In NADA 2024 Show news, speakers have been announced! The lineup includes:

• Jon Taffer — Business expert and executive producer of “Bar Rescue”
• Danica Patrick — Former racecar driver, author, and entrepreneur
• Kurt Warner — Hall of Fame quarterback and philanthropist
• Geoffrey Pohanka — 2023 NADA chairman and chairman of Pohanka Automotive Group
• Gary Gilchrist — 2023 NADA vice chairman and president of Gilchrist Chevrolet Buick GMC

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The U.S. auto market saw an uptick in sales and inventory over the course of 2023, as dealers and car manufacturers made progress 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.

The auto market has seen steady growth throughout the year, surprising analysts who expected economic headwinds to suppress demand well into the future. Instead, a steady stream of car buyers has pushed year-to-date sales up 13%, rising 20% year-over-year in June alone. Manzi comments that this has been an excellent start to 2023, acknowledging it was “a little better than we all were expecting.” Furthermore, the U.S. has seen significant growth in the alternative fuel space, which now comprises roughly 15% of all new vehicle sales. Electric vehicles are also closing in on 7% of the car market, with manufacturers and dealers selling a combined total of 550,000 units in the first six months of the year. Manzi notes that franchised dealers accounted for 36% of all EV sales, making them more competitive with direct sellers such as Tesla.

The auto market has also benefited from the recovering supply chain, which has allowed car manufacturers to produce more vehicles. On average, dealer inventories held enough cars for 36 days, with 1.9 million units on the ground and in transit at the end of June. This is a significant improvement over the previous year when low factory output hindered sales well into the winter. Still, the industry’s problems are not over yet. “We’re only about half the level we were before the pandemic,” Manzi remarks. While manufacturers are pushing out more models than at any point since COVID, availability varies greatly between brands and segments. For example, Manzi reports that pickups averaged a days’ supply of 59 days while only accounting for 18% of overall sales. On the other hand, crossovers saw a 30-day supply on dealership lots, despite comprising 46% of the total market.

Rates are another obstacle the auto market will need to address before it can return to its pre-pandemic state. Interest rates have grown steadily, while loans and credit have become more difficult for car buyers to attain. Manzi notes that average term lengths are closing in on 72 months, while rates for new and used cars typically cost 7% and 10.5%, respectively. “Still, I’ve been pleasantly surprised by just how well sales have been going despite the pressure of higher rates,” he adds. Although inflation is still on the rise, the Federal Reserve has hinted that it may begin to de-escalate its battle against rising costs, pausing or possibly reversing its series of rate hikes. If the implication is sincere, Manzi believes rates will stabilize in the latter half of the year before depressurizing in 2024.

2023 is also proving to be a strong year for fleet deliveries. Customers in this segment suffered the most from low inventories during the COVID pandemic. Now that manufacturers have returned to making new vehicles, the release of pent-up demand in the fleet market has helped push overall sales ahead of 2022. As Manzi notes, “They really need the inventory.” Sales in the segment rose 45% in the first six months of the year and comprised 18% of the auto market in June.

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The highly anticipated 2024 NADA show is quickly approaching, starting February 1st 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.

Sight notes that the show, as always, will focus on educating dealers about the latest automotive trends. “NADA, as well as other vendors, provide best-in-class education and workshops that are beneficial to anyone in the dealership,” he remarks. Electric vehicles will be a major topic of discussion during the NADA show, as will the industry’s efforts to make the business more empowering for women professionals. “Then you have the expo floor,” Sight continues. “It’s the one-stop shop for anything, technologically, products, service that you can do right there in the Las Vegas Convention Center.”

That being said, dealers should be aware that several schedules have changed since they were originally announced, Sight warns. “The main stage is now going to be starting at 9 a.m. every day, which is great because it allows people to get their day started and then do what they please to do after the fact,” he remarks. This NADA show has also been reorganized to ensure that there are no scheduling conflicts with manufacturer and franchisee meetings, allowing attendees to travel between panels freely. “The TIME Dealer of the Year has been moved to Saturday instead of Friday,” continues Sight, “and also, we will be doing a two-hour happy hour with extended expo hours at the end of each day on the expo floor.”

