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Tesla, GM May Get Eligibility for Federal EV Tax Credits Again

2021 Tesla Model S

Buyers the new Tesla Model S may be eligible for a $7,000 tax credit not previously offered.

Tesla and General Motors may be considered polar opposites in many ways, but in one very big way they’re going to be almost bosom buddies: tax credits for EVs.

The market leader in the segment and the hopes-to-be-leader in the segment are soon able to once again access federal tax credits for the next 400,000 electric vehicles each automaker sells, if a new bill from Democrats makes it into law.

The Growing Renewable Energy and Efficiency Now Act (yup, GREEN) provides a new set of tax incentives aimed at renewable energy technologies, or in this case, vehicles. GM and Tesla buyers could get $7,000 tax credits for new EVs, if it passes.

Government getting involved

Chevy Bolt buyers may get to claim a federal tax credit that had been previously unavailable.

President Joe Biden is a proponent for the growth of electric vehicles, pledging to add 1 million new automotive jobs related to EVs and growing the nation’s underwhelming EV charging network by 500,000 by the end of the decade.

The new bill submitted by Representative Mike Thompson (D-California), who is Chairman of U.S. House Ways and Means Subcommittee on Select Revenue, all the other Democratic leaders on the subcommittee signed onto the bill, hoping Congress will take it up under a Democratic-controlled Senate and the Biden administration.

A similar bill was introduced in June 2020, then controlled by Republicans, and it failed. It was the latest of several attempts to reinstate the previous $7,500 tax credit. Democrats have attempted to resurrect the credit several times, each effort shut down by Senate Republicans. Now that Democrats have the final vote in any deadlock, it seems likely to make it through.

How the tax credit used to work and the new version

The original credit, passed during the Obama administration, limited the number of vehicles eligible for the credit to 200,000 vehicles. Tesla hit the mark first in 2018, followed by GM shortly after. Tesla CEO Elon Musk cut the price on vehicles in the U.S. after to help partially offset the loss of the credit.

Used EVs, if they qualify, can fetch a $2,500 tax credit through the GREEN Act.

The new version cuts the credit by $500, but it also changes the structure of the credit phase out after an automaker hits 600,000 vehicles. The first plan reduced the size of the credit in stages over the course of 12 months following hitting the end number. Now it drops to $3,500 for one quarter and then disappears. Owners who bought vehicles in the interim are not eligible to claim the credit retroactively – at this point.

Additionally, the GREEN Act allows used buyers to claim up to a $2,500 tax credit when purchasing a qualifying preowned electric car. The EV must be at least two years old and the sale price cannot exceed $25,000. Income caps for individuals and spouses filing taxes jointly may result in smaller credits, however.

Businesses aren’t being ignored as the bill creates tax breaks for companies and municipalities purchasing electric heavy-duty vehicles, including zero-emissions buses. Twenty percent of the sales price would be eligible for sales over $100,000.

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New Vehicle Sales Slowed in January Despite Improved Retail Results

Depressed fleet sales are putting a drag on January’s results, offsetting improved retail results.

Depressed fleet demand continues to hobble the overall demand for new vehicles, leaving the seasonally adjusted annual rate of sales in January 5.5% behind year ago levels, according to new estimates by analysts.

Conversely January retail sales are expected to increase slightly, according to TrueCar. U.S. retail deliveries of new cars and light trucks are forecast to see an increase of 0.4% from a year ago when adjusted for the same number of selling days. However, that increase isn’t going to be enough to offset the impact of the depressed fleet market.

TrueCar, the car-buying help service, expects the total SAAR to drop to an annual rate of 15.9 million units from 16.8 million units in January 2020 just before the COVID-19 pandemic sent the car business into a tailspin.

(New year brings new deals on new cars, trucks and utes.)

“Consumer activity has kept the vehicle market on a strong recovery path in recent months. Retail sales, which generally account for four-out-of-five vehicles sold in the U.S. market, are expected to remain strong in January,” noted a report from Cox Automotive.

