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.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The post How Texas dealers are driving electric vehicle demand — John Luciano | Street Volkswagen appeared first on CBT News.

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 today’s 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.

Bowers began selling cars, all while in law school. But, due to the opportunity he saw within the industry, he knew the industry was a better fit. Bowers states, “I worked, saw opportunities, and continued to progress.” The way Bowers sees it, if you perform at a high level, and you don’t remove yourself from conversations that don’t bring influence, and if you have the talent and mobility, then the right people will find you. The industry is mixed with trial and error, but if you can spot the opportunity and get into the right conversations, you’re headed in the right direction. 

Customer Experience

Growing up in the industry, Bowers was made to believe, “The facility should be used as the utility of the operating business.” But as the world continues to evolve, so has branding. In addition, “The revenue over the last few years has substantially grown. Therefore, dealers must have the best avenues to reach their customers,” asserts Bowers. In addition, the whole operation’s standards have risen. Therefore, he claims, “It would be best to make yourself and your dealership accessible through various channels to meet customers where they are.” 

Operations 

As it exists today, inventory is different. It’s different by OEM, market, and by model. Bowers notes, “Some models are readily available and some that customers prefer.” However, “It differs by brand.” The other part of inventory deals with pricing. Inventory fluctuates due to customers being unable to afford their car payments, and dealers can’t afford to keep the vehicles on the lots. But, if dealers represent a brand in a large metro market, they will support sending cars to customers where they live. Ultimately, Bowers asserts, “I am in a position where the OEMs are supplying me with a 60-day supply, but I’m also not seeing where I have too many cars.” For example, Bowers recently built a stand alone Jeep facility in Baton Rouge. It’s a part of an incredible investment in part of it’s reliability for the well-known brand. 

Electric vehicles

Bowers has met with several dealers; some want to promote EVs, while others are hesitant. This holds true from Southeast Louisiana to Metro Nashville and even the Florida Gulf. There isn’t enough demand. Bowers gives the following example: “I think we will be in demand one day, but as of right now, I was driving past a woman and her child on the interstate in Baton Rouge, but I couldn’t run and get them a gas canister to fill their tank; instead, the family had to wait for a tow truck just to get a charge.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The post Enhancing your dealers’ brands to reach your customers where they are — Matt Bowers | Matt Bowers Auto Group appeared first on CBT News.

Could you be sabotaging your own success? On today’s episode of CBT Now, we’re exploring the “Upper Limit Problem,” a common problem many of us experience in business with allowing ourselves to enjoy our wins without boundaries. Joining us is Gay Hendricks, the founder of the Hendricks Institute, to discuss his new book, “The Big Leap,” which explores this problem and how to overcome it.

Hendricks asserts that the Upper Limit Problem is the human tendency to bump up against limits in an attempt to grow. In other words, the subconscious self-sabotage that happens when we taste something great. Be it a promotion, financial windfall, a great relationship, or any other means of success. Furthermore, Hendricks notes his work at the institution is geared toward helping people spot when they’re “Upper-Limiting” and how to navigate through it.

Key Takeaways: 

1. Take a moment to evaluate if you attribute to the Upper Limit issue by learning how to spot it: Eliminate worrisome, unproductive thoughts that you can’t change. 

2. You get power back when you shift your focus to valuable thoughts instead.

3. Release your need to be right. It will direct conversations away from solutions and add to your upper-limit problem. 

4. Fear is characterized as a trigger from childhood trauma that will hold you back and ensure artificial shyness.  

5. Life is about constantly being open and receptive to receiving positive energy. It keeps your attention on everything inside, where everything starts; the shine you already have.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The post How to identify and fix the ‘Upper Limit Problem’ – Gay Hendricks | Hendricks Institute appeared first on CBT News.

Welcome to another edition of The Future of Automotive, with Steve Greenfield, Founder, and CEO of Automotive Ventures, where I put recent automotive and mobility news items into context, in terms of the broader thematic areas that will potentially impact the industry.

I’m glad that you could join us.

This week we have a special guest joining the show to help us understand how dealers can help their EV buyers install chargers at home. 

