CBT Automotive Newscast: August 7, 2020

Today’s Featured Interview:

Leading the Nation in PPP Loans, Texas Dealers Rely Heavily on Stimulus Through Pandemic
Texas has been undoubtably one of the hardest hit states for the continued spread of the coronavirus. As some areas of the country have minimized restrictions, Texas has been forced to roll back their reopening plans. For dealerships in particular, statewide mandates are in affect once again but on a positive note, sales and service departments have been deemed essential and have been allowed to operate throughout the recent months. To speak more on this, we’re pleased to welcome Darren Whitehurst, President at Texas Automobile Dealers Association (TADA) to the show.
Watch the full interview here.

Top Headlines: 

Toyota is making a faster rebound from the pandemic than anticipated. The automaker said that it sold around 200,000 more vehicles than expected in second quarter, leading to a new financial forecast of nearly $7 billion in profit for the full year.
Source: Wall Street Journal

Female industry leaders hope to inspire young girls to pursue a career in the auto industry. General Motors CEO Mary Barra spoke to the Girl Scouts of the USA in the “Awesome Girls: Engineer Your World” webinar this week. Barra was accompanied by Sylvia Acevedo, CEO of Girl Scouts of the USA and former NASA engineer. The duo answered questions from Girl Scout members and the public about being women in male-dominated industries. Barra has encouraged girls to find and pursue their passion, letting them know that more women were certainly needed in the automotive world.

The demand for homes and automobiles standout in an economy trying to regain its foothold. Sales of new homes in June ran their fastest pace in almost 13 years, and while vehicle sales haven’t returned to pre-pandemic levels, the pace of car and light-truck sales accelerated for the third straight month in July. The housing and auto industry have both been revived due in large part to record-low interest rates.
Source: MSN

Cadillac is making its splash in the electric-vehicle market. The auto brand revealed its battery-powered Lyriq crossover thursday night. The Lyriq is projected to hit showrooms by 2022. Cadillac’s goal is to sell more rechargeable batteries than gas tanks by 2030.
Source: The Detroit News

News Stories & Opinion:

What is the State of Lending During COVID-19 and How Can F&I Adapt?
There has been a lot of talk and analysis over the last few months about how the car industry has had to adapt to changes in showroom traffic, lower sales, evaporating inventory, and even struggles in the service lane with fewer repairs. The impact of COVID-19 on dealership operations and the bottom line has been far-reaching. F&I has felt the impact as well. Though PVR is actually up on average, there are fewer deliveries and therefore overall fewer deals during the month. From a profit perspective, F&I is generally hanging on about as well as can be expected. Read More