Auto retailers remain healthy in spite of supply chain calamity
Top of mind for many auto retail professionals these days is inventory — where is it and how do we get it? Today on Inside Automotive, we’re pleased to welcome back Tyson Jominy, Vice President of Data and Analytics at J.D. Power to discuss current inventory numbers and when they might return to a comfortable level. Watch the complete segment here.
Hyundai released its first-quarter results, which showed a 19% hike in net profit for the quarter despite sales decreasing by almost 10%. Hyundai has increased car prices across its entire lineup due to supply chain issues and shortages of semiconductor chips, which helped it reach a Q1 profit of $1.3 billion. The automaker said it will likely make certain decisions this year based on the conflict in Ukraine and may delay product launches and certain investments due to the situation.
South Korea-based Kia also released its Q1 results, which showed a 0.2% decrease in net profit year-over-year. Net profit for the quarter dropped to approximately $825 million and Kia said sales also dropped 0.6%. The automaker said the reasons for the drops included ongoing semiconductor chip shortages, higher-than-usual deferred corporate taxes, increased prices of raw materials, and the war in Ukraine. Kia said it plans on ramping up production and is still aiming to be one of the top EV sellers in the world.
Controlled Thermal Resources CEO Rod Colwell told reporters that California’s Salton Sea might become one of the best places in the U.S. for mining lithium. The lake and surrounding areas have historically been notorious for causing environmental concerns. The region is often referred to as “the Saudi Arabia of lithium,” and it would be able to produce 600,000 tons of lithium per year. Colwell’s firm already broke ground on a lithium mining facility there, and Tesla CEO Elon Musk tweeted that Tesla might need to enter the mining industry and obtain the mineral itself due to rising prices.
Various European automakers have already tapped into the Metaverse, and Japan-based Nissan and Toyota have now entered it as well. Nissan has reportedly developed a virtual showroom that mirrors its Nissan crossing showroom in Tokyo and allows visitors to browse the gallery through Nissan’s invisible-to-visible interface. Toyota has reportedly developed virtual workspaces that allow employees to create avatars and interact with each other throughout the day.
News & Opinion:
Tires are the new oil change!
It was 1990 and the dealership was Marvin Star Cadillac in Toronto, Canada. This was the first dealership I visited when I started my career in the automotive industry. It was a large, successful dealership, and it ended up being a place I visited often as I learned the business. Back then, I knew nothing, which resulted in my asking a lot of dumb questions like “Why are you ‘spiffing’ advisors for selling—don’t they get a commission?” Or, one of my favorites, “Why are you selling an oil change for $9.95—doesn’t it cost you more than that to do?” This was the day the service manager gave me my first lesson on how the industry “really” works.” Read More
5 nuts and bolts of successful dealership marketing campaigns
For years, YouTube, TikTok, and online social media, in general, have educated consumers on how to spot good marketing. But unfortunately, it’s also made some jaded, picky, hesitant, and elusive customers. It doesn’t matter whether you’re selling Fiat’s or Ferrari’s; well-researched marketing is essential to your dealership’s success. This is especially true in our low-inventory environment, where dealerships constantly compete for customers. Creating a successful marketing campaign can be challenging, but some tried-and-true strategies can help. Here are five steps to creating successful auto dealership marketing campaigns. Read More
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