Although Sight cannot reveal the NADA show speakers ahead of schedule, he notes that the upcoming event’s guest lineup is one of the best the organization has put together. The association is also looking to boost engagement from participants by hosting a video contest. “We want to get everybody in the dealerships… involved in the NADA show,” remarks Sight, “and this was a way to kind of let everybody use their creativity to show the education and the benefits of the show can help out any dealership employee.” Anyone can submit a video online nominating a dealer for the competition, although the association will stop taking submissions before October 31st. Winners will receive free all-access passes to the event.

Registration for the 2024 NADA show will open on July 31st. Dealers who visit the organization’s website to sign up should also be sure to book their hotel rooms and flights ahead of time if possible.

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The role dealers play in shaping the future of the car business is more essential than ever, but do manufacturers see it that way? On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Mike Stanton, president and CEO of the National Automobile Dealers Association (NADA), to provide an update on the organization’s work to support and represent automotive retailers and to offer his perspectives on the car market.

Stanton notes that car inventory has seen a marked improvement since 2022, driving sales and demand throughout the first quarter. However, while overall stock has grown, OEM production continues to vary significantly between brands and even models. Stanton notes that the only vehicles to see steady supplies are premium makes, a trend that has some dealers worried. “The mix of vehicles…tends towards the high end, and dealers are looking for a little more affordability,” he remarks.

Although many electric vehicle brands such as Tesla and Rivian have sought to circumvent the franchise process, Stanton notes that dealers are essential for convincing consumers to ditch their gas-powered cars. “If there was ever any question about dealers being essential, that has to be put to rest,” he explains. “Customers are asking all the right questions…and dealers are well positioned to answer these because they’re doing the training [and] they’re making the investments.” However, Stanton admits that retailers have questions about the industry’s transition to electric as well. The confusion, he notes, underscores the crucial roles auto retail associations like the NADA play during times of chaos or instability, as they can facilitate conversations between manufacturers and dealerships to ensure both sides are on the same page.

Those discussions are equally important during periods of tension or mistrust. While dealers and OEMs both depend on each other for success, conflicts between the two groups are frequent. This is due to the unique interests both sides represent; customer-facing retailers are invested in providing the best service possible while focusing on the particular needs of their local market; automakers are concentrated on supply chains, driving growth for shareholders and following the overarching trends in consumer demands. However, Stanton believes that much of the disagreement arising from these seemingly opposing priorities is essential for the industry’s growth since it stimulates conversation and problem solving. “There will always be tension there, but I don’t view that as a bad thing. I view that as very healthy,” he remarks.

Recently, the NADA released its guiding principles, a list of pressing issues facing dealers and detailed explanations of where the organization stands on each topic. Stanton notes the guidelines were written with the support and input of the industry’s foremost retail leaders, especially those with their fingers on the pulse of developing automotive trends. He explains the document has also promoted OEM participation in developing solutions for the myriad issues facing dealers.

One of the key issues facing the industry is its shortage of fixed-operations workers. In fact, Stanton notes that some estimates suggest that “We’re going to be short 39,000 technicians a year in our industry through 2026.” Earlier this year, the NADA partnered with the National Urban League, an auto technician training organization, to teach aspiring mechanics and connect them to apprenticeships and internships. The initiative is essential to the future of the car business, and as it grows, it could supply thousands of skilled employees to desperate businesses. However, while the program will help furnish the next generation of repair specialists, Stanton urges both dealers and OEMs to open even more opportunities, as the collaboration will not be enough to prevent a shortage on its own.

Over the last three years, manufacturers have committed to aggressive electrification targets along with the Biden Administration and the Environmental Protection Agency. This month, the government announced even more ambitious goals for cutting greenhouse gases, introducing never-before-seen regulations on vehicle emissions. While dealers are dedicated to supporting the industry’s transition to a more eco-friendly state, Stanton notes that retailers have had little say in how these new objectives should be met. “It’s one thing to put a mandate out there, and it’s one thing to do our part,” he notes, adding, “but we need to see the bigger picture…we need a seat at the table to help craft that bigger picture because we all want this to be a success.” More than ever, the NADA is focused on giving retailers a voice, ensuring that they can provide insight on the consumer perspective and warn automakers against ineffective solutions.

