Category Archives: Distribution & Franchise

Subscribe to Distribution & Franchise RSS Feed

China to Relax Joint Venture Requirements for Manufacturing

vehicle manufacturing
On Tuesday, Chinese President Xi Jinping announced a planned rollback of the manufacturing foreign ownership limits first set forth in the 1990s, which require that manufacturing operations in China be at least 50% Chinese owned.  Specifically, China will begin by eliminating this ownership requirement for electric vehicle production and gradually roll back the requirements for … Continue reading this entry

The Automotive Sector Faces Sharply Increased Duties, Pricing Uncertainty Following Announcement of Section 232 Tariffs on Steel and Aluminum

On March 1st, the automotive sectors that consume steel and aluminum were confronted with a potentially large tariff rate increase. The section 232 measures are intended to raise the prices of all steel products – whether imported or domestic – and thus will have an impact on any major purchaser of steel, which includes most … Continue reading this entry

Vending Machines for Cars?  Automated Car Vending Expanding Around the Globe

car vending machine
U.S. Automaker Ford and Chinese e-commerce and technology company Alibaba are teaming up to test a new system of direct-to-consumer auto sales … via a fully automated car vending machine.  In January 2018, Alibaba plans to open two car vending machines, controlled by an app.  Alibaba hopes the vending machines expand its online car sales … Continue reading this entry

New Administration Ramps up Enforcement Efforts

Suppliers Get Ready For Your Recalls
The Trump administration has vowed to bring jobs back to the states. One of the methods it appears it’ll take advantage of is continued, aggressive enforcement of U.S. laws governing exports and international conduct.… Continue reading this entry

NAFTA Under the New Trump Administration

The election of Mr. Trump as the President of the United States has created considerable uncertainty regarding the U.S. investment climate. Chief among these uncertainties is the status of the North American Free Trade Agreement (NAFTA), which President-Elect Trump repeatedly attacked for leading to the loss of U.S. manufacturing jobs. President-Elect Trump has vowed to renegotiate the … Continue reading this entry

Enjoy Your Holiday Weekend!

The Dashboard Insights team wishes you a safe and happy Labor Day. We’ll be back to our regular posting on Thursday, September 8. Thanks for your continued support of our blog!… Continue reading this entry

Presentation Recap: Car Wars

“A [not so] long time ago in an automotive industry [not] far, far away,” John Murphy, Research Analyst for Merrill Lynch delivered his popular annual “Car Wars” presentation in Detroit on May 10th. This was the 26th year of the report (which began in 1991), which is not quite as old as the 39-year old … Continue reading this entry

TrueCar to Take Its New Approach to Buying and Selling Cars to Wall Street

TrueCar recently announced that it filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for an IPO of its common stock. According to the registration statement, TrueCar is seeking to raise $125 million through its IPO for “general corporate purposes, including working capital, operating expenses and capital expenditures.” TrueCar’s future includes “additional products and … Continue reading this entry

Tesla Disrupts Old School Dealer Model

The staggering pace of innovation has led to a number of industries being disrupted by upstarts providing similar services or products outside of the established model. Want a taxi? Use Uber. Need a hotel? Try Airbnb. Looking to watch television or a movie?  The choices are almost already endless: Chromecast, Netflix, Roku, Apple TV, etc. As the Chicago Tribune reported … Continue reading this entry

Auto Suppliers Continue to Grapple with GM’s New Terms and Conditions

General Motors (“GM”) issued new general terms and conditions (“Terms”) for direct material, customer care & aftersales, and tooling purchases effective for requests for quotation issued on or after July 15, 2013. The new terms and conditions are the most extensive revisions to GM’s terms and conditions in years. While GM’s existing contracts with Suppliers will not … Continue reading this entry

Car Dealers Lose Negotiating Leverage & Profits…and Like it

The Chicago Tribune recently ran a story that will in large part not surprise anyone – car buyers are armed with more information before they walk onto a lot than ever before. But there are some aspects about the article that will surprise people. For example, at least some dealers like having customers who are … Continue reading this entry

Auto Parts Distributor Avoids Liability In Robinson-Patman Suit

On July 19, 2013, the Ninth Circuit affirmed an award of summary judgment to an aftermarket auto parts distributor that had received better prices than a competitor. Gorlick Distribution Centers, LLC v. Car Sound Exhaust System, Inc., 2013 U.S. App. LEXIS 14635 (9th Cir. 2013). In rejecting the competitor’s claim that the defendant’s receipt of favorable … Continue reading this entry

General Motors New Terms and Conditions Effective July 15, 2013

General Motors has announced that Effective July 15, 2013, its general terms and conditions for direct material, customer care & aftersales (CCA) and tooling purchases are changing. The new terms and conditions are part of GM’s implementation of its joint purchasing activities with PSA Peugeot Citroen and will be used for all GM purchases around … Continue reading this entry

NHTSA Issues Long Awaited Policy Statement on Driverless Car Technology

On May 30, 2013, the National Highway Traffic Safety Administration (“NHTSA”) introduced its long awaited policy statement on driverless car technology. According to NHTSA, driverless car technology has “captured the nation’s attention.” Until today (other than a slowly emerging patchwork of state laws), there has been little in the way of federal guidance on driverless … Continue reading this entry

Most Favored Nation (“MFN”) Pricing Draws Scrutiny as Potential Anticompetitive Practice

An interesting and growing debate in the antitrust arena is whether most favored nation (“MFN”) pricing provisions are pro-competitive or anticompetitive. For many years, MFN provisions have been considered a fairly noncontroversial contract term included by purchasers in an attempt to assure that other buyers do not receive a more favorable price. But not all … Continue reading this entry

Driverless Car Technology – Legislation Slow to Keep Pace

Major technology companies have already logged 300,000 miles on U.S. roads with self driving cars. Driverless (or automated or autonomous) vehicle technology is rapidly advancing and states are starting to enact legislation. Driverless car technology has the ability to attract billions in research dollars to those states that create the right legal framework for the … Continue reading this entry

Canada To Invest C$250 Million In Automotive Sector

Canadian Prime Minister Stephen Harper announced January 4th that the Canadian Government will extend the Automotive Innovation Fund (AIF) for 5 additional years and inject an additional C$250 million into the auto sector through the AIF.  The AIF supports strategic, large-scale research and development (R&D) projects to build innovative, greener, more fuel-efficient vehicles.  To qualify for funding, projects … Continue reading this entry