July 1, 2015
The Hoffman Post: A Big Trade Win! What Comes Next . . .
In politics, as in business, there isn’t a lot of time for victory laps, writes AIADA Chairman Bradley Hoffman. That’s why, even as AIADA cheered the Senate’s hard fought 60-38 passage of Trade Promotion Authority (TPA) in D.C. on Wednesday of last week, we were already thinking about the future. The next step in expanding the United States’ global trade presence and maintaining our status as an economic super power is to finalize and pass the Trans-Pacific Partnership (TPP). The agreement, which is currently under negotiation between 12 pacific nations, stands to remove or greatly reduce a number of barriers to global trade; one of which is the 25 percent tariff on all Japanese light trucks entering the U.S. For dealers and the auto industry as a whole, TPP will be a game-changer, creating a level playing field on which all brands can compete. AIADA will continue to work hard on our behalf to ensure that more victories will come in 2015. Thank you. As always, it’s your support, your letters, your e-mails, and your calls that have put us where we are today. I know that your energy will push us across the TPP finish line. For more of AIADA Chairman Bradley Hoffman’s latest blog post, click here.
Study: New Car Buyers Staying Loyal to Old Brands
An analysis of recent car sales shows auto buyers are staying more loyal to their brands than ever before, reports USA Today. Some 52.8 percent of U.S. car buyers replaced their old car with a new car of the same brand throughout the first quarter of 2015, according to a study by IHS Automotive. Chevrolet, GMC, Infiniti, Lexus, Porsche, Jeep, Land Rover, Mazda, Mitsubishi, Nissan, Subaru, and Volvo have been riding high loyalty rates for the past 10 years. Researchers say the increase in loyalty boils down to two main reasons: more models and an increase in popularity of leasing. "The increased number of different models within brands makes it easier for households that may need a different type of vehicle to maintain their loyalty," says Tom Libby, manager of automotive loyalty and industry analysis at IHS Automotive, in a statement. "In addition, the increased popularity of leasing since the downturn has helped significantly as lessees are consistently more brand loyal compared to retail owners." Vehicle leasing has seen an increase over the past 10 years, rising from 13.9 percent of the auto market in 2005 to 22.5 percent in 2015. For more on consumer brand loyalty, click here.
Toyota: Zero-Emission Car Will Have Longest Range
According to The Detroit Free Press, Toyota says it will have the longest-range zero-emissions vehicle on the market when its new Mirai comes to market. Mirai is powered with a hydrogen fuel cell—and just got an EPA rating of 312 miles per tank, according to Toyota. Mirai's range is an accomplishment because in the hydrogen car world, where tank storage is a big issue, those numbers count. Since hydrogen is a gas, not a liquid, it requires bigger tank or ones that can store it at a higher pressure than for gasoline. EPA also rated Mirai at 67 miles per gallon using its equivalency rating, MPGe, to gasoline-powered cars, Toyota says. Toyota is among a handful of automakers that think hydrogen cars, not pure electric-battery powered ones, are the future. That's because they can be refueled in minutes like conventional cars, not requiring long stops at recharging stations. "Just as the Prius introduced hybrid-electric vehicles to millions of customers nearly twenty years ago, the Mirai is now poised to usher in a new era of efficient, hydrogen transportation," says Toyota North American CEO Jim Lentz in a statement. For more on the Mirai’s range rating, click here.
Scion Planning Biggest Ad Campaign Since Brand's Launch for iA, iM
According to WardsAuto, Scion will stage its largest advertising campaign since its national debut in 2004 for the new iA and iM small cars. “It will be the most money we’ve put in the market since the launch of the brand,” Scion Vice President Doug Murtha told media at the preview for the ’16 iA and iM, both going on sale Sept. 1 in the U.S. The subcompact iA sedan and compact 5-door iM are the first new products for Scion since the debut three years ago of the FR-S sports car. As such, the brand wants to make a big splash and has opted to combine the marketing for both models into one campaign. “On the opportunities side, we’re able to take launch money for separate products, pool those together and put them behind a single launch,” says Murtha. A challenge will be communicating the distinct personalities of two vehicles in one piece of advertising. iA competitors include the Chevrolet Sonic, Ford Fiesta, Hyundai Accent, and Nissan Versa sedans, while the iM’s key competition is seen as the hatchback versions of the Ford Focus, Accent, and Mazda3. For more on Scion’s ad campaign push, click here.
Consumer Reports: Some Newer Cars Burn Too Much Oil
Newer cars aren’t supposed to need more oil between oil changes, but Consumer Reports found that some engines—mainly from Audi, BMW, and Subaru—require an extra quart as often as once a month. In an annual survey of car owners, significant numbers reported what the magazine considered to be excessive oil consumption. Consumer Reports focused on 2010 to 2014 models and called on automakers to make repairs under the powertrain warranty or to extend warranties, reports The Detroit News. It’s normal for cars to burn a little oil as they age toward 100,000 miles, the magazine said in its August issue. But for a late-model car to burn a quart or more between changes is not acceptable, said Mark Rechtin, the magazine’s cars content team leader. The magazine focused on survey data from 498,000 owners of 2010 to 2014 models, finding that 98 percent did not have to add oil between changes. Several engines from three manufacturers were the main offenders, according to the magazine. Those include Audi’s 2.0-liter turbocharged four cylinder and 3.0-liter V6; BMW’s 4.8 liter V8 and 4.4 liter twin-turbo V8; and Subaru’s 3.6 liter six-cylinder and 2.0- and 2.5-liter four-cylinder engines. For more on findings that some newer cars burn more oil than necessary, click here.
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Jaguar: Customers Aren't Cargo, No Self-Driving Cars [SlashGear]
What F1 Cars Will Look Like in 2056 [CNN]