Steve Mitchell – CBT News https://www.cbtnews.com Your #1 source for auto industry news and content Thu, 31 Aug 2023 15:15:02 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://d9s1543upwp3n.cloudfront.net/wp-content/uploads/2023/04/cropped-CBT-logo-scaled-1-32x32.png Steve Mitchell – CBT News https://www.cbtnews.com 32 32 Opinion | Rethinking the UAW and the Detroit 3 Saga: An Avengers level showdown with real-world stakes https://www.cbtnews.com/opinion-rethinking-the-uaw-and-the-detroit-3-saga-an-avengers-level-showdown-with-real-world-stakes/ Tue, 29 Aug 2023 09:03:31 +0000 https://www.cbtnews.com/?p=189283 In the Transformers movies, when Optimus Prime clashed with Megatron, or in The Avengers, when our heroes battled the likes of Thanos, the earth-shattering confrontations, while spectacular, always left a trail of devastation in their wake. The unfolding drama between the United Auto Workers (UAW) and the Detroit 3 is not so different—possibly spectacular in […]

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In the Transformers movies, when Optimus Prime clashed with Megatron, or in The Avengers, when our heroes battled the likes of Thanos, the earth-shattering confrontations, while spectacular, always left a trail of devastation in their wake.

The unfolding drama between the United Auto Workers (UAW) and the Detroit 3 is not so different—possibly spectacular in its intensity but with ramifications that echo throughout the American economic landscape. This isn’t a mere corporate face-off—it’s an epic clash with some potentially damaging results.

The UAW’s Crusade: An Uprising or a Last Gasp?

Enter Shawn Fain, whose rise to the UAW president seems scripted for the big screen—it probably was. Barely securing his leadership, Fain has since been relentless, verging on the militant.

Admittedly, I’ve seen unions as market saboteurs. Yet the simmering discontent among workers staring into the maw of an AI-dominated future is hard to ignore. Fain’s take on the EV paradigm shift? Less a warning, more a battle cry. Automation isn’t a specter on the horizon; it’s a pressing threat. The wage disparity at the Ultium Cells LLC factory? It’s not just numbers—it has the sound of a declaration of war.

The whopping $10-$16 less per hour wage chasm at the Ultium Cells LLC factory compared to other GM work sites? More than a concern—it’s an outright insult. While the boardroom elites whine over vintage wines, it’s the ground troops, the workers, who bear the brunt of corporate decisions while facing potential annihilation on the altar of ‘progress’.

The Automakers: Visionaries or Profiteers?

Conversely, the automakers seem more entangled by the future than shaping it. A pivot to EVs? It’s a Herculean feat, especially when it seems 94% of their dwindling customer base not only didn’t ask for them, but they’re also not signing up to purchase them.

Their cries of hardship might evoke sympathy if not for the audacity of the UAW’s 46% wage increase demand. It’s audacious, but isn’t it time the behemoths got a wake-up call?

And the CEOs? Their eye-watering salaries, while perhaps a testament to the risks they bear, also smell of corporate gluttony and imbalance. With a nearly $29 million paycheck like Ms. Barra has, couldn’t the collective OEM C-suite not spare a bit to address workers’ demands? One wonders.

The Presidential Meddling: Savior or Opportunist?

And then there’s the $58 million net worth ‘everyman’ President Biden, leaping into the fray. He’s reminiscent of a character seeking to mediate cosmic battles. His calls for unity? Perhaps they’re more about the ballot box than genuine economic concerns.

His romantic “win-win” vision? Think of what “win-win” has meant in your work life. Now you see why that idea seems as elusive as peace in a fictional universe torn by conflict. Is this heartfelt diplomacy or mere shallow political theater?

And can the Biden administration really help? Or should we remember these words from Ronald Reagan, who reminded us that “the nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’”

The Inferno Ahead: Who’ll Emerge from the Ashes?

What’s unraveling is not a mere disagreement—it has all the marks of a cataclysmic uprising. A reflection, perhaps, of the greater societal chasms that underpin our society.

Unions, once the guardians of the working class, now teeter on the edge of obsolescence. Yet their passionate outcry in our digital age is impossible to ignore.

Automakers, despite their grandiose claims, appear caught in a storm largely of their own making, enabled by a short-sighted government.

As the climax nears, there’s a critical takeaway: Much like the innocent bystanders in Transformers and The Avengers, it’s the American taxpayer who might bear the heaviest burden from the fallout of this corporate clash.

And here’s another inconvenient truth: Robots and AI don’t pay taxes or buy cars, houses, food, and clothing to support the economy.

So, we’re at a pivotal juncture. This time, the tectonic clash of industry and labor isn’t just a skirmish, and we’re not mere spectators; the aftermath of this epic battle has the frightening potential to damage the very foundations of our economy.

