP, click here.
Honda to Retool Product Development, R&D
According to Automotive News, Honda Motor Co. President Takahiro Hachigo aims to strengthen the company’s production footprint, streamline r&d, and focus more on electrified cars to reboot the automaker. Under the comeback blueprint unveiled Wednesday in Tokyo, Hachigo previewed plans to export more vehicles from Japan to North America and Europe to take advantage of slack capacity at home. Hachigo also said he will create new positions at the base of product development with the sole purpose of developing more exciting vehicles. The new positions will focus on overall product concept and such areas as performance and design. He also set a bold electrification goal to derive two-thirds of Honda’s global sales from green vehicles such as hybrids, plug-in hybrids, fuel cell vehicles, and electric vehicles by 2030. The overhaul’s objective will be creating a nimbler company through more integrated global operations and a revamped r&d process more focused on products that evoke Honda’s glory days when the brand was envied for its cutting-edge cool. Honda’s effort to build a global network of six regional production and product development hubs overburdened support activities from Japan, Hachigo said. For more on Honda’s production and r&d plans, click here.
Asian Brands Top Consumer Reports' List of Best 2016 Cars
Forbes reports that Consumer Reports anonymously buys vehicles from dealers and racks up 6,000 miles on each car to evaluate things like braking, handling, comfort, convenience, safety, and fuel economy. The publication’s annual Auto Issue was released yesterday, and its Top Picks included cars and SUVs from Toyota, Lexus, Honda, Mazda, Kia, and Subaru. Click here for a slideshow of the list. To be a Top Pick, vehicles must rank at or near the top of their respective classes in CR’s road-test score. Predicted reliability must also be average or better, based on problems reported by subscribers for the 740,000 vehicles in CR’s 2015 auto survey. CR also considers owner satisfaction, and crash or rollover tests conducted by the government and insurance industry. The Auto Issue also includes a “brand report card” that averages ratings for all models to determine which brands consistently deliver cars that serve consumers well. Audi topped the brand ratings, along with Subaru. FiatChrysler’s brands — Chrysler, Dodge, Jeep, and Fiat — came up last, with the Dodge Durango being the only vehicle they make that CR would recommend. For more on Consumer Reports’ top vehicle picks, click here.
Remade Acura MDX to Debut in Big Apple
According to The Detroit News, Acura will raise the curtain on an all-new, 2017 MDX mid-size crossover at the New York Auto Show on March 23. The 2017 model will boast a significant exterior makeover as well as new features and powertrain upgrades. Click here for a concept photo. The MDX is the second-best selling mid-size luxury SUV in the U.S. market and a rare entry with three-row seating. Priced at $43,785 – more than $5,000 below German competitors BMW X5, Mercedes ML350, and Audi Q7 – the MDX is a rolling bargain with a cornucopia of standard options including leather seats, nine-speed automatic transmission, and seven-passenger seating. Acura’s best-selling SUV has attracted customers by the truckload with sales of nearly 50,000 in the last three years. Only the Lexus RX outsells the MDX. “We are sharpening our focus on the Precision Crafted Performance DNA of the Acura brand and the 2017 MDX will integrate new styling elements and powertrain technology that takes us another step in that direction,” said American Honda Executive Vice President John Mendel in a statement. Acura’s Super Handling-All Wheel Drive option – SH-AWD for short – has received rave reviews from enthusiasts for torque-vectoring technology that speeds up the outside rear wheel for better rotation through corners. For more on the 2017 Acura MDX, click here.
AFL-CIO Slams VW for Refusing to Negotiate With UAW
A majority of skilled trades workers at Volkswagen's plant in Chattanooga, Tenn. voted in favor of UAW representation in December but the automaker has refused to begin contract negotiations, reports The Detroit Free Press. The AFL-CIO's Executive Council voted Tuesday to support the UAW's effort to force Volkswagen to negotiate a contract covering 162 skilled-trades workers at its plant in Tennessee. Volkswagen has refused to enter into contract negotiations. Instead, on Dec. 23, the German automaker filed a request for review of the NLRB Regional Director's decision to allow an election. Volkswagen argues that the small, maintenance-only bargaining unit may not be appropriate for collective bargaining. "We have consistently held the position that our hourly production and maintenance employees share a common community of interest and should have an equal voice in their workplace," Volkswagen said in a statement Tuesday. The UAW lost an emotionally charged, plant-wide vote at the Chattanooga plant in February 2014. Later that year, Volkswagen agreed to allow the UAW and a rival anti-union group meet with the management team at the plant on a regular basis to discuss worker issues. For more on VW’s refusal to negotiate with the UAW, click here.
Dealers United: Register for AIADA's Spring Events
Make plans today to unite with other dealers in support of the international auto industry this spring at AIADA's 46th Annual Meeting and Luncheon and 10th Annual International Auto Industry Summit. Held Sunday, April 3, during NADA's annual convention in Las Vegas, the 46th Annual Meeting and Luncheon will feature keynote remarks by Toyota North America CEO Jim Lentz, who will share his vision for Toyota and America's international nameplate auto industry in the years ahead, the introduction of our 2016 Chairman, Greg Kaminsky of California and the presentation of the 2016 David F. Mungenast Sr. Lifetime Achievement Award. Don't wait—register today for AIADA's 46th Annual Meeting and Luncheon by clicking here.
Also happening this spring on May 10-11, in Washington, D.C., AIADA's 10th Annual International Auto Industry Summit will help you understand what you can do to unite with other dealers in defense of your business. This year's event will feature a special congressional lunch on Capitol Hill, an industry executive panel discussion on the future of the auto franchise model, and engaging speakers like Gen. Stanley McChrystal, former commander of U.S. and international forces in Afghanistan; political prognosticator Stuart Rothenberg; and pollster and communications professional Dr. Frank L. Luntz, this year's event is one you don't want to miss. Register for this unique, 24-hour event by clicking here. For more on AIADA's upcoming events, visit AIADA.org/events.
Around the Web
The Cheapest 2016 Cars to Insure [Forbes]
McLaren's More Practical Sports Series Model [MotorAuthority]
This is the 2017 Audi S4 Avant [Autoblog]
Here's Where James Bond's New Cars Will Come From [Fortune]