CBT automotive newscast: August 4, 2022

Inside Automotive:

How Kentucky auto dealers are coping with current retailing challenges
The Kentucky Automobile Dealers Association (KYADA) recently held its 75th annual convention in Asheville, North Carolina. Today on Inside Automotive, we’re pleased to welcome Jason Wilson, President of the Kentucky Automobile Dealers Association, to give us insight into what dealers in Kentucky are facing today and he’ll also give us a recap of the convention. Watch the complete segment here.

Headlines:

According to Cox Automotive, July’s new vehicle sales will likely see a 2.1% drop compared to last month and a 13% decrease compared to the same time last year. Toyota, Honda, and Subaru all saw year-over-year declines, at 21.2%, 40.4%, and 17.1%, respectively. Volvo has also seen a significant year-over-year drop in sales, with their 21.5% decrease being attributed to supply chain issues. While it’s challenging to pinpoint one reason to account for why sales drops for these popular brands are occurring, it’s likely a collection of problems leading to these results. Read More

Automakers, including Ford, General Motors, and Toyota, are unhappy with the new pending clean energy bill. Requirements under the bill would exclude EVs made with any battery components produced by China and other “foreign entities of concern” from being eligible for the credit after 2023. For automakers connected to the Chinese supply chain, that might provide a considerable barrier. Automakers are now lobbying senators to consider changes to the bill, but they are unlikely to undermine support for the legislation, says one Bloomberg source. Read More

General Motors has revealed that its “hands-free” advanced driver-assist system (ADAS), Super Cruise, is going to cover 400,000 miles across North America by the end of 2022. UU regulators and legislators are scrutinizing advanced driver-assist systems since there is a lack of regulations around the technology. At the moment, Super Cruise is only available on select highway systems approved by General Motors. Read More

Automaker Stellantis is reportedly investing a total of $99 million in three North American plants to produce turbo engines for its new hybrid vehicle models. About $83 million is going directly to retooling the FCA Dundee engine complex, while the remainder of the funds will be used for investing in the Kokomo casting plant and the Etobicoke casting plant. Read More

News & Opinion:

High transaction prices, supply chain woes stifle July auto sales
A lack of supply due to ongoing supply chain issues and a drop in consumer sentiment continue to plague new vehicle sales. According to Cox Automotive, July’s new vehicle sales will likely see a 2.1% drop compared to last month and a 13% decrease compared to the same time last year. Cox Automotive isn’t alone in their projection, as both J.D. Power and LMC Automotive estimate that July will see a 5.7% year-over-year sales volume decrease. What’s continuing to lead to this downward trend, and how are automakers fairing? Keep reading for insights. Read More

Should dealers consider a separate digital retailing brand for their used car business?
With Tesla’s success and plans and comments from OEMs like Ford CEO Jim Farley, there’s no question that digital automotive retailing may soon be on the rise in the auto industry. As a result, more car buyers trained by the convenience of Amazon may willingly accept to purchase their vehicles. And while many dealerships have been quick to embrace this shift by investing in digital marketing and eCommerce platforms, some are still struggling to keep up. But the used car market is one area where many dealerships have yet to fully capitalize on the power of digital retailing. Selling used cars has always been a challenge for dealerships, as margins are often slim, and fierce competition exists. Read More

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