The Cox report said positive economic news, coupled with improving consumer confidence, is helping rebuild both interest and ability to buy.

“Entering 2021 with retail sales in line with last year is a big win for the automotive industry,” said Nick Woolard, lead industry analyst at TrueCar.

“However, while retail sales have rebounded, rental fleets remained depressed and continue to interrupt fleet sales. As a result, fleet sales are struggling to come back to pre-pandemic levels and are driving total unit sales down,” Woolard said.

In addition, the average transaction prices for new vehicles are projected to be up 4.2%, or $1,509, from a year ago but down 4.5%, or $1,759, from December 2020. TrueCar projects that U.S. revenue from new vehicle sales will reach approximately $39 billion for January 2021, down 4.4% from a year ago.

(Despite production cuts due to chip shortages vehicle inventory remains stable.)

“The automotive industry continues to reap the benefits of continued strength in retail demand with lower incentive spend.

Improved consumer confidence and other factors continue point to continued retail sales strength.

“A handful of brands such as Ford, Genesis, GMC, Ram and Toyota, appear to be in the coveted quadrant of both retail growth as well as incentive decline. This is mostly driven by new product and being in the right segments or a combination of the two,” added Woolard.

Woolard said average transaction prices have finally come down from the record-setting highs we saw last month but are still higher than this time last year. Of the top carmakers, only Kia has an average transaction price below $30,000, TrueCar reported.

Alain Nana-Sinkam, vice president of Industry Insights at TrueCar, said the trend is most likely to continue so buyers are going to adjust their buying process in response.

“As new vehicle prices rise, we may see more price-conscious shoppers gravitate back towards smaller segments or the used car market due to growing concerns around affordability.”

(Auto sales gain traction as Americans avoid mass transit.)

Fleet sales for January 2021 are expected to be down 23.7% from a year ago but used vehicle sales for January 2021, which are critical for setting the price of leases on new vehicles, are expected to reach 3.2 million, up 1% from a year ago and up 10% from December 2020.

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Is Ford Making an All-Electric Mustang? Maybe

Could the next-gen Ford Mustang coupe come only as a battery-electric model?

Ford Motor Co.’s gotten such an overwhelmingly positive reaction to the all-electric Mustang Mach-E, it’s rumored to be making the next-generation of the sports car a fully electric offering as well.

According to AutoForecast Solutions, the automaker will not build the next version of the pony car until 2028. The reason for the delay? It needs to be redesigned on a battery-electric platform. Further, it’s expected to be the only powertrain for the new Mustang.

“… the gas-fueled burble of the V-8 is replaced with the shocking acceleration of an electric motor when the standard Mustang becomes an EV in just a few years,” said Sam Fiorani, vice president of global vehicle forecasts, in the company’s podcast on Jan. 18.

(New Mustang Mach-E is just the first step in “electrification” for Ford.)

The early success of the Mustang Mach-E suggests that an all-electric version of the sports car could be well received by aficionados.

Fiorani’s podcast was followed by a report by Autoline Detroit Tuesday, recounting the AFS report about the next version of the Mustang. Although it isn’t out of the question for the Mustang to get an electric powertrain, for it to be the only offering is a bit surprising.

Many have suggested some form of electrification, such as a small electric motor to add some more power and torque has certainly been bandied about. Several other sports cars have move to the hybrid set up to boost performance.

It should be noted that in 2017 the automaker killed a $1.6 billion investment in Mexico, redirecting $700 million of that to expand the Flat Rock plant. Ford would add a new body shop at the site to handle two unnamed battery-electric vehicles, officials said at the time, although it was suggested that one would be a hybrid.

The site currently produces just the Mustang, which until recently included the Shelby GT350 and GT350R models. Those two vehicles have been discontinued, with the GT500 living on and now the Mach 1 making a comeback later this year. Ford officials have not responded to TheDetroitBureau.com at the time of publication.