One of the big sticking points for first-time EV buyers is uncertainty about which EV charger is best for their home, and how best to get the charger installed.

Over the past year, I’ve heard horror stories of electrical contractors who miss-estimated the cost to install the charger and the poor consumer, as a result, being stuck with a bigger bill than they first expected and being unsure who to blame.

Our guest on today’s show is Eric Owski, the CEO of Treehouse.

Treehouse’s unique pricing technology allows EV buyers to receive an instant, guaranteed quote for home EV charging installation at the point of sale in auto retail locations or via API while applying for vehicle financing. 

Instant pricing allows home charging to be integrated directly into the vehicle loan, reducing barriers to affordability for home EV charging.

Treehouse also automates permit documentation and has a proprietary network of electricians, enabling the company to deliver an elevated experience by managing the customer journey from end to end.

Automotive Ventures just participated in Treehouse’s $10 million recent funding round, alongside CarMax, Assurant Ventures, and Holman.

Companies to Watch

Every week we highlight interesting companies in the automotive technology space to keep an eye on. If you read my weekly Intel Report, delivered to your email inbox at 7:00 AM on Mondays, I showcase a couple of companies to watch, and we take the opportunity here on this segment to share those companies with you.

Smart UQ

SmartUQ is a Machine Learning and AI tool optimized for engineering applications from ideation and design to manufacturing and sustainment.

By providing powerful tools and highly accurate models with user-friendly GUIs and APIs, SmartUQ makes it easy to perform predictive modeling, optimized sampling, uncertainty quantification, and model calibration.

From Fortune 500 manufacturers to startups and engineering consulting firms, SmartUQ’s best-in-class predictive modeling accuracy helps our customers go beyond analysis to bring uncertainty into the decision-making process. 

Why do companies choose SmartUQ? SmartUQ’s combination of unique sampling capabilities, powerful machine learning tools, and easy-to-use analytics helps its customers solve previously unsolvable problems.

SmartUQ serves a number of different industries, including aerospace and defense, turbomachinery, automotive, heavy equipment, medical devices, semiconductors, consumer electronics, energy, oil and gas, and HVAC. 

If you’re interested in learning more, you can check out SmartUQ at www.SmartUQ.com.

SkyCharge

SkyCharge is focused on providing automatic industrial drone charging with no human interaction. 

To keep drones operational, you need to keep them charged – something that requires a hefty investment of people and resources if you’re going to do it manually. 

Creating your own automated system can be a slow and frustrating process; you need to develop, integrate, and harmonize a slew of system components while satisfying rigorous reliability and safety standards. And on top of that comes autonomous charging, which is such a critical component to develop, iterate, and maintain, in order to keep your fleet operational. 

But is there another option? What if there were a proven turnkey solution that could provide autonomous battery charging?  

Since 2014, Skycharge has been dedicated to developing just such a product.

NASA, enterprises, government entities, and startups rely on the SkyCharge technology to automatically charge their drones and keep their fleet operational – without human interaction.

If you want to see more about SkyCharge, you can check them out at www.SkyCharge.de.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

If you’re an AutoTech entrepreneur working on a solution that helps car dealerships, we want to hear from you. We are actively investing out of our new DealerFund.

If you’re a dealer who wants to invest in early-stage AutoTech companies that benefit your business, let me know. We are still accepting new investors into the DealerFund.

If you’re interested in joining our Investment Club to make direct investments into AutoTech and Mobility startups with small checks, join the Club. There is no obligation to start seeing our deal flow.

And don’t forget to check out my book, The Future of Automotive Retail, on Amazon.com. And keep an eye out for my new book, The Future of Mobility, which will be out at the end of the year.

Thanks as always for your ongoing support, and we look forward to working closely together with you to create the future of this industry.

Thank you for tuning into CBT News for this week’s Future of Automotive segment, and we’ll see you next week!

The post How this startup is reimagining home-based EV charging installations appeared first on CBT News.

