William Maley

Fiat Chrysler Automobiles is none too pleased with the Indian automaker Mahindra & Mahindra Ltd as they're planning to sell an off-road vehicle that looks very much like the original Willys Jeep. Bloomberg obtained a complaint filed by FCA to the U.S. International Trade Commission on August 1st. The document claims that Mahindra's Roxor infringes key characteristics of Jeep's signature design - namely the “boxy body shape with flat-appearing vertical sides and rear body ending at about the same height as the hood.” “They are a nearly identical copy of the iconic Jeep design. In fact, the accused product was ‘modeled after the original Willys Jeep." The Roxor is a small, two-seat off-road vehicle. There is a lot of resemblance to original Jeep design and there is a reason for that. Beginning in 1947, Mahindra got a license to build the Willys CJ3 for the Asian market. They would do so until 2010. At this point, Mahindra introduced an updated model known as the Thar that meets India's road going passenger vehicle standards and looks like a 1990's Wrangler. Now the Roxor isn't being sold as road-legal vehicle. Instead, Mahindra is selling this as a side-by-side off-road utility. That means its not road legal. Which brings us to the next key part of FCA's complaint. The company is arguing that Roxor imports "threaten it with substantial injury as they are underselling Jeeps." This is due to Mahindra manufacturing the parts and creating a knock-down kit, which is then shipped to a plant in the Detroit area for final assembly. We're not sure about this partly due to the arena the Roxor competes in, but also the price. The model begins at just under $15,500. Comparable models from Polaris and Honda begin at under $10,000. While Mahindra has had some success in the U.S. with tractors, they haven't had the same when it comes to automobiles. Previously, the company was planning to offer a diesel pickup through a distributor. But plans were scrapped and Mahindra would find itself in a lengthy court battle. The Roxor is the next attempt at possible entry for Mahindra to enter the automotive market. They have spent almost a quarter-billion dollars for a new assembly plant where they currently employ around 300 people. Last November, the company announced a $600 investment and plans to employ as many as 670 workers by 2020. Source: Bloomberg View full article

