Japan Eyeballs Minor Trade Deal With U.S. Slated for September

The United States and Japan are working on a trade deal revolving around agriculture and automobiles. As much as you’re probably dying to hear about the farming aspects, we’re going to focus a bit more on the latter. Boiled down, the arrangement is reported to deliver preferential treatment for U.S. farmers hoping to expand into the Japanese market while lessing duties on Japanese auto parts.

President Donald Trump has noted in the past that he’s displeased with any country holding a trade surplus over America’s head and Japan has one. Last year, it amounted to $67.6 billion in goods — most of it relating directly to automobiles. This initially encouraged the president to threaten tariffs on Japanese imports. However, Japan’s close ties to the United States bought it some time and any legitimate danger has been postponed to encourage trade discussions.

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Automakers, Already Taking a Hit From Trump's Mexican Tariff Threat, Worry the Pain Has Only Just Begun

The profit-focused appeal of building vehicles in low-cost jurisdictions propelled many automakers to boost manufacturing capacity in America’s southern neighbor — a decision that now haunts them.

After President Donald Trump issued a Thursday statement declaring his administration would levy a 5 percent tariff on all Mexican-made goods starting June 10th, some $17 billion in market value evaporated from top automakers the following day. Ford, General Motors, and Fiat Chrysler all saw their share prices tumble. Should Trump follow through on his promise of an escalating tariff (a threat designed to stem illegal migration into the U.S.), the pain felt by both companies and their customers will be extreme.

Naturally, the industry is pushing back the best it can.

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First-Ever Honda N600 Gets Restored in New Video Series

As a relative newcomer to the car-building scene, Honda doesn’t quite have the heritage of classics piling up in a dusty warehouse like most other automakers. They do have a legion of rabid fans, however, including one restorer who specializes in very early Honda cars — and found the very first N600 built for the U.S. market.

Honda partnered with that restorer, Tim Mings, and today released the first of a series of videos and features on the restoration of this very special classic on the website Serial One.

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With Peugeot-Citroen Eyeing New Markets, Could There Be a French Car in Your Future?

With the Saab brand now functionally dead, could the next quirky car du jour for individuality-signalling Americans come from France?

All eyes will be on PSA Peugeot Citroen on April 5 as France’s top automaker reveals its new international growth strategy, possibly heralding a return to the long-abandoned U.S. market.

The U.S. and Iran are being looked at as potential export markets, now that PSA’s “Back in the Race” restructuring program has improved the financial fortunes of the once-struggling automaker.

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Automakers' China Push Comes With a Risk … of Offending

If you woke up not knowing the Chinese hate “new car” smell, consider yourself a well-informed person now.

Successfully selling a new vehicle in China means having to avoid the many cultural and legal traps specific to that growing market, reports Automotive News.

What works somewhere else might be a massive faux pas for Chinese buyers, meaning one wrong minor detail and an automaker can kiss its expensive international expansion goodbye. That’s a big concern for American automakers eyeing China in the hopes of boosting their global sales.

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Inside Stories From the War Between Automakers And Dealers Over Exports

There’s not a more uncomfortable phone call for a car dealership’s finance manager to make then asking a customer to come back to have their finance or lease contract rewritten. This is typically caused by sales managers — the people most despised by finance departments — who spot deliver a vehicle based on their wrong guess about the rate or term a lender would approve the deal. Needless to say, the vast majority of these rewrites result in a higher monthly payment for the customer.

A couple of years ago, a finance manager at a Los Angeles Mercedes-Benz dealer told me and a Mercedes-Benz Financial colleague of mine about the day he picked up the phone to fix the opposite situation: the dealership had miscalculated the taxes on a client’s lease on a black ML350 Bluetec SUV and they needed the client to return and sign a new lease agreement reflecting payments of $14 per month lower than the original contract.

He called the customer with the good news only to hear, “No no no! Payment good. Payment good. We OK!”

After he hung up, he thought, “We just got snookered. That ML is probably on a slow boat to China and the factory is going to kill us.”

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Middle Eastern, Asian Demand Fuels Booming US Auto Exports

Demand from the Middle East and Asia has helped fuel a new record in U.S. auto exports for the third consecutive year.

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  • Bryan Raab Davis I actually did use the P of D trope, but it was only gentle chiding, for I love old British cars of every sort.
  • ScarecrowRepair The 1907 Panic had several causes of increased demand for money:[list][*]The semi-annual shift of money between farms and cities (to buy for planting and selling harvests)[/*][*]Britain and Germany borrowing for their naval arms race[/*][*]San Francisco reconstruction borrowing after the 1906 earthquake and fire[/*][/list]Two things made it worse:[list][*]Idiotic bans on branch banking, which prevented urban, rural, and other state branches from shifting funds to match demands. This same problem made the Great Depression far worse. Canada, which allowed branch banking, had no bank failures; the US had 9000 failures.[/*][*]Idiotic reserve requirements left over from the Civil War which prevented banks from loaning money; they eventually started honoring IOUs illegally and started the recovery.[/*][/list]Been a while since I read up on it, so I may have some of the details wrong. But it was an amazing clusterfart which could have been avoided or at least tamed sooner if states and the feds hadn't been so ham handed.
  • FreedMike Maybe this explains all the “Idiots wrecking exotic cars” YouTube videos.
  • FreedMike Good article! And I salute the author for not using the classic “Lucas - prince of darkness” trope, well earned as it may be. We all know the rap on BL cars, but on the flip side, they’re apparently pretty easy to work on (at least that’s the impression I’ve picked up). On the other hand, check the panel fits on the driver’s and passenger’s doors. Clearly, BL wasn’t much concerned with things like structural integrity when it chopped the roof off a car designed as a coupe.
  • Mongo312 Had an 89SE, 92SE and an 03SE all with stick. The 03 took almost 3 months to find because there were so few produced with a manual transmission and dealers didn't want to give them up. Ended up buying one from a dealership in San Antonio and having it shipped here to St Louis.