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The latest report from the JD Power Consultancy shows that automakers have managed to retain retail sales in the face of the Trump mis-administration foreign policy, trade, tariff and shooting wars. The JD Power Automotive OEM Intelligence Report* reviews supply chain management and segment mix, careful use of incentives and a focus on moving the right vehicles off dealer lots were among the key success factors. [The collateral damage is the consumer as the 2025 average consumer transaction price (CFTP – Customer-Facing Transaction Price – is Power’s term) was ~$45,500, and it has increased to $46,400 year-to-date in 2026, Worse, Power forecasts it will be $46,600 to $46,900 by year’s end – AutoCrat.]**
“While it isn’t time to don party hats and start tossing confetti, there is no doubt that the auto industry has been able to negotiate the slings and arrows of 2026 much more nimbly than might have been anticipated. A potentially toxic combination of historic supply chain challenges, spiraling fuel costs, record high new-vehicle prices and economic uncertainty could have caused retail sales to plummet. Instead, year-over-year retail sales volumes are in line with forecasts. In fact, fourth quarter retail sales are expected to be stronger than last year, bringing the full year result to nearly flat in 2026,” said Power this morning. Continue reading →
VW Ending Collective Bargaining Agreements. Strikes Loom?
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Representatives of Volkswagen AG and IG Metall met this week in Hanover to discuss what was once unthinkable. Volkswagen’s stated objective is to systematically implement the previously agreed measures and fully exhaust all options for a socially responsible headcount reduction. Given current economic challenges, Volkswagen AG presented formal notice to terminate several collective bargaininng agreements, effective 31 December 2026.
[Simply put in VW management’s view, IG Metall’s demand for a 5% pay rise at the upcoming collective bargaining round is not compatible with the current situation of the company. VW management thinks it is even more important than before that Volkswagen reduces its overhead costs and adjusts them to a competitive level. VW group operating results lend much credence to this stance. As always the issue is who pays. More than 100,000 union jobs are threatened – AutoCrat.]* Continue reading →