Automotive weekly roundup: dealer group profits fall, emergency brake rule, Ford University launch

Earlier this week: AutoNation and Penske Automotive reported first quarter earnings this week, revealing notable declines in profitability. The National Highway Traffic Safety Administration finalized a rule requiring automakers to implement automatic emergency braking systems into all new vehicles starting 2029. Ford is launching Ford University, a new training platform for dealership employees incorporating artificial intelligence and gamification. The Federal Reserve left interest rates unchanged after inflation accelerated during the first quarter.

Here’s a closer look at these top stories and more headlines to stay on top of this week in automotive industry news.

1. AutoNation posts Q1 earnings, profitability slides

AutoNation saw a slight improvement in quarterly revenue but struggled to maintain profitability due to price drops during the January-through-March period. The dealership group reported first-quarter revenues of $6.5 billion, up 1% year-over-year. Several factors contributed to the increase. Car sales rose throughout the period, gaining 7% in the new segment and 2% in the preowned segment for a total of 127,984 units. AutoNation also attributed its earnings to stronger demand for its fixed-ops and F&I businesses. Read More

2. Penske Automotive faces challenges in Q1 with 28% drop in net income

Penske Automotive Group, a prominent player in the automotive retail industry, recently reported a significant 28% decline in net income for the first quarter. This downturn was attributed to several factors, including higher interest and vehicle floorplan costs, as well as lower earnings from its investment in Penske Transportation Solutions. The company’s net income stood at $216.2 million for the quarter, down from $299.6 million earned during the same period last year. Read More

3. NHTSA finalizes life-saving automatic emergency braking rule

The National Highway Traffic Safety Administration (NHTSA) has finalized a rule requiring automatic emergency braking (AEB) systems in all new passenger cars and light trucks by 2029. This rule, stemming from the Bipartisan Infrastructure Act, necessitates AEB systems capable of preventing collisions with other vehicles at speeds up to 62 mph. Under the finalized rule announced by the NHTSA on Monday, AEB systems must engage automatically at speeds up to 90 mph when an imminent collision with an oncoming vehicle is detected and at 45 mph when pedestrians are present. Read More

4. Ford University to boost employee engagement, fill knowledge gaps

Ford’s new training platform, Ford University, aims to leverage artificial intelligence and modernized education practices to boost dealership employee knowledge and prepare the retail automotive sector for the future of transportation. Ford is rolling out the program at 3,000 dealerships starting today, marking the first major overhaul to the automaker’s education strategy in years. Artificial intelligence plays a central role in the new platform, providing features such as trainee performance evaluation and practice recommendations. Read More

5. Federal Reserve leaves interest rates unchanged after worrying inflation trends

The Federal Reserve left interest rates unchanged after its policy hearing on Wednesday, marking the central bank’s sixth consecutive meeting without making any adjustments to its disinflationary strategy. Fed Chair Jerome Powell attributed the decision, or lack thereof, to disconcerting shifts in inflation trends since January. While consumer prices showed signs of cooling in the second half of last year, the first quarter of 2024 saw the costs of goods and services accelerate, rising at a pace of 2.7% in March. Read More

6. What Tesla’s Q1 earnings say about the EV market — Lauren Fix | Car Coach Reports

On this episode of Inside Automotive, host Shyann Malone is joined by Lauren Fix, founder of Car Coach Reports, to discuss Tesla’s first-quarter earnings report and what it means for the brand and the electric vehicle sector going forward. Watch Here

7. Driving entrepreneurial success with SBA Administrator Isabel Casillas Guzman

On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA). The SBA is a key government agency tasked with supporting entrepreneurs through programs that provide capital, disaster relief, government contracting opportunities, and education. Now, Guzman shares her insights into the role the SBA plays in furthering the interests of small business owners and explains the government-run tools and programs available to startups to help them grow. Watch Here

8. CarGurus’ Q1 2024 report: rebounding inventory and demand pose affordability questions – Kevin Roberts

According to the CarGurus‘ Q1 2024 Report, inventory and demand are rebounding, but where does that leave affordability? On today’s episode of Inside Automotive, Kevin Roberts, the director of industry insights and analytics at CarGurus, elaborates on their findings. Watch Here

9. Ryan Kerrigan unveils global automotive M&A dynamics and EV realities

From acquisitions to shifting consumer preferences, in today’s episode of Inside Automotive, we’re discussing factors driving M&A activity as highlighted in The Blue Sky Report, published by Kerrigan Advisors. Joining us now is Ryan Kerrigan, Managing Director of Kerrigan Advisors. Watch Here