1. UAW Pres. Shawn Fain reveals member demands to the Detroit Three

During a recent Facebook Livestream, Shawn Fain, the president of the United Auto Workers, emphasized the importance of negotiating a 32-hour work week, the right to strike when a plant closes, and paid volunteer work in upcoming discussions with the Detroit Three. The demands being made this week of General Motors, Ford, and Stellantis is another illustration of how the administration is breaking tradition to increase transparency and rank-and-file participation in the wake of a protracted corruption scandal. Read More

2. Tesla faces a lawsuit for falsely reporting its estimated driving range

On August 2, 2023, three Tesla owners in California filed a proposed class action lawsuit against the automaker, accusing it of misrepresenting the estimated contents of their electric vehicles. The lawsuit filed in the U.S. District Court for the Northern District of California follows a Reuters report that claimed Tesla had established a “Diversion Team” in Nevada to cancel as many range-related appointments as possible after receiving a flood of owner complaints. Read More

3. Car manufacturers seeking lithium supply from Exxon-owned site

Multiple car manufacturers, including Tesla and Ford, are seeking access to a potential lithium supply owned by Exxon Mobil. The gas supplier is presently excavating a 10-acre area in Arkansas in the hopes of locating metal deposits. While it is not clear if its efforts have been successful, Exxon has joined other oil-industry giants in their attempts to break into the lithium business, partly to leverage the sudden rise in demand and partly over fears that the increasingly popular electric vehicle segment will soon limit the need for petrol production. The resource is a crucial component in battery cells, but few automakers, apart from Tesla, have acquired a steady, much less affordable, supply. Read More

4. Toyota sales rise in first half of 2023 even as U.S. market stalls

Toyota saw global sales rise in the first half of 2023, even as its position in the U.S. was challenged by competitors. For the first six months of the year, the Japanese car manufacturer reported sales of 4.9 million units, an increase of 5.1% from the previous year. Separating its quarterly results, Toyota saw sales rise 5.8% in Q2 from Q1 2023 and 8.4% from Q2 2022, a difference of 138,942 and 195,793 units, respectively. Toyota also sold more electric vehicles in the first half of 2023 than it did in 2022. Read More

5. New survey says the ‘disapproval of Elon’ is driving Model 3 owners to sell their EVs

Since the acquisition of Twitter, Elon Musk has frequently shared his political and social views, as well as controversial conspiracy theories. This has altered people’s minds about Musk, and many have suggested his statements may harm the Tesla brand. However, Musk dismissed concerns claiming to be “More popular than ever before” based on his Twitter follower count. Until recently, there’s been little evidence to suggest his behavior has negatively affected Tesla. Bloomberg recently released the results of a thorough survey of 5,000 Tesla Model 3 consumers, most of which highlights Elon. Read More

6. Examining electric vehicle demand in America’s largest car market — Brian Maas | CNCDA

7. Adapting to the auto industry’s dynamic market — Jonathan Fowler | Fowler Holding Company

8. More inventory, more sales: analyzing the second quarter — Jeff Dyke | Sonic Automotive

9. From disruptor to insider: technology’s impact on Tesla — Kevin Tynan | Bloomberg Intelligence

10. Key findings from the 2023 Path to EV Adoption study — Kayla Reynolds | Cox Automotive

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1. 7 automakers partner on electric vehicle charging in U.S.

Seven automakers are partnering to build thousands of universal electric vehicle chargers in an attempt to boost sales in the U.S. The new joint venture involves Stellantis, BMW, Mercedes-Benz, Honda, Hyundai, Kia and General Motors. The car manufacturers plan to install more than 30,000 electric vehicle charging stations across the country. Each station will be powered entirely by renewable energy and feature both NACS and CCS connectors, making them accessible to virtually all EV drivers. Read More

2. Stellantis posts record profit in first half of 2023, margins stall in U.S.

Stellantis reported record-breaking earnings for the first half of 2023, attributing the success to rising demand and stabilizing supply chains. Over the first six months of 2023, the automaker saw revenue grow 12% year-over-year to an all-time high of $109 billion. This resulted in a 37% increase in net profit, which ended June at $12.1 billion. In its report, Stellantis noted that market conditions had improved from 2022, allowing for higher sales volumes and faster shipments of supplies. Read More

3. J.D. Power, Palantir to partner on artificial intelligence tools for dealers, OEMs

J.D. Power has announced a new partnership with data analytics firm Palantir Technologies to create artificial intelligence solutions for the car business. In a press release, the two companies stated that the collaboration would leverage J.D. Power’s data, which includes information from virtually every segment in the automotive industry, to develop artificial intelligence-powered analytics and workflow tools. The partnership is not only intended to help dealers face the challenges affecting their business but also to promote more synergy between OEMs and regulatory agencies. Read More

4. Tesla now offers a 7-year financing term for all vehicle models

Tesla now offers a new financing term of 84 months, enabling customers to borrow money for their Tesla over seven years. Alongside this extended term, buyers will have the opportunity to benefit from APRs of approximately 6.39%. However, it’s important to note that the 6.39% rate may be reserved for highly qualified buyers, as indicated by the cautionary statement on the Tesla website: “Your payments and rates may be higher.” Consequently, some buyers may encounter rates even higher than the already elevated 6.39% figure. Read More

5. AutoNation beats forecast, maintains revenue in Q2 despite sluggish sales

AutoNation strengthened its position over the second quarter, beating analyst revenue forecasts thanks to higher earnings from after-sales services and increasing demand for new vehicles. Analysts had expected AutoNation to announce declining revenues for the period due to the shrinking used car market. However, the company achieved nearly identical earnings to the year before, making $6.8 billion in both periods. Gross profit declined slightly, falling 2% from last year’s $1.4 billion to $1.3 billion. Read More

6. Using conscious listening to aid salespeople in improving customer satisfaction — Julian Treasure

7. Streamlining title and registration for out-of-state sales — Kane McCord | Automotive Titling Company (Sponsored Content)

