Weekly roundup: UAW endorses Harris, Fed keeps rates high, EVs secure market position

Earlier this week: UAW endorsed Kamala Harris for president, the Federal Reserve maintains interest rates, in the 2024 market outlook report, EVs secure a permanent position as local dealerships face uncertainty, the U.S. delays tariff increases on Chinese imports, Tesla recalls 1.8 million vehicles due to a hood latch defect, Senators demand FTC probe into automakers’ self-driving data to brokers, automakers pivot strategies amid cooling EV enthusiasm and market challenges.

Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.

1. UAW endorses Kamala Harris for president, bolstering campaign in Michigan
The United Auto Workers (UAW) union endorsed Vice President Kamala Harris for U.S. president on Wednesday, a move expected to strengthen Harris’s campaign in the key swing state of Michigan. UAW President Shawn Fain praised Harris’s commitment to the working class and highlighted her stance against corporate greed, noting that she “will stand shoulder to shoulder with us in our war on corporate greed.” Read More

2. Federal Reserve maintains interest rates, keeping vehicle financing costs high
The Federal Reserve opted to keep its benchmark rate unchanged during its July meeting, maintaining the target range between 5.25% and 5.5% to restrict future inflation. This decision, however, continues to leave consumers facing higher interest rates on financed purchases, including vehicles. Read More

3. 2024 Market Outlook: EVs secure a permanent position as local dealerships face uncertain futures
The midyear update of the 2024 Market Outlook Report from the Dave Cantin Group and Kaiser Associates emphasizes that electric vehicles (EVs) are becoming a permanent fixture in the automotive industry while local dealerships face uncertain futures. The report highlights key market trends and forecasts significant changes in the coming months. Read More

4. U.S. delays tariff increases on Chinese imports, including EVs and batteries
The U.S. Trade Representative’s office announced a delay in implementing steep tariff increases on a range of Chinese imports, including electric vehicles, their batteries, computer chips, and medical products. Initially set to take effect on August 1, the tariffs will now be delayed by at least two weeks as the office reviews over 1,100 comments received from stakeholders. Read More

5. Tesla recalls over 1.8 million vehicles in the U.S. due to hood latch software failure
Tesla is recalling over 1.8 million vehicles in the United States due to a software failure that risks not detecting an unlatched hood, according to the National Highway Traffic Safety Administration (NHTSA). An unlatched hood could fully open and obstruct the driver’s view, significantly raising the risk of a crash. Read More

6. Senators demand FTC probe into automakers’ sale of driving data to brokers
Two U.S. senators are urging the Federal Trade Commission (FTC) to investigate automakers for allegedly selling customers’ driving data to brokers, who then package and sell it to insurance companies. Senators Ron Wyden of Oregon and Edward Markey of Massachusetts addressed a letter to FTC Chairwoman Linda Khan, accusing General Motors, Hyundai, and Honda, among others, of deceptive practices related to data sharing. Read More

7. Automakers pivot strategies amid cooling EV enthusiasm and market challenges
Automakers are adjusting their strategies in response to cooling electric vehicle (EV) sales growth, high vehicle prices, and uncertain political outcomes. This shift significantly departs from the ambitious EV goals set just three years ago. At the 2021 United Nations Climate Change Conference in Glasgow, Scotland, six major automakers and 30 national governments pledged to halt the sale of new gasoline and diesel vehicles in leading markets by 2035 and globally by 2040. Now, industry leaders are revising their plans to balance between EVs, hybrids, and traditional combustion engines. Read More

8. How dealers are facing unprecedented challenges via mandates and OEM inconsistencies – Jim Appleton | NJ CAR
The state of New Jersey is just one of the states phasing out the sale of new gas-powered cars by 2035. So, on today’s episode of Inside Automotive, we’re getting an update on how things are moving along in the state. Joining us now is the President of NJ Car, Jim Appleton. Watch the full segment here. 

9. Marketing Matters: How dealers can ensure consistency in their digital presence
Welcome to Marketing Matters with your host, Colin Carrasquillo, digital marketing director of the Nielsen Automotive Group. In today’s episode, we delve into the crucial role of maintaining consistent digital properties for your dealership. From your Google Business profile to your presence on social media, we’ll cover why it matters and how you can ensure your dealership stands out online. Watch the full segment here. 

10. Joe St. John on merging martial arts discipline with F&I excellence
In the latest episode of Training Camp with Adam Marburger on CBT News, we’re thrilled to welcome Joe St. John, head of digital retail at Autofi, who is a revered name in the F&I world. Joe, known for his innovative approach and deep understanding of both automotive retail and martial arts, shares invaluable lessons from his journey. In this dynamic conversation, he reveals how the discipline and mindset from jiu-jitsu translate into mastering F&I practices, enhancing dealer performance, and optimizing customer experiences. Watch the full segment here.