Ford officials have long maintained that electrification was part of the company’s future, not its sole focus, unlike its rival, General Motors, which has been dealing with some electrification rumors lately too. Last week, reports resurfaced that an all-electric Chevrolet Corvette was in the works, but following in Ford’s footsteps.

Ford announced plans in 2017 to invest $700 million in its Flat Rock, Michigan, plant, which currently builds only the Mustang, to build electric vehicles.

(Ford axes $1.6B Mexico plant for $700M Michigan upgrade.)

While General Motors insiders never really downplayed reports about the potential electrification of the ‘Vette, including a fully electric model. However, last week there were reports that the bowtie brand was considering an electric Corvette crossover like the Mustang Mach-E because of the warm reception it’s getting.

The flames were fanned during CES2021 when GM officials talked about offering a variety of new electric vehicles between now and 2030. Earlier reports centered on a 1,000-horsepower monster dubbed the Corvette Zora, named after the creator of the original car. The move to create an all-electric crossover would check off two “rumor” boxes, if you will: an all-electric model and the creation of a separate Corvette sub-brand.

The downside, of course, is that Corvette loyalists would shun it immediately. It’s been barely a year since the eighth-generation Corvette – the C8 to fans – made its debut, marking the switch to a mid-engine layout, the most radical shift for the sports car in its nearly seven decades on the market.

Several senior members of the Corvette team have hinted at plans in conversations with TheDetroitBureau.com, among other things indicating the new car’s platform could allow space for a battery pack.

(Could an all-electric Corvette crossover be in the works?)

Several purported timetables have emerged indicating Chevrolet is working on hybrid or plug-in versions of the sports car. But when directly asked about the opportunity of a hybrid model, GM President Mark Reuss has responded on several occasions with the company’s new mantra, that it is “on a path to an all-electric future.

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Stellantis Enjoys Warm Welcome from European Investors

Stellantis Chairman John Elkann is meeting with the media tomorrow to talk about the company’s future.

Not every merger involving an automaker these days involves a blank-check company. The newly minted tie-up between Fiat Chrysler Automobiles N.V. and Peugeot S.A. was finalized over the weekend and the resulting company, Stellantis N.V., is enjoying a warm welcome.

At least on the stock market.

The new company’s stock trades on three exchanges and it finished the day on the Paris exchange up nearly 7%, closing at €13.14. It also jumped up 7.7% on the Milan exchange.

The New York Stock Exchange, the third exchange it’s traded on, was not open today due to the Martin Luther King Jr. holiday.

(Chrysler is no more as Stellantis comes to life.)

CEO Carlos Tavares has a lot on his corporate plate now that the merger is complete.

The $52 billion merger of near equals creates a massive enterprise with operations on six continents, employs about 400,000 people, sells – at least for the time being – 14 vehicle brands and sells 8.1 million vehicles annually, making it the fourth-largest automaker in the world behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance.

With all of those possibilities, it’s going to take a press conference Tuesday to start revealing what Stellantis will look like now that’s it’s a living, breathing entity. What brands will stay? How many workers will keep their jobs?

People are nervous because the CEO of the new enterprise, Carlos Tavares, has a history of being fearless when it comes to eliminating unprofitable operations and processes in the pursuit of corporate profit. One need only look at how what he did with former General Motors’ subsidiary Opel. A money-loser for a decade, he had it in the black in one year.

(FCA CEO Manley gets new assignment following Stellantis merger.)

“Stellantis faces a mixed outlook as U.S. stimulus plans may buoy Chrysler vs. a more uncertain outlook for Peugeot in Europe,” Michael Dean, BI automotive analyst told Bloomberg. “Former PSA CEO Carlos Tavares takes the helm and, similar to his handling of PSA’s takeover of Opel in 2017, we anticipate a new strategy in the first 100 days of his stewardship. All regions face a difficult 1H amid continued lockdowns.”

Quirky name aside, investors gave Stellantis a warm welcome when it began trading Monday.