Finalizing a vehicle’s title and registration has been streamlined as technology revolutionizes the industry. But with software from leading vendors, dealers today are able to conduct more of that process online, expanding their reach to customers beyond their state’s borders. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Kane McCord, chief executive officer of Automotive Titling Company, a market leader in processing interstate title and registration, to discuss how dealerships can expand their markets with out-of-state sales. Watch now

8. Enhancing dealers’ social media strategy with artificial intelligence — Gail Rubinstein | Retail Resilient

Social media and artificial intelligence have completely transformed the way dealers connect and interact with customers. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Gail Rubinstein, founder and CEO of Retail Resilient and long-time member of the dealership community, to learn more about the importance of having a robust social media strategy and how managers can best incorporate AI into that strategy. Watch now

9. How to take back control of your dealership’s call center — Mike Hoyser | Phone Ninjas (Sponsored Content)

As new car inventory across the country expands, so too has the number of calls placed to dealerships. The increase in volume has made it challenging for employees to keep up, resulting in cut corners and low conversion rates. With the number of unanswered or mishandled voicemails growing by the day, managers must ask themselves how much money they can afford to leave on the table. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Mike Hoyser, vice president of training at Phone Ninjas, to discuss how his team of coaches and assistants help maximize dealership profits and strengthen skillsets in sales and BDC teams. Watch now

10. FADA Pres. Ted Smith on direct-to-consumer sales ban, Ford’s Model e program

In June, Florida Governor Ron Desantis signed a bill banning direct-to-consumer sales (excluding Tesla) to protect franchise dealers in the state, which went into effect on July 1. On this edition of Inside Automotive, we’re pleased to welcome back Ted Smith, President of the Florida Automobile Dealers Association (FADA), to tell us more about the bill, the association’s response, General Motors’ challenges with their dealers, and the lawsuit filed against Ford. Watch now

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1. Ford reveals significant price cuts for all of its electric F-150 pickup variants

On July 17, Ford lowered the price of its electric F-150 Lightning truck, claiming that its efforts to increase manufacturing and reduce the cost of battery materials had been successful. Ford claims to be nearing completion of a significant update to its Rouge Electric Vehicle Center in Michigan, which will soon allow the factory to increase its output of the F-150 Lightning. Ford can now lower the price of all F-150 Lightning variants thanks to this level of scale and declining raw material costs, bringing MSRPs closer to the figures initially predicted when the electric pickup first appeared. Read More

2. Lithia sells 3 dealerships, Young Auto Group expands into Montana

The summer heat has ignited a wave of merger and acquisition (M&A) activity in the automotive industry. As the temperature rises, so does the excitement surrounding notable deals that unfolded in June and July. Get ready to explore the dynamics of key industry players as they forge strategic partnerships and accelerate the growth and success of their dealerships. John Elway Dealerships purchased Bentley of Denver-Lotus from Lithia on June 8 and has reportedly moved the dealership from Highlands Ranch, Colorado to Lone Tree, Colorado. Read More

3. Carvana announces Q2 earnings, reaches debt restructuring agreement

On July 19, used-car retailing giant Carvana released its second-quarter earnings and announced an agreement to reduce the company’s total debt by over $1.2 billion. In a statement, Carvana said the agreement will “eliminate more than 83% of Carvana’s 2025 and 2027 unsecured note maturities and lower required cash interest expense by over $430 million per year for the next two years.” In a separate public filing on Wednesday, Carvana revealed its plans to raise capital and restructure operations by selling up to $1 billion in shares. Read More

4. Used vehicle inventory: prices stabilize as sales rise

According to a Cox Automotive analysis of vAuto Available Inventory data, the used-vehicle market has lost some volatility during the pandemic and chip shortage, with inventory and prices remaining relatively stable. By the end of June, there were 2.22 million unsold used cars and trucks on licensed and independent dealer lots around the U.S. Compared to last year, sales were down 10%, or 241,000 units, but were up from the revised 2.12 million at the end of May. Read More

5. Tesla sees stagnating profits in Q2 even as electric vehicle revenues rise

Tesla once again beat earnings forecasts in the second quarter but struggled to sustain profitability on its increasingly discounted electric vehicle lineup. The electric vehicle brand reported $24.93 billion in revenue for Q2, slightly over the maximum $24.22 billion expected by analysts. The amount represents a 47% increase over the year before and a 6.8% increase compared to the first quarter. Tesla has now seen earnings improve on a quarterly basis for more than a year. Read More

6. The 2023 auto market: a look back at the first six months — Patrick Manzi | NADA

The U.S. auto market saw an uptick in sales and inventory over the course of 2023, as dealers and car manufacturers made progress in clearing post-pandemic hurdles. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Patrick Manzi, the chief economist for the National Automobile Dealers Association, to offer more insights into the car industry’s performance and where this may lead in the coming months. Watch now

7. Understanding the sales process: how to close more deals — Sean Gardner | Joe Verde Group

Closing is a critical step in the sales process, and having a technique that works almost every time can make things much easier on the floor. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Sean Gardner, instructor and sales trainer at the Joe Verde Group, to discuss the best methods for winning over hesitant customers. Watch now

8. How to successfully recruit the best people for your dealership — Anthony Santangelo | Auto Max

Securing the right talent is crucial to the success of a dealership. So on this edition of CBT Now, we will spend some time exploring the interview process and how to make an offer to a candidate. We’re pleased to welcome back Anthony Santangelo, National Sales Recruiter and Trainer with Auto Max, to provide his insight and tips on recruiting in today’s market. Watch now

9. Enhancing fixed ops performance with BDC software — Ujj Nath | myKaarma (Sponsored Content)

It is important to partner with the right vendors, especially when it comes to entrusting your dealership’s fixed operations to a business development company or BDC. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Ujj Nath, the chief executive officer for myKaarma, an industry-leading communication and payments operating system, to discuss the efficiency-boosting effects of technology on BDCs. Watch now