As expected, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have unveiled a proposal that will suspend increases in fuel economy put forth by the Obama administration, and take away California's ability regulate vehicle emissions. The new proposal is called the "Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule." Under the new proposal, the Corporate Average Fuel Economy (CAFE) would be capped at the 2020 level of 37 mpg through 2025. Under the rules that were created during the Obama administration, automakers would need to have a fleet average of 54 mpg in 2026. The proposal would also remove Calfornia's ability to set their own emissions state based on a 1975 federal law that prohibits states from setting their own greenhouse gas limits. It needs to be noted that two federal judges have rejected this argument when it was brought to court. "EPA is proposing to withdraw the waiver granted to California in 2013 for the GHG [Greenhouse Gas] and ZEV [Zero Emissions Vehicles] requirements of its Advanced Clean Cars program," the proposal states. "In short, the agencies propose to maintain one national standard -- a standard that is set exclusively by the Federal government." What are the benefits to this new proposal? The one that has been getting the most headlines is reduced fatalities and crashes. If you're scratching your head as to how this makes sense, here is what the proposal argues. People who buy fuel-efficient vehicle will drive more, increasing the odds that they will get into a crash. Fuel-efficient vehicles will be more expensive, thus slowing down the rate people buy new cars with advanced safety features. Fuel-efficient vehicles tend to be lighter, thus are less capable of withstanding a crash. The proposal claims that this will prevent 12,700 fatalities and many more injuries on American roads. There has been a lot of disagreement on this part, especially on the weight part. While it is true that a heavier vehicle won't sustain as much damage as lighter vehicle, experts have realized that the size of vehicle is more important to overall safety. Plus, the New York Times points out this point only accounts for one percent of the estimated fatalities in the proposal. Other benefits include reduced costs for new vehicles - the proposal says the stricter emission rules add about an average of $2,430 to the price of new vehicles. “We think we can have a win-win, if we lock in at 2020 levels. We’re not imposing undue costs on manufacturers. We’re not imposing undue costs on consumers who want affordable vehicles. And therefore we think as a result of these standards we will be able to have our cake and eat it too,” said Bill Wehrum, the assistant administrator for EPA’s Office of Air and Radiation on a call today. Reactions to this are very mixed. “I applaud the Trump administration for proposing new standards for cars and trucks. Unless the Obama administration’s punishing standards are changed, consumer choice will be limited and the cost of vehicles will skyrocket,” said Senator John Barrasso (R-WY), chairman of the Senate Environment and Public Works Committee. "Automakers support continued improvements in fuel economy and flexibilities that incentivize advanced technologies while balancing priorities like affordability, safety, jobs, and the environment," said the Alliance of Automobile Manufacturers and and the Association of Global Automakers in a statement. "The administration's effort to roll back these standards is a denial of basic science and a denial of American automakers' engineering capabilities and ingenuity," said John M. DeCicco, research professor at the University of Michigan Energy Institute. "This was a predictable move, as the current administration has been working hard to dismantle Obama-era regulations across the board. And while there's little demand today for smaller, more-efficient or electrified vehicles in the U.S., as gas prices remain low, these lower fuel economy targets proposed by the administration will likely spark an unwanted war between Washington and the California Air Resources Board. While few stakeholders were happy with the tough targets in the current regulations, unraveling those standards will likely be even more painful," said Michelle Krebs, executive analyst at Autotrader. Unsurprisingly, California is not pleased by this new proposal. The state along with 18 others and the District of Columbia have announced they would challenge the proposal in court. “The Trump Administration has launched a brazen attack, no matter how it is cloaked, on our nation’s Clean Car Standards,” said Xavier Becerra, California’s attorney general. California “will use every legal tool at its disposal to defend today’s national standards and reaffirm the facts and science behind them.” California Governor Jerry Brown was more blunt in his reaction to this, "California will fight this stupidity in every conceivable way possible.” A legal fight could mean a lot of headaches for automakers as it might result in two different emission standards they would have to meet. "With today's release of the Administration's proposals, it's time for substantive negotiations to begin. We urge California and the federal government to find a common sense solution that sets continued increases in vehicle efficiency standards while also meeting the needs of America's drivers," said the Alliance of Automobile Manufacturers and and the Association of Global Automakers. The next step is giving the public 60 days to comment on this proposal. Source: Bloomberg, New York Times, (2), Reuters, EPA U.S. EPA and DOT Propose Fuel Economy Standards for MY 2021-2026 Vehicles WASHINGTON — Today, the U.S. Environmental Protection Agency (EPA) and U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) released a notice of proposed rulemaking, the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026 Passenger Cars and Light Trucks (SAFE Vehicles Rule), to correct the national automobile fuel economy and greenhouse gas emissions standards to give the American people greater access to safer, more affordable vehicles that are cleaner for the environment. The SAFE Vehicles Rule is the next generation of the Congressionally mandated Corporate Average Fuel Economy (CAFE) and Light-Duty Vehicle Greenhouse Gas Emissions Standards. This Notice of Proposed Rulemaking (NPRM) is the first formal step in setting the 2021-2026 Model Year (MY) standards that must be achieved by each automaker for its car and light-duty truck fleet. In today’s proposal, EPA and NHTSA are seeking public comment on a wide range of regulatory options, including a preferred alternative that locks in MY 2020 standards through 2026, providing a much-needed time-out from further, costly increases. The agencies’ preferred alternative reflects a balance of safety, economics, technology, fuel conservation, and pollution reduction. It is anticipated to prevent thousands of on-road fatalities and injuries as compared to the standards set forth in the 2012 final rule. The joint proposal initiates a process to establish a new 50-state fuel economy and tailpipe carbon dioxide emissions standard for passenger cars and light trucks covering MY 2021 through 2026. “We are delivering on President Trump’s promise to the American public that his administration would address and fix the current fuel economy and greenhouse gas emissions standards,” said EPA Acting Administrator Andrew Wheeler. “Our proposal aims to strike the right regulatory balance based on the most recent information and create a 50-state solution that will enable more Americans to afford newer, safer vehicles that pollute less. More realistic standards can save lives while continuing to improve the environment. We value the public’s input as we engage in this process in an open, transparent manner.” “There are compelling reasons for a new rulemaking on fuel economy standards for 2021-2026,” said Secretary Elaine L. Chao. “More realistic standards will promote a healthy economy by bringing newer, safer, cleaner and more fuel-efficient vehicles to U.S. roads and we look forward to receiving input from the public.” The current standards have been a factor in the rising cost of new automobiles to an average of $35,000 or more—out of reach for many American families. Indeed, compared to the preferred alternative in the proposal, keeping in place the standards finalized in 2012 would add $2,340 to the cost of owning a new car, and impose more than $500 billion in societal costs on the U.S. economy over the next 50 years. Additionally, a 2018 government study by NHTSA shows new model year vehicles are safer, resulting in fewer deaths and injuries when involved in accidents, as compared to older models. Therefore, the Administration is focused on correcting the current standards that restrict the American people from being able to afford newer vehicles with more advanced safety features, better fuel economy, and associated environmental benefits. On April 2, 2018, EPA issued the Mid-Term Evaluation Final Determination which found that the MY 2022-2025 GHG standards are not appropriate and should be revised. For more than a year, the agencies worked together to extensively analyze current automotive and fuel technologies, reviewed economic conditions and projections, and consulted with other federal agency partners to ensure the most reliable and accurate analysis possible. EPA and NHTSA are seeking public feedback to ensure that all potential impacts concerning today’s proposal are fully considered and hope to issue a final rule this winter. The public will have 60 days to provide feedback once published at the Federal Register View full article

In a month's time, Europe will be switching from much maligned New European Drive Cycle (NEDC) to the Worldwide Harmonized Light Duty Vehicles Test Procedure (WLTP). Automakers are scrambling to get models certified under this new procedure. This presents a big problem for Volkswagen as they don't have enough engineers to make sure their vehicles to meet the new standards. According to Reuters, Volkswagen lost a number of engineers that specialized in engine calibration ever since the company revealed they were using illegal software on their diesel vehicles to cheat emission tests. “Engine development expertise has been lost,” said Volkswagen Group CEO Herbert Diess. It is so bad, that Volkswagen believes it will affect their financial results for the second half of this year as they might not be able to get a number of vehicles out on the road. The company said there would a bottleneck of certain model variants between now and October. Volkswagen is working hard to try and overcome this problem. They have plucked BMW engine development expert Markus Duesmann last week to try and get through this mess. Source: Reuters View full article

Tesla announced their second-quarter results this afternoon and the picture that it paints is somewhat cloudy. The company reported a loss of $717.5 million for the quarter, marking the seventh consecutive loss, On the upside, Tesla's revenue for the quarter was about $3.4 billion. In terms of production, Tesla said it produced 53,339 vehicles for the quarter. More importantly, the company delivered 18,449 Model 3s in that timeframe. During the earnings call, CEO Elon Musk said the company would become profitable towards the end of this year as it ramps up production and deliveries of the Model 3. "Our goal is to be profitable and cashflow positive in every quarter going forward," said Musk. To reach this, Musk has set new goals of producing 6,000 Model 3s per week by the end of August, and then raising that to 10,000 vehicles next year. Currently, Tesla is producing "approximately 5,000 Model 3 cars" per week. Source: Tesla View full article

