CBT automotive newscast: April 30, 2021

Featured Interview:

NYT best-selling author Simon T. Bailey on how car dealers can use strategic motivation to prevent employee burnout
Technology is allowing you to connect with customers like never before and go beyond the transaction. On today’s show we are pleased to welcome Simon Bailey, International Speaker, Writer, Strategist, and the author of Shift Your Brilliance: Harness the Power of You, and Be the SPARK: Five Platinum Service Principles for Creating Customers for Life. Bailey joins the show to discuss strategic motivation. Watch the full segment here.

Top Headlines:

This week, Ford Motor Company posted its highest first-quarter net income in more than a decade. The automaker said it earned $3.3 billion in Q1 as it continues to recover from a net loss of $2 billion last year due to the coronavirus pandemic. While Q1 was a strong quarter for Ford, the company warned that it could lose half of its planned production in Q2 because of the ongoing semiconductor shortage. The automaker has had to halt production of some of its highest-selling vehicles, including the Ford F-150 pickup.

General Motors struck a deal with seven major charging providers to simplify the EV charging experience. The agreement will allow customers to use GM’s vehicle mobile apps to identify nearby charging stations. Additionally, customers will be able to pay to charge directly through the app. Companies involved in the deal include Blink Charging, ChargePoint, EV Connect, EVgo, FLO, Greenlots, and SemaConnect.

The U.S. Transportation Safety Board says that it is working diligently to publish a preliminary report for a recent Tesla crash in Texas. In an interview with Reuters, Kristin Poland, Deputy Director of the U.S. National Transportation Safety Board said, “a preliminary report typically comes out in a month, but we are working hard to get it out as soon as possible because we recognize the confusion out there.” Earlier this month, a Tesla Model S crashed into a tree in Texas and burst into flames, killing both occupants. Police said it was apparent that no one was in the driver’s seat at the time of the crash.

Auto retailers continue to post strong results from Q1 as Sonic Automotive and Penske both reported record highs from the first three months of the year. Sonic reported record first-quarter revenues of $2.8 billion, up 20.7% from 2020. Sonic’s EchoPark division also posted record revenues of $507.1 million, up 52.9%. Penske Automotive reported Q1 revenue growth of 15.3% to $5.77 billion. The company also saw revenue and gross profits increase more than 19%

News & Opinion:

Edmunds Trade-In Values Report & what it means for dealers
Edmunds recently released a report showing the latest average value for all used vehicles. During the month of March, it appears these numbers reached an all-time high, hitting $17,080, which is far more than $14,160 last year at the same time. What is causing this rise in trade-in values and what does it mean for your dealership? Edmunds points to the recent chipset shortage as the main reason that trade-in values are skyrocketing. New vehicle inventory at the dealership was down 36% this past March when compared to the previous year. Read More

Ford reports $3.3 billion Q1 net income, best Q1 in a decade
The Q1 2021 earnings call for Ford investors might’ve taken some by surprise. Ford Motor Company reported their strongest first-quarter earnings in a decade, bringing in a net income of $3.3 billion USD. The Blue Oval brought in a record earnings before interest and taxes (EBIT) of $4.8 billion, up 6% from the first quarter of last year. The earnings call revealed that Ford’s strategy coming out of the pandemic is working. While much of the world is still under restrictions or lockdown in some form from the COVD-19 pandemic including America’s neighbors to the north, Ford’s domestic operations are thriving. Read More