10. Optimizing GA4 to improve the overall client experience — Kevin Frye | Jeff Wyler Automotive Family

The shift to Google Analytics 4, or GA4, is at the forefront of many marketers’ minds. On today’s Inside Automotive, we’re joined once again by the Marketing Director of Jeff Wyler Automotive Family, Kevin Frye, to tell us what we need to know, and we’ll also get his take on some of the unique ideas he’s seen thus far. Watch now

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1. Robust EV sales: Tesla keeps top spot, while Hyundai outperforms GM

Legacy automakers remain committed to pushing massive growth in EV sales and production. However, their efforts to change the market have had a minimal impact. Even though EV sales have increased noticeably over the past few years, market leader Tesla continues to outsell other traditional automakers. According to Motor Intelligence, Tesla has surpassed its closest competitor Hyundai and General Motors, through the first half of the year by roughly 300,000 vehicles. In comparison, that’s a 225,000 gap from the first half of 2022. Read More

2. Hyundai debuts IONIQ 5 N, an EV that makes fake engine noises

Hyundai has unveiled the IONIQ 5 N, a performance-focused electric vehicle that the car manufacturer hopes will jump-start the new “N” lineup. The automaker showcased the new model at the Goodwood Festival of Speed on July 13, revealing new details about the car’s design. Compared to the standard IONIQ 5, the electric vehicle features a more powerful drivetrain, using two motors with a combined 600 horsepower output. Hyundai has integrated several unique elements to differentiate the car in terms of performance and experience. Read More

3. Carvana eyes growth in used electric vehicle segment, Model 3 takes crown

Carvana has released its list of the top ten best-selling used electric vehicles for 2023 as it looks to satisfy “exponentially” rising demand for affordable battery-powered cars. By sales volume, the Tesla Model 3 continued to be the used car retailer’s top-performing electric vehicle in the first six months of 2023 and is on its way to winning first place for the third consecutive year. The Nissan LEAF and the BMW i3 arrived close behind in second and third place, followed by the Chevrolet Volt. Although the Model Y was recently recognized as the world’s best-selling car, Carvana ranked the SUV in fifth place, with the Model S landing in sixth. Read More

4. Dealer Abraham Razick and wife Alma die in California plane crash

Six individuals, including a respected dealer and his spouse, perished in a plane crash in Riverside County, California on July 8. All six occupants of the Cessna C550 business jet that crashed early Saturday morning in Murrieta, California, outside the French Valley Airport, perished in the accident. Abraham Razick was the owner of Fullerton Ford, located in California, and part-owner of both Hyundai of Yuma and Kia of Yuma, located in Arizona. Razick, whose wife, Alma, also died in the crash, had worked in the automotive industry for two decades at the time of the crash. Read More

5. NACS to be standardized ahead of schedule, according to SAE

SAE International, the engineering organization behind the development of guidelines for the Combined Charging System (CCS), has formed a team that it says will help it release guidelines for Tesla’s North American Charging Standard (NACS) ahead of schedule. SAE says it will be able to publish NACS-based standards before 2024, with the team’s chair, Rodney McGee, telling Electrek that the organization was better equipped to accomplish the task in a timely manner than other international engineering groups. Going forward, the name of the standard remains uncertain. Read More

6. 2024 NADA show updates: schedule changes and video contest — Bobby Sight | NADA Show Committee

The highly anticipated 2024 NADA show is quickly approaching, starting February 1 in Las Vegas. On this episode of Inside Automotive, host Jim Fitzpatrick sits down with the managing partner of Rob Sight Ford and NADA Show Committee Chairman Bobby Sight to discuss the upcoming event and what dealers can expect to see. Watch now

7. How AI is helping dealers engage with car buyers — Kevin Pitts | BMW of Reading (Sponsored Content)

As today’s car buyers evolve, so must the technology within the dealership, which is why it is critical for managers to choose the right vendors. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Kevin Pitts, the general manager at BMW of Reading, owned by the Tom Masano Auto Group, to learn more about DriveCentric, a customer relations management platform that has helped improve response times, engagement, customer experience and the overall bottom line for his storefront. Watch now

8. What dealers think about the changing automotive landscape — Don Hall | VADA

Virginia dealers and executives in the car industry recently gathered to discuss electric vehicles and other hot topics at the Virginia Automobile Dealers Association’s (VADA) annual convention. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Don Hall, legendary defender of the franchise system and the president and CEO of VADA, to discuss the important takeaways from the event. Watch now

9. How quality F&I vendors boost performance at all levels — Bob DiGiacomo | United Dealers Alliance (Sponsored Content)

Partnering with the right F&I vendor is critical to driving sales and increased profits in your dealership. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Bob DiGiacomo, vice president of operations at United Dealers Alliance, a finance product and income development company serving automotive, RV and power-sport dealerships, to discuss the power of his company’s lifetime warranty policies and the tools needed to drive results in the F&I department. Watch now

10. Maximizing the value of your dealership — Kevin Nill & Alan Haig | Haig Partners (Sponsored Content)

After over 30 years of building the second highest volume Toyota store in the country, Al Hendrickson and his son, Al Hendrickson, Jr., sold their store to Morgan Auto Group. Haig Partners, one of the leading buy-sell advisory firms in the nation, served as the exclusive sell-side advisor on the sale, and this transaction marks the highest transaction price for a single dealership. For Haig Partners, it’s the third transaction since late 2022 in which record prices have been paid. On this edition of Inside Automotive, we’re pleased to welcome the President and Founder of Haig Partners, Alan Haig, and we’re joined in the studio by the Managing Director of Haig Partners, Kevin Nill. Read More

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1. Tesla sales, production numbers nearly double in Q2 as EV market grows

Tesla’s quarterly performance once more surpassed analyst expectations, with electric vehicle sales and production numbers rising sharply on both a quarterly and yearly basis. The automaker sold a total of 466,140 units between April and June while manufacturing 479,700 electric vehicles. Both numbers represent significant improvements over the same period in 2022, during which Tesla delivered 254,695 EVs and built 258,580. Compared to its already exceptional first quarter, the brand’s sales and production rose roughly 10% and 9%, respectively. Read More