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Navigating EV maintenance: what dealerships need to know
 https://www.cbtnews.com/navigating-ev-maintenance-what-dealerships-need-to-know/ Mon, 28 Aug 2023 09:03:10 +0000 https://www.cbtnews.com/?p=189195 Imagine walking onto your showroom floor first thing in the morning. The familiar hum of traditional internal combustion engine vehicles buzzes in the background. But right at the forefront, a lineup of shiny, sleek electric vehicles beckons. As you admire them, a long-time customer walks up beside you, eyeing an EV. “I’ve heard these hardly […]

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Imagine walking onto your showroom floor first thing in the morning. The familiar hum of traditional internal combustion engine vehicles buzzes in the background.

But right at the forefront, a lineup of shiny, sleek electric vehicles beckons. As you admire them, a long-time customer walks up beside you, eyeing an EV. “I’ve heard these hardly need any maintenance. Is that true?” they ask.

This misconception is something many dealerships regularly encounter since it’s what consumers are reading in the media. As electric vehicles begin to reshape the auto industry, they’re also redefining what maintenance means.

While they might offer fewer routine repairs, EVs open different doors for dealerships. Let’s unravel the true essence of EV maintenance, understand its implications for your service bay, and learn how you can guide your customers through this electric transition.

The Reality of EV Maintenance

Electric vehicles are inherently simpler in design than their internal combustion engine (ICE) counterparts. With fewer moving parts, no oil changes, no exhaust systems, and no need for fuel filters, the routine maintenance list for EVs is undoubtedly shorter.

This may mean reduced revenue from standard servicing and maintenance work for dealerships. However, this isn’t a sign to hit the panic button.

While EVs promise reduced routine maintenance, they also present new areas of service focus. Batteries, software updates, and cooling systems become central to the EV’s longevity and performance.

Brakes and Tires Still Matter

A common misconception among consumers is that EVs are virtually maintenance-free. While it’s true that electric drivetrains have fewer maintenance needs, some normal wear elements remain constant.

You should keep a good selection of tires around. With the weight of EVs, available power, and energy-efficient construction, consumers will replace their tires more often.

Brakes, albeit lasting longer due to regenerative braking systems, will still need periodic servicing. Dealerships must be clear about these aspects to manage customer expectations and ensure safety.

The Warranty Work Window

EVs might not frequent the service bay for regular check-ups as ICE vehicles do, but they aren’t free from potential issues. Problems related to software, electronic components, and battery health can arise.

Dealerships should find an uptick in warranty-related work, and accident repair, offering an avenue to compensate for potentially lost maintenance revenue.

Educating the Customer: A Proactive Approach

Education becomes important. Dealerships have an opportunity—and responsibility—to demystify EV maintenance for customers. Host workshops, create informational pamphlets, or design interactive sections in your showroom to communicate the nuances of EV care. Some enterprising dealerships may even consider offering tech-related services on call—sort of a customer’s 24/7/365 paid IT service technician.

By doing so, dealerships not only establish trust but can also position themselves as the go-to experts in EV maintenance, ensuring customer loyalty.

Exploring Cost Savings for Consumers

Electric vehicles can translate to significant savings for consumers in the long run. No oil changes, fewer routine check-ups, and less frequent brake services can reduce the maintenance bill substantially.

While this might sound like a grim prospect for dealerships, being transparent about these advantages to customers is essential. It’s a selling point that can lead to increased EV sales and potentially offset the revenue dip from maintenance services.

Rethinking Dealership Revenue Streams

The EV era might require dealerships to get creative. With potentially reduced maintenance revenue, it’s time to diversify. Given their often high-tech nature, this could mean expanding into EV charging solutions, becoming a hub for aftermarket EV accessories, or offering specialized cleaning and detailing services for EV interiors.

Looking Ahead

The transition to EVs is more than just a shift in propulsion; it can potentially transform the entire automotive ecosystem. Dealerships that accept the realities of this change, both the challenges and opportunities, are best positioned to thrive.

In embracing the EV evolution, it’s clear that dealerships need to pivot their strategies, focusing on education, diversification, and the unique maintenance needs of electric vehicles. The road ahead might have its bumps, but with foresight and adaptability, dealerships can navigate it successfully.

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The role of software in EVs: opportunities and challenges https://www.cbtnews.com/the-role-of-software-in-evs-opportunities-and-challenges/ Thu, 24 Aug 2023 09:03:10 +0000 https://www.cbtnews.com/?p=189023 The spotlight in the auto industry has transitioned to an unlikely subject: software. Electric vehicles (EVs), previously dismissed as a niche, are fast becoming mainstream. Central to this transformation is software, acting as the lifeblood and cognitive center of these vehicles. But how does this digital wave affect dealerships and the consumer? Powering Performance: Battery […]

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The spotlight in the auto industry has transitioned to an unlikely subject: software. Electric vehicles (EVs), previously dismissed as a niche, are fast becoming mainstream. Central to this transformation is software, acting as the lifeblood and cognitive center of these vehicles. But how does this digital wave affect dealerships and the consumer?

Powering Performance: Battery Management Systems

A surprisingly concerning McKinsey report flagged a possible 40% drop in aftermarket parts revenue for traditional Internal Combustion Engines due to electrification’s surge. This shift illuminates the urgent need for dealerships to deepen their understanding of EVs.