The two companies have worked to allay fears of major cutbacks in France and Italy. While top managers have outlined plans to trim costs by $6 billion following the merger, they insist they will be able to do that without closing any plants. They have outlined 40% of those cost savings coming from purchasing, 40% from combining product development efforts, and 20% from marketing and other operations.

However, it’s unclear how Tavares plans to tackle other issues such as improving the company’s performance in China, the world’s largest automotive market, and bolstering its electrification efforts, especially in the aforementioned China as well as in the U.S. Just addressing those two issues are likely to require billions of dollars and euros. Some of plans for these things and more may get touched on Tuesday, Marco Santino, a partner at consulting firm Oliver Wyman, told Reuters.

(Fiat Chrysler and PSA not exactly a “merger of equals.”)

“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” he said.

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Japan Joins Growing List of Countries Set to Ban Sales of Gas-Powered Vehicles

Japanese Prime Minister Yoshihide Suga supports the move to ban the sale of non-electric new vehicles staring in 2035.

Despite strong pushback from the country’s largest automaker, Japan has announced plans to halt the sale of vehicles relying solely on internal combustion engines after 2035.

The move means the Asian nation will join a growing list of countries planning to phase out vehicles powered by gas or diesel, including both the United Kingdom and Norway. A number of other countries, including France and Germany, are considering similar bans.

Vehicles with internal combustion engines won’t be banned entirely. Automakers will still be able to market hybrids in Japan, regulators ruled. Even so, the plan released on Christmas Day was a significant victory for Japanese environmentalists considering it was strongly opposed by key industry leaders, including Toyota President Akio Toyoda who warned earlier this month that a broad shift to electric vehicles could cause the auto industry’s traditional business model “to collapse.”

(Toyota boss Akio Toyoda remains EV skeptic.)

Akio Toyoda, Toyota’s top officer, is against the ban.

As the head of Japan’s largest and most powerful company – and in his role as the head of the Japan Automobile Manufacturers Association – Toyoda hoped to convince regulators to back off on the proposed ban. But it had widespread backing from other quarters, including Japan’s new Prime Minister Yoshihide Suga.

In October, shortly after assuming his post, Suga had pledged to cut Japan’s carbon dioxide emissions to net zero by 2050 while indicating he supported a shift to battery-powered vehicles.

Global sales of electrified vehicles remain modest, running in single digits in all but a handful of markets, even when including hybrids, PHEVs and fuel-cell vehicles, as well as pure battery-electric vehicles. But demand is expected to increase sharply as key obstacles, such as range, cost and public charging, are addressed. It also will help that scores of new BEVs are scheduled to go into production in the coming years, proponents say.

While Japanese automakers were pioneers with their early push to bring hybrids to market, “Japan is very far behind” in terms of developing more advanced products relying solely on battery power, Masayoshi Arai, an official with the country’s

Nissan is one of a few Japanese automakers dedicating resources to a move to EVs.

Ministry of Economy, Trade and Industry, said last week.

Toyota only recently introduced a BEV model in Europe, though it has announced plans to add two more – one through the flagship Toyota division, a second under the Lexus badge. It also this month revealed an all-electric microcar targeting the Japanese home market. Only the Nissan and Mitsubishi brands, among Japanese automakers, have committed significant resources to the development of pure battery-electric vehicles and, even then, they have fallen behind key foreign rivals in terms of bringing new products to market.

(Toyota hopes to boost interest in hydrogen tech with second-generation Mirai.)

Toyota officials have, throughout the years, pointed to numerous concerns about BEVs, including their cost, limited range and other obstacles to widespread consumer acceptance. For his part, company chief Toyoda said this month that he feared a switch to all-electric models would seriously disrupt the classic automotive industry business model. He also raised questions about whether Japan’s electric grid could supply the needed energy — and, if it did add the generating capacity, he warned, that could actually increase the country’s reliance on fossil fuels.