2. Toyota developing EV batteries with twice the power and half the cost

Toyota says it has made a breakthrough in solid-state electric-vehicle batteries, which will significantly reduce manufacturing costs while providing greater performance than current models. On July 4, the automaker announced it had devised a new, cost-effective method to produce solid-state EV batteries capable of driving nearly 750 miles on a single, 10-minute charge. If true, the advancement could overcome two chief obstacles to electric vehicle proliferation: expense and range anxiety. Read More

3. Ford sees uptick in pickup, electric vehicle sales thanks to improved supply

Ford saw increased sales in the second quarter thanks to improved electric vehicle inventory and increased pickup demand in the U.S. From April through June, the automaker sold 531,662 vehicles across its segments, achieving a 10% gain over the previous quarter. Sales of Ford trucks rose 26.2%, boosted by demand for the brand’s F-series, whose deliveries increased 34%. The car manufacturer’s electric vehicle segment also saw an admirable increase in volume, rising 11.9% year-to-date and 35.5% in June alone. Read More

4. Toyota’s output sets a monthly record for May after a 35% increase

As pandemic-related supply disruptions continued to subside, Toyota reported its global output surged 35% from May 2022 to a record of 947,874 vehicles, while sales increased by 11%. On June 29, the Japanese automaker noted that production of vehicles bearing the Toyota and Lexus brands reached 847,000 units, which is roughly in line with the company’s initial forecast. Additionally, together with the Daihatsu and Hino brands, Toyota sold 906,715 vehicles globally in May. Read More

5. Missouri cancer patients get free blankets thanks to Frank Fletcher Subaru

Frank Fletcher Subaru of Joplin, Missouri, has donated more than 70 blankets to patients of the Freeman Cornell-Beshore Cancer Institute, marking eight years of participation in the “Subaru Loves to Care” program. The dealership dropped off the multi-functional fleece blankets, which can also be used as pillows, on Tuesday, June 27. Keeping warm is crucial for patients undergoing cancer treatment. “The environments are very cold…as [the patients] are on treatment, they become colder also,” stated Freeman Cancer Institute Dr. Pamela Landon. “If they are anemic or just being on treatment, they have weight loss and these blankets are really helpful for that.” Read More

6. Identifying new opportunities in the fixed operations space — Jade Terreberry & Juan Flores (Sponsored Content)

Many car dealers understand the importance of service departments, but are they aware of the new opportunities in today’s fixed operations business? In this CBT News Power Lunch, host Jim Fitzpatrick is joined by Jade Terreberry, senior director of business development at Cox Automotive, and Juan Flores, senior director of product management at Kelley Blue Book, to discuss how new consumer habits have opened doors to greater revenue and higher demand. Read More

7. Women in automotive: has gender equality improved? — The Dream Team | Courtesy Automotive Group

Five female finance directors of Courtesy Automotive Group, also known as “the Dream team,” are breaking traditional gender equality barriers and contributing to their business’s success. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Dana Miller, finance director of Courtesy Volvo of Scottsdale; Clarissa Martinez, finance director of Courtesy Chevrolet San Diego; Sofia Faussette, finance director of Courtesy Chrysler Dodge Jeep RAM Superstition Springs; Dora Herrmann, finance director of Courtesy Chevrolet; and Misty Peckins, finance director of Courtesy Kia Mesa. The team shares their journey through the automotive industry as working mothers and offers their perspectives on what the car business can do to attract and retain more women. Read More

8. How your dealership can avoid the “boiled frog” scenario

On the latest episode of Mind Your Own Business, host Jonathan Dawson, founder of Sellchology, discusses the importance of recognizing areas of your dealership that might be struggling and proactively correcting those processes or behaviors. He draws a parallel between the fall of great empires and the downfall of dealerships, using the boiled frog analogy. He explains that just as a frog slowly adjusts to increasing water temperature, it’s too late to escape, dealerships often fail to notice the gradual decline until it’s too late. Read More

9. The retail automotive landscape: ‘Not out of any woods’ — Joe McCabe | AutoForecast Solutions

Technology, shortages, and consumer demands have shaped much of today’s retail automotive landscape. As the industry closes out the second quarter and looks ahead at the remainder of the year, should dealers expect to see more of the same, or will the paradigm shift once again? On this episode of Inside Automotive, host Jim Fitzpatrick is joined by the President and CEO of AutoForecast Solutions, Joe McCabe, to discuss how the future of the car business could look. Read More

10. Starting an automotive sales career? Here’s what dealers look for — Hugh Okoye | Ocean Cadillac

Among the many career paths in the car business, few are as challenging or rewarding as a job in automotive sales. But with a rapidly evolving industry landscape, joining a dealership’s sales department may seem more intimidating and less lucrative to new hires than it once did. On this episode of Inside Automotive, host Jim Fitzpatrick is joined on location by Hugh Okoye, general sales manager of Ocean Cadillac in Miami, to discuss his professional journey and what it takes to succeed in today’s car market. Read More

The post Weekly roundup: Tesla’s record-breaking quarter, Toyota’s new solid state EV batteries appeared first on CBT News.