Central to this is the Battery Management System (BMS), ensuring optimal battery performance, range, and safety. Yet, the susceptibility of Lithium-Ion batteries to overheating is a concern. Dealers must therefore gear up to address safety concerns and the importance of regular battery maintenance checks.

Steering the Future: Autonomous Driving Features

The automobile dream of the 21st century, autonomous vehicles, is rapidly transitioning from the realm of fantasy to everyday reality because of software. OEMs like Tesla and Ford—with its top-rated Blue Cruise— are leading the charge, hoping to make self-driving features accessible to everyone.

As these technologies advance, occasional hiccups are inevitable. Recognizing this, dealers must proactively arm themselves with information to answer questions about safety, operational functionalities, and possible system upgrades.

The Infotainment Battleground: Google, Apple, and OEMs

Today’s vehicles offer more than just transportation; they promise an immersive experience. Partnerships like that of Google and Mercedes and Apple’s renewed focus on CarPlay are setting the stage for an intense showdown with Original Equipment Manufacturers’ (OEM) in-house systems. The Wall Street Journal aptly called it “a battle for the car’s soul.”

In this tech-dominated era, dealerships must excel at demonstrating and educating customers on these integrated technologies and options as they become available. Especially if it means bringing a car in for a software upgrade. A customer’s drive isn’t just about reaching a destination; it’s about the journey enriched with entertainment, information, and unparalleled connectivity.

Unlocking Potential 

Tesla’s flexible battery and performance upgrades are redefining the boundaries of vehicle ownership. Should other OEMs hop on this trend, dealerships will need to adapt swiftly. Letting customers know about potential software boosts could bolster the dealership’s bottom line.

Cybersecurity: Safeguarding the Smart Vehicle

As vehicles transition into intelligent, connected hubs, they become enticing targets for potential cyber-attacks. However, every challenge can be flipped into an opportunity.

Dealers can pivot by guaranteeing and promoting top-tier cybersecurity measures as a unique selling proposition. Add-ons like Elo GPS and LoJack could further enhance a vehicle’s security footprint, offering customers much-needed peace of mind.

Continuous Evolution: Over-the-Air Updates

The near future may witness cars that upgrade themselves without a pit stop at a service center. While OTA updates spell convenience for customers, they also disrupt traditional dealership service models.

The antidote? Dealerships can emphasize routine physical maintenance’s undying importance, from brake servicing to tire check-ups.

Navigating the Digital Drive

The intricate dance between EVs and software is crafting a new narrative in the automotive industry. Dealerships, at this pivotal juncture, can transform challenges into substantial opportunities.

By offering a tailored in-store experience, detailed insights on the total cost of ownership, and unmatched post-sales support, they can retain a competitive edge. Forward-thinking dealerships can pave the way in our electrifying and hyper-connected automotive marketplace by merging the best of both digital and traditional worlds.

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Rethinking dealership design for electric vehicles https://www.cbtnews.com/rethinking-dealership-design-for-electric-vehicles/ Wed, 23 Aug 2023 09:03:10 +0000 https://www.cbtnews.com/?p=188988 The automobile industry is attempting a seismic shift. OEMs, at the direction of the government, are not only wanting to change the way we drive but also how we purchase and maintain our vehicles. For dealerships, with the help of OEMs, this means more than just updating inventory—it’s about reimagining the entire showroom experience. Let’s […]

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The automobile industry is attempting a seismic shift. OEMs, at the direction of the government, are not only wanting to change the way we drive but also how we purchase and maintain our vehicles.

For dealerships, with the help of OEMs, this means more than just updating inventory—it’s about reimagining the entire showroom experience. Let’s dive into how dealerships can redesign their spaces to cater to the new era of electric vehicles (EVs) and meet consumer expectations.

Charging Infrastructure: More Than Just a Power Point

The most apparent change for an EV-ready dealership is the installation of charging stations. If you’re not supporting EVs, why should your customer? But consider this: rather than a simple plug-and-charge station, what if the charging space was a lounge? We’re not suggesting an Audi-sized charging lounge. However, dealerships can adopt some of their ideas.

Picture an expanded, comfortable seating area with Wi-Fi, coffee, and workstations. Lincoln is adopting some of these ideas at their Experience Centers that could be put into their dealerships. Customers can relax or catch up on work while waiting for their vehicles to charge. It’s about selling a branded experience, not just electricity.

Interactive Displays: Bringing Tech to the Forefront

Buying an EV is as much about the technology as the vehicle. Dealerships, with the help of OEMs, can leverage this by setting up interactive displays. These kiosks can educate customers about battery technology, range, charging infrastructure, and the environmental benefits of EVs. A well-informed customer is more likely to make a confident purchase.

Test Drive Routes: Showcase EV Strengths

One of EVs’ most significant selling points is their smooth acceleration and near-silent operation. When setting up test drive routes, ensure they allow potential buyers to experience these qualities.

Include a mix of city and highway driving and, when possible, a hill or two to demonstrate regenerative braking. Every test drive should make the EV’s benefits palpably clear.

Service Areas: Transparent and Educational

Of course, EVs come with a different set of maintenance needs compared to ICE. However, regardless of the type of vehicle sold, establishing transparent service areas where customers can see technicians at work would be an excellent idea.

