CBT News https://www.cbtnews.com Your #1 source for auto industry news and content Tue, 05 Sep 2023 19:10:07 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://d9s1543upwp3n.cloudfront.net/wp-content/uploads/2023/04/cropped-CBT-logo-scaled-1-32x32.png CBT News https://www.cbtnews.com 32 32 Mercedes showcases first entry in 2025 CLA lineup https://www.cbtnews.com/mercedes-showcases-first-entry-in-2025-cla-lineup/ Tue, 05 Sep 2023 17:20:13 +0000 https://www.cbtnews.com/?p=189722 Mercedes Benz unveiled a new concept car for the upcoming CLA Class lineup at the 2023 IAA Mobility conference in Munich. The CLA lineup is a compact car series containing four models built on the new Mercedes Modular Architecture (MMA). When it enters production, the new battery-powered CLA four-door coupe showcased at the IAA summit […]

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Mercedes Benz unveiled a new concept car for the upcoming CLA Class lineup at the 2023 IAA Mobility conference in Munich.

The CLA lineup is a compact car series containing four models built on the new Mercedes Modular Architecture (MMA). When it enters production, the new battery-powered CLA four-door coupe showcased at the IAA summit will see the first application of the MMA platform, which is designed to support both ICE and electric vehicle manufacturing. Silhouettes of the three remaining models in the series, revealed by Mercedes CEO Ola Källenius to be two SUVs and a shooting-brake-style station wagon, were also shown at the event.

In a LinkedIn post, Källenius offered additional details on the first entry in the CLA lineup. The all-wheel-drive concept sedan features a driving range of 466 miles, with 12 kWh consumed for every 62 miles driven. Fast-charging capabilities are also included, with 246 miles of range available from only 15 minutes of charge. The car comes with a glass roof inlaid with low-energy LED lights that display an animated star pattern when powered on. The vehicle will also be one of the first to feature the Mercedes-Benz Operating System, which includes a suite of driver assistance and safety software. The CLA lineup is expected to launch in 2025.

The new CLA lineup builds on trends established by other premium car manufacturers, who have sought to ramp up excitement for electric vehicles through high-tech entries and luxury trims. Mercedes has been at the forefront of technological innovation with its emphasis on vehicle software and has established partnerships with both Microsoft and Google to develop “supercomputer” like navigation, automated driving and artificial intelligence tools. However, mass-market brands continue to fall behind in the EV segment, as companies such as Toyota and Honda drag their feet on developing competitive battery-powered models.

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Hyundai and LG will invest an additional $2 billion at Georgia EV plant https://www.cbtnews.com/hyundai-and-lg-will-invest-an-additional-2-billion-at-georgia-ev-plant/ Tue, 05 Sep 2023 16:29:37 +0000 https://www.cbtnews.com/?p=189717 Hyundai and LG Energy Solutions announced plans to invest an additional $2 billion and hire 400 more employees to produce batteries at the automaker’s massive U.S. electric vehicle plant in Georgia, which is currently under construction. The South Korean companies’ announcement builds on a three-month-old partnership to produce batteries at the same location west of […]

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Hyundai and LG Energy Solutions announced plans to invest an additional $2 billion and hire 400 more employees to produce batteries at the automaker’s massive U.S. electric vehicle plant in Georgia, which is currently under construction.

The South Korean companies’ announcement builds on a three-month-old partnership to produce batteries at the same location west of Savannah, where Hyundai intends to begin EV production in 2025.

The development increases the firms’ overall investment in the Georgia factory to more than $7.5 billion and the site’s anticipated employment to 8,500.

Additionally, Hyundai said it would invest $5.5 billion in 2022 to build EVs and batteries on 2,900 acres in the Ellabell neighborhood.

According to Hyundai spokesperson Michael Stewart, the increased investment and jobs announced do not indicate that the battery plant will create more batteries. The joint venture’s original capacity of 300,000 EV batteries per year is still the expectation of the business’s plant. Stewart’s email asserts, “The plant does have the potential to expand depending on market conditions and demand,” it adds, “Hyundai remains very optimistic about the transition to EVs.”

