November 4, 2016
VW CEO Targets U.S. Settlement Before Government Changeover
Volkswagen AG aims to reach a settlement with the U.S. government over a criminal investigation before a new president takes office on Jan. 20, which would remove a major hurdle as the German carmaker attempts to recover from the diesel scandal, reports Automotive News. “Of course we’d wish to have a final decision before the American government -- and with it, the authorities -- change, so that we can have certainty,” Volkswagen CEO Matthias Mueller said during a conference in Hamburg. While he’s “disappointed” that the investigations have continued for so long, negotiations with U.S. regulators are “very good,” Mueller said. VW is still facing criminal charges in the U.S. after getting approval for a $15 billion civil settlement last month with the U.S. Environmental Protection Agency, the California Air Resources Board, and disgruntled customers. A court hearing took place yesterdayrelating to about 85,000 3-liter diesel engine cars that weren’t included in the previous agreement. For the full story, click here.
Unwinding NAFTA Unrealistic and Unlikely to Restore Jobs
The North American Free Trade Agreement has emerged this year as the poster child for America's manufacturing job losses even though experts say the three-country trade deal is just one part of a much larger, more complex web of international trade. According to the Detroit Free Press, the outsourcing of manufacturing jobs to China — a country America doesn't have a free trade deal with — has had a much larger impact. What's more, drastic measures — such as pulling out of NAFTA — would not fix America's trade problems or restore manufacturing jobs lost to other forces such as automation. The U.S. could, with six months' notice, withdraw from NAFTA. But it's unlikely any U.S. president would do that because it wouldn't lead to increased exports or fix currency issues, or lead to a restoration of American jobs. "It would be pretty negative (for the U.S. economy) because it would not address our fundamental trade problems," said Robert Scott, senior economist of the Economic Policy Institute. "All it does is raises cost of imports." For more on NAFTA, click here.
Here's What Really 'Drives' Democrats and Republicans
The differences between Republicans and Democrats have been thoroughly dissected and documented over the years, and have been especially scrutinized in the course of what seems like the longest and most insufferable presidential election in history. And while it’s no “November surprise,” here’s yet one more yardstick by which to measure today’s voters: Forbes reports that if you want to “make America great again,” then you probably own a burly full-size pickup truck. Voting for Hillary, or perhaps a third-party candidate? You’ll likely drive to the polling place in a sensible crossover SUV. According to a study conducted by the market research firm Strategic Vision, the five most popular models among Republicans are big domestic pickup trucks with – no surprise here – the industry sales-leading Ford F-150 being the most prevalent red-state ride. Democrats, on the other hand, favor the Subaru Outback crossover above all other vehicles, with Independents instead preferring that model’s less-costly showroom sibling, the Forester. Click here for a slideshow of the five most popular models among all three sides of the aisle.
Feds Move to Boost Electric Car Use
President Barack Obama’s administration is moving to accelerate the development of electric cars by establishing 48 national charging corridors on U.S. highways that will cover nearly 25,000 miles in 35 states and Washington, D.C., fulfilling a mandate from Congress that was passed in 2015. According to the Detroit News, the list of proposed initial electric car charging corridors includes interstates where signs are ready to go that are similar to current roadside alerts for food and gas stations that are nearby highway exits. The U.S. Transportation Department was required to set up the electric car charging corridors by Dec. 4 as a result of an infrastructure funding law passed last year. The effort to boost the number of electric-car charging stations in the nation comes as federal regulators say that U.S. automakers may miss the goal of achieving a fleetwide average of 54.5 miles per gallon by 2025, a marker set by the Obama administration in 2012. Automakers have said low gas prices have dampened enthusiasm for fuel-efficient cars and electric vehicles. Trucks and SUVs have been top sellers. For the full story, click here.
12 Affordable Classic Cars
The Wall Street Journal this week compiled a list of a dozen cars—all less than 30 years old and available for south of $30,000—that could one day be collectibles. Benz fans will appreciate the fact that number one on the list is the Mercedes-Benz E320 Cabriolet, 1993-1995. The drop-top conversion was fortified to Brinks-like levels and given a flawless, one-touch mechanism, a portal to the sky. Fine examples are out there for around $12,000. Click here to see it. Next up is the 1995 BMW 850 CSi. Decades from now, youngsters will marvel at 12-cylinder engines as we do grand complication watches. This car has the double curiosity of a V12 buttoned to a six-speed manual transmission. The 850 was a stunning grand tourer and a technical tour de force, with oil and transmission intercoolers and multi-link rear suspension with passive rear-steer geometry. Honda’s S2000 also makes the list, thanks in part to its four-cylinder that revved like God’s dentist’s drill. Also from Honda in 2000 is the Insight. Here is the first mass-produced hybrid sold in America, and it was a minor miracle, getting 70 mpg on the highway. For the complete list of affordable classics (all international makes, by the way), click here.
AIADA To Hold Special Election Edition AutoTalk Webinar
Join AIADA on Tuesday, November 15 for a special edition AutoTalk webinar, sponsored by AIADA Affinity Partner CNA National, featuring a breakdown of how the 2016 election outcome will impact international nameplate franchised auto dealers. Find out what the international auto industry in the U.S. can expect from a lame duck session of Congress in November and December, as well as a new Congress and presidential administration in January.
AIADA President Cody Lusk and Vice President of Government Affairs Rachel Robinson will be on hand to summarize the election outcome and help dealers understand the political and legislative issues—including trade and the Trans-Pacific Partnership and regulatory agencies like the CFPB—will impact their dealerships in the coming months. Sessions for the November 15 webinar will be held 10 a.m. EST and 4:00 p.m. EST. To register for the 10:00 a.m. EST session, click here. To register for the 4:00 p.m. EST session, click here.
Around the Web
Uber Driver Attempted To Drive Through The Sea After Getting Caught Out By Tides [Jalopnik]
Will Automakers Abandon Super Bowl Ads As NFL Ratings Drop? [TTAC]
Honda Patent Predicts the Future of Window Shades [AutoBlog]
Congratulations, San Francisco: Your Roads Are the Worst in the Country [CNet]