Offer tours or workshops where buyers can learn about essential EV maintenance and care. By demystifying the process, dealerships can alleviate some consumers’ apprehensions about EV upkeep.

Green Building Design: Walking the Talk

Consider the power of a statement when your dealership not only sells EVs but is also a beacon of sustainability. Incorporate green building designs like solar panels, rainwater harvesting, and energy-efficient lighting. It reinforces the message that your dealership is fully invested in the future of sustainable mobility.

Flexible Dealership Design: Anticipating the Future

Under the government timeline, EV purchasing and usage should be rapidly evolving. Today’s charging stations might be obsolete in a few years, replaced by faster and more efficient models.

So, designing dealership spaces to be flexible and adaptable to future technological advancements is essential. Modular designs, which can be easily updated or reconfigured, will ensure your dealership remains ahead of the curve.

Holistic Customer Experience: Beyond Just Cars

Finally, reshape the dealership into a holistic space that’s a destination. Introduce a café that offers organic goods or a small bookstore that stocks titles on technology, sustainability, and the future of transport. Create a community hub for discussions, workshops, and events centered around EVs and green technology.

It Could be Time for a Makeover

The rise of electric vehicles offers an unprecedented opportunity for OEMs and dealers to redefine dealership design. By creating an environment that’s not just about selling cars but promoting a sustainable and tech-forward lifestyle, dealerships can attract and engage a new generation of eco-conscious, tech-savvy buyers.

As the adage goes: adapt or get left behind. In the EV era, adaptation means embracing the electric revolution, both in the cars you sell and the experience you offer.

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Opinion | California’s power grid conundrum: are EV batteries the solution? https://www.cbtnews.com/opinion-californias-power-grid-conundrum-are-ev-batteries-the-solution/ Tue, 22 Aug 2023 09:03:35 +0000 https://www.cbtnews.com/?p=188753 California, known for its progressive environmental policies, is grappling with an electric grid crisis. Recent brownouts and electricity disruptions, reminiscent of those seen in developing nations, are a testament to the state’s ongoing energy challenges. The state’s primary electric utility, PG&E, believes it has a novel solution: tapping into electric vehicle (EV) batteries. At first glance, […]

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California, known for its progressive environmental policies, is grappling with an electric grid crisis. Recent brownouts and electricity disruptions, reminiscent of those seen in developing nations, are a testament to the state’s ongoing energy challenges. The state’s primary electric utility, PG&E, believes it has a novel solution: tapping into electric vehicle (EV) batteries.

At first glance, the idea seems straight out of a futuristic novel. PG&E’s proposal involves leveraging the batteries of electric vehicles during their charging cycles to stabilize the grid during peak demand times.

The Ford F-150 already offers bidirectional charging and GMs recent announcements that every GM EV will have this feature by 2026 present an example of how vehicles can act as backup power sources for households during outages. However, PG&E’s vision goes beyond isolated instances—it aims to harness the power of all EV batteries to prevent a grid collapse.

Harnessing the Idle Potential of Owners’ EVs

The logic behind this initiative is grounded in the observation that electric vehicles mostly remain unused for about 95% of the day. During these idle periods, energy stored in EV batteries could be repurposed to supplement the grid’s demands. According to the ABC News report, PG&E CEO Patricia Poppe views this “vehicle-to-grid” energy transfer as an unconventional yet promising strategy to preempt blackouts.

California’s state machinery also supports this innovative proposal. Lawmakers in Sacramento are expediting the legislative framework to make this vision a reality. Under SB 233, all new EVs sold in California by 2030 must come equipped with bidirectional charging, a technology that allows EV batteries to power homes, businesses, or the grid.

More Costs for EV Owners

However, the proposal is not without its challenges and critics. Detractors argue that this proposal would increase expenses for consumers, reduce the longevity of their already high-priced vehicles, and the sole advantage offered to them would be a reimbursement for a fraction of the initial charging costs—costs they’d incur once more when recharging after PG&E depletes the power.

Questions also arise about the consequences of this strategy on electric vehicles. If California’s grid routinely taps into EV batteries, will vehicle owners find their cars frequently drained when they need them the most?

Moreover, the economic ramifications for EV owners are concerning. Although PG&E may compensate users for the electricity drawn from their vehicles, the frequent charge-discharge cycles could reduce the lifespan of their batteries. Batteries, after all, have a limited number of charge cycles before their efficiency wanes. This could result in EV owners shouldering the costs of premature battery replacements—a proposition that is hardly enticing.

A Problem and a Solution No One Asked For

This situation epitomizes the complexities of pushing green energy initiatives without adequate infrastructure. While the intent behind such initiatives is commendable, the execution and broader implications can sometimes lead to more challenges than solutions. In trying to address one issue, another is inadvertently created.

So, while PG&E’s proposal to harness EV batteries is a testament to innovative thinking, it’s essential to consider its long-term viability and impact on EV owners. As California seeks sustainable solutions for its grid challenges, it’s crucial to ensure that the remedies proposed do not exacerbate existing problems or create new ones. After all, innovation, while valuable, must also be pragmatic and sustainable.

