CBT automotive newscast: April 8, 2022

Inside Automotive:

Don’t let band-aid solutions compromise your CSI – Jennifer Suzuki | eDealer Solutions
Today on Inside Automotive, we discuss client retention in the service department with Jennifer Suzuki, President of eDealer Solutions and acclaimed sales trainer. Jennifer focuses on strengthening sales teams’ mentality and processes. She also works with managers to embrace new ways of leading teams, coaching, and training on digital selling skills. Watch the complete segment here.

Headlines:

Toyota’s Vice President of Sales Bob Carter said that the automaker is reducing its 2022 production outlook due to ongoing supply chain issues. Carter said that Toyota has reduced its projected annual sales by one million and now estimates overall sales of Toyota and Lexus vehicles will total 15.5 million. He warned this number could drop even more if the pandemic and the conflict in Ukraine continue and added that demand is still so high that cars are now being purchased before they are produced.

In M&A news, Brookfield Business Partners has entered into a formal agreement to purchase CDK Global, a leading automotive retail technology firm, for a total enterprise value of $8.3 billion. This deal is expected to be completed in the third quarter of 2022 and upon its completion, CDK stockholders will receive $54.87 per share in cash.

The National Highway Traffic Safety Administration has officially launched an investigation into L.G. Energy Solution after reports that cars built with the manufacturer’s electric vehicle batteries are susceptible to fires. The inquiry involves nearly 140,000 vehicles, and the regulator said it will be notifying automakers of any problems located and will also issue safety recalls if necessary. Several automakers have previously been affected by this EV battery issue, including a 2020 recall of every single Chevrolet Bolt.

Tesla announced the shutdown of its gigafactory in Shanghai would continue until at least the end of the week. A citywide lockdown forced the automaker to shutter production for the week of March 28, and while Tesla was hoping to restart production this Monday, the automaker reportedly could not find sufficient employees or suppliers. The city has now reinstated the lockdown for an undetermined length of time, and estimates indicate Tesla could end up seeing production losses of over 24,000 vehicles.

News & Opinion:

Brookfield enters formal agreement to acquire CDK Global in multi-billion dollar deal
Together with institutional partners, Brookfield Business Partners (collectively “Brookfield”) have entered into a formal agreement to purchase CDK Global, a leading automotive retail technology firm, for a total enterprise value of $8.3 billion. Brookfield will launch a tender offer to buy all of CDK’s outstanding shares under the provisions of the merger agreement. CDK’s Board of Directors unanimously accepted the deal, proposing that CDK stockholders tender their shares in the offer. Upon completing the agreement, CDK stockholders will receive $54.87 per share in cash. Watch here

How to sell the latest in-vehicle technology to car buyers
Modern vehicles are loaded with advanced technology designed to provide enhanced safety, performance, and entertainment options for new car buyers. According to Kelley Blue Book, new car buyers are looking for advanced features, such as active safety technology, along with more creature comforts, such as heated seats and larger infotainment or driver information system displays. These advanced technologies come with a steep learning curve that can push some drivers from confusion to indignation, especially when advanced technology and day-to-day functionality conflict. Read More