CBT automotive newscast: December 16, 2020

Today’s Featured Interview:

Hyundai USA CMO Angela Zepeda on the biggest marketing changes and successes from 2020
When COVID-19 hit in the Spring earlier this year, many dealers dialed back their marketing dollars to prepare for a rough road ahead. However, automotive retail came through the pandemic with record sales while also keeping advertising costs to a minimum. On today’s show, we speak with Angela Zepeda, CMO of Hyundai USA about automotive marketing trends and how dealers can best utilize their ad budgets effectively in 2021. Watch the full segment here.

Top Headlines:

General Motors is ramping up its production of pickup trucks. The automaker announced that it would be investing a total of $76 million in two plants to increase efforts to produce pickups. One plant is located in Tonawanda, New York and the other is in Parma, Ohio. Both are crucial for GM to keep up with the high demand for the Chevy Silverado and GMC Sierra. The Tonawanda investment will cover the cost to increase capacity on the engine block machining line, and the Parma investment will pay for the construction of four new metal assembly cells.

It’s make-or-break for many retailers this holiday season. According to the National Retail Federation, more than $766 billion in sales is up for grabs in Q4, up 5.2% from 2019. While some retail sectors such as automotive have been successful through the pandemic, others have not been as fortunate. As retail bankruptcies approach the highest number in a decade, the automotive sector will look to continue the momentum it’s obtained through the last several months, relying heavily on digital retailing and end-of-the-year deals.

Volkswagen leadership has defused its power struggle with CEO Herbert Diess. This week, the German automaker’s supervisory board provided unanimous support for Diess as well as backing key leadership he had appointed for the company. The conflict began when Diess and VW’s labor union disagreed on the pace required to pivot the company into a tech and electric vehicle company modeled on other EV makers such as Tesla. In the truce, Diess also dropped his demand for an early extension of his contract, which runs until 2023.

Amid the global pandemic, Hyundai has stood out in the way it has weathered the storm. According to Cox Automotive, Hyundai performed 50% better in year-over-year sales than the industry average. Hyundai has found its success primarily through its efforts to strengthen affordability and fuel efficiency, two factors in which the automaker ranked in the top tier of the Kelley Blue Book Brand Watch report.

News & Opinion:

Why you should use YouTube for your fixed ops marketing campaigns – Part 2
As we barrel towards 2021, it’s a good time to look at new ways to educate and help your customer because next year will require different marketing plans. It’s also a time to consider new ways of doing things because the past ways may not be effective. Using YouTube to show customers more content about your services will lead to more utilization and profits for your department. Today we’ll look at whether production values matter, and to what level they should be, how much equipment might cost, and the importance of title descriptions and tags. Read More

More stories of auto industry players giving back before the holidays
In auto retail, the focus on customer service can provide perspective to dealers and vendors. In an economy that continues to suffer, 26 million Americans say they don’t have enough to eat. You can count on heartwarming stories to come from the automotive industry that demonstrate the amazing level of care and concern they have for their neighbors. Read More