Headlines:
Auto retailer Sonic Automotive released its first-quarter results yesterday, which noted several record numbers all across the board. Revenue for the quarter increased almost 29% year-over-year to $3.6 billion, while net income from continuing operations totaled over $97 million. Earnings-per-share continued to rise throughout the quarter, and Sonic Auto’s EchoPark segment did notably well with revenues of over $625 million. Sonic Auto now operates in 23 states with 111 franchised dealerships and 49 EchoPark locations.
Nikola Corporation announced Wednesday that it had started the production of its upcoming Tre BEV at its plant in Coolidge, Arizona. Phase one will allow the production of up to 2,500 commercial trucks annually, while phase two is expected to expand the plant to accommodate the production of 20,000 trucks per year. Nikola Chief Executive Officer Mark Russell added that the company has plans to add fuel-cell electric vehicles to its manufacturing lineup next year.
This week, Cox Automotive released its projections for the month of April, which showed an expected 20% drop in sales from April of 2021 and a seasonally adjusted annual rate (SAAR) of 14.3 million. The drop in sales will reportedly affect all segments and is due to severely low inventory and reduced vehicle production due to supply chain issues caused by the pandemic. Cox Auto Economist Charlie Chesbrough said that vehicle production will increase in the second half of the year. However, dealers will still be short on inventory for a longer period of time.
According to an inside source, Volkswagen is currently exploring the possibility of expanding its plant in Tennessee to accommodate the production of an electric pick-up truck and the much-anticipated id.Buzz Microbus. The company previously said the conflict in Ukraine was pushing it to move operations into the U.S. and China, which included plans to spend over $7 billion in the U.S. over five years to expand Volkswagen’s presence in the country. The Chattanooga-based plant currently produces the id.4 electric crossover as well as the Atlas and Passat vehicles.
News & Opinion:
5 must-have traits for extraordinary leadership
Under leaders who aren’t suited for the role or haven’t received any training, the staff under their new purview tend to be less productive, morale suffers, and almost inevitably, you lose good people to your competitors. Management training is fundamentally more important than training a new hire since their team will look to them for guidance and answers. However, there are people who are suited to be leaders, and they possess certain traits that others will never have. Read More
Create a pre-owned inventory investment strategy
With so much demand on pre-owned vehicles to fulfill inventory needs, taking a moment to evaluate how you invest in your acquisition and reconditioning processes is very important to stay competitive. Without proper investment in vehicle information and reconditioning, you can be putting yourself in a financial situation where you are allowing substantial amounts of money to slip through the cracks – real dollars being wasted, every single day. Give your efforts a boost with a five-step strategy that will help you acquire your inventory smarter, get them retail-ready faster, while keeping your high-demand customers engaged. Read More
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