Hyundai’s first U.S. plant dedicated to EV manufacturing was hailed as the most significant economic development project in Georgia’s history when it was first announced in 2022. Georgia Governor Brian Kemp praised Hyundai and LG’s new investment in the facility. He added, “Today, we’re building on that success as we continue to make Georgia the e-mobility capital of the nation.”

According to Jessica Atwell, a spokeswoman for the state Department of Economic Development, Georgia and local governments will provide further incentives. She clarified that those would only be made public once the paperwork is complete.

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Fain and Biden clash on strike, as United Auto Workers talks stall https://www.cbtnews.com/fain-and-biden-clash-on-strike-as-united-auto-workers-talks-stall/ Tue, 05 Sep 2023 16:22:09 +0000 https://www.cbtnews.com/?p=189716 Negotiations between United Auto Workers (UAW) and Detroit-Three automakers returned to a standstill as union chief Shawn Fain and President Biden clashed over the organization’s impending strike. United Auto Workers rebuffed Ford’s contract proposal over Labor Day weekend for failing to meet the union’s demands, pushing talks back to square one. President Fain addressed auto […]

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Negotiations between United Auto Workers (UAW) and Detroit-Three automakers returned to a standstill as union chief Shawn Fain and President Biden clashed over the organization’s impending strike.

United Auto Workers rebuffed Ford’s contract proposal over Labor Day weekend for failing to meet the union’s demands, pushing talks back to square one. President Fain addressed auto workers in a live-streamed event on Saturday, September 2, where he criticized the car manufacturer for attempting to implement new rules around temporary workers and offering a wage increase of 9% (15% including benefit improvements), substantially lower than the 46% sought by UAW members. “In inflation-adjusted dollars, our starting pay today is $10 an hour less than what it was in 2007…Ford’s wage proposals not only fail to meet our needs, it insults our very worth.” Fain went on to note that the remaining Big-Three manufacturers, General Motors and Stellantis, had yet to submit counteroffers. The organization filed an unfair labor practice complaint against the two OEMs last Friday.

The deadline for United Auto Workers leaders and automaker executives to reach an agreement is September 14, when the current union contract expires. Although UAW members have already voted to strike if negotiations fail, President Biden dismissed the concern ahead of a Labor Day parade in Philadelphia. “No, I’m not worried about a strike until it happens,” he said to reporters. “I don’t think it’s going to happen.” Fain expressed shock over the President’s statements. “He must know something we don’t know,” he remarked, speaking to The Detroit News. “Our intent is not to strike…But as we get down to the wire here, there’s three companies to bargain with and there’s 10 days left to do it. So I know what it looks like to me.”

United Auto Workers members have been preparing to strike for several weeks. Recently, Fain led the union in a mock demonstration outside of a Stellantis facility. “Today, I want you guys to have some fun practicing for what we’re going to have to do if these companies don’t give us our fair share,” the UAW chief proclaimed.

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Ford registers F-200 trademark, possibly for future EV truck T3 https://www.cbtnews.com/ford-registers-f-200-trademark-possibly-for-future-ev-truck-t3/ Tue, 05 Sep 2023 15:48:01 +0000 https://www.cbtnews.com/?p=189691 The Detroit automaker has filed for the trademark “F-200” with the U.S. Patent and Trademark Office, according to the automaker of the all-electric F-150 Lightening Pickup Truck, Ford.  On August 28, the federal office reported the trademark application is specifically for “Motor vehicles such as gas, EVs, pickup trucks, sports utility vehicles, and their structural […]

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The Detroit automaker has filed for the trademark “F-200” with the U.S. Patent and Trademark Office, according to the automaker of the all-electric F-150 Lightening Pickup Truck, Ford. 

On August 28, the federal office reported the trademark application is specifically for “Motor vehicles such as gas, EVs, pickup trucks, sports utility vehicles, and their structural parts.” 

