CBT automotive newscast: October 15, 2020

Today’s Featured Interview:

Southeast dealer Matt Bowers discusses his recent rebranding and acquisitions
Despite the pandemic, experts we’ve talked to say the retail auto industry is booming. We continue to see acquisitions happening across the country, and some are even taking an aggressive approach. On today’s show, we’re talking to Matt Bowers, President of Matt Bowers Auto Group, about his latest acquisitions and what’s next for the Group. Watch the full segment here.

Top Headlines:

Asbury Automotive Group is looking to close the year on a strong note after an impressive third quarter. In a press release, the auto retailer announced preliminary financial results for the three month period that ended at the close of September. Asbury expects a net income per diluted share to be between $4.88 and $4.96. Net income for the Asbury’s Q3 is expected to be adjusted for a $24.7 million gain on a dealership divestiture and $1.3 million of acquisition-related costs. The company expects same-store gross profits to be between 6% and 7%, and it expects sg&a as a percentage of gross profits to be between 61% and 62%. Asbury president and CEO David Hult boasted of the company’s ability to close on the largest acquisition in Asbury history with the addition of park place dealerships.

Tesla is slashing the price associated with its model s sedan. The EV maker announced that the price of the model s will drop $3,000 or 4%. Tesla believes this move will help propel sales of the electric sedan as the list of competitors continues to grow. The Tesla Model S long-range will now start at $71,990 in the U.S. and the base version of the model will start at $36,805.

Used-vehicle prices continue to stay well above where they were before the start of the pandemic. Supply and demand have been disrupted by the pandemic for the duration of both the second and third quarters. However, the return of inventory could stabilize used prices. Earl Stewart, owner of a Toyota dealership in North Palm Beach, Florida told the Detroit News that he believes inventory is on track to getting back to normal. With the return of employees to manufacturing plants, wholesale auction prices should drop in the near future.

News Stories & Opinion:

Electric trucks expected to dominate in next decade
New market research now predicts that the electric truck market will experience exponential growth by the year 2030. P&S Intelligence forecasts that the U.S. electric truck industry will boom on a compound annual growth rate (CAGR) of 51.6%. At that pace, sales from electrified pickup trucks and heavy-duty trucks will grow to a $15 trillion market cap by 2030. Read More

Tips to improve your virtual showroom
On a typical day, when most people will never stop by your dealership but they’ll visit your website, the importance of digital showroom curb appeal matters tremendously. If your website doesn’t meet your possible buyers’ standards, you won’t grow online, and you’ll suffer in sales at your brick and mortar location. Read More