CBT automotive newscast: March 4, 2022

Inside Automotive:

Strengthen car shopper confidence with transparent penny-perfect payments
The financing process during the car buying journey often causes the most friction for car shoppers, especially when buying online. Consumers today demand trust and transparency. That’s why penny-perfect payment calculations are crucial for car dealers to be successful. Today on Inside Automotive, we’re pleased to welcome back Rusty West, President and CEO of Market Scan, to discuss why penny-perfect payment calculations will set your car dealership apart from the competition. Watch the complete segment here.

Headlines:

Ford announced this week that its February sales decreased by 21% compared to February of 2021. Both Ford and Lincoln sales were down over 20%, as dealers sold just under 130,000 vehicles throughout the month. Sales totals included a 15% drop in retail sales attributed to the ongoing inventory shortages. Ford executive Andrew Frick said that Ford’s newest models are in high demand, with over a third of newly-delivered vehicles being sold immediately after arriving at dealerships.

Rivian is walking back a decision to raise prices of their pre-ordered vehicles after customer backlash. The automaker sent out notices earlier this week that prices could increase up to 20%. Rivian’s Chief Growth Officer said the price increase was a result of record-high inflation, supply chain disruptions, and delays, as well as increasing costs for parts. After the announcement of the price hike, some Rivian customers posted on social media indicating they would cancel their orders, with many stating they felt lied to and were the victims of “bait and switch” practices.

Tesla CEO Elon Musk tweeted this week that he was inviting the United Auto Workers to “hold a union vote” to unionize Tesla’s manufacturing plant in Fremont, California. His tweet also said that due to the job market in the San Francisco Bay area, great employees would leave if they weren’t compensated well. Musk has previously said Tesla could unionize immediately if it wanted to but claimed the automaker’s safety record is twice as good as it was under the UAW and denounced paying union dues and forfeiting stock options.

On Thursday, former Nissan executive Greg Kelly was found guilty of false reporting after accusations that he helped former CEO Carlos Ghosn hide over $80 million of pay from regulators. A Tokyo judge said while a different Ghosn aide, who already has immunity, was aware of the full amount, Kelly only knew about part of it but still misreported it. Kelly has maintained his innocence but was handed down a suspended sentence of six months in jail.

News & Opinion:

Strategies for winning over a customer during the chip shortage
As 2021 winds down, dealers are still being hit with the effects of the chip shortage. Combined with pandemic ripples and supply chain delays, dealers are feeling the ongoing disruption. Projected loss for 2021 comes in at a whopping 7.7 million units of production. With a consumer base that is accustomed to selecting their model of choice, complete with amenities and color of vehicle, it may come as a bit of a shock to customers when their vehicle of choice simply isn’t available. Here are some strategies you can use to win over a customer despite the chip shortage. Read More

Pothole season: an opportunity for service departments to connect with car owners
For around 50% of American drivers, winter weather gives way to a sloppy spring season. The timing of the freeze-thaw cycle correlates with another season that drivers are none too happy about: pothole season. AAA discovered from a 2021 survey that 10% of drivers experienced damage to their vehicle that required service repairs, specifically due to impact with a pothole. Motorists in the south may not understand or experience the phenomenon, but it’s real. Moisture from the melt penetrates cracks in the pavement and, when freezing temperatures arrive overnight or for a cold spell, the water freezes, expands, and breaks up the pavement. Read more

Video marketing strategies that convert leads into sales
The key to success is converting leads into sales for automotive dealerships. And video marketing is one of the most effective ways to do just that. According to a Vidyard study, prospects are 64% more likely to buy after watching a video than those who didn’t watch it. Additionally, viewers are 85% more likely to buy a product after watching a video about it. So how can you use video marketing to convert leads who’ve already contacted you into booking an appointment and ultimately a sale? Here are some tips. Read more