SUBARU OF AMERICA REPORTS ALL-TIME RECORD JULY SALES Best July ever – monthly sales increase 6.7 percent over July 2017 80 consecutive months of yearly month-over-month growth Best July ever for Crosstrek and Ascent 53 consecutive months of more than 10,000 Outbacks sold 60 consecutive months of more than 10,000 Foresters sold August 1, 2018 , Camden, N.J. - Subaru of America, Inc. today reported 59,426 vehicle sales for July 2018, a 6.7 percent increase over July 2017, and the best July in the history of the company. The company also reported year-to-date sales of 382,286 vehicles, a 6 percent gain over the same period in 2017. July marked the 53rd consecutive month of 40,000+ vehicle sales for the company. Crosstrek and Ascent sales were notably strong as each model achieved its best July ever. Crosstrek sales for July 2018 increased 59 percent over the same month in 2017. In addition, 4,589 of the all-new 3-row Ascent SUVs were delivered in July. The biggest Subaru ever also earned a Car and Driver Editors’ Choice award. “In honor of this past month’s sales, Subaru of America proudly celebrates our 80th consecutive month of yearly month-over-month growth; a feat that would be impossible without the support and hard work of our dedicated retailers nationwide,” said Thomas J. Doll, President and CEO of Subaru of America, Inc. “We’re thrilled to see the ongoing excitement around the 2019 model year vehicles and look forward to upholding this momentum by continuing to deliver safety, versatility and reliability to our loyal customer base.” “Overall, Subaru of America sales were up nearly 7 percent in July – an impressive accomplishment considering that sales industry-wide were down compared to July 2017,” said Jeff Walters, Senior Vice President of Sales. “We are on track for an exceptionally strong summer, thanks to the all-new 3-row Ascent SUV and Crosstrek that continue to drive new and returning customers to the Subaru brand.” Carline Jul- 18 MTD Jul-17 MTD % Chg YTD Jul-18 YTD Jul-17 YTD % Chg YTD Forester 13,759 15,283 -10.00% 93,036 103,240 -9.90% Impreza 7,386 7,777 -5.00% 45,200 50,803 -11.00% WRX/STI 2,013 2,933 -31.40% 17,051 19,118 -10.80% Ascent 4,589 0 0.00% 6,486 0 0.00% Legacy 2,605 3,785 -31.20% 24,020 29,349 -18.20% Outback 16,113 17,581 -8.40% 107,091 103,834 3.10% BRZ 297 372 -20.20% 2,263 2,669 -15.20% Crosstrek 12,664 7,972 58.90% 87,139 51,500 69.20% TOTAL 59,426 55,703 6.70% 382,286 360,513 6.00%

Mercedes-Benz USA reports July sales of 20,034 units Aug 1, 2018 – ATLANTA: Mercedes-Benz USA (MBUSA) today reported July sales of 20,034 Mercedes-Benz models, a decrease of 22.7% from July 2017. Mercedes-Benz Vans reported July sales of 2,921 units (up 5.9%) and smart reported 103 units, bringing MBUSA to a grand total of 23,058 vehicles for the month. On a year-to-date basis, sales of Mercedes-Benz vehicles totaled 178,882, with an additional 19,831 units for Vans and 753 vehicles for smart, bringing the sales volume to 199,466, a decrease of 4.4% from last year. "July sales were impacted by a number of factors, resulting in a temporary dealer inventory shortfall relating to our changeover to model year 2019," said Dietmar Exler, president and CEO of MBUSA. "We also experienced a mainframe outage which affected our dealers' ability to conduct business during the busiest week of the month. The IT recovery is nearing completion, and we are working closely with our customers and dealers to help alleviate any inconvenience resulting from the model year 2019 delays. While we expect to replenish our inventory levels in the fall, these developments will likely have a negative impact on sales in the coming months." Mercedes-Benz volume leaders in July included the GLE, GLC and C-Class model lines. The GLE took the lead at 4,447, followed closely by GLC sales of 4,446. The C-Class rounded out the top three with 3,841 units sold. July sales of Mercedes-AMG high-performance totaled 2,008 units, with 17,328 vehicles sold year-to-date. Mercedes-Benz Passenger Vehicles Jul-18 Jul-17 Monthly % YTD 2018 YTD 2017 Yearly % B-CLASS 0 81 _ 132 398 -66.8% CLA 1,424 2,181 -34.7% 13,140 10,686 23.0% C-CLASS 3,841 4,899 -21.6% 33,500 47,451 -29.4% E-CLASS/CLS 2,252 3,876 -41.9% 25,692 28,635 -10.3% S-CLASS 630 1,470 -57.1% 9,055 9,053 0.0% SLC 127 199 -36.2% 1,308 1,815 -27.9% SL 95 154 -38.3% 1,351 1,604 -15.8% AMG GT 104 179 -41.9% 1,018 720 41.4% GLA 1,322 2,223 -40.5% 13,484 12,583 7.2% GLC 4,446 4,002 11.1% 39,591 23,729 66.8% GLE 4,447 3,879 14.6% 27,188 30,708 -11.5% GLS 1,184 2,403 -50.7% 11,383 17,929 -36.5% G-CLASS 162 363 -55.4% 2,040 2,558 -20.3% TOTAL 20,034 25,909 -22.7% 178,882 187,869 -4.8% Vans1 2,921 2,758 5.9% 19,831 18,558 6.9% smart 103 182 -43.4% 753 2,165 -65.2% MBUSA Combined Total Jul-18 Jul-17 Monthly % YTD 2018 YTD 2017 Yearly % GRAND TOTAL 23,058 28,849 -20.1% 199,466 208,592 -4.4% 1 Mercedes-Benz, Freightliner Sprinter and Metris Vans are sold and marketed in the U.S. by Mercedes-Benz USA and Daimler Vans USA, respectively.