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Why customer experience is your dealership’s ultimate marketing tool https://www.cbtnews.com/why-customer-experience-is-your-dealerships-ultimate-marketing-tool/ Fri, 18 Aug 2023 09:03:42 +0000 https://www.cbtnews.com/?p=188619 In the dim glow of a local dealership, Sarah drove off the lot with her brand-new sedan. Instead of feeling like just another sale, the dealership made her feel like family. From the initial greeting to the in-depth discussions about features and the thoughtful post-purchase follow-up, every interaction was designed to ensure her complete satisfaction. […]

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In the dim glow of a local dealership, Sarah drove off the lot with her brand-new sedan. Instead of feeling like just another sale, the dealership made her feel like family.

From the initial greeting to the in-depth discussions about features and the thoughtful post-purchase follow-up, every interaction was designed to ensure her complete satisfaction.

Customers like Sarah aren’t just one-time customers; she’s now a vocal advocate for the dealership on every platform she frequents. And this experience will attract others with higher expectations regarding personalized customer service, proactive pricing, and successful omnichannel experiences.

Welcome to the transformative power of prioritizing customer experience.

The Significance of Customer Experience in the Dealership

We’re long past the days when a flashy advertisement or a one-off discount could guarantee customer loyalty. A recent study by Accenture said 92% of dealers believe that customer experience will play an integral role in future growth, although they may not follow through. Additionally, 46% of customers said they’d switch to a different OEM if it delivered better customer experiences.

Today, customers yearn for genuine connections and memorable experiences. When dealerships shift their focus from mere sales targets to curating unforgettable customer journeys, they aren’t just selling cars but building long-lasting relationships.

Even simple personalized interactions, like remembering a customer’s preferences or inquiring about their specific needs, can make all the difference. When customers feel truly understood and catered to, their trust in the brand solidifies. This trust isn’t just for the present—it’s an investment in the dealership’s future.

Building Brand Loyalty: It’s More Than Just a Sale

Think about your own purchasing habits. Brands that try to know you, value your patronage, and continue the relationship even after the sale are the ones you’re likely to return to.

To your customers, your dealership is no different. Post-purchase follow-ups, such as checking in on how a customer is enjoying their new vehicle or offering maintenance tips, showcase a level of care that goes beyond the initial transaction.

These check-ins are invaluable in fostering brand loyalty. Why? As a recent PwC report suggested, 76% of consumers expect companies to understand their needs and expectations. And 16% of those customers are willing to pay a premium for a great customer experience.

The benefit for dealerships is that customers like Sarah will become an advocate because her dealership didn’t stop caring after the sale. A successful dealership continues to nurture that relationship, ensuring the customer is happy and satisfied with her purchase.

Attracting New Customers Through Exceptional Experiences

Word-of-mouth marketing, which we’ve covered here, remains one of the most powerful marketing tools available. When customers share their positive experiences, they not only endorse the brand but also inspire others to seek out similar experiences.

Imagine a scenario: A potential customer reads a glowing review detailing the unparalleled customer service and personal touch offered by a dealership. How critical is that positive review? In an article about the importance of customer reviews, Qualtrics said 92% of buyers are likelier to purchase after reading a trusted review over another with generic, less enthusiastic reviews.

Optimizing the Customer Journey

Dealerships must be strategic in their approach. It’s not about grand gestures but consistent, thoughtful interactions at every touchpoint. For instance, many dealerships offer personalized video tours of cars, where salespeople address customers by name and cater the tour to their stated preferences. This simple yet effective strategy will bring a remarkable increase in both showroom visits and sales.

Prioritizing Customer Experience: The Path Forward

In an industry as competitive as automotive sales, dealerships must constantly evolve to stand out. By prioritizing customer experience, they can cultivate a community of brand advocates like Sarah, who not only return for repeat business but also become enthusiastic ambassadors for the brand.

Embracing the power of exceptional customer experiences isn’t just a marketing strategy—it’s a commitment to excellence that promises unparalleled growth and success.

As dealerships navigate the rapidly changing retail environment, one truth remains constant: Happy customers always drive the business forward. So, gear up and shift your focus to what truly matters—the customer.

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Opinion | We need to address declining brand loyalty in the EV era https://www.cbtnews.com/opinion-we-need-to-address-declining-brand-loyalty-in-the-ev-era/ Thu, 17 Aug 2023 09:03:30 +0000 https://www.cbtnews.com/?p=188572 The latest results from the 27th annual Automotive Loyalty Awards by S&P Global Mobility present a concerning trend for traditional automakers. Brand loyalty has steadily dropped, declining from 54.6% in 2019 to 50.2% in 2022. This downward trend points to a much deeper dilemma, prompting the thoughtful to question the industry’s trajectory. Let’s look at some reasons […]

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The latest results from the 27th annual Automotive Loyalty Awards by S&P Global Mobility present a concerning trend for traditional automakers. Brand loyalty has steadily dropped, declining from 54.6% in 2019 to 50.2% in 2022. This downward trend points to a much deeper dilemma, prompting the thoughtful to question the industry’s trajectory. Let’s look at some reasons that may be denting loyalty.