Although there is no way to know for sure what the new trademark will be used for, we can assume that it has something to do with Project T3, Ford’s brand-new all-electric pickup truck that will be unveiled in 2025 and manufactured at the company’s Tennessee site in BlueOval City.

Jim Farley first referred to the new zero-emissions pickup as “different” and said that while it might not appear like a truck, it will function like one. In March, Farley stated, “We’ve challenged ourselves to build a truck people can trust in the digital age. This vehicle will be upgradable in terms of software. To improve your truck, we’ll send software to it every day, every week, every month, and every year.”

Another cool feature of the new yet-to-be-seen Project T3 pickup, which means “Trust the Truck,” is the ability to export power from the high-voltage battery at much higher rates than is currently available in the F-150 Lightning, which can provide up to 9.6 kilowatts of power through the Pro Power Onboard system and its 11 outlets.

In addition, Farley compared the new electric truck to a “Millennium Falcon with a porch attached,” alluding to the technology and speed of the venerable Star Wars sci-fi spaceship. The CEO’s statement referenced a vehicle that is “impossibly quick.”

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How Texas dealers are driving electric vehicle demand — John Luciano | Street Volkswagen https://www.cbtnews.com/how-texas-dealers-are-driving-electric-vehicle-demand-john-luciano-street-volkswagen/ Tue, 05 Sep 2023 09:05:54 +0000 https://www.cbtnews.com/?p=189552 Electric vehicles have become a contentious topic in the automotive community as automakers, dealers and consumers share differing perspectives on the short and long term future of transportation. In an unexpected development, Texas has quickly become a hub not only for thousands of EV drivers but also for manufacturers such as Tesla, which operates a […]

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Electric vehicles have become a contentious topic in the automotive community as automakers, dealers and consumers share differing perspectives on the short and long term future of transportation. In an unexpected development, Texas has quickly become a hub not only for thousands of EV drivers but also for manufacturers such as Tesla, which operates a massive factory near the state’s capital. Although most buyers in the region are in no hurry to abandon their gas-powered cars, understanding why some Texans are making the switch to electric may help dealers learn how to drive demand in their own states.

John Luciano is the owner and president of Street Volkswagen in Amarillo, Texas. Throughout his retail automotive career, Luciano headed the Volkswagen National Dealer Association and became intimately familiar with the local car market and the pain points buyers in his community face at the dealership. On this episode of Inside Automotive, CBT News anchor Shyann Malone joins Luciano to gain more insight into how the electric vehicle segment is performing in his state.

Key takeaways

1. While electric vehicles are undeniably becoming more popular in Texas, opinions remain divided. Many drivers are truly enjoying their new EVs, while others remain determined to never switch from petrol.

2. Electric vehicles are often more affordable than buyers think. Luciano has successfully driven sales by promoting leases and offering to install chargers in customer homes.

3. Education is key to selling electric vehicles, not only in Texas but across the country. Dealers and their staff must be well acquainted with the models they sell to help buyers find the right model for their needs.

4. Affordability is a key issue to wider electric vehicle adoption. Luciano believes that automakers are currently trying to replicate the success Tesla has found in the luxury market when they should be focused on making their models cost-efficient for consumers.

5. While limited ranges are an obstacle to boosting electric vehicle demand, Luciano notes that many of his customers avoid “range anxiety” by reserving their gas-powered models for long-distance driving and relying on EVs for work commutes and other short trips.

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7 tips for enhancing your dealership’s online vehicle merchandising strategy https://www.cbtnews.com/7-tips-for-enhancing-your-dealerships-online-vehicle-merchandising-strategy/ Tue, 05 Sep 2023 09:03:09 +0000 https://www.cbtnews.com/?p=189613 In today’s fast-paced digital age­, having a robust strategy for showcasing your dealership’s vehicles online­ is not just a passing trend – it’s absolutely vital. With 80% of car shoppers conside­ring making their vehicle purchase­ online, how you present your inve­ntory on the internet can significantly influe­nce your sales and competitive­ness.  In this article, we […]

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In today’s fast-paced digital age­, having a robust strategy for showcasing your dealership’s vehicles online­ is not just a passing trend – it’s absolutely vital. With 80% of car shoppers conside­ring making their vehicle purchase­ online, how you present your inve­ntory on the internet can significantly influe­nce your sales and competitive­ness. 

