June 16, 2016
VW Diesel Scandal Settlement Deadline Extended
A U.S. judge late on Wednesday extended the deadline for Volkswagen AG, U.S. government regulators and owners of nearly 500,000 2.0 liter vehicles to reach a final diesel emissions settlement until June 28, reports Automotive News. The tentative settlement announced in April includes an offer by VW to buy back nearly 500,000 polluting vehicles, as well as an environmental remediation fund to address excess emissions and a fund to promote green automotive technology. In April, U.S. District Judge Charles Breyer set a June 21 deadline to publicly file the final settlement but in the Wednesday order he agreed to extend the deadline by one week to complete the complex agreement. Read more on the extension here.
While the company is dealing with its emissions problems, it is also announcing plans to deliver 30 electric vehicles by 2025 as part of a sweeping plan to overhaul its global strategy. USA Today reports that Volkswagen CEO Matthias Mueller on Thursday articulated a new vision for the automaker through 2025, describing electric cars, ride-hailing services, and cost-cutting as critical to the company's future. Read more about Volkswagen’s plans here.
Luxury Car Names Are a Numbers Game
Makers of luxury and near-luxury vehicles are leading the way in complex names, choosing and frequently changing the alphanumeric badges on many of their models, reports The Detroit News. They’re not doing it just to spin the publicity wheel and keep models fresh in buyers’ minds. Automakers ranging from Cadillac to Mercedes-Benz are realigning their model designations to establish a common language in the linguistically complex global market. While it may seem confusing, alphanumeric designations help buyers — and sellers — identify vehicle classifications. Mercedes-Benz “G” classification encompasses its family of sport utility vehicles and crossovers and comes from the word Gelaendewagen, which loosely translates to all-terrain vehicle. Brand names such as Acura, Infiniti, Lincoln, BMW and others precede the alphanumerics and carry more weight. This increases focus on the master brand for communication efficiencies, says Susan Broniarczyk, a marketing professor at the University of Texas. For more on how luxury automakers name their models, click here.
F&I Managers Should Pick Up the Phone
More and more often, consumers want to arrange their car purchases on their terms. That means much of the communication could happen via email or by phone rather than during a traditional showroom tour, reports Automotive News. Where does that leave F&I managers? It could leave them in the dust, but it doesn’t have to, says Gerry Gould, director of training at F&I provider United Development Systems in Clearwater, Fla. Dealerships’ sales teams do deals over the phone easily, Gould said. “What [dealerships] are not embracing is F&I over the phone. I think they’re attempting to do more.” When a store’s business development center staffers say they’ve secured a deal online or over the phone, F&I managers should jump on it, he said. Gould suggests following the three R’s: recognize that there’s a deal, respond to the deal and relay all the information to the customer and the sales team to keep everyone in the loop. For more on why F&I managers should pick up the phone to engage customers, click here.
FCA Confirms Maserati SUV, Alfa Sedan Just Months Away
Both the Maserati Levante SUV and the Alfa Romeo Giulia sedan have been in development for years and have been delayed several times. FCA plans to launch both the long-awaited Giulia sedan and Levante SUV in North America in a few months with the Levante arriving before the Giulia. The Detroit Free Press says that on Wednesday, Reid Bigland, who was picked to lead Alfa Romeo and Maserati globally in May, spoke briefly about his top priority for the automaker's two luxury brands. "I think with Maserati, we just want to get the Levante, the Maserati of SUVs, out into the marketplace," Bigland said. "And I think with respect to Alfa Romeo — a brand that has been out of the North American market for the last 20 years — (we need to) continue to build up the distribution network and get ready for the Giulia coming in and then tackle similar issues in China (and) continue to build up the distribution network." For more on the arrival of Maserati and Alfa Romeo models, click here.
Watchdog Finds Problems with CFPB's Internal Controls
DS News reports that the Government Accountability Office (GAO) has found some problems with the CFPB’s internal controls and accounting procedures, according to a report from the GAO released this week. “During its audit of the Consumer Financial Protection Bureau’s (CFPB) fiscal years 2015 and 2014 financial statements, GAO identified deficiencies in CFPB’s internal control over accounting for property, equipment, and software that collectively constituted a significant deficiency in CFPB’s internal control over financial reporting,” the GAO reported. The GAO specifically found that the Bureau had not designed or effectively implemented controls to: reasonably assure the accurate and timely classification of the recording of software costs, and maintain complete and accurate records of property and equipment inventory. Click here to view the GAO’s full 16-page report. For more on the GAO’s findings, click here.
Webinar: The 2016 Mid-Year Review--What's On the Horizon?
In December 2015, AIADA’s AutoTalk hosted a group of auto analysts who shared their projections for the 2016 auto market. Now, six months later, AIADA is following up on those predictions and looking ahead to the remainder of the year. Join analysts from Dealertrack, ADESA, and Wells Fargo for a special AutoTalk presentation that asks how the market is shaping up and what clouds may be forming on the sales horizon. Attendees for the FREE June 21st webinar will have exclusive access to expert analysis covering subjects including incentives, leasing, the new car market, the model mix, fuel prices, interest rates, wholesale pricing, delinquency rates, and more. To register for the 10:00am EDT session, click here. To register for the 4:00pm EDT session, click here.
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