With the debut of the 2021 Mirai fuel-cell vehicle, Toyota’s hoping to spur interest in the tech again.

For his part, Japan’s new prime minister is downplaying such concerns and said that efforts to address greenhouse gas production “should be tackled as a strategy for growth, not as a limitation on growth.”

Downplaying the need for new coal or natural gas plants, the plan released by the Japanese government would add up to 45 gigawatts of new offshore wind generating capacity by 2040.

With the Christmas Day announcement, Japan becomes the second member of the Group of Seven, or G7, to lay out specific plans to ban non-electrified vehicles.

The UK originally had planned to do so by 2040 but now has pushed that target date up to 2030. Like Japan, its ban will continue to permit the sale of hybrids – but only through 2035, at which point only pure, zero-emissions vehicles will be able to be sold in Great Britain. That will include both BEVs and hydrogen fuel-cell vehicles.

Despite its reticence about EVs, Toyota rolled out a new battery-electric car Dec. 25: the C+pod.

A handful of other countries, including Norway, have also laid out ZEV transition plans. So have some states and regions – including California and the Canadian province of British Columbia. A number of cities, such as London, Paris, Berlin and Mexico City, plan to bar vehicles not running in zero-emissions mode, meanwhile. China, meanwhile, has laid out plans to have “New Energy Vehicles,” plug-based models, reach 20% of the market by 2025. It is considering a total ban at a later date.

(Britain to ban sale of all new gas and diesel cars by 2030.)

With most of the country’s automakers reluctant to bring plug-based models to market, demand has grown far more slowly than in many other major regions. The Ministry of Economy, Industry and Trade noted that consumers purchased only 6,000 PHEVs and BEVs during the third quarter of 2020. By comparison, demand tripled in Europe to 270,000 – all-electric models accounting for roughly three-quarters of Norwegian sales. China, meanwhile, is expected to again top 1 million plug-based models for all of 2020.

Despite Sharp Cuts, Study Finds Rental Car Companies Doing Good Job at Satisfying Customers

Despite going through bankruptcy, Hertz topped J.D. Power’s 2020 rental car satisfaction study.

The COVID-19 pandemic has had a devastating impact on the travel industry and nowhere is that more apparent than in the rent-a-car sector where traditional giant Hertz filed for bankruptcy and competitors have slashed the purchase of new vehicles.

It would seem to be the sort of formula that might result in a collapse of customer service but a new study by J.D. Power indicates that hasn’t happened. Customer service levels remain high and Hertz actually tops the chart this year,

“As with other travel suppliers, this has been an incredibly challenging period for the car rental industry,” said Michael Taylor, travel intelligence lead at J.D. Power. “Despite these economic headwinds, the major rental car companies have been able to maintain high levels of customer satisfaction throughout the pandemic, largely through great customer service and enhanced cleaning protocols to build confidence with travelers.”

(Hertz gets go ahead to sell 182K vehicles from fleet.)

Rental car companies have found themselves between the proverbial rock and a hard place this year. The pandemic has resulted in a massive reduction in travel and a consequent reduction in demand for vehicles, especially at major tourist and business destinations. At the same time, rental firms have had to respond to the crisis by ensuring cars are properly inspected, cleaned and sanitized after use and before they can be turned over to another customer.

Hertz, for example, claims to be following a “rigorous,” 15-point process following recommendations from the Center for Disease Control and Prevention, the CDC.

Traditional maintenance has become particularly important this year, as rental firms have all but stopped replacing their existing fleets to save cash. Bankrupt Hertz has, if anything sold off a sizable share of its vehicles to raise cash.

Hertz came through in the end, according to Power, scoring an industry-leading 852 on a 1,000-point scale. That marked its second year in a row as the industry leader.

(Hertz Chapter 11 filing poses challenge for automakers – and used car buyers.)

“While the rental car and overall travel industry has faced challenges during the pandemic,” said CEO Paul Stone, “From the beginning of their journey to the end, our customers’ satisfaction is the heartbeat of everything we do.”

