Canada: These 10 Cars Have The Highest Dealer Markups Over MSRP

THESE 10 CARS HAVE THE HIGHEST DEALER MARKUPS OVER MSRP

It's no secret that many cars aren't exactly affordable today, as new vehicles had an average sticker price of $42,645 in June. And for certain makes and models of cars, it doesn't stop there — hefty markups are still tormenting today's buyers. Dealers tacked on an average of $4,000 in markups to vehicle Manufacturer's Suggested Retail Prices in June, bringing the average price up 8.5% to $46,265, according to automotive research firm iSeeCars.com. But some vehicles are getting marked up by as much as 17 to 30%.

It's part of an affordability crisis that has car payments averaging more than $700 this year and more than 17% of consumers paying more than $1,000 a month (process quoted are US$), according to Edmunds. But even with increasing interest rates, rising monthly payments, and more car loan rejections, there's still strong demand for new vehicles.

Source: Business Insider

DETROIT 3 BUSINESS MODEL SHIFTING

Detroit's automakers are continuing to hunt for ways to trim costs as the transition to EVs moves forward in fits and starts, new labor contracts loom over their operations and they continue to adjust future product plans. All three automakers' results for second-quarter and first-half 2023 reflect success with commercial customers as Detroit's business model slowly shifts to be less dependent on the retail end of the business, the companies acknowledge during conference calls with analysts and investors.

Source: WardsAuto

STRIKE LOOMING?

UAW Demands 40% Pay Hike in Labor Talks with Detroit Automakers
The United Auto Workers union is pressing the Detroit car companies to give its factory workers a 40% pay hike in the next labor contract, an increase that would be the largest in recent memory. The union conveyed this demand to the automakers this week, along with a list of other items it plans to push for at the bargaining table.

Source: The Wall Street Journal

GM Criticizes Autoworkers Union's Contract Demands
General Motors (GM) on Thursday said it expected to offer unionized workers higher wages, but granting the United Auto Workers' (UAW) ambitious contract demands including large pay rises would hurt its ability to make sound business decisions. GM, the largest U.S. automaker, said the proposals "would threaten our ability to do what's right for the long-term benefit of the team."

Source: Reuters

UAW Demands Would Add $80 Billion to US Carmaker Labor Cost
New contract demands made by the United Auto Workers union would add more than $80 billion to each of the biggest US automakers' labor costs, according to people familiar with the companies' estimates. That large an increase to labor costs over the contract's four-year term could wipe out profits and threaten the carmakers' futures, according to the people, who asked not to be named because the analysis has not been made public.

Source: Automotive News

CARS HAVE MORE TECH THAN EVER — AND...

Drivers Are Increasingly Frustrated with their Door Handles, Screens, and Other Features

The overall quality of new vehicles is deteriorating and nagging problems are on the rise, according to a new study from JD Power. The auto-industry research firm said more technology in cars is partially to blame. Quality declined year over year across all categories apart from driving experience. The two categories where problems increased the most were features, controls, and displays, along with infotainment.

Source: Business Insider

AUTONATION ROLLS OUT 6- TO 12-MONTH 'MICRO-LEASES'

AutoNation is getting creative in a way that could potentially solve several issues for the dealer group and its customers. The company's AutoNation Mobility division is booking what's dubbed "Micro-Leases," putting customers into new cars connected to leases lasting six to 12 months. According to the program website, these "Micro-Leases" currently are available only at AutoNation stores in California and South Florida.

Source: Auto Remarketing

AMERICAN CARS ARE DEVELOPING A SERIOUS WEIGHT PROBLEM

The average weight of a new vehicle sold in the US last year was a whopping 4,329 pounds. That's over 1,000 pounds higher than the average in 1980, and up about 175 pounds in just the last three years. Essentially, more than a third of the average American car has been added in the past 40 years, a trend now exacerbated by the switch to electric models.

Source: Bloomberg

INDIGENOUS TRIBES PETITION EPA OVER HAZARDOUS TIRE CHEMICALS

Storm runoff is killing salmon, but rubber-modified asphalt could be an interim solution.

Every mile you drive, the more wear you put on your car. Of all the consumables on your vehicle, tires are arguably the most susceptible to the environment around them. It works both ways, however, as studies show tires are actually just as environmentally impactful as the emissions coming out of tailpipes worldwide. Microscopic tire particles are shed into the air with every mile, as 2022 studies claimed that levels of rubberized airborne pollutants were actually growing above that of tailpipe emissions. Additionally, a preservative chemical found in nearly every road-going tire known as 6PPD has been previously linked to devastating water pollution, specifically the killing of mass populations of salmon in the Pacific Northwest. And indigenous tribes, in particular, have been adversely affected by this chemical runoff, resulting in years of reduced fishing and the pollution of entire hatcheries.

That's why three tribes—the Yurok, Port Gamble S'Klallam, and Puyallup—have petitioned the Environmental Protection Agency to prohibit the manufacturing, processing, use, and distribution of 6PPD in and for tires. Spanning from Northern California to the Canadian border in Washington, these tribes claim such pollution actually violates their sovereign fishing and hunting rights. "To see 6PPD-q kill the salmon that are reared in the Port Gamble S'Klallam Tribe's own streams and from its own hatchery is an unconscionable slap in the face to a people who rely on salmon for their wellbeing, in addition to being a gross violation of the Tribe's rights as enshrined in the 1855 Treaty of Point No Point," said Josh Carter, the Port Gamble S'Klallam Tribe's environmental scientist. "If EPA truly cares about protecting the environment and the Tribe's Treaty Rights, not just industry's pocketbooks, it will act now."

Working with legal-nonprofit Earthjustice, the tribes assert that regulating the chemical is the EPA's duty under the Toxic Substances Control Act, which requires the EPA to ban or regulate chemicals that pose unreasonable risks to human health or the environment.

Additionally, the petition says the agency should order phase-outs of existing tires using 6PPD on the fastest practicable timeline. Notably, the Department of Toxic Substances Control in California and the European Chemicals Agency have previously labeled 6PPD as a harmful additive for human interaction.

Source: Autoweek

NEXT ROADBLOCK FOR ELECTRIC CARS: EARLY ADOPTER ERA IS OVER

Early adopters fueled the initial spike in electric vehicle (EV) sales, but the next wave of consumers — the more price-sensitive "early majority" — is proving to be more elusive. Mainstream shoppers aren't willing to pay a huge premium over conventional gas-powered vehicles, in part because they're still apprehensive about charging an electric car and they think better EVs are coming.

Source: Axios