CBT automotive newscast: August 3, 2022

Inside Automotive:

How automakers are restructuring for the current pricing environment ⁠— Kevin Tynan, Blomberg analyst
We’re in the heart of earnings season, so today on Inside Automotive, we’re joined once again by Kevin Tynan, Bloomberg Intelligence’s Senior Automotive Analyst, to give us an update on the automotive retail market. Tynan provides an overview of his observations regarding the automotive industry for the past month, noting that production for the second quarter rose around 16% year-over-year. He cautions that despite the rising numbers, automakers may not feel pressured to ramp up production significantly, as the industry is going through a “structural change” due to the current “unprecedented” pricing pattern. Watch the complete segment here.

Headlines:

Hyundai Motor America and sister brand Kia reported total July sales of 128,283 units, a decrease of almost 11% compared with July 2021. Sales of only four Hyundai models, the Accent, Santa Cruz, Tucson, and Veloster, increased in deliveries. Only the crossovers Sorento and Sportage saw gains at Kia. The volume of EV sales overall was low but steadily growing for both companies. Kia saw an 86% increase in EV sales for July, while Hyundai EV sales increased 12%. Read More

The U.S division of Fiat Chrysler Automobiles pleaded guilty to criminal conspiracy earlier this year in connection to a multi-year U.S Justice Department diesel-emissions fraud probe. Now, the automaker has to pay $300 million as a result. But FCA is not the only manufacturer under fire for this issue. Hino Motors, a large affiliate of Toyota, is now under fire for emissions fraud, a company-commissioned investigation revealed. The investigation claims Hino fabricated emissions data on some engines going back to at least 2003, more than a decade earlier than previously disclosed. Read More

According to Rivian Automotive, the EV maker will not benefit as much from the proposed federal legislation incentivizing consumers to purchase electric vehicles and trucks as its competitors will. In a statement to Automotive News, James Chen, Vice President of Public Policy at Rivian, claimed, “Nearly all of our vehicles would be ineligible for incentives.” the $7,500 federal incentive only covers EVs that cost $80,000 or less, including related costs, which is Rivian’s issue. Additionally, the annual income of a buyer may not exceed $150,000, or twice that for a pair. Read More

General Motors has taken action to prevent the rampant resale of its new, low-production popular cars by rewarding owners of the Chevrolet Corvette C8 Z06 with a $5,000 incentive if they keep them for an entire year. In a two-step strategy to stop resellers, a letter was issued to dealerships limiting the transfer of warranties during the first 12 months of ownership and prohibiting the seller from making future reservations on specific high-demand models. Read More

News & Opinion:

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

Is there a growing customer communication problem?
What happens when someone calls your dealership for a service appointment, new car question, or general dealership question? Do they have to leave a message? If they do, is the message returned within 24 hours or less? Talk to your customers or friends, and you’ll find out that poor communication and customer service are growing. Maybe it’s due to new salespeople, lack of training, or the heady feeling that post-COVID profits have given dealerships a “we don’t have to try as hard” mentality. Whether you believe that are not, the hard truth is that planting seeds of discontent with your customers will grow into something that you won’t want. So, what does poor seed planting look like with your customers? Read More

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