Hyundai Motor America Reports July 2018 Sales Retail Sales Up Year-Over-Year Best Tucson July Sales Ever Elantra Sales Up 4 Percent; 13,753 Units Sold Veloster Up 13 Percent Sales of the All-New 2019 Santa Fe Started in July Fleet Sales Under 5 Percent for the Month FOUNTAIN VALLEY, Calif., Aug. 1, 2018 – Hyundai Motor America reported July sales of Hyundai- and Genesis-branded vehicles of 51,752 units, a 4 percent decline in comparison with July 2017. Retail sales for the month were up slightly, while fleet deliveries were down 51 percent compared with last year and less than 5 percent of total volume. Sales by Brand Jul-18 Jul-17 2018 YTD 2017 YTD Hyundai 51,137 52,419 378,923 388,878 Genesis 615 1,644 7,877 11,545 TOTAL 51,752 54,063 386,800 400,423 Hyundai Brand Highlights Both Hyundai SUV and car models achieved gains for the month. The reimagined SUV portfolio continues to gain traction as Tucson set its 17th consecutive monthly sales record with a 1 percent improvement compared with last year. Kona sales again exceeded 4,000 units as it continues to turn quickly and gain market share in the growing entry SUV segment. Rounding out the SUVs, sales of the all-new 2019 Santa Fe began in the month. The completely redesigned model offers consumers an all-new family-oriented interior, practical cutting-edge technologies and bold exterior looks. In the car segments, Elantra sales were up 4 percent and the all-new Veloster, which was recently named an Editor's Choice by Car and Driver, drove increased demand with sales up 13 percent. "We are pleased that Hyundai retail sales were up slightly year-over-year despite two less selling days and one less sales weekend, in an industry we anticipate will be down for the month," said John Angevine, director, National Sales, Hyundai Motor America. "SUV mix has taken hold at nearly 50 percent of our volume and we expect that number to increase as inventory of Santa Fe hits dealers in bigger numbers." Hyundai Model Sales Vehicle Jul-18 Jul-17 2018 YTD 2017 YTD Accent 1,873 2,115 16,698 34,630 Azera 14 233 626 2,025 Elantra 13,753 13,287 113,481 113,539 Ioniq 1,198 1,252 9,797 6,133 Kona 4,173 0 19,366 0 Santa Fe 8,275 12,749 67,460 72,761 Sonata 9,548 10,648 63,783 86,963 Tucson 11,360 11,257 81,309 62,964 Veloster 943 831 6,402 8,823 Genesis Brand Highlights Genesis Motor America reported sales of 615 in July, a 63 percent decrease compared with the year prior. In the month of July, Genesis was ranked highest in J.D. Power's U.S. Automotive Performance, Execution and Layout (APEAL) Study among all brands. With a score of 884, Genesis placed first in the APEAL rankings. Earlier this year, J.D. Power separately recognized Genesis with the highest honors in its Initial Quality Study (IQS). Simultaneously, in early July, Genesis introduced the 2019 G70 sport sedan to U.S. media, ahead of the consumer launch of G70 later this summer. Genesis Model Sales Vehicle Jul-18 Jul-17 2018 YTD 2017 YTD G80 498 1,339 6,144 8,987 G90 117 305 1,733 2,558

Volvo Reports July Sales ROCKLEIGH, N.J. (August 1, 2018) - Volvo Car USA, LLC, (VCUSA) reported U.S. sales of 8,622 vehicles for the month of July, an increase of 24 percent from the same period last year. Year-to-date VCUSA has sold 56,244 vehicles, an increase of 37 percent from the previous year. Volvo’s SUV range continues to perform well, up 66% from the previous year. The XC60 was again the monthly top seller with 2,467 vehicles sold. The XC60 was closely followed by the XC90 with 2,384 vehicles sold. The XC40 had the best month since launch, with 1,521 cars sold. “Volvo’s strength in SUVs has fueled double digit growth for the past seven consecutive months," said Anders Gustafsson, President and CEO, Volvo Car USA. “Volvo is well positioned in the American marketplace.” Models July 2018 July 2017 % Year To Date 2018 Year To Date 2017 % S60 799 904 -11.6 % 4,518 6,853 -34.1 % S60 CC 25 32 -21.9 % 168 139 20.9 % S80 0 0 - - 5 - S90 727 855 -15.0 % 4,711 3,809 23.7 % V60 137 121 13.2 % 892 1,690 -47.2 % V60 CC 390 127 207.1 % 2,236 1,604 39.4 % V90 43 47 -8.5 % 225 61 268.9 % V90 CC 129 176 -26.7 % 1,260 1,067 18.1 % XC40 1,521 0 100.0 % 6,619 0 100.0 % XC60 3 1,329 -99.8 % 242 10,240 -97.6 % XC60 II 2,464 855 188.2 % 17,015 979 1,638.0 % XC70 0 0 - - 73 - XC90 2,384 2,521 -5.4 % 18,358 14,552 26.2 % Total 8,622 6,967 23.8 % 56,244 41,072 36.9 % * I, II, III etc shows which generation the car model belongs to.