1. Is Tesla’s EV plug closer to becoming an industry standard?

In another step toward deploying the Tesla plug on all-electric vehicles, a major U.S. automaker organization has announced that it will set performance standards for Tesla’s EV charging cords. Soon after Ford, General Motors, and Rivian announced they would adopt Tesla’s North American Charging Standard connector in new EV models, SAE International, formerly known as the Society of Automotive Engineers, announced that they would join Tesla’s extensive Supercharger network. However, a competing connector, CCS, remains present and continues to be used in thousands of EVs. Read More

2. Dealers and buyers divided over electric vehicle market

Consumers and dealers expressed opposing beliefs and concerns over the electric vehicle market in a new Cox Automotive analysis. Of the 1,024 car shoppers surveyed by Cox Automotive, 51% said they were considering an EV purchase in 2023. This number represents a substantial increase from 2021 when the number only reached 38%. Consumer respondents also expressed confidence in the electric vehicle market’s future, with 53% sharing the view that battery-powered cars will eventually replace their gas-powered predecessors. But for dealers, the future of the electric vehicle market is less certain. Read More

3. Biden administration pushes billions in grants toward its EV transition

On June 28, the Biden administration said it’s looking to boost electric vehicle production with a $2 billion investment from his Inflation Reduction Act. By accelerating grants and other incentives to subsidize the conversion of current automakers into EV producers, the White House may be able to suppress criticism of new environmental laws intended to steer the EV era. Additionally, the Domestic Manufacturing Conversion subsidies for the EVs initiative will offer cost-shared grants for producing fuel cells, all-electric, plug-in hybrid, and efficient hybrid vehicles. Read More

4. June new vehicle sales and inventory improve while profit margins shrink

J.D. Power and GlobalData forecast a monthly new vehicle sales total of over 1.38 million units this June, placing the automotive industry well ahead of its position during the same period last year. According to the joint report, June’s total fleet and retail volume will be 22.6% higher than in 2022. Excluding fleet customers, dealers sold roughly 1.11 million retail units, a slightly lower increase of 16.6%. Assuming these estimates are accurate, the automotive industry will have sold a mid-year total of 4.12 million new vehicles by July. Read More

5. Honda recalls 1.2 million cars in the U.S. due to rear camera issues

The National Highway Traffic Safety Administration reports that Honda is recalling 1.2 million vehicles in the U.S. because of cable problems that prevent the rearview camera from working when the vehicle is in reverse. Between May 2017 and June this year, the Japanese automaker received approximately 274,000 warranty claims. The recall covers certain Odyssey minivans from 2018 to 2023, Pilot SUVs from 2019 to 2022, and Passport SUVs from 2019 to 2023. Read More

6. Is your dealership ready for Google Analytics 4? — Brian Pasch

The arrival of Google Analytics 4 is swiftly approaching, meaning dealers must prepare for the next generation of digital data collection. On this episode of Inside Automotive, host Jim Fitzpatrick is joined once again by Brian Pasch, auto marketing expert and the Founder and CEO of PCG Companies, to discuss the transition and to share some of his observations. Read More

7. Enhancing your dealers’ brands to reach your customers where they are — Matt Bowers | Matt Bowers Auto Group

Dealers are seeing more inventory- meaning their lots are filling back up. In fact, the Matt Bowers Auto Group, based near New Orleans, Louisiana, has had several stores lead their markets in a new volume in May. On this edition Inside Automotive, we’re joined by Matt Bowers, Owner of Matt Bowers Auto Group, to discuss the new volume and other business happening for the Group. Read More

8. Emerging trends in digital marketing and data collection for dealers — Glenn Pasch | PCG Digital

Customer data and digital marketing are crucial tools for running a profitable dealership. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Glenn Pasch, the CEO of PCG Digital and auto marketing expert, to discuss data in the car business and highlights from the recent Digital Marketing Strategies Conference (DMSC). Read More

9. Driving more strategic processes for today’s buyers — Jen Suzuki | eDealer Solutions

They say 1.5 dealerships’ vetting processes start on the phone. The industry has seen an influx in volume regarding in-market buyers. On this edition of CBT Now, we’re joined by Jennifer Suzuki, President of eDealer Solutions, acclaimed sales trainer, and NADA Dealer Academy guest instructor, to discuss today’s buying behavior. Read More

10. Summer car prices: should dealers be optimistic? — Jessica Caldwell | Edmunds

Despite the nation raising the debt ceiling, the automotive industry has continuously felt the consequences of rising interest rates, inflation, and supply chain issues. On today’s CBT Now, we’re joined by Jessica Caldwell, Edmunds‘ Executive Director of Industry Insights, to provide us with an update on the market conditions. Read More

The post Weekly roundup: June new vehicle sales, Tesla charging standards, and new EV market study appeared first on CBT News.

1. Ford scores massive $9.2 billion loan for electric vehicle batteries

Ford has secured one of largest automotive industry subsidies in U.S. history to boost electric vehicle production, part of the Biden Administration’s efforts to compete with Chinese manufacturing. The Department of Energy’s Loan Programs Office (LPO) awarded the $9.2 billion conditional loan to Ford on Thursday morning, June 22. BlueOval SK, the automaker’s joint-venture subsidiary formed with South Korean tech manufacturer SK On, will use the subsidy to build three new electric vehicle battery plants located in Kentucky and Tennessee. Read More

2. Morgan Automotive Group makes M&A history with purchase of Al Hendrickson Toyota

This week, Haig Partners served as the exclusive sell-side advisor for the most expensive dealership purchase in history with the sale of Al Hendrickson Toyota to Morgan Automotive Group. Al Hendrickson Toyota, located in Coconut Creek, Florida, is the nation’s second-busiest dealership, with the distinction of selling the most passenger cars among any franchise in 2022. The storefront worked solely with Haig Partners for the transaction, successfully negotiating the highest blue sky value on record. Read More

3. Jim Farley criticizes Tesla’s Cybertruck in the wake of EV charging alliance

When questioned about the Tesla Cybertruck’s impending release in 2024, Ford CEO Jim Farley seemed underwhelmed. He dismissed the concept, saying: “America likes an underdog, and since we are the market leader for electric trucks and vans, we are uniquely positioned to understand these consumers. And it’s okay if Musk develops a Cybertruck for Silicon Valley residents. It resembles a stylish, high-end item parked in front of a hotel. But I don’t produce trucks in that manner. I build trucks for real people who carry out actual labor, and those trucks are distinctive.” Read More

