CBT automotive newscast: October 6, 2021

Inside Automotive:

How TIME’s Dealer of the Year Rick DeSilva Jr. showed strong leadership during turbulent year
For 10 years TIME in partnership with Ally has recognized new car dealers across the country for their performance and community service. This year, second-generation dealer, Rick DeSilva Jr. was named TIME’s Dealer of the Year. After learning about Rick’s incredible commitment to service, to not only customers but also the community, it’s easy to see why he was chosen. Watch the complete segment here.

Headlines:

Hertz has named industry veteran Mark Fields as its interim CEO. Fields was the former President and CEO of Ford and joined Hertz’s Board in June. He takes over the top post at Hertz from Paul Stone, who will now serve as the company’s President and COO.

A jury in California has ordered Tesla to pay $137 million in damages to an African-American former elevator operator after he experienced a hostile work environment. This includes racial harassment and discrimination at the EV maker’s plant in Fremont, California. Owen Diaz, a former contract worker was hired between June 2015 and May 2018. Diaz told the court “daily racist epithets” were used in the plant and said, “Some days I would just sit on my stairs and cry.” The award is among the most significant verdicts of its kind. It hasn’t been announced on whether Tesla plans to appeal the ruling.

Group 1 Automotive has purchased two dealerships in Denton, Texas. This will add a combined $150 million in annual revenues. The company bought Classic Chrysler-Dodge-Jeep-Ram and Classic Mazda, part of the Dallas-Fort Worth market where the company already has 10 stores. A purchase price wasn’t disclosed. So far this year, the retailer has acquired dealerships expected to generate $570 million in annual profits.

Tekion, a cloud-based automotive software provider, has more than tripled its valuation to $3.5 billion after raising $250 million from investors, which includes Durable Capital partners and Alkeon Capital Management. The startup helps automakers and their retailers sell and service cars in a way that reduces friction for consumers. Last October, Tekion was valued at over $1 billion after raising funding from Advent, Index Ventures, and Exor.

Volvo has announced its plan for an initial public offering as it seeks to raise more cash to accelerate its transition to a fully electric car company. The automaker aims to raise about $2.86 billion dollars by issuing new shares and earn itself a $25 billion dollar valuation. Geely will sell some of its shares in Volvo as part of the IPO, though it hasn’t said how many or how it could affect the company’s overall stake in the automaker.

General Motors is planning to build a new electric vehicle battery lab at its global technical center in Warren, Michigan where scientists will work on chemistry to cut costs 60% over current vehicles and allow people to travel 500 to 600 miles. The new center will allow GM to ramp up the development and production of next-generation Ultium batteries and bring next-generation EV batteries to the market. The 300,000 square foot center is expected to open in mid-2022 in the Detroit suburb of Warren. GM did not disclose the exact investment amount but said it’s spending hundreds of millions on the project.

News & Opinion:

What does ‘Carbon Neutral’ mean for auto dealers?
Most carmakers have established goals of being net-zero emissions and/or carbon neutral, a move that will hopefully move the needle in worldwide emissions. But what does that mean for car dealers? What benefit is there for dealerships to pare down on emissions and strive for sustainability? Whether franchised auto dealers or independent retailers or parts stores, consumers are beginning to base their shopping decisions on those who are doing their part environmentally. For some dealers, it could be a good time to pursue initiatives that lower net carbon emissions. Read more

How car dealerships are preparing for an EV future
Around 200 dealers who sell Cadillacs decided to opt out of the EV business, refusing to sell electric Cadillacs once they come out. Nevertheless, some dealerships are deciding to bite the proverbial bullet. Out of approximately 3,000 Ford dealerships, 2,100 have opted to obtain EV certificates, invest in infrastructure, and train sellers and car technicians on the technical and marketing specifications of Ford’s upcoming Mustang Mach-E. Read more