CBT automotive newscast: April 21, 2021

Featured Interview:

LMP Automotive CEO Sam Tawfik discusses the retailer’s aggressive dealership acquisition plan
LMP Automotive, a publicly traded used-car and vehicle subscription company, describes its business model as “Buy, Subscribe, Sell and Repeat.” That is exactly what they are ambitiously doing, with a goal to add as many as 100 dealerships by the end of 2022. On today’s show, we’re pleased to welcome the CEO of LMP Automotive, Sam Tawfik, to discuss their latest acquisitions and the future of the company. Watch the full segment here.

Top Headlines:

Yesterday, AutoNation reported a massive jump in quarterly adjusted profit, nearly tripling from Q1 in 2020. America’s largest auto retailer benefited from higher earnings per vehicle, amid the global chip shortage that has forced automakers to cut production and raise prices. CEO Mike Jackson said that demand continues to exceed supply for new vehicles and AutoNation expects this to continue throughout 2021.

Electric vehicle sales continue to climb as more automakers make investments in EV technology. According to Cox Automotive, sales of EVs jumped 81% in the first quarter of 2021. Combined sales of EVs, hybrids, and plug-in hybrids surpassed 300,000 in Q1. Electric vehicles accounted for 7.8% of the total U.S. market, up from 4.8% in 2020.

This week, Ford announced that it will begin offering COVID-19 vaccinations at several manufacturing plants. The automaker said it is partnering with the UAW as well as various pharmacies and health care providers to offer vaccine shots to salaried and hourly workers at the company’s plants in Michigan, Ohio, and Missouri. Ford will provide a digital scheduling system for interested employees.

General Motors is installing a new initiative to change the culture of its white-collar workforce. The new initiative is called “work appropriately”, a culture shift that will allow salaried workers more flexibility to work remotely or come into the office if necessary. The automaker may see fewer people inside its world headquarters in Detroit’s Renaissance Center on a daily basis, and individual desks are expected to be replaced by community workspaces.

Over the weekend, two men were killed in a car crash involving a 2019 Model S that occurred in Spring, Texas. Local police said in multiple press interviews that nobody was behind the wheel of the vehicle when it veered off the road, leading the National Highway Traffic Safety Administration and The National Transportation Safety Board to investigate the crash. Elon Musk has denied allegations that Tesla’s autopilot feature was to blame for the accident. In a tweet, Musk said that data logs recovered to this point have shown that autopilot was not enabled as the car did not have full self-driving software installed.

News & Opinion:

Tesla leads charge in 81% increase of electrified vehicle sales
Although it might not be popular opinion yet, the auto industry is certainly moving in the direction of electrified vehicle adoption. Cox Automotive and Kelley Blue Book have found in an analysis of the autohttps://www.cbtnews.com/tesla-leads-charge-in-81-increase-of-electrified-vehicle-sales/ industry in the US that growth in fully electric and hybrid electric models has grown 81% year over year. For the first quarter of 2021, electrified models accounted for 7.8% of the total US market. Read more

Introducing F&I earlier makes the sale easier for everyone
Most dealerships have split the sales process from F&I, treating it as a separate process after closing the deal. Though it works fine for many dealers, there is a better way of revising it that increases the closing ratio, and the profit per unit while lowering the total time it takes to complete the transaction. The earlier you introduce the financing process as part of the sales cycle, the more chances you’ll have to close the sale with better margins in a lot less time. Read more