In this article, we will de­lve into the effectiveness of online vehicle me­rchandising and provide practical tips to help you achieve success in this crucial area.

Understanding Online Vehicle Merchandising

Successfully se­lling vehicles online goes beyond simply listing them. It involves creating an interactive, transparent, and captivating experience for potential customers. This is crucial because studies show that 74% of buyers compare cars online before setting foot in a deale­rship. Some key factors to consider include:

  • Transparency: Providing clear pricing, financing, and damage details builds trust.
  • Trust Building: Showcasing testimonials, awards, and warranties enhances credibility.
  • Engagement: Utilizing interactive media like 3D shots and panoramic views simulates an in-person experience.

Best Practices for Vehicle Listing Optimization

In a world where 41% of buyers visit just one deale­rship before deciding, it is crucial to optimize­ vehicle listings. The ke­y is to create listings that connect with buye­rs who are considering deale­rships within a 100-mile radius. Here’s how you can do it:

1. Real Photos: Use actual vehicle photos, not stock images, to represent authenticity.

2. Compelling Descriptions: Highlight important features and benefits to entice buyers.

3. Video Integration: Full-motion videos engage shoppers, providing a virtual test drive.

4. Special Offers: Regularly update specials and calls to action to maintain relevance.

Read more about listing optimization.

Leveraging Digital Marketing Strategies

Digital marketing goes beyond simply running online ads. It involves establishing a cohesive and consistent online presence that aligns with and reinforces the brand and value­s of your dealership. Here­ are some esse­ntial strategies to consider:

  • SEO: Improve search engine rankings to increase visibility.
  • Social Media Marketing: Engage with potential buyers, building community and loyalty.
  • Email Marketing: Create targeted campaigns to nurture leads and drive interest.

Creating Engaging Content for Vehicle Merchandising

Content is king, and it holds a significant role­ in captivating the audience and transforming casual browse­rs into potential customers. The ke­y lies in crafting compelling narratives that re­sonate with the reade­rs.

  • Blog Posts: Share insights, tips, and industry trends to educate and inform.
  • Videos: Showcase vehicles in action, highlighting features and performance.
  • Customer Testimonials: Real customer experiences build trust and humanize your brand.

Utilizing Inventory Management Systems

In the age­ of big data, inventory management syste­ms have become more than just organizational tools – they are now strategic asse­ts. These systems stre­amline merchandising efforts, track inve­ntory accurately, and provide valuable ve­hicle information, ultimately maximizing potential re­turn on investment.

Enhancing the User Experience on the Dealership’s Website

Creating a use­r-friendly website goes beyond just aesthetics. It involves crafting a seamless online journey that mirrors the experience of being in a physical store.

  • Mobile Optimization: Ensure a consistent experience across all devices.
  • Live Chat Support: Provide real-time assistance, mirroring in-store customer service.
  • User-Friendly Interface: Intuitive navigation enhances user satisfaction and conversion.

Personalization and Customer Engagement

Personalization goes beyond simply using a customer’s name in an e­mail. It involves creating customized experiences that de­eply connect with each individual.

  • Personalized Emails: Content that reflects individual preferences and behaviors.
  • Targeted Advertisements: Reach the right audience with relevant offers.
  • Proactive Communication: Engage customers throughout the buying process, building relationships.

Monitoring and Analyzing Performance

Effective­ monitoring and analysis of performance goes beyond mere numbers. It involves gaining valuable insights that fuel ongoing improvement. By utilizing tools and metrics to track key performance indicators (KPIs) and refining strategies based on data-driven insights, dealerships can drive meaningful progress.

Conclusion

Enhancing your dealership’s online vehicle merchandising strategy is a multifaceted approach that requires understanding shifting consumer behavior, implementing winning strategies, leveraging expert photography insights, and utilizing time-saving software tools. By embracing these tips and strategies, you can stand out from the competition and drive sales in today’s digital landscape.