The Pricey Aftermath of the Pandemic

The economic turbulence caused by the pandemic brought with it inflated prices. Some dealerships, responding to supply constraints and surging demand, foolishly increased vehicle prices, often significantly.

OEMs aren’t above their own pricing manipulation. GM wants to keep its sales prices closer to MSRP and profit margins high by keeping production low.

While this may be understandable from a short-term business perspective, this move has alienated many loyal customers who feel they’re being taken advantage of in an already challenging time.

The ICE Customer: Forgotten, But Not Gone

There is an incentivized momentum behind electric vehicles. However, amid this manufactured EV enthusiasm, a significant portion of the consumer base – those average-income Americans loyal to affordable ICE vehicles – feels left behind.

Reuters says, “boosting U.S. EV sales above the current 7% market share level will be more costly and difficult than expected, even with federal and state subsidies.”

So there’s a potential 93% of customers who won’t necessarily seek out EVs. How can consumers be loyal if they can’t buy what they want? And there’s growing sentiment that the affordable, and reliable ICE vehicle is being sidelined as if it’s part of a plan to take away the average customer’s personal transportation entirely.

The Perils of Electric Vehicle Volatility

With its notable loyalty figures, Tesla offers a promising view of EVs thanks to the vision of Elon Musk. Yet, the broader EV market has its challenges.

Consumers face not only the typical hurdles associated with adopting new technology but also significant price volatility. While it may be acceptable in consumer electronics, such fluctuations in the automotive realm, like sudden significant price drops, only serve to dishearten and dissuade potential loyalists.

Diversity on the Rise, But Are We Listening?

The auto market’s evolving consumer base, notably with an uptick in ethnic buyers, is not just a footnote. It’s a clarion call for brands to adapt and address diverse needs. Brand loyalty in this age requires more than just lip service and a photo; it demands genuine engagement with varied consumer preferences, from ICE to EV and beyond.

A Plea for Balance in Power Options

Governmental intervention, particularly the pronounced push towards EVs, warrants scrutiny. While the aim of promoting sustainable transportation is commendable, it’s vital to recognize the significance of choice in a market that’s divorced from an agenda.

OEMs should champion a balanced approach, recognizing the value of not just EVs but also alternative technologies like hydrogen and support of biofuels.

Focusing solely on one, at the detriment of others, won’t cultivate loyalty but might rather stifle it. To mindlessly follow a narrative never leads to a good result.

Navigating the Crossroads of Brand Loyalty

The declining brand loyalty statistics are more than numbers; they reflect profound shifts and challenges within the automotive industry. As we steer toward the future, it’s imperative to remember the origins and values that shaped the industry.

A balanced, inclusive, “something for everyone” approach has historically been more than just a wise strategy; it’s a roadmap that caters to all, fostering a stable, dedicated consumer base and paving the way for a more loyal future.

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Exploring the impact that social media has on automotive sales https://www.cbtnews.com/exploring-the-impact-that-social-media-has-on-automotive-sales/ Wed, 16 Aug 2023 09:03:09 +0000 https://www.cbtnews.com/?p=188413 In the dealer’s lounge, you may scroll through Instagram. Not for leisure but to inspect a competitor’s latest post showcasing their newest sedan under a mesmerizing sunset. It may have thousands of likes, hundreds of comments, and make you think: “Are we missing out?” Welcome to social media, where the boundaries between social entertainment and […]

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In the dealer’s lounge, you may scroll through Instagram. Not for leisure but to inspect a competitor’s latest post showcasing their newest sedan under a mesmerizing sunset. It may have thousands of likes, hundreds of comments, and make you think: “Are we missing out?” Welcome to social media, where the boundaries between social entertainment and business blur, continually reshaping the auto sales landscape.

The Power of Peer Reviews and Recommendations

Traditionally, car buyers would often turn to experts, magazines, or direct dealership interactions for advice and recommendations. Today, platforms like Facebook, Twitter, TikTok, and Instagram offer potential buyers firsthand user experiences.

Reviews and feedback from peers and influencers on these platforms can instantly influence a potential buyer’s perception. But are social media reviews that important?

Yes, they are. Fera.ai suggests that “93% of customers read online product reviews before buying a product, and 91% of consumers in the 18–34 age range trust online reviews as much as they trust personal recommendations.” And studies show that 90% of consumers gather information online before purchasing from your inventory they’ve already viewed.

Driving Engagement through Visual Stories

The visual allure of cars cannot be understated. Instagram and Pinterest are primed for showcasing the aesthetics, design, and features of vehicles. Dealerships can utilize these platforms to craft compelling visual narratives, often drawing increased foot traffic to their showrooms. These visual-centric platforms also serve as launchpads for new models or special offers, engaging potential buyers through captivating imagery and videos.

Influencers: The New Salespeople

The power influencers command in the digital sphere parallels that of traditional salespeople. Automotive brands collaborate with these digital personalities to present their vehicles in relatable, real-world settings.

