CBT automotive newscast: August 8, 2022

Inside Automotive:

How car dealers can help their salespeople find and sell more used cars — Jennifer Suzuki
Welcome to another edition of Inside Automotive with anchor Jim Fitzpatrick. On today’s show, we’re joined by Jennifer Suzuki, President of eDealer Solutions, acclaimed sales trainer, and NADA Dealer Academy guest instructor, to discuss how dealers can reduce the effects of inventory shortages on the variable ops side of the dealership. Watch the complete segment here.

Headlines:

Bad news for Carvana as they announced yesterday a net loss of $439 million in Q2. While this is less than their loss in Q1, it is still a stark contrast from the profits seen only one year ago at $45 million. Earlier this year, Carvana struck a deal with ADESA to gain access to its wholesale auction locations. The company is just now seeing some returns on that purchase. In a letter to shareholders, Carvana CEO, Ernie Garcia, reassured them that the company is taking action to cut expenses and overall is happy with Carvana’s progress towards profitability. Read More

A recession is on the horizon, according to Tesla CEO Elon Musk. At a shareholder’s meeting yesterday, Musk said he believes the economy surpassed peak inflation and should expect to experience an 18-month mild recession. Musk even indicated that share buybacks are possible in the future as a result. The company is still experiencing difficulties due to the shanghai factory supply chain issues. However, Tesla still has a goal of 20 million cars produced per year by 2030. Read More

Supply and logistics challenges have created a huge impediment to production for Lucid Motors. Shares for the company have fallen over 12% since the announcement of its Q2 earnings. And while the company is not experiencing a problem in demand, it has decreased its production goals by 50%. Peter Rawlinson, CEO and CTO of Lucid Motors, assured investors that this was a strategic move and solutions were in the works to resolve the issues. Read More

According to the most recent Kelley Blue book Brand Watch report, high gas prices have caused consumers of non-luxury automobiles to consider traditional cars at a level not seen since before the epidemic. The purchase of electric automobiles increased as well. The distance between Ford, the second-most popular brand, and Toyota, the top brand, grew. The three vehicles with the highest shopping consideration were the Honda Accord, Honda Civic, and Toyota Camry. Read More

News & Opinion:

Carvana posts $439 M net loss for Q2, sales volume increases
Last Thursday, Carvana completed its second-quarter earnings call between the company, shareholders, and analysts to discuss performance and corporate activities. According to an official report from the company, Carvana sold about 117,564 retail vehicles, which calculates to a 9% increase from the previous year. These results are better than expected but not surprising given Carvana’s recent business strategies. However, Carvana also announced a net loss of $439 million in Q2. Read More

4 simple tips to improve your dealership’s reconditioning process
How long does it take your dealership to recondition a used vehicle? If you are one of the top performers, the answer would be 24 hours or less. Does it surprise you to know that some dealerships require a week or longer for reconditioning? If you are one of these dealers, you need to streamline the process for maximum profitability. According to a Cox Automotive Report, you want to retail a minimum of 55% of your inventory within 30 days of acquisition to ensure maximum profitability. The only way to do this is to shorten the reconditioning process. Time is money and you are missing out, that’s why we put together these four tips to improve the reconditioning process. Read More

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