MITSUBISHI MOTORS JULY SALES UP 24 PERCENT Outlander posts best July sales month ever Mitsubishi Motors North America, Inc. (MMNA) continued its momentum in the month of July reporting sales of 9,950 units – up 24 percent over July 2017. For the calendar year, total sales are up 23.4 percent compared to the same period in 2017. The volume leader for July was Outlander Sport with total sales of 3,440 – up 18.2 percent over last year, followed closely by Outlander which posted sales of 3,008 – up 18.9 percent over last year. This was Outlander's best month of July sales since it was introduced in 2002. July YTD 2018 2017 2018 2017 Mirage 2374 1560 15559 15247 Lancer 3 1025 3302 8842 Outlander Sport 3440 2910 25855 17976 Outlander 3008 2530 26514 20530 Outlander PHEV 350 0 2306 0 Eclipse Cross 775 0 3741 0 Total 9950 8025 77277 62601

KIA MOTORS AMERICA ANNOUNCES JULY SALES Three Kia Models Achieve Double-Digit Gains Over the Same Period Last Year IRVINE, Calif., August 1, 2018 – Kia Motors America (KMA) today announced July sales of 53,112 vehicles, with the Rio and Optima car lines and Sorento SUV up double digits over the same period last year. “Rio and Sorento were up by double-digits year-over-year for the second consecutive month and Optima made a big move as new customers continue to discover Kia’s world-class vehicles and the brand’s award-winning combination of design, quality, reliability and technology,” said Bill Peffer, vice president, sales operations, Kia Motors America. “Along with the Rio and Stinger earning J.D. Power APEAL awards, our ‘America’s Best Value Summer Event’ continuing and an all-new Forte on the horizon, Kia will continue building momentum through the end of the summer selling period and beyond.” MONTH OF JULY YEAR-TO-DATE Model 2018 2017 2018 2017 Rio 1,844 1,587 12,915 8,272 Forte 7,546 12,022 61,946 70,768 Optima 10,919 7,933 57,795 67,650 Cadenza 200 523 3,501 3,178 Stinger 1,506 N/A 10,144 N/A K900 28 35 203 286 Soul 8,203 12,961 58,235 66,077 Niro 2,310 2,763 16,513 15,439 Sportage 7,007 7,135 48,726 43,741 Sorento 11,982 9,734 64,742 59,990 Sedona 1,567 1,710 11,955 16,738 Total 53,112 56,403 346,675 352,139

Nissan Group reports July 2018 U.S. sales NASHVILLE, Tenn. – Nissan Group today announced total U.S. sales for July 2018 of 108,792 units, a decrease of 15 percent compared to the previous year. Nissan highlights: Murano crossover sales rose 4 percent in July to 6,549. Sales of the Pathfinder SUV increased 5 percent to 5,303. TITAN pickup sales grew 5 percent to 3,977. Several key models have shown gains year-to-date in 2018: Armada (+25%), Murano (+11%) and Rogue (+6%). NISSAN DIVISION JULY JULY Monthly CYTD CYTD CYTD 2018 2017 % chg 2018 2017 % chg Nissan Division Total 99,045 117,455 -15.7 807,570 858,000 -5.9 Versa 5,472 7,899 -30.7 51,156 64,457 -20.6 Sentra 19,362 18,724 3.4 135,038 131,298 2.8 Altima 16,015 22,314 -28.2 139,807 168,598 -17.1 Maxima 2,487 5,330 -53.3 26,539 36,849 -28.0 LEAF 1,149 1,283 -10.4 7,808 8,531 -8.5 Juke 26 739 -96.5 678 7,984 -91.5 370Z 224 441 -49.2 2,173 2,930 -25.8 GT-R 39 30 30.0 343 403 -14.9 Total Car 44,774 56,760 -21.1 363,542 421,050 -13.7 Kicks 2,375 0 n/a 2,938 0 n/a Frontier 4,582 7,647 -40.1 46,283 45,460 1.8 Titan 3,977 3,791 4.9 27,271 28,255 -3.5 Xterra 0 0 n/a 0 1 -100.0 Pathfinder 5,303 5,066 4.7 39,005 50,533 -22.8 Armada 2,294 2,477 -7.4 20,739 16,632 24.7 Rogue 26,535 32,425 -18.2 241,737 228,114 6.0 Murano 6,549 6,314 3.7 45,349 41,010 10.6 Quest 0 12 -100.0 2 4,933 -100.0 NV 1,242 1,338 -7.2 9,490 10,785 -12.0 NV200 1,414 1,625 -13.0 11,214 11,227 -0.1 Total Truck 54,271 60,695 -10.6 444,028 436,950 1.6 INFINITI JULY JULY Monthly CYTD CYTD CYTD 2018 2017 % chg 2018 2017 % chg Infiniti Total 9,747 10,840 -10.1 81,917 89,983 -9.0 Infiniti Q50 2,397 2,596 -7.7 21,554 22,199 -2.9 Infiniti Q60 755 765 -1.3 5,447 6,703 -18.7 Infiniti Q70 279 375 -25.6 2,796 3,658 -23.6 Infiniti QX30 603 729 -17.3 5,417 10,122 -46.5 Infiniti QX50 1,609 1,190 35.2 10,675 9,145 16.7 Infiniti QX60 2,920 3,505 -16.7 25,096 21,784 15.2 Infiniti QX70 53 620 -91.5 859 5,392 -84.1 Infiniti QX80 1,131 1,060 6.7 10,073 10,980 -8.3 Total Car 3,431 3,736 -8.2 29,797 32,560 -8.5 Total Truck 6,316 7,104 -11.1 52,120 57,423 -9.2 NISSAN GROUP JULY JULY Monthly CYTD CYTD CYTD 2018 2017 % chg 2018 2017 % chg TOTAL VEHICLE 108,792 128,295 -15.2 889,487 947,983 -6.2 Total Car 48,205 60,496 -20.3 393,339 453,610 -13.3 Total Truck 60,587 67,799 -10.6 496,148 494,373 0.4 Selling days 24 25 178 177 # # #