The next NADA event is set to take place in Las Vegas next February. After the success of this year’s convention, Stanton is excited for the multitude of speakers already planning to attend in 2024. “The best one ever, needs to be the next one,” he quips.

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The agreements increase the number of participants, which the White House initially announced in February, and include investment promises from digital businesses like Zipcar, the world’s largest ride-sharing company, and others. At that time, the Biden administration claimed to have worked out a deal with Tesla to let more people utilize thousands of its exclusive SuperCharger stations.

By at least 2030, Biden wants there to be at least 500,000 chargers, including ones in every state. He stated that was a significant step toward his objective of having EV sales make up more than 50% of new car sales by 2030.

More than 100,000 public EV chargers will be added as part of the new rollout, which was a part of the announcement, to the more than 135,000 already present across the nation.

The administration stated that these promises are the foundation of President Biden’s Investing in America strategy, which aims to promote domestic manufacturing, enhance supply chains, increase U.S. competitiveness, and generate high-paying employment.

The Combined Charging System (CCS) plug standard is required under the regulations put in place this year, which implies that more EVs can use the same charger. Except for Tesla, the majority of automakers currently employ the CCS standard.

The new participants include:

• Blink Charging plans to invest $49 million to boost the number of chargers it can produce at its Bowie, Maryland, facility from 10,000 to 40,000.
• Zipcar promises to donate 25% of its electric vehicles to underserved areas.
• Uber stated that it aims to reach 400 million EV miles driven on its platform in the U.S. by the end of 2023 by distributing resources through its Green Future program to assist hundreds of thousands of drivers transition to EVs and through its partnerships with automakers, rental businesses, and charging companies.

The White House also highlighted:

• Enel X Way promises to offer more than 2,000,000 EV chargers in North America, including more than 10,000 public DC fast charging stations. The company also claims it will enter the market for EV public charging stations in 2023.
• Walmart promises to have installed new fast-charging stations for electric vehicles at thousands of its and Sam’s Club sites across the nation.
• NADA for its collaboration with the Center for Sustainable Energy (CSE) to launch comprehensive online dealer training to speed up EV adoption.

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The National Automobile Dealers Association (NADA), National Urban League, and Urban League of Louisiana have joined forces on the most recent minority-focused project.

The program will help mechanics in training secure apprenticeship roles at participating Louisiana dealers, with the eventual goal of expanding to all states. Candidates will also take classes at community colleges and participate in a four-week career and life skills training program.  

The NADA says the industry needs 76,000 new technicians to join the workforce yearly to replace outgoing professionals, but only an average of 39,000 students graduate with related degrees and certifications. 

Across the nation, several training programs will be offered. BMW, for example, has the Military Service Technician Education Program. Which provides technician training to members of the armed forces on active duty at military bases, beginning just before their discharge. Then, it aids them in obtaining civilian employment as BMW dealership technicians.

BMW’s 350 U.S. dealerships employ more than 7,000 technicians. Fresh technicians are in great demand, much like the rest of the dealership industry, but this is due to the issue with turnover and the fact that fixed operations account for a sizable portion of dealership profit.

In order to stay current, auto technician schools are teaching their students how to service battery EVs. For instance, Washtenaw Community College in Ann Arbor, Michigan, has added a Ford Mach-E to its fleet of vehicles used to instruct auto technician students.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.

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Collaboration between competitors may not be business as usual but it happens. Amazon Marketplace, for instance, allows competitors to sell products, such as books, on the Amazon.com platform — and for lower prices than the same products are sold by Amazon. In a similar vein, Apple Music is now available on Android devices.

The strategy is simple: give your customers want they want, even if executing on that strategy requires collaborating with other companies, including competitors.

Fortunately, in most cases, business collaborations or partnerships are not made between competitors but with other companies serving the same market.

