Earlier this week: The Federal Reserve held interest rates unchanged. The Biden Administration finalized milder fuel economy rules. The majority of U.S. drivers support speed limit warnings in vehicles. A federal monitor is investigating the UAW president for alleged abuse of power. GM leverages the Costo Auto Program. May saw a decline in wholesale use vehicle prices. Ford hires top talent from Apple and other EV makers to build more affordable EVs.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
1. Federal Reserve holds interest rates steady, impacting auto loans and dealer sentiment
Dealers and consumers will have to wait for relief from higher interest rates as Federal Reserve leaders opted to leave the Fed benchmark rate unchanged. Following the Federal Open Market Committee’s meeting on June 11 and 12, the central bank’s federal funds rate target remains between 5.25% and 5.5%—where it has stood since July 2023. Despite improving inflation data, the Fed is considering only one rate cut in 2024. Read More
2. Biden Administration finalizes milder fuel economy rules for trucks and SUVs
President Joe Biden’s administration has finalized less stringent fuel economy rules for trucks and SUVs through 2031 than initially proposed, according to the National Highway Traffic Safety Administration (NHTSA). This adjustment is seen as a significant win for Detroit automakers, reducing the compliance penalties they face. Read More
3. Majority of U.S. drivers support speed limit warnings, IIHS survey finds
A recent survey by the Insurance Institute for Highway Safety (IIHS) revealed that more than 60% of U.S. drivers would find it acceptable if their vehicles provided audible and visual warnings when they exceeded the posted speed limit. This insight into driver attitudes toward intelligent speed assistance systems (ISA) comes as speeding remains a significant factor in traffic fatalities across the country. Read More
4. UAW president faces investigation by federal Monitor for alleged abuse of power
United Auto Workers (UAW) President Shawn Fain is under investigation by a federal court-appointed watchdog tasked with monitoring the union and eliminating corruption, according to a June 10 court filing. The Monitor, Neil Barofsky, examines whether Fain abused his power as union president and accuses union leaders, including Fain, of obstructing the investigation and interfering with his access to information. Read More
5. GM leverages Costco Auto Program to boost EV sales amid market challenges
General Motors is tapping into Costco Wholesale’s extensive customer base to drive sales of its new all-electric vehicles (EVs). The Detroit automaker is utilizing the Costco Auto Program to expand its reach, especially with mass-market models like the Chevrolet Equinox and Chevrolet Blazer EVs. Read More
6. May sees a decline in wholesale used-vehicle prices amid seasonal trends
In May, wholesale used-vehicle prices experienced a notable decrease, according to the Manheim Used Vehicle Value Index (MUVVI), which fell to 197.3, marking a 12.1% drop from last year. The seasonally adjusted index saw a month-over-month decline of 0.6%, while the non-adjusted price fell by 1.2% from April, representing an 11.4% decrease year-over-year. Read More
7. Ford hires top talent from Tesla, Rivian, and more to develop affordable EVs
In its bid to introduce more affordable electric vehicles, Ford has aggressively recruited top engineers from leading EV companies like Tesla, Rivian, Apple, and Lucid. This move is part of Ford’s strategy to accelerate the development of a cost-effective EV platform. Read More
8. Buy/sell market remains robust amid industry trends – Willie Beck | Bel Air Partners
The buy/sell market appears to be continuing at a high activity level. Co-Managing Partner of Bel Air Partners Willie Beck joins us on this edition of Inside Automotive to discuss valuations and the market’s future. Watch Now
9. Cox Automotive enhances digital experiences with Canopy Connect partnership – Paulo di Silva & Tolga Tezel
Earlier this month, Cox Automotive and Canopy Connect announced a collaboration to enhance the online car buying experience for consumers and dealerships through insurance verification and servicing. Joining us to discuss how this partnership can help dealers not only protect themselves from fraud but also improve their customers’ experience on today’s episode of CBT Now is Tolga Tezel, Founder and CEO at Canopy Connect, and Paulo da Silva, VP of Operations for Ecommerce at Cox Automotive. Watch Now
10. Raise your hand for sales success: Matt Easton shares key tips for standing out in a competitive market
In today’s ultra-competitive business environment, where we fight to have the best marketing, the coolest social media, and the lowest prices, it’s easy to feel overwhelmed by your competition. Coach to sales superstars Matt Easton joins us on the latest episode of Inside Automotive to remind us that sometimes getting the sale can be as simple as raising your hand. Watch Now