Enterprise came in at a close number two for the second year in a row, at 849 points, with Alamo falling just a point behind, at 848.

At the back of the pack, Budget scored just 818 points, with Avis second-to-last at 834.

The survey was an extended one, and the results included responses from many customers who rented before the pandemic struck the U.S. hard in March, Power noted. Once the country started to head toward lockdown, researchers discovered, consumers reacted favorably to those companies who made “any effort to address” the pandemic, said Taylor.

(Rental car companies slash order, deliver another blow to auto industry.)

All told, 7,364 business and leisure travelers who rented a vehicle at an airport location from August 2019 to August 2020 were included in the J.D. Power 2020 North America Rental Car Satisfaction Study.

VW Group Expected to Sell Lamborghini, as well as Bugatti and Ducati

Ferdinand Piech, grandson of Volkswagen’s founder, assembled an array of auto companies during his tenure atop the company.

Under former CEO Ferdinand Piech, Volkswagen pieced together a vast array of brands covering everything from entry-level small cars to ultra-exotic sedans and sports car but, now, it looks like current CEO Herbert Diess wants to unravel the empire and sell or spin off some of those marques.

According to various reports out of Europe, backed by several company sources, two of VW’s most exclusive automotive brands, Lamborghini and Bugatti, are in the crosshairs, as is the company’s motorcycle division, Ducati.

Shedding those brands could simplify Volkswagen’s management structure, reduce future investment needs and, equally important, such a move could raise cash to help fund VW’s aggressive electrification program. The German marque has laid out plans to launch at least 50 all-electric models by mid-decade and has allocated about $66 billion for that effort.

(Volkswagen teases new compact ute coming in October.)

Volkswagen AG Chairman Herbert Diess is looking to take VW in the opposite direction of Piech, selling or spinning off companies to better fund its core business.

Lamborghini could be spun off on its own, along the lines of what Fiat Chrysler Automobiles did with Ferrari, reports Reuters.

Currently, under the peculiar structure of the broader Volkswagen Group, Lambo effectively reports to the semi-autonomous Audi brand. The news service quotes various sources indicating the Italian supercar company would become “a more independent unit,” making it easier to eventually stage an initial public offering.

“This is a first step which gives VW the option to list the unit further down the line,” one of the sources familiar with the discussions told Reuters.

Ducati, which is likewise based in Italy and also reports directly to Audi, seems destined to go through similar changes which could include a spinoff, a sale or simply operating more independently.

Audi had actually looked for a buyer for Ducati a couple years ago but eventually ended that quest unsuccessfully.

Volkswagen has designated $66 billion to bring more than 50 EVs to market in the next few years, including the ID.4.

As TheDetroitBureau.com reported last week, the three brands are likely to go to different buyers – or possibly be spun off separately. Bugatti appears to be destined to go to Croatia’s electric supercar startup Rimac, according to London-based Car magazine.

Bugatti, whose products start around $3 million, is the most exclusive of all the VW brands, but with production running barely one a week, it generates little real cash and requires substantial investments to remain competitive.

It also faces the growing challenge of meeting global emissions and energy efficiency mandates that appear destined to force a shift from conventional gas engines – like the W-16 used in the current Bugatti Chiron – to electric assist or full battery-electric propulsion.

(Report: VW set to sell Bugatti to Croatia’s little EV maker Rimac.)

That’s where Rimac could be a solid fit, its own products, like the Concept_Two, running entirely on batteries.

Italian sports car maker Lamborghini would likely be spun off, much like Fiat Chrysler did with Ferrari.

Whatever happens to Lamborghini, it would face a similar challenge, however. And even in the motorcycle sector there’s a push to electrify, such traditional brands as Harley-Davidson launching battery-powered models.

If Volkswagen does move to sell or spin off these brands it would mark a dramatic reversal of the strategy implemented by Piech, heir to the family that founded both VW and Porsche.