Better than build or buy

As the principal owner of Shaker Auto Group, as well as the founder of TruVideo, a video-first communication tool for dealerships, I know first-hand the need for and value of collaboration in retail automotive.

Granted some OEMs, dealerships and vendors might question the value in collaborating or partnering with other companies. If they don’t want to build a solution themselves, they can always look to buy a smaller company that has the missing piece they seek. Big fish eat little fish.

But instead of owning it all, why not collaborate with a company that has what you need and leverage their expertise, investment and proven success? Such companies tend to have a laser-like focus on their solutions, and can help you get to market sooner.

Industry vendor Outsell, an AI-driven customer data and engagement platform, reached that conclusion when they partnered with TruVideo.

Collaboration must make sense

The partnership between Outsell and TruVideo enabled the former’s dealership clients to send robust and timely text messages and videos via “smart lines” from a mobile phone to their customers. As a result, communication is immediate and bi-directional, transparent and measurable. Such lines foster transparency and trust and understanding.

A customer’s own words and phrases, for instance, can help dealers understand intent through a process known as “sentiment analysis.” When it comes to reporting, positive comments can be shown in green and negative comments in red, making it easier to spot potential trouble.

Another TruVideo feature Outsell appreciated was TruVideo’s use of noise cancellation technology. Customers can clearly hear all comments made during a video-walk through, even in a busy service bay.

For Outsell, partnering with TruVideo makes their communication with customers crystal clear. And this communication makes it possible for Outsell’s dealer clients to own the customer experience, to shape it as needed.

Collaboration requires trust

I see retail automotive as a vibrant ecosystem, a community of OEMs, dealers and vendors working in the same marketplace. This ecosystem requires both competition and cooperation in order for its members to survive.

So, what should you look for in a collaboration? You must first find a partner whose solution you need and whose solution will work as advertised.

In a 2020 study of service customers, CDK Global, a leading DMS provider, discovered that 55% of customers didn’t trust dealerships because those customers believe they are frequently upsold on unnecessary repairs and are kept in the dark during the repair process.

To address this negative perception, CDK Global partnered with TruVideo to create CDK ServiceView, a text-based video communication tool designed for service departments using CDK Service or eLead Service. For their customers, seeing is believing.

Collaboration requires proof

Theory without execution is hallucination, and I don’t like to hallucinate. In business, people are quick to spout buzzwords, but are often unable to execute on them. Simply put, there is no there “there.”

TruVideo tests its products with actual users. When they tested with Mazda Dealer 20 Groups, dealers began to notice positive results and soon word of their success spread within the OEM.

But Mazda wanted more proof before partnering with TruVideo. Rightly so. It’s always smart to make sure a vendor can walk the talk before committing.

Mazda tested a 1.1 million repair sample and discovered a $55 increase in customer spend from customers who received a video of their service versus customers who were not sent a video. Plus, customer intent to return to the dealership for vehicle service was four points higher.

The result? Mazda got two bites at the apple, one for customer experience and one for revenue. According to the J.D. Power’s Service Satisfaction Index, Mazda last year went from number 11 to number three.

If the collaboration fits

In writing about collaboration, I am reminded of the words of the comedian Steven Wright: “You can’t have everything. Where would you put it?”

In business, you can’t create everything. Nor should you try. That’s why smart companies bolster their own offerings by collaborating or partnering with best-of-breed solution providers. Your mission? To explore new opportunities.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.

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California is the most populated state in the U.S. with thousands of dealerships serving incredibly diverse demographics, which explains why storeowners pay close attention to automotive retail news from the region. Brian Maas is the President of the California New Car Dealers Association (CNCDA), and has years of car business experience in the state. CBT News anchor Jim Fitzpatrick was able to sit down with Maas at the 2023 Nada convention to hear what lies ahead for his colleagues in the CNCDA, and to hear his personal insights into the car market.

Key takeaways:

1. Maas says the CNCDA will work to answer dealership questions on topics such as competition between OEMs and dealers, warranty reimbursement, EV charging infrastructure and more in 2023.

2. Maas notes that CNCDA will often encounter problems ahead of the industry, a result of its home state’s massive population, making the region an excellent predictor for challenges affecting the entire nation.