Customer service speed can make or break a dealership’s brand loyalty and long-term growth. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Jay Baer, speaker, business growth and customer experience research and New York Times Best Selling Author, to explore service efficiency and whether companies can ever be too fast when helping customers in-store or online.

Baer’s findings on customer service speed have been compiled into a small but handy book called “The Time to Win: How to Exceed Your Customers’ Need for Speed,” currently available on Amazon. While researching the book, Baer discovered that buyers have drastically changed in terms of what they prioritize in their shopping experience. Consumers now care much more about their time and how it is spent than ever before. In fact, when it comes to shopping for products and services, two-thirds of all customers surveyed by Baer said speed was just as important as price. “So if you’re thinking about where to rank speed on your list of business priorities,” Baer remarks, “it needs to be towards the top because it’s already towards the top of the priorities of your customers.”

This newfound emphasis on speed has naturally led to changes in consumer preference and what buyers expect from dealership customer service departments. Whereas before, shoppers would spend more time researching deals and products, 50% today will purchase from whoever contacts them first or returns their call regardless of price. The reason behind this statistic, explains Baer, is the relationship between speed and perceived respect. “Today, we are in an environment where we interpret speed as caring,” he notes. “When a business is faster and more responsive, we take that to mean that they care about us, our money and our wellbeing more, and we vote accordingly with our money.”

Speaking broadly, the more time a dealership frees up for a client, the more likely they are to receive that client’s business. The opposite is also true: the more time companies spend taking care of their consumers, the less business they are likely to earn. But while car dealers should take this notion to heart and begin searching for ways to boost customer service efficiency, Baer warns that there are exceptions to this rule. Indeed, there are circumstances where businesses can be too fast when responding to a client. For example, many chatbots are programmed to wait several seconds before responding to customers, even though most platforms are capable of generating instantaneous responses. This is because web users will become suspicious if a chatbot responds too quickly and feel that their questions are not being taken seriously. In other words, when customer service speed is increased for the sake of the brand rather than the buyer experience, clients are likely to notice and feel resentment.

However, even though car dealers should carefully consider its customer service touch points and how speed can affect the consumer experience, most will see more loyalty from buyers if they show respect for their time. As technology continues to alter the relationship between buyer and dealership, Baer notes that responsiveness and efficiency will remain crucial for business success in the future.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The post The role of speed in customer service and car buyer loyalty — Jay Baer appeared first on CBT News.

The automotive industry is evolving once more as artificial intelligence transforms how car dealers and manufacturers conduct business and serve customers. One of the thought leaders at the forefront of this shift is Kevin Frye, marketing director at the Jeff Wyler Automotive Family.

Frye has spent more than 15 years pioneering new technologies in the dealership, supervising the integration of numerous innovations that have boosted sales, increased productivity, and, most importantly, improved the customer experience. But of all the inventions he has encountered throughout his career, artificial intelligence is proving to be one of the most significant and most transformative. On this episode of Inside Automotive, CBT News anchor Shyann Malone sits down with Frye to discuss AI and what it means for the retail automotive sector.

Key takeaways

1. Artificial intelligence, especially in the form of generative AI, offers users the ability to analyze data in a short period of time. As software developers create AI tools tailored specifically for car dealers, Frye foresees the technology being used to create daily reports for managers and store owners.

2. AI has the potential to drastically improve efficiency across departments in ways dealers may have yet to consider. Frye suggests that artificial intelligence could be used to track car dealer inventories and automatically bid for used vehicles at auction.

3. The adoption of artificial intelligence is also likely to change the way customers interact with car dealers. Since many AI platforms can provide results similar to a search engine, Frye believes that dealerships will need to adopt new SEO techniques to begin appearing in computer-generated responses to user queries, similar to how websites appear in Google search results.

4. Artificial intelligence could significantly change how CRM (customer relation management) and CDP (customer data platform) software identify leads and track information. Car dealers may soon be able to see the buyer journey in real-time with software that can recommend the best option based on a consumer’s preferences.

5. Artificial intelligence will be especially beneficial for smaller car dealers who lack the resources of larger auto groups. Since AI platforms reduce labor on many fronts, managers may also be able to invest more time into growing their business and attracting new customers.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The post The future of artificial intelligence in the dealership — Kevin Frye | Jeff Wyler Automotive Family appeared first on CBT News.

