September 19, 2016
Help American Workers. Pass TPP
Anti-trade sentiment has made it fashionable for candidates to oppose TPP. But, write Former New York Mayor Michael R. Bloomberg and Chamber of Commerce President and CEO Thomas J. Donohue, while a vocal and energized faction of voters on the left and right advocate protectionist measures, most Americans–including majorities in both parties and among independents–believe more trade is good for the American economy. So do nearly all economists and a large majority of the business and agriculture communities. Global trade opens up new markets to American businesses, creating new opportunities to grow. In fact, the U.S. actually runs a cumulative trade surplus in manufactured goods with our 20 trade agreement partners, and we’ve long run global trade surpluses for services and agricultural products. Trade also lowers the cost of goods for U.S. consumers. Without trade, everything we buy – from food to clothing to electronics – would be dramatically more expensive. For more on why Congress should pass TPP to help American workers, click here.
The Self-Driving Revolution Will Be Mostly Electric
As our urban transportation landscape becomes automated over the next decade, it could spark an electric car revolution that for some has been overdue, reports The Detroit Free Press. Spend enough time around these early self-driving vehicles and you notice that nearly all are hybrids or pure EVs. Today, hybrids, plug-ins, and pure electrics are a marginal piece of the U.S. market, accounting for a scant 2.8 percent of all new vehicles sold in the U.S. through the first eight months of 2016, according to hybridcars.com. But a decade from now, electric cars will appeal far beyond the granola-eating, tree-hugging, climate-change evangelizing base that has sustained them thus far. Regulatory reasons, namely gas mileage requirements, will move vehicles toward electric systems. Then there are engineering reasons—electric vehicles are easier for computers to drive. For more on why self-driving cars will likely focus on electric vehicles, click here.
Hyundai's Great Leap Forward
After pressing pause on years of breakneck expansion to nail quality, restock the product pipeline, and streamline production, Hyundai is on the offensive again, reports Automotive News. Internally, the company’s engineers and executives liken it to an old Korean saying: “Even a frog must rest before the next jump.” And Hyundai’s next leap may be its biggest yet. The rested-and-ready company is simultaneously jumping into three new areas: a full range of eco-cars, from hybrids to EVs to fuel cells; a new subbrand of performance vehicles; and the new Genesis luxury marque nearly built from scratch. The executives leading these initiatives, in interviews with Automotive News, describe today’s Hyundai Motor Group as a mature, waking giant that used its downtime to regroup and is poised to build on its rank as the world’s No. 5 automaker. “Every organization needs a break before it goes for another jump,” said Ahn Byung-ki, director of eco-vehicle development. “A lot of people inside feel that way. I’m ready for the next jump.” Read more about Hyundai’s leap here.
Penske JLR Dealeship First to Adopt New Global Design
WardsAuto reports that Jaguar Land Rover is launching a $1.5 billion makeover of its U.S. dealerships, starting with a Penske Automotive Group store located in Darien, Connecticut. Designed to JLR’s new global standards, dubbed ARCH, the Darien dealership is a single-story bright gray rectangular structure featuring separate brightly lit pillar-less showroom windows for each brand. Inside, the showrooms employ elements of glass, walnut, and lighting to provide a “fresh and luxurious feel,” the automaker says in a statement. “It’s actually like a little jewel case,” says Joe Eberhardt, president and CEO-JLR North America, explaining ARCH isn’t an acronym but refers to a dual-box design that is “reminiscent of two arches. The focus inside is really on the cars.” The 36,600 sq.-ft. (3,400 sq.-m) dual-branded Jaguar Land Rover of Darien dealership features a 10-car showroom, a 25-bay service shop and a drive-through reception area. For more on JLR’s new dealership design, click here.
The Car Brands That Lure the Most Buyers From Other Automakers
So-called conquest sales are the proverbial Holy Grail among automakers. Even better is when a carmaker is able to lure customers away from its competitors while still being able to retain its most loyal followers. Forbes reports that the leader in that regard, as of mid-year 2016, is Subaru. According to Experian Automotive’s just-issued Q2 2016 Automotive Briefing, Subaru enjoys the car business’ highest conquest/defection ratio among all brands at 3.48. This means that for every customer lost over the 12-month period ending on June 30, Subaru picked up nearly 3.5 new buyers from other brands. The next highest makes on the list are Jeep (at 1.81 new buyers per customer lost), Kia (1.7), Mercedes-Benz (1.51), and BMW (1.44). In terms of individual models that bring in the most new customers while preserving their base, the compact Toyota RAV4 leads the pack with a 1.78 conquest/defection ratio, followed by its main competitor, the Honda CR-V at 1.50. For more on the brands and vehicles claiming the most conquest buyers, click here.
Happening Tomorrow: AIADA Kicks Off AutoTalk Election Series with Rep. Mike Kelly
As the election season heats up join AIADA for a special AutoTalk Election Series. AIADA will kick off the series tomorrow, September 20 with Rep. Mike Kelly, an 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.
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Toyota Spends to Defend Its Pickup Perch [Automotive News]