For dealerships, partnering with local influencers can be a strategy to drive sales by connecting with a vast and engaged audience. And, as with any spokesperson or employee, make sure their brand image and activities accurately reflect your brand image. You can find some legal recommendations here.

Targeted Advertising for Precise Reach

The precision targeting capabilities of social media advertising stand out as one of its strongest advantages. Dealers can customize their advertisements to target specific demographics—age, interests, location, type of car, driving style, and more. Such tailored promotions ensure they reach individuals most likely to become buyers, optimizing advertising spend and boosting ROI.

Integrating Social Insights for Better Sales Strategies

Beyond mere promotion, social media offers dealerships rich insights into customer preferences and trends. Interactive polls, Q&A sessions, or regular posts can provide:

  • Valuable data.
  • Enabling dealers to refine their sales strategies.
  • Special offers.
  • Real-time customer interaction techniques.

Shaping Tomorrow’s Auto Sales

Social media’s profound influence on auto sales is both undeniable and continually evolving. As platforms unveil novel features and expand their user base, dealers must remain adaptive, tailoring their strategies to tap into the immense potential of social media.

By carefully embracing influencers, leveraging targeted ads, and integrating actionable social insights, there’s the potential for a brighter, interconnected sales future.

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Creating a seamless online-to-offline EV buying experience https://www.cbtnews.com/creating-a-seamless-online-to-offline-ev-buying-experience/ Wed, 16 Aug 2023 09:03:05 +0000 https://www.cbtnews.com/?p=188412 Remember the golden days of car buying? There wasn’t an internet where people could do research—only magazines. When new cars arrived, dealers often used opaque waterproof marker paint over the windows for the big yearly reveal. Walking into a dealership, the smell of new cars, a firm handshake with a salesperson who knew your name, […]

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Remember the golden days of car buying? There wasn’t an internet where people could do research—only magazines. When new cars arrived, dealers often used opaque waterproof marker paint over the windows for the big yearly reveal.

Walking into a dealership, the smell of new cars, a firm handshake with a salesperson who knew your name, and a test drive that sealed the deal. It was personal, tangible, and authentic.

Fast forward to the last decade, where online platforms have revolutionized the car buying experience, particularly for electric vehicles (EVs). Though the landscape has shifted, one thing remains constant: the need for a personalized, seamless journey from the first online click to the final in-person signature.

Dealerships now face the challenge of blending the old with the new, creating a harmonious Online-to-Offline (O2O) buying experience that captures the essence of traditional customer connection within the digital realm. Let’s explore how to make this possible in the age of EVs.

Setting the Standard: Tesla’s Approach

Like it or not, Tesla, under the visionary leadership of Elon Musk, has revolutionized the car buying process. Their approach bypasses the conventional dealership network, allowing customers to customize their vehicles online, get pricing details, and place an order. Tesla’s approach also heavily emphasizes the experience after purchase, with over-the-air updates and direct customer service.

However, not all dealers or OEMs have the luxury or capability to replicate this model due to various restrictions, state-wise and nationally. But Tesla’s paradigm shows us the potential — and gives us a roadmap to what more car buyers are looking for.

The Agency Model: Opportunities and Pitfalls

Recent discussions in the auto industry highlight the push for an “agency model” to sell vehicles. This approach, especially favored for EVs, significantly emphasizes the manufacturer’s role in the selling process. While this can bring about a uniform buying experience and pricing model, it will also alienate dealers, who have traditionally been the face of the car buying experience.

Yet, this push isn’t a death knell for dealerships. On the contrary, it’s an opportunity because dealerships benefit the customer. At your dealership, you can still play a pivotal role in providing hands-on experiences, test drives, and answering intricate questions that online platforms might be unable to handle. Plus, your customer can haggle. You can be the welcoming bridge between the online dream and the offline reality.

Blending the Best of Both Worlds

Here’s how dealerships can adapt to offer the best of both worlds:

Digital Showrooming with Next-Gen Tech: Embrace the next wave of digital immersion with plans to e products like the upcoming Apple Vision Pro. This cutting-edge technology could redefine online showrooming, allowing potential buyers to experience virtual test drives and interactive explorations of vehicles from the comfort of their homes. The potential of such tools to simulate real-world experiences might be the next leap forward in bridging the online-offline divide.

Pre-visit Paperwork: Offer buyers the option to fill out most of the required paperwork online. This not only speeds up the process but also ensures that the time spent at the dealership is focused on the vehicle itself.

Appointment-based Visits: Prioritize the customer’s time. When they come in, ensure they have a personalized, efficient experience. This is especially pertinent for EV test drives which may require more orientation for new than conventional vehicles.

Educational Resources: Dealerships can play a pivotal role in educating customers about EVs. By offering a combination of online videos, tutorials, and offline seminars, dealers can demystify aspects of EV ownership, such as maintenance, charging, and long-term benefits.

Feedback Loop: Post-purchase engagement is crucial. And that doesn’t mean random emails promoting sales on vehicles the customer wouldn’t buy. Understand the buyer’s journey, solicit feedback, and use this information to refine and enhance the overall experience.

