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June 1, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
VW's U.S. Expansion Hampered as Trump Ponders Trade Barriers
Fields Tried to Fire Hinrichs Before Being Ousted from Ford
Auto-Retailing E-Contracting Gains Traction Finally
U.S. Millennials Take Longer to Drive Away in New Wheels
New-Car Loans Lasting 73 to 84 Months Soar
Top Stories
VW's U.S. Expansion Hampered as Trump Ponders Trade Barriers

Volkswagen AG’s plans to expand production at its only U.S. factory risk being disrupted by uncertainty over possible trade barriers under President Donald Trump, who has been particularly critical of Germany. The maker of the Passat sedan is considering assembling additional sport utility vehicles at its plant in Chattanooga, Tennessee, with the goal of lifting the site to full production capacity by 2020.
Source: Bloomberg

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Fields Tried to Fire Hinrichs Before Being Ousted from Ford

Days before his May 19 ouster as CEO of Ford Motor Co., Mark Fields was proposing to fire his top lieutenant, Joe Hinrichs, in an effort to relieve some of the pressure he was facing from a skeptical board of directors, Automotive News has learned. Fields intended to get approval from the board for his decision to fire Hinrichs during the week of May 14, sources said. Fields' plan backfired, however, when the board decided instead to part ways with him and communications chief Ray Day, following a Friday, May 19, meeting.
Source: Automotive News

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Auto-Retailing E-Contracting Gains Traction Finally

For quite a while, auto-retailing e-contracting was beginning to look like it was a proposal for the future – and always will be. “We’ve talked about it forever,” Nick Stanutz, a senior vice president at Huntington National Bank, says at a recent auto financing conference. “But there’s not much demand at the dealer level.” Still, in what may be a case of creating demand rather than responding to it with a new product, some automotive lenders and information technology companies are rolling out their versions of e-contracting.
Source: WardsAuto

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U.S. Millennials Take Longer to Drive Away in New Wheels

Every generational cohort in the U.S. is purchasing cars faster except millennials, according to researcher Cox Automotive. Younger consumers’ rising debt levels play a clear role, said Steve Lind, general manager at Cox’s Autotrader. Millennials, many of whom are first-time car buyers, may also be slower to seal deals because there are more technology options available than ever before, he said.
Source: Bloomberg

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New-Car Loans Lasting 73 to 84 Months Soar

Longer terms are more commonplace in used-vehicle financing, too 

The share of new-vehicle loans lasting 73 to 84 months has risen sharply in the past eight years, according to Experian. In the first quarter of 2009, 11.7 percent of new-vehicle loans were 73 to 84 months, Karl Kruppa, senior automotive solutions consultant for Experian, said at CU Direct's Drive '17 conference [in Las Vegas] last week. Through February 2017, 33.8 percent of loans were 73 to 84 months.
Source: Automotive News

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Quotable
"We hope that we're going to have clarity in the next months. It influences investment decisions."

    -- Herbert Diess, head of Volkswagen, commenting on possible U.S. trade barriers, Bloomberg, June 1

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