January 20, 2017
Trump to Be Sworn In, Marking a Transformative Shift in Country's Leadership
Donald John Trump will be sworn in as the 45th president of the United States at noon on Friday, on a day that is expected to offer less ceremony and flourish than previous inaugurations — while ushering in a transformative shift in the country’s leadership. The Washington Post reports that events on the Mall will begin about 11:30 a.m. For those attending the events in person, the security gates will open at 6 a.m. The weather forecast calls for temperatures around 50 degrees, with rain showers in the afternoon. After taking the oath of office, President Trump will attend a luncheon at the Capitol, and his inaugural parade down Pennsylvania Avenue will begin about 3 p.m. Trump’s swearing-in will give Republicans control of both the White House and Congress for the first time since 2006. For more on today’s inauguration of Donald Trump, click here.
How Border Adjustment Could Cause a Wealth Drop
Who really loses from the House Republicans’ plan for a border-adjusted corporate tax? Here’s one possibility: Americans who own assets denominated in foreign currencies. Here’s why, according to Richard Rubin at The Wall Street Journal. The loudest complaints come from importers, who worry they’ll have to raise prices or face tax bills larger than their profits. But retailers, oil refiners, and other importers only lose if the plan doesn’t work as intended. Economists project that the border adjustment—applying the U.S. corporate tax to imports and removing it from exports—would cause the dollar to rise. If that happens completely, importers would simply pay less for goods and more in taxes and land exactly where they started. In that case, the real impact is the one-time loss caused by the dollar’s rise—a recent estimate says this would amount to wealth drop of about 13 percent of gross domestic product, or more than $2 trillion. For more from Richard Rubin on the consequences of a border tax, click here.
How Toyota Used Artificial Intelligence for RAV4 Campaign
IBM's Watson has struck again. The machine learning program, which has emerged as a popular tool for agencies and marketers, is powering a new highly targeted digital campaign for Toyota that uses an algorithm to generate ad scripts. Breaking this week, the campaign is the latest example of how Toyota agency-of-record Saatchi & Saatchi Los Angeles is using what it calls "creative programmatic." According to Automotive News, the agency wanted to connect the Toyota's Rav4 crossover to the favorite activities of individual consumers, but in an unpredictable way. So Saatchi fed Watson the world's top 1,000 activities – like biking, dancing, and cooking – and asked Watson to pair two activities that had low probabilities of being matched. The agency then used the pairings to create 300 unique videos, which are being targeted at users on Facebook and Instagram. For more on how Toyota is using artificial intelligence for its RAV4 advertising campaign, click here.
Auto Shows Are Great Places to Expose Consumers to F&I
In a little more than a week, F&I product vendors will flock to New Orleans to showcase at the National Automobile Dealers Association convention. They will pitch to dealers, establish relationships with potential partners, and size up the competition. But, reports Automotive News, where can those vendors connect with consumers? At the Detroit auto show this month, Ally Financial, as it did at the 2016 show, has a car scent station, where visitors can sample fragrances concocted by the Ally team to match various vehicles types and drivers. Introducing F&I products to customers at an auto show, where they’re relaxed and admiring cars they’d love to have, could lead to an easier sell for F&I managers down the line. With no real stakes, consumers are more likely to trust F&I product information, and if they love that car they’re eyeing, they’d probably be interested in learning how to protect it. For more on why auto shows are promising locations to introduce F&I products to consumers, click here.
U.S. Ends Probe of Fatal Tesla Crash; No Recall
The U.S. government will not order any recalls or fines as it concludes its investigation of a fatal crash involving a 2015 Tesla Model S that was operating with its automated driving system activated, reports The Detroit News. The National Highway Traffic Safety Administration said Thursday that it did not find any safety defects in the car that was involved in the May 7, 2016, crash, which was believed to be the first U.S. death in a vehicle engaged in a semi-autonomous driving feature. The agency said it is closing its investigation of the crash that has been underway since June 2016. NHTSA said its examination did not identify any defects in the design or performance of the automatic emergency braking or Autopilot systems. NHTSA’s decision to spare Tesla of the harsh penalities that have been doled out to other automakers for safety violations in recent months brings to close a months-long investigation that roiled the debate about the future of self-driving cars. For more on NHTSA’s decision to end its probe of Tesla, click here.
Around the Web
Your Guide to Inauguration 2017 [NY Times]
Join AIADA in New Orleans [Register]
2017 BMW 5-Series First Drive [Autoblog]
2 Trends That Could Have a Huge Impact on Your Dealership [CBT Automotive Network]