Porsche Reports July 2018 U.S. Sales Seven consecutive growth months driven by demand for two and four-door sports cars ATLANTA, Aug. 1, 2018 /PRNewswire/ -- Porsche Cars North America, Inc. (PCNA), importer and distributor of the Porsche 911, 718 Boxster and Cayman, Panamera, Cayenne and Macan model lines, today announced July 2018 retail sales of 4,020 vehicles. This represents year-over-year growth of 3.1 percent. It is the seventh month in a row where sales have outstripped the previous year's period. "Porsche U.S. sales are now up 6.3 percent for the first seven months of the year to 33,441 vehicles," said Klaus Zellmer, President and CEO of PCNA. "Two forces are at work: healthy demand for Porsche sports cars, and the expert customer experience provided by our 189 U.S. dealers and their thousands of employees." Two-door and four-door Porsche sports cars saw growth in July. The 718 model line was up 60.4 percent year-over-year. The Panamera climbed 14.7 percent, after the new generation came to market in early 2017. Sales of the Macan grew 32.1 percent in the same period. Model July Sales Year-to-Date 2018 2017 2018 2017 ALL 911 524 587 5,395 4,982 ALL 718 531 331 3,583 2,805 ALL PANAMERA 585 510 5,158 3,511 ALL CAYENNE 266 873 5,541 7,933 ALL MACAN 2,114 1,600 13,764 12,238 GRAND TOTALS 4,020 3,901 33,441 31,469

BMW Group U.S. Reports July 2018 Sales BMW brand sales increase 0.1 percent MINI brand sales decrease 2.3 percent BMW Group electrified vehicle sales accounted for 7.1 percent of total U.S. sales Woodcliff Lake, NJ – August 1, 2018… Sales of BMW brand vehicles increased 0.1 percent in July 2018 for a total of 21,982, compared to 21,965 vehicles sold in July 2017. Year-to-date, the BMW brand is up 2.5 percent on sales vehicles of 175,368 compared to 171,051 sold in the first seven months of 2017. “The third quarter is making a good start overall for BMW Group with the BMW brand posting its ninth straight month of sales increases and our Sports Activity Vehicles once more leading the way,” said Bernhard Kuhnt, President and CEO, BMW of North America. “The much-in-demand new BMW X3 is showing its strength as U.S. availability increases while, at the same time, demand for BMW Group electrified models remains solid, accounting for slightly more than seven percent of BMW Group sales in July.” BMW’s lineup of Sports Activity Vehicles accounted for 49.6 percent of BMW brand sales in July 2018. Most notably, the BMW X3 was the top-selling BMW model in the U.S. in the month of July 2018 and calendar year to date. MINI Brand Sales For July, MINI USA reported 4,296 vehicles sold, a decrease of 2.3 percent from the 4,398 sold in the same month a year ago. MINI sales in July were led by the MINI Countryman, which accounted for 40 percent of sales with 1,724 vehicles sold. Year to date, MINI sales are up 1.2 percent. BMW Group Sales Sales of BMW Group vehicles (BMW and MINI brands combined) in the U.S. decreased 0.3 percent in July 2018 for a total of 26,278 vehicles, compared with 26,363 vehicles sold in the same month a year ago. Year-to-date BMW Group sales in the U.S. are up 2.4 percent from the first seven months of 2017. BMW Group Electrified Vehicle Sales BMW Group in the U.S. (BMW and MINI combined) sales of electric and plug-in hybrid electric vehicles totaled 1,859 in July 2018, a decrease of 7.2 percent from the 2,004 sold in the same month a year ago. BMW Group electrified vehicles accounted for 7.1 percent of U.S. sales in July 2018. Year to date, BMW Group sales of electric and plug-in hybrid electric vehicles are up 39.5 percent compared to the first seven months of 2017.

Tripower is one of General Motors' most revered names. Used on Pontiac V8 engines from 1957-1966, Tripower referred to the use of three two-barrel carburetors on top of the engine. GM is bringing back the name for the next-generation Chevrolet Silverado and GMC Sierra. But in this case, Tripower carries a very different meaning. At the CAR Management Briefing Seminars yesterday, Mike Anderson, GM's executive director of global transmission and electrification hardware engineering said Tripower will now "refer to a suite of technologies that boosts horsepower and fuel economy" for the new 2.7L turbo-four. According to Automotive News, Tripower will include cylinder deactivation, intake valve lift control, and active thermal management. The new engine is expected launch sometime after the new trucks begin arriving at dealers this fall. Source: Automotive News (Subscription Required) View full article