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The mentorship mindset: how effective leaders nurture the growth of their teams https://www.cbtnews.com/the-mentorship-mindset-how-effective-leaders-nurture-the-growth-of-their-teams/ Tue, 05 Sep 2023 09:03:08 +0000 https://www.cbtnews.com/?p=189612 For dealership managers and executives, getting top talent in place is only half the battle for driving sales and boosting profits. Sharp leaders realize that success comes from developing people to their fullest potential. It’s an approach requiring a mentorship mindset.  Exceptional leaders recognize that their roles extend far beyond overseeing daily operations and concentrating […]

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For dealership managers and executives, getting top talent in place is only half the battle for driving sales and boosting profits. Sharp leaders realize that success comes from developing people to their fullest potential. It’s an approach requiring a mentorship mindset. 

Exceptional leaders recognize that their roles extend far beyond overseeing daily operations and concentrating on KPIs and other metrics. By providing individualized guidance, managers and executives can support and inspire their teams for personal and professional growth. There’s another benefit to a culture of mentorship: a sharper competitive edge for your dealership. 

Here’s how to put this concept into practice.

Fostering open communication

One role that every mentor should embrace is that of a trusted advisor. An open-door policy and regular one-on-one meetings create opportunities to learn about each employee’s hopes, challenges, and ideas. This practice encourages an frank dialogue and mutual understanding between leaders and team members.  

Effective mentors don’t just rely on annual reviews to provide feedback. They consider themselves coaches who provide ongoing guidance that offers constructive suggestions for improvement and recognizes achievements. Real-time observations give team members the insights to continuously refine skills and maximize strengths. 

Providing personalized guidance

While a manager sets broad goals for their department, a mentor takes a personalized approach by tailoring opportunities to each employee. They get to know each employee’s strengths, weaknesses, and passions, and guide them to projects where they can succeed. That one employee’s enthusiasm for social media could translate into working on a digital marketing initiative. Or that technician who’s embracing the transition to EVs with gusto could lead the way for others in the service department. 

Providing this individualized attention not only creates a pathway for advancement, but also variety, ensuring a career that’s engaging, interesting, and skill enhancing. The process should also include regular discussions to map out personalized development plans. These get-togethers can focus on training opportunities, skill-building projects, and next-level roles.

Leading by Example

We’ve all had a boss that issues behind-the-desk commands, but chances are they didn’t make a great mentor. The best mentors lead by example. You’ve heard it a thousand times, actions speak louder than words. This means demonstrating the values and behavior you wish to install in others. Don’t hesitate to share your own career journey and challenges. Be sure to include the lessons learned during these conversations. Team members will feel more comfortable about stretching and growing if they know you’ve been through the same thing. 

Successful mentors also demonstrate work-life balance, creating reasonable workplace expectations while supporting a life outside of work. Why does this matter? Because there’s a direct connection between high levels of workplace stress and the desire to find a new job, says the American Psychological Association. In a 2021 study, the organization found that stressed-out team members are three times more likely to look for different employment. 

Above all else, a mentor must walk the talk when it comes to ethics and integrity. By holding themself accountable to the highest standards, they set the bar for conduct expectations for everyone else.

Fostering a sense of belonging

Making each employee feel valued is another essential role of a mentor. Look beyond roles and responsibilities, by taking a genuine interest in each staff member’s outside passions. This includes recognizing life events from birthdays to personal milestones. It’s a no-brainier way of enhancing morale. And so is organizing social events for the team. 

Establishing a supportive workplace community helps provide emotional fuel for those days when the going gets tough. At the same time, employees feel that their contributions matter, which inspires them to continue with their best efforts. 

Cultivating continuous learning

A superior mentor instills an appetite for continuous learning in their team. Importantly, this goes beyond mandated service or sales training. Look for conferences and workshops opportunities that expand professional development. And education doesn’t have to be a one-way street. Empower employees to share their knowledge by leading department seminars, cross-training team members, or mentoring interns. 