After becoming CEO three decades ago, and then as chairman of Volkswagen’s all-powerful Board, he approved the acquisition of brands ranging from low-end Skoda and Seat to high-line Porsche and Bentley, as well as the revival of the Bugatti marque.

That strategy positioned VW in a three-way fight with Toyota and the Renault-Nissan-Mitsubishi Alliance for global sales leadership. But Piech was forced out in 2015 following VW’s disastrous emissions cheating was revealed. He passed away in August 2019.

Diess has been looking for ways to streamline the German giant and is aggressively shifting from the diesel technology that long propped up the automaker to electric propulsion. But that transition, along with the need to develop autonomous vehicles, is incredibly expensive, further encouraging the idea of paring down the corporate line-up.

Bugatti and its record-setting Chiron could be sold to Croatian EV maker Rimac.

Decisions on what to do Lamborghini, Bugatti and Ducati reportedly could come during a five-year planning meeting set to bring together VW’s separate management and supervisory boards in November.

(Volkswagen suffers Q2 loss; board publicly backs Diess.)

Even if the Volkswagen Group does get rid of the three brands it won’t vanish from the highest regions of the automotive market. There appears to be no plan under discussion to shed British Bentley. And both Porsche and Audi remain secure in their roles within the company, as well.

Safety Advocates Push for Advanced Tech Mandate to Cut Hot Car Deaths

KidsAndCars.org hosted a webinar showing tech available now that could cut hot car child deaths.

Safety advocates pushing for new technology that would alert drivers if they leave a child in their vehicle after leaving it say the new devices could lower the cost of sensor technology in current and coming vehicles.

KidsAndCars.org rolled out examples of new technology that could be installed in vehicles right now that can determine if a baby or small child has been left in a vehicle and trigger a series of alarms and warnings to prevent that child from dying or being injured due to exposure in an overheated vehicle.

The group also promoted the Hot Cars Act that was passed by the U.S. House of Representatives as part of the recent Moving Forward Act (H.R. 2). It now needs Senate approval and a presidential signature before it mandates technology that issues audio and visual warnings inside and outside the vehicle.

(Hot car child deaths could end year with unwanted record.)

“We simply cannot let another summer pass without making the life-saving and desperately needed technology a part of the solution to save the lives of innocent babies. Every day that we delay in advancing these cost-effective detection technologies means children are at risk of needlessly dying.” said Janette Fennell, president of KidsAndCars.org during the webinar.

The organization has teamed with other safety-oriented groups to advocate for a variety of tech-oriented issues in the auto industry, such as pushing for further testing of autonomous vehicles before they drive

Vayyar Imaging’s child detection system can sense if a child is breathing — under a blanket.

on public issues.

The hot car issue is at the fore of many efforts because an average of 39 children die annually after being trapped inside a hot vehicle. However, the last two years have seen new records of 54 and 55 deaths. The organization believes automakers need to do more to prevent these fatalities.

More importantly, they want a technology that works well, unlike many of the systems that are currently in place. The groups want it though of like other safety components in a vehicle: they should work — period.

“The voluntary agreement notes that a system must ‘consider the potential presence’ of an occupant and provide an alert when there is ‘the potential presence’ of an occupant,” said Shaun Kildare, Senior Director of Research at Advocates for Highway and Auto Safety.

(Automakers offer possible solutions as child heatstroke deaths rise.)

“This allows for technology which does not detect, but rather essentially guesses whether there may be a child left in a vehicle.” He continued, “You wouldn’t want your brakes to potentially work when you press them.”

The groups did point out that Hyundai’s Ultrasonic sensor-based technology would meet the requirements set forth in the Hot Cars Act. Hyundai, and its sister auto brand Kia, began offering it last year after introducing it in 2017. Other automakers have systems in place as well, including General Motors which has offered its Rear Seat Reminder on all of its four-door sedans, trucks and SUVs starting with the 2019 model year as well.

KidAndCars is working with a variety of safety advocacy groups.

