CBT automotive newscast: November 8, 2021

Inside Automotive:

Don Reed on key strategies to help your service team get the highest ROIs
Have you purchased equipment for your service team that isn’t being used? Or maybe it just isn’t being used as often as it should be? You’re not alone. Dealers often run into this problem, but there are protocols you can implement to get the highest return on your investment. Joining us now to give us his recommendations is Don Reed, CEO of DealerPRO Training, one of the nation’s top fixed-ops training platforms for dealers and host of CBT’s show, Service Drive. Watch the complete segment here.

Headlines:

Carvana posted a significant loss in Q3 after making its first-ever profit, $45 million in Q2. The online used-car retailer had a Q3 net loss of $68 million, compared with a net loss of $18 million in the year-prior quarter. Sales have more than doubled to $3.48 billion with retail sales up 74% to 111,949. Total gross profit per vehicle was $4,672 up from $4,056 in the year-prior quarter.

Former sales and marketing executive with Rivian, Laura Schwab, has alleged in a post on medium.com that she was fired from the EV startup due to gender discrimination and the toxic “boy’s club” culture. Schwab states she voiced a complaint to HR two days before she was called to a meeting with her boss, at which she was fired. In a separate post on LinkedIn, Schwab said she has filed a lawsuit against the company, “for gender discrimination and retaliation”.

Electric truck maker, Nikola will pay a $125 million penalty to settle with the U.S. Securities and Exchange Commission. SEC charged the company’s founder Trevor Milton for “repeatedly disseminating false and misleading information.” Milton allegedly used his social platform to repeatedly mislead investors about the EV’s maker’s technology and capabilities, reaping “tens of millions of dollars” as a result of his misconduct. The settlement will be paid over two years.

Germain Automotive Group of Columbus, Ohio has purchased Surprise Honda, one of four dealerships acquisitions for the group this year. The store was renamed Germain Honda of Surprise. The purchase marks the group’s sixth Honda dealership. Germain now has 18 rooftops in Ohio, Naples, Florida, Ann Arbor Michigan, and Surprise Arizona.

The U.S. job market added 531,000 jobs in October, with the unemployment rate falling to 4.6%. Wages increased 0.4% for the month but increased 4.9% on a year-over-year basis. Unemployment benefits expired in early September and experts are watching whether the end of that assistance, increased the availability of workers.

News & Opinion:

Can’t close the sale? It’s a search problem
Companies across every industry are trying to enhance their online presence in order to boost brand awareness and drive sales. Ecommerce merchants have a particularly unique customer journey that requires a lot of digital maintenance. The automotive industry is no different. Car and auto parts consumers who are accustomed to e-commerce price transparency and shopping convenience are going online, so independent auto dealers should plan to bring their onsite search functionality up to par. Read more

Subprime loans recover, delinquencies drop in new TransUnion report
Subprime loans for autos have sprung back to nearly pre-pandemic levels, and fewer borrowers are defaulting on their payments. That’s according to TransUnion’s Q3 2021 Quarterly Credit Industry Insights Report (CIIR) issued on November 3. At the same time, the average car loan balance and monthly payment have increased. TransUnion’s quarterly report identifies credit industry data across multiple sectors including mortgages, credit cards, personal loans, and auto loans. Of particular interest to dealers, is the auto lending data that indicates a very healthy return to more normal borrowing behavior across virtually all credit levels. Read more