Further, a mentor serves as a role model for lifelong curiosity. No matter how much experience you have, there’s always something new to learn. Such activities remind the team to expand capabilities and sharpen their skills. 

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Hyundai posts sales, Biden supports workers, Dealership supports student https://www.cbtnews.com/cbt-automotive-newscast-september-05-2023/ Tue, 05 Sep 2023 08:59:16 +0000 https://www.cbtnews.com/?p=189610 Inside Automotive How Texas dealers are driving electric vehicle demand — John Luciano | Street Volkswagen Electric vehicles have become a contentious topic in the automotive community as automakers, dealers and consumers share differing perspectives on the short and long term future of transportation. In an unexpected development, Texas has quickly become a hub not […]

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Inside Automotive

John Luciano joins Inside Automotive to share his insights into the Texas electric vehicle market and the challenges facing EV dealers.How Texas dealers are driving electric vehicle demand — John Luciano | Street Volkswagen
Electric vehicles have become a contentious topic in the automotive community as automakers, dealers and consumers share differing perspectives on the short and long term future of transportation. In an unexpected development, Texas has quickly become a hub not only for thousands of EV drivers but also for manufacturers such as Tesla, which operates a massive factory near the state’s capital. Although most buyers in the region are in no hurry to abandon their gas-powered cars, understanding why some Texans are making the switch to electric may help dealers learn how to drive demand in their own states. Watch full segment here.

Top Stories

Hyundai continued to see strong demand in the U.S. throughout August as electric vehicle purchases broke all-time sales records.Hyundai continued to see strong demand in the U.S. throughout August as electric vehicle purchases broke all-time sales records. According to the automaker’s report, last month’s U.S. sales reached 65,046 units, an increase of 1% compared to August 2022. However, the number is slightly behind July’s sales numbers, which amounted to 66,527 units. This marks the fifth consecutive month that Hyundai has seen lower month-over-month sales after hitting a peak of 75,404 units in March. Read More

The Biden Administration will supply $12 billion in grants to retool car factories for electric vehicle production.The Biden Administration will supply $12 billion in grants to retool car factories for electric vehicle production, according to an announcement by Energy Department officials on Thursday. The department has yet to announce where the funds will be directed, although a spokesperson did not that facilities offering higher quality labor conditions would take priority over others. According to Energy Secretary Jennifer Granholm, the initiative is aimed at protecting local communities that depend on ICE car factories for jobs. Read More

A Rhode Island Honda dealership has donated a wheelchair-accessible van to a local college student with spinal muscular atrophy.

A Rhode Island Honda dealership has donated a wheelchair-accessible van to a local college student with spinal muscular atrophy. Grieco Honda supplied the vehicle to Ciarra Muller, who recently started her major in journalism at the Community of College of Rhode Island. Muller and her family originally contacted the company to refit their family van for a wheelchair. Read More

For Dealers

7 tips for enhancing your dealership’s online vehicle merchandising strategy
In today’s fast-paced digital age­, having a robust strategy for showcasing your dealership’s vehicles online­ is not just a passing trend – it’s absolutely vital. With 80% of car shoppers conside­ring making their vehicle purchase­ online, how you present your inve­ntory on the internet can significantly influe­nce your sales and competitive­ness. In this article, we will de­lve into the effectiveness of online me­rchandising and provide practical tips to help you achieve success in this crucial area. Read More

The mentorship mindset: how effective leaders nurture the growth of their teams
For dealership managers and executives, getting top talent in place is only half the battle for driving sales and boosting profits. Sharp leaders realize that success comes from developing people to their fullest potential. It’s an approach requiring a mentorship mindset. Exceptional leaders recognize that their roles extend far beyond overseeing daily operations and concentrating on KPIs and other metrics. Read More

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Hyundai sales rise 1% in August, electric vehicle lineup breaks records https://www.cbtnews.com/hyundai-sales-rise-1-in-august-electric-vehicle-lineup-breaks-records/ Mon, 04 Sep 2023 16:00:34 +0000 https://www.cbtnews.com/?p=189638 Hyundai continued to see strong demand in the U.S. throughout August as electric vehicle purchases broke all-time sales records. According to the automaker’s report, last month’s U.S. sales reached 65,046 units, an increase of 1% compared to August 2022. However, the number is slightly behind July’s sales numbers, which amounted to 66,527 units. This marks […]

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Hyundai continued to see strong demand in the U.S. throughout August as electric vehicle purchases broke all-time sales records.

