CBT automotive newscast: September 20, 2021

Featured Interview:

David Kain shares key takeaways to help drive dealers in the right direction
On today’s show, we are pleased to welcome David Kain, President and Owner of Kain Automotive, industry expert, and host of Kain and Co. right here on CBT News. Kain begins the conversation by sharing some takeaways he’s seen throughout the past year. He says something we learned is that the internet is a wonderful catalyst for dealers with a span of digital retailing tools. He also says the telephone has become more critical to the selling process. 82% of people remember the tone of the conversation more than what was said. Kain says you have to teach employees how to be more effective. Watch the complete segment here.

Headlines:

Ford is investing an additional $250 million along with creating 450 jobs across three Michigan plants to boost production capacity for its all-electric F-150 Lightning that is planned to launch next Spring. The automaker aims to double the annual production capacity for the vehicle to 80,000 units, up from 40,000 vehicles a year ago. Over 150,000 reservations have been made since its debut in May. The company has now invested almost $950 million in the production of a hybrid version of the truck and the electric F-150. The starting price is about $40,000 and has a targeted EPA-estimated driving range of 300 miles with an extended-range battery.

Hurricane Ida hit the gulf coast in late August as a Category 4 storm. It caused over $5 billion in damage to property and 86 deaths. Carfax estimates as many as 212,000 vehicles sustained significant flood damage due to the storm. After Hurricane Harvey in 2017, almost 500,000 cars were destroyed. It’s difficult to predict what havoc Ida will cause in the car market. This year, new cars have been in short supply due to the global chip crisis. Cox Automotive analyst Kayla Reynolds says, “This is a historically tight market, so it’s going to be much more inflated impact (than) we saw in previous storms like Harvey.”

Stellantis has paused production for another week at its minivan plant in Windsor, Ontario due to the ongoing chip crisis. The plant will be idled the week of September 27. Stellantis also paused its Belvidere, Illinois plant through October 1. The company said in a statement, “Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry.

General Motors is also extending downtime of several crossover assembly plants in North America as they continue to feels the effect of the chip shortage. The plants that make their full-size pickups and SUVs will continue. This includes plants in Flint, Michigan, Fort Wayne, Indiana, and Silao, Mexico. GM said in a statement, “Although the situation remains complex and very fluid, GM continues to prioritize full-size truck production which remains in high demand.” GM CFO Paul Jacobson says “The automaker stands to lose about 200,000 vehicles in the second half of the year because of the chip crunch, doubling an august projection.” The automaker expects broader chip distribution in 2022.

September is childhood cancer awareness month and one car dealership is ‘fueling the fight’, to make sure patients are getting the treatments they need. Carter Myers Automotive of Charlottesville, Virginia has teamed up with the University of Virginia of children’s hospital to remind families they are not alone in this journey. During the entire month, the dealership is making a donation for each vehicle purchased to nonprofits supporting cancer research and organizations supporting the families. The dealerships’ CEO, Liza Borches says, “Whether it’s gas, coming to and from the hospital, car repairs, or any other needs that they might have.” Last year, CMA’s fuel the fight campaign raised over $28,000 for treatment and research and they hope to surpass that number this year.

News & Opinion:

Is hydrogen gaining steam to power past the EV?
Conversation at this year’s 24 Hours of Le Mans on upcoming classes piqued interest, especially regarding the new Hydrogen class. Racecar Engineering reported that the LMP2HG Hydrogen-powered class is on target to race in 2024. The ACO and GreenGT worked together to put a car on track for the third time on March 28th. Although the ACO has announced a delay until 2025, the news hasn’t stopped manufacturers from jumping in. Besides being a competitive series, the ACO and Le Mans have also shown themselves to predict what we’ll drive on our streets. Read more

Gain brand visibility with creative collaborations across industries
Every company wants to sell more, whether it’s more parts, accessories, service, or more vehicles. While direct messages to consumers are often viewed as the most effective method, it only works when customers know and trust you. Brand awareness is the crucial first step in achieving consistently positive results for your dealership or business. HubSpot provides tips on how to build a brand, and much of the process centers on fostering trust, creating an association, and developing a perceived value. The initial goal isn’t to make sales initially, but to create name recognition and become trendy or popular. Read more