Now more than ever, dealerships need help to fill roles and retain top talent, like technicians. But you may be surprised to learn it doesn’t always come down to money for job seekers. Hireology’s State of Automotive Hiring Report found that things other than pay could make all the difference. On today’s edition of Inside Automotive, we’re joined by Adam Robinson, the CEO and Co-Founder of Hireology, to elaborate more on the report and solutions to fill roles.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The annual application survey conducted by Hireology aims to evaluate job seekers and retain their wants and needs related to finding employment to aid dealership employers with today’s recruiting and retention challenges. Hireologys’ most recent survey interviewed 450 retail automotive job seekers across all department roles and focused on the following:

• Expectations for ease and convenience in the application and hiring process,
• What are applicants looking for in a job? The study highlights that behind pay, what motivates applicants to choose one job over another. 
• What keeps employees loyal?

Contrary to popular belief, Robinson asserts, “Job seekers are really eager to work.” In fact, in the survey, it found:

• 40% of job seekers applied to over 11 roles in the same industry. 
• 34% of job seekers expect to be interviewed for the job they applied for within 48 hours of submission. 
• 61% expect to be interviewed for the job within 72 hours of submittal.
• 49% will ghost employers if they don’t meet those expectations. 
• 60% of job seekers accept the first offered job they receive. 

Furthermore, “If you’re not meeting those expectations as a dealer, you will have difficulties hiring since you missed out on 61% of the desired market,” says Robinson. The industry currently has these heightened expectations for speed in repose and interviews. Robinson states, “When looking to improve hiring results, you don’t need to spend more money or stretch your resources; you just need to get faster, manage it closer, and be quicker.”

Pain points:

The lack of convenience or ease, the survey found:

• 58% of job seekers didn’t apply because the application asked for repeated information. 
• 50% said the same as the above statement due to the process requiring a login or cover letter. 
• 31% said the max time they want to spend filling out the application is 15 minutes. 
• 51% of seekers ghosted an employee they interviewed due to a lack of communication and transparency. 

Robinson underlines that job seekers who don’t prioritize pay are more concerned with seeking jobs that fulfill schedule flexibility, career growth, and valued work or good culture.

The post Four vital factors to consider when trying to meet dealership hiring demands – Adam Robinson | Hireology appeared first on CBT News.

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

The post NADA Update: Protecting the dealer franchise system and EV supply vs demand appeared first on CBT News.

Artificial Intelligence is changing how some companies conduct business, especially in customer service. It may already replace roles in some industries, but is that necessarily bad? On today’s Inside Automotive, we’re joined by Shep Hyken, customer service and experience expert, keynote speaker, and a New York Times and Wall Street Journal best-selling author. Hyken explores how dealerships can best elevate their customer service experience using AI. A part of his most recent research, the ACA study, focuses on this very topic.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

Research

One of Hykens’ favorite written articles, Is AI Going to Take Over the World, serves off the premise of Will Smith’s iRobot movie. While Hyken doesn’t believe that is the future of AI, he does note how employees fear they will lose their jobs because of it. In the customer support world, Hyken asserts, “We conducted an interview with customer support leaders who said:”

• 9% are reducing staff,
• 28% remain the same,
• 63% are increasing their staff.

Recognizing the connection between doing it independently and eventually talking to a human is essential to Hyken and his team’s research. The Achieving Customer Amazement applies to the digital retail experience, and the number one way customers want to connect is via the phone. Despite popular belief, Hyken believes that in the near future, we can speak with an AI chat, which will respond on the level you understand. Additionally, over the 1,000 customers studied, the research concluded that:

• 48% of Generation Z prefer the digital experience,
• 36% of millennials prefer the digital experience, 
• 20% of Gen X prefer the digital experience, 
• 18% of Baby boomers prefer the digital experience. 

