July 14, 2015
Honda's Car-less CEO Holding Out for Dream Wheels -- the Civic Type R
When Takahiro Hachigo returned to Japan in March after years overseas to be the new CEO of Honda Motor Co., he didn’t rush out to buy a new car, Honda brand or otherwise. Indeed, even months later, the self-confessed car-crazy veteran chief engineer remains probably one of the few automotive executives anywhere without his own set of wheels. But Honda’s car-less CEO is holding out for a reason, reports Automotive News. “There is a model I want, which will, as I have told you, be launched this autumn,” Hachigo said during his first media roundtable this month “I will wait.” That model? The revived Civic Type R hot hatch that will be manufactured at Honda’s England assembly plant and exported to markets worldwide, including Japan and the U.S. The Type R speaks both to Hachigo’s personal predilections and professional plans. Regarding the latter, he aims to revive Honda’s reputation as a purveyor of innovative engineering, stylish fun, and cutting-edge cool. He counts the upcoming Type R, along with the just-released Japan-market S660, an open-top turbocharged mini roadster, as the two Honda nameplates he’s most excited about. Read more about Honda CEO Takahiro Hachigo’s dream car here.
UAW President Wants All Workers to be Middle Class
General Motors Co. CEO Mary Barra and UAW President Dennis Williams on Monday vowed to come up with a contract for 50,800 hourly workers that will help GM’s long-term success, while Williams reiterated bridging the gap between tier-one and tier-two workers. According to The Detroit News, Williams, speaking at the official kickoff of contract negotiations at the UAW-GM Center for Human Resources, said ensuring job security for membership in the future, as well as bridging the roughly $10 an hour pay gap between tier-one and second tier workers, is key. “I’ve said that we want the ability to make sure that our members remain and begin . . . Some of them are not part of the middle class the way they should be. And some are,” Williams said. “And how do we find that path?” Long-time hourly workers earn more than $28 an hour, while second-tier workers earn up to $19.28 an hour for doing the same jobs. The union agreed to a lower-paid entry-level job classification in 2007, just ahead of the economic downturn. Partly because of that, automakers have hired thousands of workers. Read more about the kickoff to UAW contract negotiations here.
Gen Y Just Behind X in Financial Stability, Earnings
Although Millennials show slightly less economic stability and earn less money than Generation X, they typically borrow less than their immediate elders, reports WardsAuto. That’s according to a report from FactorTrust, a provider of “under-banked” consumer data, analytics and credit scoring – much of it from non-traditional sources. Millennials, or Generation Y, 18 to 34, now make up the largest and most diverse generation in the U.S. population, and account for 33 percent of FactorTrust’s database of under-banked consumers. The group’s tendency to borrow less could in part stem from student-loan debts many Millennials carry, FactorTrust says. It cites an average college-related debt of $29,400. Although credit cards are a financial way of life for many people, 63 percent of Millennials don’t have one. “There is a great deal of opportunity surrounding alternative-lending options for Millennials, as studies show they are less loyal to financial institutions than previous generations,” says FactorTrust CEO Greg Rable. Today, Gen Ys delayed entry into the car market is seen as having less to do with automotive apathy and more to do with an initial lack of financial wherewithal to purchase such a big-ticket product. For more on millennial financial stability and what it means for the car market, click here.
Sizzling New-Car Lease Deals Under $200 a Month
With new-car sales continuing to skyrocket, they’re taking transaction prices along to the stratosphere. Forbes reports that if there is any good news for cash-strapped consumers it involves new-car leasing. Automakers love leasing as it brings new customers back to dealerships with clocklike regularity and helps dealers maintain an inventory of recent-model used cars. Experian says lease payments have dropped over the past 12 months from an average $412/month to $405. At that, Forbes found a long list of some of the industry’s most popular models leasing for a monthly charge of $200 or less, with equally affordable down payments under $2,000. These include midsize and compact cars, small crossovers, and both a gas-saving hybrid and a fun-to-drive sporty car thrown in for good measure. They’re affordable enough to acquire as third cars in a family’s fleet or for college kids, to ensure they have a safe and reliable ride to get themselves to and from school. Forbes is featuring 18 of the best leasing deals with monthly payments under $200/month and down payments less than $2,000 in the accompanying slide show. Click here for more from the publication on the best lease deals available to consumers this summer.
Volvo Buys Polestar's Tuning Arm in Pursuit of Power Halo
Volvo Cars bought Swedish racecar maker Polestar's tuning division and will use the name for an expanded high-performance line to challenge Mercedes-AMG and BMW's M models, reports Automotive News. Volvo already sells Polestar-tuned versions of the V60 wagon and S60 sedan under a cooperation deal signed in 2013. "We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar," CEO Hakan Samuelsson said in a statement. Volvo is following Jaguar Land Rover as well as German rivals BMW and Mercedes-Benz in offering sportier versions of its regular models. Polestar sales are set to as much as double to 1,500 cars in the medium term from 750 targeted for this year, Volvo said. The biggest markets for Polestar's sporty versions of Volvo cars are the U.S., the U.K., and Australia. Polestar, which only works with Volvos, uses performance-enhancing software and tunes cars to increase mid-range engine performance by making changes to the gearbox and throttle response. Volvo aims to boost its global annual sales to 800,000 vehicles by the end of the decade from a target of 500,000 cars this year. Read more here about Volvo’s purchase of Polestar and its plans for a high-performance line of vehicles.
Shell is Now BMW Group's Recommended Oil Supplier
Shell announced it has been chosen by BMW AG as its only recommended global supplier for aftermarket engine oils for the following BMW brands: BMW, BMW i, BMW M, MINI, and BMW Motorrad. From the start of 2015, premium engine oils manufactured by Shell will be available to customers at BMW Group’s network of more than 3,500 dealers, in more than 140 countries, including China, Germany, Russia, South Africa, South Korea, the U.K., and the U.S. The collaboration means Shell will produce and supply BMW’s branded engine oils. These products will meet the latest BMW engine specifications and are underpinned by Shell’s PurePlus Technology. Shell PurePlus Technology is a breakthrough in how engine oils are formulated. It is a patented gas-to-liquid (GTL) process, developed over 40 years of research, which converts natural gas into a crystal-clear base oil. From 2015, BMW service customers benefit from the integration of Shell’s global lubricants supply chain with its gas value chain in Qatar. “We are honored to become the BMW Group’s recommended supplier of aftermarket engine oil,” said Mark Gainsborough, Executive Vice President for Shell Lubricants. “We look forward to jointly supplying, distributing and marketing these oils, as of start 2015.” Please Contact Tony Barnes for additional information at (214)763-6771.
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What Kind of Car is the Most Green, Fuel Efficient, and Budget Friendly? [LA Times]
How to Differentiate Your Dealership From the Rest [CBT News]