4. In 2024, Stellantis plans to introduce its $27,000 BEV

A $27,000 battery-electric vehicle (BEV) from Stellantis is scheduled to be unveiled in 2024, possibly at the same time as the Volvo EX30 and the Volkswagen ID. Additionally, Stellantis’ BEV is set for sale around the same time as Tesla’s $25,000 vehicle launch. To specifically compete against the Chinese-made Dacia Spring and the Renault 5EV, Stellantis’ Citroen brand intends to launch a city car called the e-C3. The primary goal of e-C3 is to serve the needs of mass-market consumers and divert them from cheap vehicles built in China. Read More

5. Tesla drops Model X, Model S EV prices weeks before end of Q2

Tesla applied new incentives and discounts to its electric vehicle lineup on June 17, lowering the Model X and Model S prices and offering three years of free Supercharging. Dual motor and all-wheel drive versions of the Model X and Model S now cost approximately $8,000 less than they did a week ago, with the latter now retailing for $82,790. Tesla will also give buyers, who purchase one of the two EVs before June 30, free Supercharging for three years. Read More

6. Rivian joins alliance to adopt Tesla’s EV charging standard

Electric vehicle maker Rivian has agreed to adopt Tesla’s charging standard, issuing customers access to the most predominant U.S. charging network and adding momentum to Tesla’s bid to set industry standards. Automaker Hyundai’s president said the company would consider joining the alliance of automakers shifting to Tesla’s standard but that it would have to determine what is in the best interest of its customers. Rivian customers can access. Read More

7. From car salesman to mega-dealer: Cuban-born Mario Murgado’s journey to unparalleled success

In this Executive Profile, we visited Mario Murgado, President and CEO of Murgado Automotive Group, at his brand new, state-of-the-art Cadillac dealership in Miami, Florida. Like many Cuban immigrants seeking political refuge in the 1960s, Mario came to the United States alone just five days before his fourth birthday. In 1981, he entered Miami’s Braman Imports and landed a job selling new Hondas. Over the next 12 years, he became president and managing partner at Braman Imports and Palm Beach Imports. And in 2001, he purchased ailing Honda and Pontiac GMC dealerships in downtown Miami and turned them into top national performers. The rest, as they say, is history. Read More

8. How Bergstrom Automotive is adapting to post-COVID industry trends — Tim Bergstrom

9. OEMs and auto dealers: helping consumers together — Jessica Stafford | Cox Automotive (Premium Content)

Auto dealers and car manufacturers may not always see eye to eye, but the need for cooperation between the two is more important than ever. On this episode of Inside Automotive, CBT News anchor Jim Fitzpatrick is joined by Jessica Stafford, Cox Automotive’s senior vice president of consumer solutions, to discuss how changes in the consumer environment have made it necessary for OEMs and retailers to work together. Read More

10. A closer look at current leasing trends and their long-term effects — Kevin Tynan | Bloomberg Intelligence (Premium Content)

11. Why dealerships must stop ‘cherry-picking’ their auto technicians — Nick Latino | Parkway Toyota (Premium Content)

The post Weekly roundup: Ford CEO criticizes Tesla Cybertruck, Rivian joins EV charging alliance appeared first on CBT News.

Bloomberg Intelligence recently released its 2023 North American Auto Manufacturing Midyear Outlook. On today’s Inside Automotive, we’re joined by Kevin Tynan, Senior Automotive Analyst for Bloomberg Intelligence, to walk us through the findings.

According to Tynan, Tesla’s sales are set to be a direct gross margin crusher. “We’ve always looked at that. But, It’s more about what’s included in accounting for costs of goods and what’s not included in revenue,” states Tynan.

He  explains that if you’re Tesla, you would include revenue and regulatory credit sales deferred from full-self driving (FSD). Meaning they’ve collected the profits but haven’t “booked it” since it remains on the balance sheet. Then you could pull in what’s needed along the way. “It’s challenging to get a clean, smooth revenue number.” In addition, Tynan says, “On the costs side, they don’t include things like R&D, where GM will, for example.” Therefore, Tynan believes some smoothing is needed to achieve real gross margin profit. 

Key findings from Bloomberg’s Outlook

Tynan explains that when you don’t have a retail channel, you won’t book it until it’s delivered to customers. Whereas every automaker with a retail network can produce and move served units to its retail channel and book its revenue. Tynan states, “It’s a shift in working capital, but for now, it’s to the dealerships.” This has been important with Lucid and Rivian, where they may build 4,000 units per quarter but only deliver 1,000 of them. Your cost of goods is times 4,000 units, and your revenue collected is only four 1,000 units. 

When you look at it on a per-unit basis, someone like Rivian produces vehicles at $250,000 per unit but is only collecting 81,000 per unit. “This is a working capital shift, but with those results, they aren’t even profitable at the gross line,” believes Tynan. 

It’s essential to note that Tynan outlines that when you look at 2022, there was a 13.8 million units market at an 18% lease penetration rate of 2.4 million units. So, Tynan believes the used car supply will fall off between 2022 and 2025. Ultimately, as a dealership, the idea of the used vehicle supply remaining thin for another three years may lead to higher gross profits on the used cars they already have. 

The post A closer look at current leasing trends and their long-term effects — Kevin Tynan | Bloomberg Intelligence appeared first on CBT News.

