CBT automotive newscast: April 1, 2021

Featured Interview:

How California dealers are responding to Volvo’s online sales plan – Brian Maas, CNCDA
California is a large market for Volvo here in the U.S. which is why many dealers in the state are up in arms about their latest plans to move EV sales online. Today on CBT News, we’re pleased to welcome Brian Maas, President of the California New Car Dealers Association (CNCDA) to take a closer look at dealer sentiment in California and why they say this proposal would be in violation of state laws. Watch the full segment here.

Top Headlines:

Georgia-based Jim Ellis Automotive Group has acquired Mercedes-Benz of Atlanta South. The purchase was completed on March 24 from Swickard Auto Group. While terms were not disclosed, the Jim Ellis group says it will keep the dealership’s name. The Mercedes store is the 20th dealership and 16th brand for the group. Haig partners represented Swickard in the transaction.

Honda Motor Company said it will recall close to 761,000 vehicles worldwide to replace fuel pumps that could fail and lead to engine problems. The recall includes 628,000 U.S. vehicles and covers various 2018 through 2020 model year Acuras and Hondas. Honda has received no crashes or injuries related to the recall.

Lithia Motors is expanding its presence in the southwest market with the purchase of Avondale Nissan in Phoenix, Arizona. The acquisition was announced on Tuesday and would add $75 million n annualized revenue for the retailer. Since launching its five-year plan nine months ago, Litha’s purchases have added up to more than $4.1 billion in annualized revenue.

Some Tesla customers are unhappy with their car-buying experience after being double-charged. CNBC interviewed multiple car-buyers that had been charged twice by Tesla, taking tens of thousands of dollars from their bank accounts without authorization. The cost of a new Tesla can range from $37,000 to as high as $71,000. Some customers are facing overdraft fees and looming financial charges from their personal bank. Tesla has yet to comment on the issue as customers await their pending refunds.

News & Opinion:

Volvo to integrate new parental leave policy globally
A new policy is being introduced globally by Volvo Cars that provides paid parental leave to employees regardless of gender. Called the ‘Family Bond’ policy, any employee with at least one year of service with the carmaker can take 24 weeks of paid leave at 80% of their base pay. The policy goes into effect April 1, 2021, and it certainly isn’t an off-color joke. It applies as the default rather than an opt-in program for new, legally registered parents of all walks of life including opposite-sex couples, same-sex couples, adoptive parents, surrogates and permanent foster caregivers, and non-birth parents in same-sex couples. Read more

Is your car dealership missing opportunities for fixed ops revenue?
With so many opportunities to boost sales from your fixed ops departments, there’s no reason you should be held back. While your car dealership is focused heavily on scheduled maintenance and repairs, you might be missing some valuable revenue opportunities. Increase your fixed ops revenue with these four simple steps. Read more