CBT automotive newscast: August 19, 2021

Featured Interview:

GNYADA Pres. Mark Schienberg on the decision to postpone the New York Auto Show
In light of new coronavirus concerns and the increase in Delta variant cases, the New York Auto Show has once again been canceled and rescheduled for a later date. Should car dealers be concerned that COVID restrictions are back on the rise? Joining us on the show, to discuss the cancellation is Mark Schienberg, President of the Greater New York Automobile Dealers Association (GNYADA). Watch the complete segment here.

Top Headlines:

In J.D. Powers’s first-ever survey on electric vehicle charging options, Tesla, Volta, and ChargePoint, lead the pack. The global analytics company surveyed over 6,600 owners of battery-electric and plug-in hybrid EVs from January to June of 2021, and found that the lack of access to public charging across the U.S. continues to be a challenge. J.D. Power’s Bren Gruber said, “the industry needs to make significant investment in public charging to assure a level of convenience and satisfaction that will lure potentially skeptical consumers to EVs.” Tesla’s charging stations ranked highest among electric vehicle owners in terms of overall satisfaction while Volta charging stations ranked second. According to the Department of Energy, the U.S. has 43,514 EV charging locations comprised of 105,671 individual DC fast-charging and slower, level-2 charging outlets.

Speaking of Tesla, two Democratic senators have asked the Federal Trade Commission to launch an investigation into the EV maker regarding the company’s self-driving advertisements. Senators Richard Blumenthal and Ed Markey asked FTC Chair, Lina Khan in a letter Wednesday to examine Tesla for “potentially deceptive and unfair practices” in its marketing of those technologies. The letter comes just two days after the NHTSA opened an investigation into Tesla’s autopilot system. The senators also claim in their letter, that Tesla may not be fully representing autopilot and full self-driving capabilities in its marketing messages. Neither Tesla nor the FTC responded to requests for comment.

A flaw in Blackberry software has left 200 million cars vulnerable to cyber threats, which the company has been keeping secret for months. The warning came after the operating system called QNX contained a vulnerability that could let hackers cripple devices that use it. The software is used by automakers like Volkswagen Group, BMW, and Ford, and in many critical features like advanced driver-assistance systems. The issue doesn’t impact current or recent versions of the QNX RTOS, but versions from 2012 and earlier. The company said it has notified potential customers that have been impacted and have made software patches available to resolve the matter.

Back in April, Cadillac unveiled its first all-electric SUV, the Cadillac Lyriq, with a base price of just under $60,000. Now, the automaker is sharing new, close-up shots of the 2023 crossover. The Lyriq offers up to 340 horsepower and a range of more than 300 miles. Full charging times come in around five hours at home, and boasts 22-inch wheels, a massive 33-inch driver display, and a hands-free driver assistance system. The Lyriq is set to go into production during Q1 of 2022. Reservations will be open on September 18.

Eric Watson has been named the new Vice President of Sales Operations for Kia America. Watson, who served as the interim VP of Sales Operations since March, begins his new role immediately, reporting to Kia North America CEO, Sean Yoon. Throughout July, Kia has achieved five consecutive monthly sales records and reached a record U.S. market share. Before joining Kia, Watson worked for Mazda North American operations for eight years, and then joined Kia in December 2017 as Director of Field Operations.

News & Opinion:

July vehicle prices hit all-time high while incentives vaporize
The average transaction prices for new vehicles are pushing vehicle purchases into unaffordable territory for shoppers – at least, for those who can find the vehicle they want. According to Kelley Blue Book, the average transaction price through July 2021 reached a never-before-seen high of $42,736, marking an 8.2% increase over July 2020. Month over month, new vehicle transaction prices rose by $402, the fourth consecutive month of gains and record prices. All-time high prices are being tempered by lack of vehicle availability as the industry struggles to replenish dealer lots with new cars. Read more

Are camera-based inspection systems beneficial in the service drive?
With the arrival of the technician shortage and the drive to increase profits in the dealership, service departments might find that using camera-based inspection systems could be a valuable tool. The automated inspection process can be used in the service bays or to scan a vehicle after it arrives from the auction. To determine the value of these camera-based systems, we must first look at their ability. After all, it would need to provide enough service to justify the expense. Read more