1. General Motors follows Ford, adopts Tesla EV charging standards

General Motors CEO Mary Barra declared that the automaker’s future EVs would use Tesla’s North American Charging Standards. GM plans to include the NACS connector design in its EVs starting in 2025. By 2024, GM EV users will have access to the Tesla Supercharger Network. At first, you’ll need to utilize an adapter. According to Barra, by the spring of next year, GM will have the adapters ready for its EV owners. Read More

2. Lithia expands footprint with acquisition of 13 Priority Automotive stores

On June 13, Lithia and Driveway announced its plans to grow its dealership footprint with the purchase of 13 locations from the Priority Automotive Group in Virginia, which expands its footprint in the strong-performing Mid-Atlantic Region. These stores are projected to generate more than $1.2 billion in annualized revenue. In addition, executives claim these additions will increase Lithia & Driveway’s anticipated annualized revenue acquisition to date to more than $3.2 billion. Read More

3. DeSantis approves bill partially banning direct-to-consumer car sales in Florida

Florida Governor and Republican presidential candidate Ron DeSantis has signed off on a bill prohibiting car manufacturers from using direct-sales models in the state. DeSantis signed the law, along with several others, on Tuesday, June 13. Titled HB 637, the measure prevents most automakers from selling directly to consumers, requiring them to rely on franchised dealerships instead starting this July. Other provisions in the law limit the influence car manufacturers can exert over retailer inventories and prices while protecting dealers’ rights to ignore MSRPs and choose their own model mix. Read More

4. GM and Samsung choose Indiana as site for new EV battery factory

General Motors and Samsung SDI have agreed to build a new electric vehicle battery plant in Indiana roughly three weeks after local officials offered a generous incentives package. Construction on the $3 billion facility will begin next year at a 686-acre site in New Carlisle, close to the state’s northern border. Initial estimates stated the plant would produce 300,000 nickel-rich EV batteries annually for use in GM products once operational. Read More

5. The White House encourages Tesla to use federal funds for its chargers

On June 9, the White House said electric charging stations using Tesla’s standard plugs would be eligible for billions of dollars in federal subsidies as long as they include the U.S. charging standard connection, CCS, as well. The announcement follows the decision by Ford and GM to adopt the Tesla charging model, known as the North American Charging Standard (NACS). This is the first time the Biden Administration has directly connected Tesla to its efforts to spend up to $7.5 billion to build new high-speed chargers in some 7,500 miles of the nation’s busiest highways. Read More

6. Driving Pride: LGBTQ+ inclusion within the automotive industry — Cheryl Thompson

7. How ARRA is looking to upend the direct-to-consumer EV market — Bob Morris | Tim Lamb Group

Dealers concerned about OEMs and industry disruptors that aim to sell electric vehicles directly to consumers may have a possible solution in ARRA, a new EV brand looking to establish a foothold in the U.S. On this episode of Inside Automotive, CBT News anchor Jim Fitzpatrick is joined by Bob Morris, the director of the southeast region for the Tim Lamb Group and the exclusive agent for ARRA to discuss the company’s first North-American entry, the EV3. Read More

8. How AgPack can help your dealership sell more trucks — Pat Driscoll | Certified Agriculture Group (Sponsored Content)

The agricultural sector relies heavily on trucks and is one of the most significant segments of truck consumers in the nation, but there is only one solution that can help dealers target that market. On today’s Inside Automotive, we’re pleased to welcome the CEO and President of Certified Agriculture Group, Pat Driscoll, to tell us more. Read More

9. Optimizing F&I for electric vehicle loans — Aaron Bickart | OfferLogix (Sponsored Content)

As more consumers show interest in buying an electric vehicle, it becomes ever more crucial for dealers to partner with brands like OfferLogix to understand the segment’s complicated financial aspects. On this episode of Inside Automotive, CBT News anchor Jim Fitzpatrick is pleased to welcome back the executive vice president and general manager of OfferLogix, Aaron Bickart, to tell us more about the software company’s offerings and how they can help dealers navigate the emerging EV market. Read More

10. Why dealerships must stop ‘cherry-picking’ their auto technicians — Nick Latino | Parkway Toyota

With inventory and competition back up in the new car market, now might be the time to return the focus to your fixed operations department. On today’s Inside Automotive, we’re pleased to welcome Nick Latino, the Fixed Ops Director of Parkway Toyota, to tell us how things are going on the fixed operations side of his dealership. Read More

The post Weekly roundup: GM’s new EV battery plant, direct-to-consumer sales banned in Florida, and Lithia acquisition appeared first on CBT News.

The automotive industry is no stranger to change, and as it evolves, regulations will play an important role in protecting consumer rights and ensuring fairness. The Center for Automotive Research (CAR Group) report on the FTC’s proposed rule changes (CFR Part 463) is a key indicator of the future of automobile regulations. 

This report is of great importance because it examines five key sectors and analyzes their impact on retailer and consumer behavior. It also reflects the estimated costs of compliance, potential changes in advertising practices, and the need for enhanced disclosure requirements.

In this article, we will take a closer look at the report’s findings and recommendations, offering a clearer view of how they could affect the automotive industry. 

Background and Context

The Federal Trade Commission (FTC) has proposed new regulations that target certain practices within the automotive industry that have drawn increasing scrutiny in recent years. These proposed regulations can potentially impact how car dealerships conduct their business significantly.

The regulations provide more transparency in motor vehicle sales. Proposed changes include requiring dealerships to disclose the full price upfront, prohibiting fraudulent fees and surprise add-ons, and ending bait-and-switch tactics. 

The FTC’s motivation to introduce these regulations stems from a significant number of complaints received about car dealerships. Over the past three years, the FTC received more than 100,000 yearly complaints about motor vehicle sales, financing, service, warranties, rentals, leasing, and overall transactions. 

Consumers have raised concerns about dealerships engaging in deceptive practices, such as falsely claiming that service contracts are free or misrepresenting the necessity of specific insurance contracts. Instances of discovering these misleading practices during the buying process have left consumers feeling exploited and fatigued.

Despite the importance of these regulations in addressing consumer grievances, auto dealers and organizations like the National Automobile Dealers Association (NADA) have expressed opposition due to concerns about the broad scope and potential impact on consumer transactions.

In an interview with CBT News, Brett Scott, Vice President of Government Affairs for the National Independent Automobile Dealers Association explained the association’s position on the matter: “This rule would add redundancy and intricate and inefficient times throughout the purchasing process of the vehicle.”

Overview of the CAR Group Report

The CAR Group Report, commissioned by NADA, is a comprehensive and insightful report exploring the impact of the Federal Trade Commission’s (FTC) proposed rule changes on motor vehicle dealerships. 

The report presents findings based on surveys and in-depth interviews with franchised light vehicle dealerships across the United States, providing valuable insights into the implications for this sector. 