3. Although California accounts for 40% of U.S. EV sales, Maas notes that newer automakers, such as Rivian and Polestar, have yet to effectively penetrate the market.

4. California is one of several states which intends to ban sales of gas-powered vehicles by 2035.

5. Maas remains uncertain if rapid EV adoption, at least to the level some analysts predict, will be sustainable, arguing that the country’s energy infrastructure lags far behind the necessary growth.

“…Associations across the country aren’t going to stand by if OEMs push the envelope too far.” — Brian Maas

Notable background:

— Brian Maas is the President of the California New Car Dealers Association, which represents more than 1,200 dealerships. He was recently appointed to Chairman of the Automotive Trade Association Executives.

Click here for more 2023 NADA Show coverage on CBT News.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.

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The industry is optimistic about its future and present situation because it offers opportunities to those with uncertain futures. CBT News sat down with Andrew Wright, managing partner of Vinart Dealerships, at this year’s NADA Show, to talk about the exciting opportunities that have been presented in terms of ways to improve operations systems, eliminate costs from sales and service, and discover fresh approaches to attracting new talent to the industry.

Key takeaways:

1.  With rising interest rates affecting affordability and all indications pointing to a serious recession, dealers are dreading the upcoming year. However, according to Wright, “a recession won’t truly be in the cards.”

2. Instead, dealers will have to cope with tempered demand, adjustments, and opportunities for the used car market, and it will open discussions for new vehicles and OEMs. Which include financial affordability, leasing, and market strategies. 

3. The days to turn for the vehicles OEMs own are still at an all-time low because they do not want to take on the residual risks, financial obligations, or subsidized money element, according to Wright.

4. Dealers, on the other hand, will continue to have significant issues with charging infrastructure. According to Wright, the charged parody, “will have long-term proliferation.” This reinforces the industry’s main objection to the widespread adoption and use of EVs, according to which there will be a greater barrier to adoption on a broader scale once the refueling process’s parody is established.

5. The Vinart and NADA symposium covered the momentum behind a standardized data model that will drive the industry’s future. The discussion focused on topics including how the data model will support the future and how we’ll move that data to communicate with stakeholders, dealers, OEMs, and IT companies. The industry has essentially been waiting for this data standard for a very long time, as everyone can agree. Since it will ultimately hasten the exchange of information

“Data is the backbone of everything we do.” —Andrew Wright

Notable background:

—  Vinart’s objective is to provide dealers with an interactive tour of its new and used inventory, as well as make it easy to get a price, book a service appointment, or submit a financing application.

Click here for more 2023 NADA Show coverage on CBT News.

Did you enjoy this interview? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.

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Interesting developments have been strategically provoking the way that dealership operations are carried across the entire automotive industry. In order to understand dealers’ anxious concerns and how to better address them, CBT News anchor Jim Fitzpatrick spoke with Steve Greenfield, CEO of Automotive Ventures and host of the CBT’s Future of Automotive, during this year’s NADA Show.

Key takeaways:

1. Greenfield observes that dealers have serious reservations, particularly in the areas of agency models, electrification, and connected cars.

2. Dealers wonder how rapidly OEMs are transitioning away from the agency model and toward a direct channel. What functions will dealers perform, and will the partnership between dealerships and OEMs change?

3. Dealers are uncertain about the timing and location of these infrastructural and facility upgrades because electrification is hanging over the industry.

4. Overall, there are still many unanswered issues about over-the-air upgrades, linked cars, whether customers will return to dealerships, and whether OEMs will share revenue from subscription services with dealers.

5. Greenfield believes that OEMs will not move closer to the agency model. There will be a flood of oversupply on the market because consumers seek instant gratification, thus there will be more EVs than demand. 

“The way we invest today is how we move tomorrow.” —Steve Greenfield

Notable background:

— Automotive Ventures is committed to assisting investors, businesses, and entrepreneurs in the automotive industry. They carry out their work in order to benefit the automotive technology sector, advance the industry, promote investment, and catalyze the next wave of technological advancement.

Click here for more 2023 NADA Show coverage on CBT News.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.

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