AI Technology 

Furthermore, with AI, Hyken believes that dealers need to teach the consumer how to use the digital channel to start. He adds, “Or they need to incentivize the experience at least.” Just getting the consumer to use the technology can be difficult, but that’s where dealers need to start. Next, dealers should make the AI technology easy and intuitive. “Companies need to recognize ChatGPT is the foundational tipping point of how everybody does anything, in a good way,” says Hyken.

However, with this extraordinary access to technology, some concerns arise. For example, when the camera first came out, the art world feared it would take over and leave artists in shambles. Yet, that wasn’t at all the case. “In ten years, we’re going to see exponential growth in utilization of AI, but it won’t change how people want to do business. 

The post Leveraging AI as an asset in the dealership rather than being afraid of it – Shep Hyken appeared first on CBT News.

New Jersey Governor Phil Murphy announced a proposal to adopt the Advanced Clean Cars II plan (ACC2), which would require car manufacturers to increase zero-emission vehicle shipments to 100% of all deliveries by 2035. The strategy was originally implemented by the California Air Resources Board (CARB) last year and has since been adopted by multiple states. On this episode of Inside Automotive, hosts Jim Fitzpatrick and Shyann Malone are joined by Jim Appleton, president of the New Jersey Coalition of Automotive Retailers (NJ CAR), to discuss the proposal and how it could affect the retail automotive sector.

Prior to the governor’s proposal, NJ CAR filed comments on the bill pointing out a number of weaknesses in the ACC2 plan. A key area of contention between lawmakers and the organization was the speed and scale with which manufacturers would be required to fully replace ICE vehicle sales with zero-emission vehicle sales. “I don’t think anybody in the automotive space doubts that EVs will play a major role in the coming years and decades,” remarks Appleton, “but 100% by 2035? I doubt it.”

Electric vehicle demand has certainly grown in a relatively short amount of time. In fact, according to the California New Car Dealers Association, Tesla sales outperformed Toyota, the state’s long-time frontrunner, in the last quarter. Although dealers are also increasingly excited by the growth of the zero-emission vehicle segment, many are concerned that the government’s goals will be unattainable without a rapid increase in demand. Appleton notes that the EV market is expected to grow to 9% by 2027 (Tesla comprises 4% of this total). Under the ACC2, this percentage would need to increase to 35% by the same timeframe, four times the anticipated amount.

Consumers have also voiced concerns. Affordability has become a major obstacle to new car ownership, especially for those in lower income brackets. While prices in the zero-emission vehicle segment have fallen over the last year, the average transaction price for such cars remains above $50,000. “This proposal, I think, will make a new car unaffordable for middle and working-class people in the state of New Jersey over the next three to five years,” predicts Appleton.

The ACC2 would also place disproportionate responsibility on different sectors of the automotive industry. Under the plan, car manufacturers would only be required to ship the targeted ratio of zero-emission vehicles into states which have adopted the CARB’s guidelines. Since ZEVs are expensive to make and have yet to offer meaningful returns on investments for most brands, this could encourage automakers to reduce their overall production as they slowly ramp up ZEV sales to improve cost efficiency. This could artificially constrain inventories and drive prices up even further. Customers and dealers would both be placed at a disadvantage if OEMs were to adopt such a strategy.

To increase sales of zero-emission vehicles, Appleton urges state and federal governments to “put their money where their mandates are.” In order to achieve the goals listed in the ACC2 without disadvantaging the middle class or dealerships, lawmakers should start by addressing the underlying issues currently blocking widescale ZEV adoption. Initiatives that lower car prices and improve infrastructure would naturally seed demand among hesitant car buyers. Appleton also recommends removing the proposed timeline. “I don’t think we can set a date,” he notes. “We have to set the pre-conditions for the marketplace to fall into line with the government mandates.” Once this is accomplished, the industry will be able to move much faster toward the goals envisioned by the ACC2 and the CARB.

"I think we're just going to have to...get off this thought that it's just going to be all EV, all the time, all over the U.S. I just don't see it going that way." — John Luciano

The post Addressing challenges in the ACC2 and driving zero-emission vehicle demand — Jim Appleton | NJ CAR appeared first on CBT News.