CBT automotive newscast: November 30, 2021

Inside Automotive:

NADA Chairman Paul Walser on inventory shortages and what to expect at the 2022 NADA Show
In the first quarter of 2021, automotive dealers dealt with several looming challenges, but as Paul Walser became Chairman of NADA he revealed his top priorities aimed at improving the franchise system. We now stand in the final quarter of 2021 and want to take a look at the past year of retail automotive from Paul’s lens. He joins us now to discuss the current state of retail automotive, where NADA stands on the priorities today, and we’ll also get into the NADA show happening in March. Watch the complete segment here.

Headlines:

President Joe Biden plans to meet with CEOs of major retailers and other companies to discuss how to move goods to shelves as the holiday shopping season ramps up in light of the new COVID-19 variant, Omicron. U.S. inflation has hit a 31-year high and President Biden is taking measures to try to break supply chain backlogs, including expanding trucker hours and opening ports. President Biden is also investigating extreme shipping fees.

U.S. Commerce Secretary Gina Raimondo made a request in Michigan for Congress to approve $52 billion to broaden U.S. semiconductor manufacturing as it continues to look at data on the chips market from companies worldwide. Raimondo plans to visit a UAW local hall and meet with the legislative teams from Detroit’s big three automakers on the chips push.

Speaking of the ongoing chip shortage, automakers are finding creative ways to deal with the crisis. Automakers such as Daimler and Volkswagen are rethinking their production strategies. Mercedes-Benz has set up a direct line of communication with all chip suppliers, including wafer producers in Taiwan. CEO of Volkswagen, Herbert Diess says, his company has entered into “strategic partnerships” with manufacturers in Asia. Mckinsey’s Ondrej Burkacky states carmakers should consider direct investments in production or contracts with terms of more than 18 months.

Nissan plans to invest $17.65 billion in the next five years to boost the EV push with 23 new models globally by the end of the decade, as well as breakthrough development of solid-state batteries, and a plan to gain 40% of U.S. sales from pure electrics in nine years. The automaker’s new long-term vision is called Nissan Ambition 2030. In the next five years, the company plans to increase the deployment of its e-power hybrid systems.

The Salton Sea, a lake created from Colorado River flooding in 1905, is known mostly for its fouled waters from agricultural runoff and alarming salt levels. Now, the lake could affect the future of North American automaking. There are plans for large-scale lithium mining at the Salton Sea that could change the U.S. EV supply chain. The lithium is located in vast geothermal deposits and not the water. According to the U.S. Department of Energy, the Salton Sea region has the potential to supply 600,000 tons of lithium each year.

News & Opinion:

Attracting customers with no car deals in sight
Even though many consumers have been back in the market for a new or used car, there continues to be a lack of available discounts and deals for shoppers. The COVID-19 pandemic has undoubtedly hindered the auto industry due to the shortage of parts and various shutdowns throughout the past year and a half. This, in turn, has limited dealerships’ ability to offer discounts, and many may have seen a reduction in business because of it and need to find ways to get customers to come back. Read more

Months after Hurricane Ida, flood-damaged vehicles start coming back to market
From August 26 to September 4, Hurricane Ida left a path of destruction as the second-most powerful storm to make landfall in Louisiana. It also affected the east coast of the United States and Atlantic Canada. Sadly, at least 115 fatalities can be attributed to the storm. As well, hundreds of thousands of vehicles were damaged due to floodwaters directly related to Ida, and many were total losses. Read more