Tesla price cuts, Carvana loses license, Chinese EVs in U.S.

Inside automotive

What are the top challenges facing car dealers in 2023? — Jonathan Smoke | Cox Automotive
It has been predicted that the rest of the year will witness similar movements based on the changes the car industry has already experienced, such as inventory changes, high pricing, inflation, and the introduction of electric vehicles. Today’s Inside Automotive features a discussion with Cox Automotive’s Jonathan Smoke, Chief Economist, on the trends that dealers will see continue into the year. Watch full segment here.

Top Stories

After missing its sales target in quarter four of 2022, Tesla has made surprising price cuts to some of its bestselling electric vehicles. The automaker reduced its Model 3 price by 6%, and that of its Model Y by 20%. Thanks to the drop, buyers of the Model Y crossover SUV will now be able to qualify for the Biden Administration’s $7,500 EV tax credits, after it was initially denied for going over the maximum price limit of $55,000. Read More

Carvana’s Michigan outlet has had its license suspended following a state probe and subsequent settlement. The dealership was investigated by regulators after they received reports from customers over paperwork violations in regards to their titles. Carvana voluntarily gave up its license as part of an agreement which would allow the company to reapply in 2026. However, buyers in Michigan are unlikely to experience any disruption, since the company is technically classified as an e-commerce business, and can still sell and deliver vehicles in the state even without a dealership. Read More

Skywell, a Chinese electric vehicle brand, will be making its way to the U.S. within the next two years thanks to a Michigan-based auto company. Liteborne Motor Corporation, formally known as Imperium, hopes to bring 5,000 of the company’s EVs to North America by the end of 2023. Chinese automakers have had a difficult time breaking into the U.S. market, thanks to increasingly hostile trade relations between the two countries. Skywell’s flagship model is called the ET5, which boasts roughly 323 miles of driving range and a $30,000 price tag. Read More

Electric Vehicle newcomer Lucid managed to finish off 2022 strong by surpassing its production target of 7,000 units by 180. However, this number is just over a third of its initial projection of 20,000, which was continually lowered throughout the year in response to supply constraints and shortages. Lucid has also yet to deliver a majority of its current stock. Despite the nuances, the company’s manufacturing arm nevertheless managed to make an impressive rebound in the final months of 2022, building over half of its 7,180 vehicles in quarter four alone. Read More

For Dealers

5 areas where dealers can communicate better with customers
About 90% of loyal dealership clients are still going to consider another brand when the time comes to get a new vehicle. Even if you are doing everything right, you might lose a customer. However, if you aren’t communicating with your audience, you have a much higher chance of them going elsewhere. That’s why you want to focus on these five areas where dealers can communicate better with customers. Read More

How digital signs can elevate your in-dealership marketing efforts
Every boss knows that running a car business takes great leadership, excellent customer service and skilled staff. But what do you do when every auto retailer on the block has all three qualities in spades? Let’s face it: being competitive in the auto business is difficult. It’s an industry filled to the brim with talented, street-smart professionals who know how to keep their customers coming and their operations going. Succeeding where others don’t is hard when everyone succeeds at the same things. Read More

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