VOLKSWAGEN OF AMERICA REPORTS JULY 2018 SALES RESULTS Sales totaled 30,520 units, an increase of 12.7 percent compared to July 2017 Year-to-date sales totaled 203,418 units, an increase of 8 percent over 2017 Sales of the all-new 2018 Tiguan totaled 6,636 units Jetta sales totaled 6,931 units Sales of the Chattanooga-built Atlas totaled 6,499 units Herndon, VA — (August 1, 2018) Volkswagen of America, Inc. (VWoA) today reported sales of 30,520 units delivered in July 2018, an increase of 12.7 percent over July 2017. With 203,418 units delivered year-to-date in 2018, the company is reporting an 8 percent increase in year-over-year sales. “We're very pleased to mark our seventh consecutive month of year-over-year growth,” said Derrick Hatami, Executive Vice President of Sales, Marketing and After Sales for VWoA. “Our SUV lineup has given us strong lift in 2018 and July was the best month this year for the 2018 Atlas. Overall, this was our best July since 2015 and the all-new 2019 Jetta played a large part in reaching that mark, with Jetta sales leading the Volkswagen brand in volume for the month.” July 2018 Sales July 18 July 17 Yr/Yr% change July 18 YTD July 17 YTD Yr/Yr% change Golf 569 1,267 -55.1% 4,605 8,437 -45.4% GTI 1,159 1,747 -33.7% 10,348 12,480 -17.1% Golf R 332 158 110.1% 2,572 2,484 3.5% e-Golf 18 308 -94.2% 794 2,195 -63.8% Golf SportWagen 1,092 2,103 -48.1% 9,108 18,234 -50.0% Total Golf Family 3,170 5,583 -43.2% 27,427 43,830 -37.4% Jetta Sedan 6,931 11,054 -37.3% 39,892 66,549 -40.1% Jetta SportWagen (now Golf SportWagen) 7 N/A N/A 69 N/A N/A Total Jetta 6,938 11,053 -37.2% 39,961 66,548 -40.0% Beetle Coupe 940 651 44.4% 6,146 5,605 9.7% Beetle Convertible 845 708 19.4% 3,606 4,575 -21.2% Total Beetle 1,785 1,359 31.3% 9,752 10,180 -4.2% EOS* N/A N/A N/A - 1 N/A Passat 4,003 5,143 -22.2% 26,359 40,280 -34.6% CC 32 95 -66.3% 326 1,014 -67.9% Tiguan Limited 1,321 1,484 -11.0% 10,614 18,449 -42.5% 2018 Tiguan 6,636 593 1,019.1% 52,738 593 8,793.4% Touareg 136 475 -71.4% 1,584 2,105 -24.8% Atlas 6,499 1,306 397.6% 34,657 5,329 550.3% TOTAL 30,520 27,091 12.7% 203,418 188,329 8.01% *Eos production ended in July 2015

American Honda Reports July Sales Results Aug 1, 2018 All-new 2019 Acura RDX scores second-consecutive sales record with 5,784 units sold in July Honda Pilot sales continue momentum – jumping another 30.5% in July, bolstered by redesigned 2019 model Honda CR-V sales top 32,000 for the month – advancing industry retail SUV sales leadership New Honda Insight quickly posts nearly 2,000 sales in its first full month even before marketing launch Honda Sales Highlights While one less sales weekend than the same period in 2017 led in part to a dip in sales, customers showed a preference for the brand's light trucks including the refreshed-for-2019 Pilot and HR-V, and hot-selling CR-V. With the refreshed 2019 Pilot going on sale July 16, Honda's three-row SUV extended its winning streak of sales increases to 11 straight months, jumping 30.5% on sales of 13,026 vehicles. CR-V delivered again in July with sales of 32,844 units, an increase of 3.4%. Despite the shorter sales month and tight supplies, Civic sales remained strong in July with more than 26,000 units sold. Sales of the brand-new Honda Insight jumped out to a strong start with 1,972 units sold in its first full month on the market. “For the first time in our company's history, the Honda brand is on pace this year to sell more light trucks than passenger cars,” said Henio Arcangeli Jr., senior vice president of the American Honda Automobile Division. “Honda's unique flexibility within our U.S. manufacturing operations has played a critical role in our ability to adjust our production mix and capitalize on the market's shift toward light trucks.” Acura Sales Highlights Acura light trucks returned as a 1-2 punch powerhouse with the new RDX posting a second consecutive monthly sales record and MDX contributing strong sales boosted by a refreshed 2019 model that entered the market on July 17. RDX sales totaled 5,784 for the month — a new July record. The just-refreshed MDX, with a new A-Spec variant for 2019, helped the perennial best-seller to more than 4,300 sales in July.

Mazda Reports July Sales Results IRVINE, Calif., Aug. 1, 2018 -- Mazda North American Operations (MNAO) today reported total July U.S. sales of 24,125 vehicles, representing a decrease of 10.9 percent versus July of last year. Year-to-date (YTD) sales through July are up 11.5 percent versus last year, with 188,049 vehicles sold. With 24 selling days in July 2018, versus 25 the year prior, the company posted a decrease of 7.2 percent on a Daily Selling Rate (DSR) basis. Key July sales notes: Mazda CX-5, Mazda's midsized crossover SUV had another strong month finishing up July with increase of 7.1 percent year-over-year, with 12,208 vehicles sold. Sales of the Mazda CX-5 are up 36.1% YTD. Sales of Mazda's CX-line remain strong, with CX-3, CX-5 and CX-9 collectively reaching 15,802 vehicles sold in the month of July. This number represents a decrease of 0.9 percent YOY, and an increase of 31.7 percent YTD. Among Mazda CX-line buyers, Mazda's i-ACTIV All-Wheel Drive option continues to be a favorite, with 60.5 percent of customers choosing the AWD option in July. Mazda reported Certified Pre-Owned (CPO) sales of 4,693 vehicles in July, marking an increase of 29.7 percent YOY. Month-To-Date Year-To-Date July July % % MTD July July % % YTD 2018 2017 Change DSR 2018 2017 Change DSR Mazda3 5,266 7,407 (28.9)% (25.9)% 41,062 47,241 (13.1)% (13.6)% Mazda6 2,213 3,482 (36.4)% (33.8)% 20,295 21,491 (5.6)% (6.1)% MX-5 Miata 844 997 (15.3)% (11.8)% 5,535 7,970 (30.6)% (30.9)% CX-3 1,388 1,481 (6.3)% (2.4)% 11,015 9,092 21.2% 20.5% CX-5 12,208 11,402 7.1% 11.5% 93,220 68,479 36.1% 35.4% CX-9 2,206 2,318 (4.8)% (0.9)% 16,922 14,431 17.3% 16.6% Total Vehicles CARS 8,323 11,888 (30.0)% (27.1)% 66,892 76,711 (12.8)% (13.3)% TRUCKS 15,802 15,201 4.0% 8.3% 121,157 92,002 31.7% 30.9% TOTAL 24,125 27,089 (10.9)% (7.2)% 188,049 168,713 11.5% 10.8% Selling Days 24 25 178 177

