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

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

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

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

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

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

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

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

Key takeaways

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

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

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

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

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

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

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

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

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

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

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Grieco Honda supplied the vehicle to Ciarra Muller, who recently started her major in journalism at the Community of College of Rhode Island. Muller and her family originally contacted the company to refit their family van for a wheelchair. “We heard about their story, saw the van they had, and it was nowhere where she could take it to school as safe transportation,” said co-owner of the Honda dealership Robert Greico, speaking to local media station 10WJAR. “We happened to have a van that we traded that was a handicapped van, so what better way to give them a new van than to surprise them with it.”

Greico Automotive Group, which owns 13 locations across Rhode Island, Florida, California, and Massachusetts, also presented Muller with a $3,000 check to help her purchase school supplies. Her van will also receive free maintenance from the Honda dealership. Speaking to the Johnston Sunrise, Muller’s mother, Lacie Messier, said the family was “grateful beyond words.”

Like many automotive retailers, the Greico Honda dealership is an integral part of its community. Thanks to the lucrative nature of the automotive industry, dealers have immense power to support those in need and are among the largest contributors to local charities and nonprofits. With school starting up once more and the holidays around the corner, there are more opportunities than ever for storefronts to make a positive impact.

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The costs of vehicle ownership have risen significantly since the onset of the COVID pandemic. During 2019, AAA reported that new car owners were spending $9,282 a year, which at the time was the highest since the association began tracking consumer spending. In the four years since, annual costs have risen more than 30%, rising 13.5% between 2022 and 2023 alone. While previous surges in owner expenses were typically driven by individual components such as financing fees and gas prices, this year’s increase can be attributed to multiple factors.

AAA notes that MSRPs have risen 4.7% or $1,575 since 2022, resting at an average of $34,876. On the other hand, average transaction prices for current model-year vehicles reached $48,334 in July, a $199 increase from the prior-year period. Finance expenses, which hit $920 in 2019, now average $1,253, a four-year increase of 36.2% and a one-year increase of 90%. Used vehicle prices have also declined, giving car owners less money from trade-ins to put toward their next purchase. New car owners are also facing pressures outside the auto market, such as high inflation, strict lending policies, increasing insurance costs and interest rate hikes.

Although sales and profit margins have remained strong since 2019 thanks to pent-up demand and price-boosting supply shortages, the effect of the pandemic on new car owners has been severe. Given that the market is starting to show signs of normalizing, dealers will soon need to compete again for customers. Since new car owners will prioritize working with the retailers that best address their pain points, the time is now for dealerships to implement solutions that will retain and attract enough business to accommodate declining profit margins.

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The Volvo-owned EV maker published its quarterly earnings on Thursday, August 31, revealing a net loss of $304 million. The electric vehicle brand previously announced it had sold roughly 15,765 units between April and June, a year-over-year growth of 36%. This increase pushed Polestar’s earnings up 16.3% from Q2 2022 to $685.2 million.

In its report, the company confirmed that it remains on track to achieve its yearly delivery target of 60,000. To date, the electric vehicle brand has sold 27,841 units, meaning it will need to sell an additional 32,159 units between July and December to reach this goal. While the automaker did not provide a sales total for June, it did report that deliveries for the month were up 73% year-over-year. Should it maintain this pace in the third quarter, the EV maker will be well-positioned to hit its target. Even if sales begin to stagnate in Q3, the release of the Polestar 4, expected to launch towards the end of the year, may still drive enough sales to push the automaker over the finish line in the final quarter.

But while its delivery goal is certainly within reach, the electric vehicle brand is still in a vulnerable position. It is true that EV startups have outperformed expectations throughout the year. Polestar’s results have been especially impressive since it is one of the few electric car makers to report positive profit margins on its vehicles. However, demand for battery-powered cars remains too low for any competitor other than Tesla to avoid losing money. Consumers are frequently deterred by high car prices, range limitations and insufficient charging infrastructure. While legacy automakers can still rely on ICE vehicles to generate profit until these pain points are addressed, startups like Polestar are at greater risk of failing, significantly more so if investors and backers like Volvo grow disillusioned with the EV market. Proving that the segment still has hope will be crucial for electric vehicle makers in the coming months.

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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.

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Apart from the electric pickup, the dual-motor option is also available for the R1S electric SUV. The EV brand is also planning to rely on the Enduro motors for its upcoming R2 lineup, the first model of which is scheduled to launch in 2026. When coupled with the Enduro drive units, standard 21-inch wheels and the most powerful (and expensive) battery back Rivian offers, the dual-motor R1T electric pickup boasts an EPA-estimated range of 410 miles, although the distance drops to 352 miles and 341 miles for the large and standard batteries, respectively. For comparison, the quad-motor variant, which was released last year and thus lacks the Enduro motors, features 328 miles of range. Rivian has yet to announce the range for the dual-motor R1S, although it expects to reveal the numbers soon.

Given that the dual-motor configuration provides more range with fewer components than last year’s quad-motor variants, it seems that Rivian’s new Enduro drive units are just as much show as they are talk. This is not to dismiss the quad-motor configuration, however, since the two models offer separate advantages depending on whether drivers are looking to take their electric pickup on the highway or offroad. While the better driving range is likely to attract customers, the price tag for the dual-motor configuration, which starts at $74,800, is likely to give some pause.

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