CBT automotive newscast: March 2, 2022

Featured Show:

Banks are distancing themselves from digital retailing providers. What does this mean for you?
Recently, US Bank decided to pull their instant lending rates from certain digital marketing feeds that power many digital retailing tools. US Bank isn’t the only financial institution rethinking its data and lending decision trees that have been implemented in digital retailing. On the latest episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and BPE Enterprises, discusses what these developments likely mean for car dealers. Watch the complete segment here.

Headlines:

Stellantis announced its goals for the next eight years this week, saying it hopes to build 75 battery-electric vehicles and reach revenue of $335 billion by 2030. The automaker said it predicts 30% of its vehicles will be sold online at that time and added that it hopes 50% of its U.S. sales will be battery-electric by the end of the decade. CEO Carlos Tavares stated that Stellantis had formed a task force to manage increasing Russian sanctions and the situation in Ukraine. He also said he is not expecting the global semiconductor chip shortage to end this year, and added that the automaker is still waiting for approval for the battery plant it wants to build in Italy.

Hyundai and Kia are facing a federal class-action lawsuit filed by customers who said their vehicles were at risk of catching on fire due to problems with their anti-lock brake systems. The lawsuit comes after it was announced earlier this month that almost 500,000 vehicles made between 2014 and 2019 were affected by the issue. At that time, the automakers said that new fuses could be installed at dealers, but added that owners should keep their cars outside until then because they could catch on fire even when they are parked. The lawsuit alleges that the automakers simply put a “band-aid” on the cars without compensating them for any losses, and it also includes customers unsatisfied with previous, related recalls.

Electric vehicle manufacturer Lucid Group said this week that it has lowered the production forecast for 2022 by approximately 40%. Lucid initially planned to make 20,000 vehicles this year, but has reduced that number from 12,000 to 14,000 due to ongoing supply chain disruptions and other quality issues. CEO Peter Rawlison also said production of its new “Gravity” SUV model will be pushed back to the beginning of 2024. The company also said on its Q4 results call that it had recorded a loss of $1 billion for the quarter and almost $5 billion for 2021 as a whole.

As analysts had projected, the price of crude oil has jumped since Russia initially invaded Ukraine last week, and has now reached over $100 per barrel. Various countries including the U.S. have imposed sanctions on Russia that will likely continue to impact prices, and other countries may ban the importation of Russian oil, which Canada has already done. Conversations are set to be held by various cross-country collaborations such as OPEC and the International Energy Agency to discuss the situation and possible ways to alleviate the impacts of it. Crude oil prices have not been this high since 2014, and financial services firm Goldman Sachs said this week that a decline in demand is the only thing that would improve the current state of the crude oil industry.

News & Opinion:

Stellantis presents ‘Dare Forward 2030’, a decade of evolution
On Tuesday, Stellantis unveiled the company’s plan for the remainder of the decade, addressing climate issues, new model releases, and a shift in how the business will be conducted. Stellantis CEO Carlos Tavares hosted a live presentation that detailed how the company “intends to lead the way the world moves.” At the heart of the presentation were climate goals by 2030 and 2038, new models as the brands shift to electrification, and a focused effort on being in the customer business first, rather than the car business. Read More

What does a healthy work environment look like for fixed ops?
The Bureau of Labor Statistics estimates there were 60 deaths among automotive technicians in 2019. With this information in hand, it’s more important than ever to have a healthy work environment in the fixed ops departments, not just from a physical standpoint, but also on the mental health front. In this article, we will outline practical steps to keep your workforce healthy and happy. Our tips can be implemented without a lot of effort, allowing you to change the environment today. Read more