The Road Ahead

The tactile and emotional aspects of buying a car, encapsulated by the new car smell, the steering wheel’s feel, and the test drive’s excitement, are hard to replicate purely online.

\While Tesla has pioneered a unique model, traditional dealerships hold an integral position in the car-buying landscape. By marrying online innovations with the tangible, hands-on experiences they excel at, dealerships can craft a future-ready, holistic EV buying journey.

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The future of EVs: A glimpse into emerging technologies https://www.cbtnews.com/the-future-of-evs-a-glimpse-into-emerging-technologies/ Tue, 15 Aug 2023 09:03:18 +0000 https://www.cbtnews.com/?p=188285 The automotive industry is in the long process of a groundbreaking transformation, with electric vehicles (EVs) being promoted as the forefront of the evolution. As we look ahead, governments marching in line with environmentalists suggest that the future of EVs promises to revolutionize transportation in ways we have never imagined. In this forward-looking article, we […]

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The automotive industry is in the long process of a groundbreaking transformation, with electric vehicles (EVs) being promoted as the forefront of the evolution.

As we look ahead, governments marching in line with environmentalists suggest that the future of EVs promises to revolutionize transportation in ways we have never imagined. In this forward-looking article, we look into the world of EVs and explore the emerging technologies that will shape the future of mobility. And it may not all be electric.

The Electric Revolution: A Slow Movement Towards Sustainability

The shift towards electrification is no longer a distant dream but a global, not slow, movement promoted by media, governments, automakers, and some consumers. The desire is to reduce carbon emissions and embrace sustainable transportation. With an increasing focus on sustainability, the automotive industry is witnessing a profound transformation like never before.

One of the critical factors in the widespread adoption of EVs has been the continuous advancements in battery technology. Breakthroughs in battery chemistry, such as this 745-mile battery from Toyota, have resulted in EVs with longer driving ranges, faster charging, and improved performance. These developments are trying to alleviate range anxiety and make EVs more practical for everyday use.

However, as good as batteries might become, the success of EVs hinges on a robust charging infrastructure. It’s currently a slow process because of laws and weak electrical grids. In many areas, just putting in a charger takes two years.

Still, governments and private entities are investing heavily in charging networks to provide convenient and accessible charging options for EV owners. As charging infrastructure expands, the barriers to EV adoption will continue to diminish.

Autonomous EVs: Redefining Mobility with Self-Driving Technology

Available charging aside, the future of EVs is also intrinsically tied to autonomous driving technology. Although continually litigated, Tesla’s self-driving features are still the standard, enhancing road safety and convenience. But GM’s Super Cruise, BMW’s Driving Assistant Professional, and others are showing promise.

The rise of autonomy is not just about hands-free driving; it also opens up new possibilities for shared autonomous fleets, which can transform transportation as we know it. But one could argue that a public that is pushing back against EVs most definitely won’t accept the restrictions inherent in shared autonomous fleets.

Sustainable Materials and Manufacturing: Towards Eco-Friendly EVs

Since making EVs is a filthy and environmentally destructive process, pursuing sustainability has to extend beyond the road to the manufacturing process itself.

Automakers are adopting eco-friendly practices, incorporating renewable energy sources in their manufacturing facilities, and minimizing waste through recycling and reuse initiatives. Furthermore, innovative materials are making their way into vehicle components, reducing the environmental impact of EV production.

But there’s a long way to go. Just because consumers don’t see lithium mining doesn’t make it go away.

The Next Generation: ICE isn’t Going Away

Beyond conventional electric cars, the future of EVs holds exciting possibilities. Flying EVs offer a new dimension of urban mobility, shortening travel times in congested cities. Hydrogen fuel cell EVs provide a promising alternative, emitting only water vapor as a byproduct and potentially revolutionizing long-haul transportation.

However, internal combustion engines aren’t going to disappear any time soon. Lawrence Barretto reports on Formula1.com, “By 2030, it’s anticipated there will be close to two billion cars on the road, with only 8% of those pure Battery Electric Vehicles (BEVS). That means other solutions are needed to slash carbon emissions.”

He continues, “As part of F1’s plans to be Net Zero Carbon by 2030, the sport is pioneering a ‘drop-in’ 100% sustainable fuel that can not only be used in F1 cars from 2026 but crucially can be [utilized] by most road cars across the world. In the racing world, Formula 1 is actively embracing emerging biofuel technology to reduce its carbon footprint significantly. Such innovations have the potential to influence consumer vehicles, making them more environmentally friendly.”

Furthermore, as pioneered by Mercedes in Formula 1, hybrid technology holds great promise for both racing and consumer vehicles. Energy recovery systems used in F1 high-performance hybrid technology contribute to improved performance and fuel efficiency of the 2024 Mercedes-AMG 63 E, pushing the boundaries of automotive innovation.

Embracing the Future

The future of electric vehicles wants to promise an electrifying era of innovation, sustainability, and seamless connectivity. But it’s not there yet.

As emerging technologies reshape the automotive landscape, embracing the potential of sustainable energy is not just a necessity but an opportunity to create a greener, safer, and more efficient future for transportation. Regardless of the result, the road ahead is filled with possibilities.

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