CBT automotive newscast: April 12, 2022

Inside Automotive:

The simple 2-step process for more high-quality referrals
Word of mouth is marketing is a powerful tool that can reach many potential consumers. So, what strategy are you using to get referrals into your business? Today on Inside Automotive, we’re pleased to welcome back Matt Easton, sales trainer, consultant, and Founder of Easton University, who discusses how you can get thousands of warm referrals into your business with a simple 2-step process. Watch the complete segment here.

Headlines:

Chief Financial Officer Arno Antlitz told reporters this weekend that Volkswagen believes the semiconductor chip shortage will drag into 2024 even if supply levels reach pre-pandemic levels this year. Antlitz said pre-pandemic supply levels would still not be sufficient to meet the significantly high demand, and added a shortage of wire harnesses will likely also continue to affect the industry. He also mentioned the potential initial public offering of Porsche later this year. He said an IPO might be able to help Volkswagen find better ways to manage supply chain issues.

Mitsubishi is the latest automaker to announce it is suspending operations in Russia as a result of operational issues and supply shortages. In an announcement Friday, the Japanese automaker said the plant it co-owns with Stellantis in Kaluga has been shut down due to so-called “logistical difficulties,” which reportedly includes a suspension of vehicle exports. Stellantis paused production at the plant late last month due to shortages and increasing sanctions on Russia.

At the grand opening of Tesla’s new gigafactory in Texas last week, CEO Elon Musk announced the automaker will be making a self-driving robotaxi that looks “futuristic.” He did not provide details on the vehicle but has previously said he believes Tesla will have created a safe fully-self driving vehicle by the end of 2022. Musk and the crowd of around 15,000 attendees met at the new facility to celebrate the opening of the Austin-based gigafactory, which will produce Tesla’s Cybertruck as well as Model Y and Roadster vehicles.

Delorean Motor Company has announced that, in August, it will be revealing an electric vehicle that partially resembles the automaker’s 1985 DMC sports car that was featured in the film Back to the Future. In a recent podcast, the company’s CEO said the new car will have gull-wing doors, and symmetry like the original sports car had, but noted differences such as a new logo and that the vehicle will not be made out of stainless steel. He added that the new electric car will compete with vehicles like the Porche Taycan and that a full lineup of electric vehicles may come in the future.

News & Opinion:

Low inventory keeps pushing transaction prices well above MSRP
Car sales have fallen for several carmakers over the first quarter of 2022 including Ford and Stellantis compared to a year ago. Much of that hinges on the production shortages that continue to plague the auto industry. Dealer lots have more free space than they ever have, largely due to buyers looking to purchase or replace a vehicle. The low demand combined with more buyers in the market for popular models than units available has once again kept the average transaction price well in excess of MSRP. Read More

Fraud is on the rise in lending — here’s how to spot it quickly
2021 was a year of recovery for the entire automotive industry, and for dealers in particular. Showroom traffic increased even during a once-in-a-generation inventory shortage and COVID-19 variants dragging on nationwide. F&I profits were a bright spot as PVRs reached record highs and became a big driver in helping to recoup lost revenue during the early days of the shutdown in 2020. Read More