According to the automaker’s report, last month’s U.S. sales reached 65,046 units, an increase of 1% compared to August 2022. However, the number is slightly behind July’s sales numbers, which amounted to 66,527 units. This marks the fifth consecutive month that Hyundai has seen lower month-over-month sales after hitting a peak of 75,404 units in March. August also saw the smallest yearly sales gain for the automaker so far in 2023, with January through July seeing an average year-over-year increase of 14%. Nevertheless, the company has sold 526,186 ICE, hybrid and electric vehicle units in North America to date, an increase of 12% or 57,353 units from the same point last year.

While August saw only minor improvements in overall sales comapred to the previous year, the company’s electric vehicle lineup was substantially more successful. Sales of eco-friendly models rose 80% year-over-year throughout the month, with sales of the IONIQ 5, Sante Fe HEV, Santa Fe PHEV, Kona EV, Tucson HEV and Tucson PHEV all beating prior sales records. As Randy Parker, CEO of Hyundai Motor America, commented: “Hyundai’s commitment to providing consumers with a multitude of eco-friendly products has once again delivered positive results with August total sales compared to last year.”

Ultimately, Hyundai is performing quite well in 2023, especially when compared to 2022. While the automaker did see sales decline from July and barely eked out a victory over last August, most car manufacturers are also seeing demand stagnate as consumers struggle to afford inflated car prices amidst economic issues caused by the COVID pandemic. Furthermore, the brand’s success in the electric vehicle segment is impressive. Although EVs remain a niche market, the rapid acceleration of sales is an encouraging sign for OEMs with more battery-powered models in the pipeline.

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Biden Administration announces $12 billion fund to retool car factories https://www.cbtnews.com/biden-administration-announces-12-billion-fund-to-retool-car-factories/ Mon, 04 Sep 2023 16:00:27 +0000 https://www.cbtnews.com/?p=189654 The Biden Administration will supply $12 billion in grants to retool car factories for electric vehicle production, according to an announcement by Energy Department officials on Thursday. The department has yet to announce where the funds will be directed, although a spokesperson did not that facilities offering higher quality labor conditions would take priority over […]

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The Biden Administration will supply $12 billion in grants to retool car factories for electric vehicle production, according to an announcement by Energy Department officials on Thursday.

The department has yet to announce where the funds will be directed, although a spokesperson did not that facilities offering higher quality labor conditions would take priority over others. According to Energy Secretary Jennifer Granholm, the initiative is aimed at protecting local communities that depend on ICE car factories for jobs. “While we transition to EVs, we want to ensure that workers can transition in place, that there is no worker, no community left behind,” she commented. Plant closures have becom an increasing concern for car manufacturer employees. Although OEMs have launched projects to convert some facilities into electric vehicle production lines, the futures of many sites are unclear. Since most U.S. automakers plan to end prodution of diesel and gas cars within the next 15 years, these plants could become obsolete without EV-related upgrades.

The United Auto Workers (UAW) union has frequently clashed with automakers over the electric vehicle transition. Organization president Shawn Fain has vowed to keep car factories open, such as the Jeep Cherokee plant in Illinois. Stellantis, which has born the brunt of the UAW’s criticisms, plans to end Cherokee production in the coming months, and has yet to announce any future plans for the facility. Fain praised the Biden Administration for launching the initiative soon after the Energy Department’s announcement, noting that the move “makes clear to employers that the EV transition must include strong union partnerships with the high pay and safety standards that generations of UAW members have fought for and won.”

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