It sheds light on various aspects, including prohibited misrepresentations, new consumer disclosure requirements, add-on prohibitions, recordkeeping, and consumer vehicle transactions. 

Moreover, it highlights the estimated upfront and recurring compliance costs and the potential changes in dealership practices and customer interactions. 

The report provides valuable insights into the challenges and opportunities the automotive industry faces with evolving regulations, offering a clear perspective on the Road ahead.

Analysis of Key Findings

The CAR Group’s report on the FTC’s proposed rule changes (CFR Part 463) reveals several significant findings that shed light on the potential impact of these regulations on the automotive industry. The report focuses on five key areas, including prohibited misrepresentations, new consumer disclosure requirements, “Add-On” prohibitions and disclosures, recordkeeping, and consumer vehicle transactions.

One key finding is the estimated upfront and recurring costs for dealers to comply with the proposed FTC Rule. Dealers estimate median upfront costs of $46,950 per location, which includes training, IT system investment, and preparation. Similarly, recurring annual costs are estimated at $50,958 per location, covering ongoing training, IT spending, and compliance reviews.

The report also highlights dealers’ potential challenges in communicating pricing information to consumers. If the proposed Rule is finalized, 72% of surveyed dealers believe consumers would need to contact dealerships directly for pricing information rather than relying on advertising or other forms of communication.

Implications for the automotive industry include the need for dealerships to make significant changes to existing advertisements, marketing, and communication practices. Compliance with the proposed Rule would require additional training, IT system upgrades, and enhanced compliance review procedures.

Dealerships would face increased costs for ensuring compliance, including reviewing advertisements, implementing new disclosure requirements, and maintaining records of transactions. The added complexity in communicating pricing information to consumers may also affect the overall customer experience. 

Recommendations and their Impact

The CAR Group Report on the FTC’s proposed rule changes (CFR Part 463) presents several recommendations with potential implications for the automotive industry. The report highlights the importance of addressing prohibited misrepresentations, implementing new consumer disclosure requirements, regulating “add-ons,” enhancing recordkeeping practices, and redefining consumer vehicle transactions.

Implementing these recommendations would require significant upfront costs for dealers, including training, IT system investment, and preparation. Additionally, recurring annual costs for compliance, such as ongoing training and compliance reviews, would be incurred.

The proposed recommendations could also impact dealers’ interactions with consumers, often requiring direct contact for pricing information and necessitating changes to advertising and communication approaches.

While the recommendations aim to protect consumers and promote fair practices, their implementation poses challenges for dealerships, including additional compliance burdens and adjustments to sales processes. 

However, they also create opportunities for improving transparency, enhancing consumer trust, and aligning industry practices with evolving regulatory standards. Industry stakeholders will need to navigate these challenges and seize the opportunities presented by the proposed recommendations to ensure compliance and maintain a competitive edge in the changing automotive landscape.

Industry Perspectives and Response

The release of the CAR group report has sparked a discussion among industry experts, associations, and stakeholders. There is great variation in the views of experts regarding the report’s findings and recommendations, which reflects the diverse nature of the automotive industry. 

Some industry experts are concerned about the possible effect of the proposed regulations on dealerships. The estimated upfront and recurring costs for compliance, as highlighted in the report, have raised eyebrows. Dealerships anticipate substantial financial investments in training, IT systems, and ongoing compliance activities. 

Furthermore, consumers’ need to contact dealerships for pricing information has received mixed reactions. While it aims to provide transparency and accuracy, it may sometimes disrupt current advertising and consumer communication practices.

The industry is already considering measures to overcome issues raised by the proposed regulation changes in light of these concerns. Ads, marketing, and customer service are all under the microscope as the team discusses how they can be updated realistically. 

Stakeholders are also considering potential enhancements to IT systems to ensure seamless compliance and streamline transaction processes.

Associations and regulatory compliance training professionals are playing a vital role in guiding industry players through this regulatory transition period. Their knowledge is being sought to help negotiate the complexities of the new regulations, comprehend their ramifications, and establish compliance strategies. 

Finding a middle ground between protecting consumers and keeping the car industry competitive and efficient requires cooperation between industry players and regulators.

As the industry grapples with these potential changes, continued dialogue and proactive initiatives will be crucial to shaping the future of automotive regulations, addressing concerns, and ensuring fair practices for all stakeholders involved.

Discussion on Consumer Impact

With regulatory changes proposed by the Federal Trade Commission (FTC) looming over the automotive industry, assessing the potential impact on consumer rights, safety, and choices is essential. 

The CAR Group’s insightful report on the FTC’s proposed rule changes provides valuable insights that shape our understanding of the future landscape. By examining these findings, industry professionals and policymakers can make informed decisions to ensure a positive and transparent future for the automotive industry.

The proposed regulations aim to enhance consumer protection by addressing prohibited misrepresentations, introducing new disclosure requirements, and prohibiting unauthorized add-ons. While these measures seek to empower consumers with transparent information, they also carry implications that are worth considering.

From a consumer perspective, the regulations hold the promise of increased transparency in pricing, trade-in evaluations, and discounts. By preventing misleading practices, consumers can make more informed decisions and have greater confidence in their transactions. 

However, concerns arise regarding the potential impact on pricing, product offerings, and the overall consumer experience. For instance, the requirement for dealers to disclose the cash price without optional add-ons may lead to longer transaction times and limited negotiation flexibility.

The regulations may also reshape the online sales process, necessitating technological advancements and expanded compliance measures. While this presents an opportunity for streamlining transactions, it also raises questions about the adaptability of dealerships and the potential challenges of implementing new systems.

As we unveil key insights from the CAR Group’s report, it is crucial to examine the proposed regulations from various perspectives. Striking a balance between consumer protection and industry considerations will be essential in navigating the road ahead.

By fostering open dialogue and understanding, we can work towards a future where consumers’ rights, safety, and choices are upheld while maintaining a vibrant and competitive automotive marketplace.

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