The group is working with four automotive technology companies to advance the cause of getting new sensor-based systems in future vehicles that can better determine if there’s a baby or simply an inanimate object in the car.

Each of the four, Aptiva, IEE Sensing, Caaresys and Vayyar Imaging, all offered videos promoting their technology, outlining how it can help automakers meet the mandate of the Hot Cars Act as well as make things easier as they move toward autonomous vehicles, especially on the cost front.

Ian Podkamien, Vayyar’s director of business development, said its iteration of the tech is a “very, very affordable element” of the system, adding it would actually save U.S. automakers money. The consensus of the calls experts was that it could be cost neutral once mandated because of the economies of scale.

(Nissan rear door alert aims to prevent child heatstroke deaths.)

The problem isn’t just a problem in the U.S., according to the organization, noting its been tracking the problem in 56 countries around the world and it’s on the rise in most of those as well.

Car Sales Losing Momentum as COVID Cases Rise

U.S. auto sales are slowing down as the spread of COVID-19 continues in key markets.

Car sales appear to be losing momentum under the weight of continuing spread of COVID-19, which is sweeping through key automotive markets such as Texas and Florida.

For the week ending July 19, retail sales were 9% below the pre-virus forecast, 6 percentage points worse than the prior week, according to a new weekly report from J.D. Power & Associates.

J.D. Power reported that customer-facing transaction prices climbed $253 from last week to $35,396. “The week-over-week increase was primarily driven by higher premium nameplate share as well as prices edging higher in pickup segments. The result for the current week ending July 19 is 6.0% above the same week in 2019,” the firm noted.

(Pandemic bailout headed off potential auto industry disaster, says retired FCA sales chief.)

For the week ending July 19, premium retail sales were 2% above the pre-virus forecast, an 8-percentage point step back from the prior week. In the face of the stalling sales. Power reported that manufacturers and dealers held off on increasing incentives. Incentives increased by only $29 per unit.

Consumer sentiment dropped during June, impacting new vehicle sales.

Incentive spending per unit for the week ending July 19 was $4,158, an increase of $29 from the prior week.

Sales of used vehicles at franchised dealers beat pre-virus forecast by 1% in the week ending July 19. While this represents a slowdown vs. the past six weeks, it is still indicative of strong demand for used vehicles, which is consistent with prior periods of challenging economic conditions.

Used retail prices rose once again, increasing 0.5 percentage points week-over-week for the week ending July 19. Prices are now 4% higher than pre-virus levels. While wholesale prices for used vehicles sold at auction remain strong, the rate of growth week-over-week is beginning to slow, according to the new report from J.D. Power.

(Industry sales outlook drops as pandemic sweeps south.)

Jonathan Smoke, Cox Automotive chief economist, said, in new report, “The growing number of cases of COVID-19, which are setting new daily records, threaten the recovery that created growth in retail sales and new construction in June.”

GM delays truck plant restarts due to Mexico

Detroit’s automakers have seen stocks of full-size pickups shrink despite the pandemic slowdown in sales. 

Strong demand in the auto market had reduced supply of new and used vehicles, leading to record prices last month. However, the rise in COVID-19 cases since then has led to reduction in sales activity hurting consumer sentiment. Further causing a slowdown is that jobs recovery seems to be slowing as well. This combination of factors could stall any sort of economic recovery, Smoke said.

The initial June reading on Consumer Sentiment from the University of Michigan declined to 73.2 from 78.1 in June. The decline in sentiment was driven by declining views of future expectations as well as current conditions.

Consumers also saw declining buying conditions for vehicles but modestly improving buying conditions for homes. The decline in buying conditions for vehicles was driven by more negative views of vehicle prices and interest rates on auto loans.

(Dealers need to get used to online sales, study sales.)

The decline in the Michigan survey was consistent with the decline in consumer sentiment we have been tracking in the daily measure of consumer sentiment from Morning Consult. That index shows that sentiment declined again during the past week and is down by 23.