Volvo Cars of North America, LLC - Up 23.8% (8,622 Vehicles Sold This Month, 56,244 Vehicles Sold This Year) Mitsubishi Motors North America - Up 23.4% (9,950 Vehicles Sold This Month, 77,277 Vehicles Sold This Year) Volkswagen of America - Up 12.7% (30,520 Vehicles Sold This Month, 203,418 Vehicles Sold This Year) Subaru of America, Inc. - Up 6.7% (59,426 Vehicles Sold This Month, 382,286 Vehicles Sold This Year) FCA US LLC - Up 6% (170,970 Vehicles Sold This Month, 1,286,446 Vehicles Sold This Year) Porsche Cars North America, Inc. - Up 3.1% (4,020 Vehicles Sold This Month, 33,441 Vehicles Sold This Year) Audi of America - Up 2.1% (19,221 Vehicles Sold This Month, 127,163 Vehicles Sold This Year) BMW Group U.S. - Down 0.3% (26,278 Vehicles Sold This Month, 202,300 Vehicles Sold This Year) Ford Motor Company - Down 3.1% (194,026 Vehicles Sold This Month, 1,471,717 Vehicles Sold This Year) Hyundai Motor America - Down 4% (51,752 Vehicles Sold This Month, 386,800 Vehicles Sold This Year) Kia Motors America - Down 5.8% (53,112 Vehicles Sold This Month, 346,675 Vehicles Sold This Year) Toyota Motor North America - Down 6% (208,770 Vehicles Sold This Month, 1,398,082 Vehicles Sold This Year) American Honda Motor Co. - Down 8.2% (138,602 Vehicles Sold This Month, 926,426 Vehicles Sold This Year) Mazda North American Operations - Down 10.9% (24,125 Vehicles Sold This Month, 188,049 Vehicles Sold This Year) Nissan Group - Down 15.2% (108,792 Vehicles Sold This Month, 889,487 Vehicles Sold This Year) Mercedes-Benz USA - Down 20.1% (23,058 Vehicles Sold This Month, 199,466 Vehicles Sold This Year) Jaguar Land Rover North America - Brands: Acura - Down 6.6% (13,247 Vehicles Sold This Month, 85,900 Vehicles Sold This Year) Alfa Romeo - Up 65% (2,016 Vehicles Sold This Month, 14,281 Vehicles Sold This Year) Audi - Up 2.1% (19,221 Vehicles Sold This Month, 127,163 Vehicles Sold This Year) BMW - Up 0.1% (21,982 Vehicles Sold This Month, 175,368 Vehicles Sold This Year) Chrysler - Down 13% (11,624 Vehicles Sold This Month, 100,254 Vehicles Sold This Year) Dodge - 0% (31,119 Vehicles Sold This Month, 282,052 Vehicles Sold This Year) Fiat - Down 45% (1,240 Vehicles Sold This Month, 9,525 Vehicles Sold This Year) Ford - Down 2.7% (186,128 Vehicles Sold This Month, 1,413,550 Vehicles Sold This Year) Genesis - Down 63% (615 Vehicles Sold This Month, 7,877 Vehicles Sold This Year) Honda - Down 8.4% (125,355 Vehicles Sold This Month, 840,526 Vehicles Sold This Year) Hyundai - Down 2.45% (51,137 Vehicles Sold This Month, 378,922 Vehicles Sold This Year) Infiniti - Down 10.1% (9,747 Vehicles Sold This Month, 81,917 Vehicles Sold This Year) Jaguar - Jeep - Up 15% (79,906 Vehicles Sold This Month, 574,928 Vehicles Sold This Year) Kia - Down 5.8% (53,112 Vehicles Sold This Month, 346,675 Vehicles Sold This Year) Land Rover - Lexus - Down 12.1% (25,403 Vehicles Sold This Month, 160,403 Vehicles Sold This Year) Lincoln - Down 11% (7,898 Vehicles Sold This Month, 58,167 Vehicles Sold This Year) Mazda - Down 10.9% (24,125 Vehicles Sold This Month, 188,049 Vehicles Sold This Year) Mercedes-Benz - Down 22.7% (20,034 Vehicles Sold This Month, 178,882 Vehicles Sold This Year) Mercedes-Benz Vans - Up 5.9% (2,921 Vehicles Sold This Month, 19,831 Vehicles Sold This Year) MINI - Down 2.3% (4,296 Vehicles Sold This Month, 26,932 Vehicles Sold This Year) Mitsubishi - Up 23.4% (9,950 Vehicles Sold This Month, 77,277 Vehicles Sold This Year) Nissan - Down 15.7% (99,045 Vehicles Sold This Month, 807,570 Vehicles Sold This Year) Porsche - Up 3.1% (4,020 Vehicles Sold This Month, 33,441 Vehicles Sold This Year) Ram Trucks - Up 2% (45,065 Vehicles Sold This Month, 305,406 Vehicles Sold This Year) Smart - Down 43.4% (103 Vehicles Sold This Month, 753 Vehicles Sold This Year) Subaru - Up 6.7% (59,426 Vehicles Sold This Month, 382,286 Vehicles Sold This Year) Toyota - Down 5.1% (183,367 Vehicles Sold This Month, 1,237,679 Vehicles Sold This Year) Volkswagen - Up 12.7% (30,520 Vehicles Sold This Month, 203,418 Vehicles Sold This Year) Volvo - Up 23.8% (8,622 Vehicles Sold This Month, 56,244 Vehicles Sold This Year) View full article