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CBT automotive newscast: August 24, 2021

Featured Interview:

GlaserNCADA Pres. Robert Glaser discusses Carvana’s 180-day dealer license suspension
The North Carolina DMV has banned Carvana from selling vehicles in Wake County, where their Raleigh dealership is located. for 180 days. So what does this suspension mean for the state? On today’s show, we’re pleased to welcome Robert Glaser, President of the North Carolina Automobile Dealers Association. Watch the complete segment here.

Top Headlines:

After being able to withstand the hardships of COVID-19 and the ongoing chip crisis, Toyota is now feeling the after-effects. Last week, the automaker revealed that it expects to lose close to 360,000 vehicles of production next month, a 40% hit. In North America, output is expected to be cut up to, 170,000 units through the end of next month. In the U.S. market, Toyota and Lexus sales rose 43% through July by managing to hold off production caveats. Doug Eroh, President of Longo Toyota in El Monte, California, the brand’s largest U.S. Dealership said, “this will be a little bit of a setback, but it’s something we’ve been dealing with all year. Historically we’ve carried anywhere from 1,500 to 1,800 new cars, but for the last four months, we’ve started each month with 200 new cars in stock. That’s made it a slightly different business model, but in a lot of ways, it’s better.”

Volvo is also feeling the chip shortage crunch. Starting August 30, Volvo will stop production at its Swedish plant in Torslanda, on the outskirts of Gothenburg. Due to the combination of material shortages, the chip crisis, and new COVID-19 outbreaks, the automaker has decided to halt manufacturing. Last month, Volvo Cars, reported a return to profit in the first half of 2021, as demand for electric cars grew. Production is planned to resume on Sunday, September 5.

General Motors plans to take a $1 billion hit to expand its recent recall of the Chevrolet Bolt EVs due to potential fire risk. Almost 73,000 vehicles in the U.S. are being added to the recall from the 2019 to 2022 model years, including the recently launched larger version of the Bolt EUV. The previous recall involved about 69,000 vehicles worldwide, including almost 51,000 in the U.S. The recall expansion is expected to cost the automaker a total of $1.8 billion, to replace potentially defective battery modules in the vehicles. General Motors is working with LG to fix the cause of the defects and increase the production of the new modules. The automaker will notify customers when replacement parts are ready.

Will charging electric cars ever be as easy as pumping gas? Ford Motor Company believes phone apps are one way to accelerate the EV charging network. Ford’s “power my trip” software will be able to help consumers locate vehicle chargers to keep battery-electric vehicles going. The app can help motorists plan trips, recommend better routes, and link to software to keep track of the amount of charge available in an EV. The technology is currently available with the Fordpass app, and it’s on the Ford Mustang Mach-E and will be on the Ford Transit van, and Ford F-150 Lightning Pickup truck. Ford continues to expand the number of stations available through its Fordpass charging network.

The Hight Family of Dealerships of Skowhegan, Maine celebrates 110 years in business by brewing up a beer collection with Bigelow Brewing; the Hight’s Tin Can Sailor. This is the first known brewery and auto dealership collaboration in the country. The two Skowhegan businesses have launched “Hight’s Tin Can Sailor”, a scotch ale honoring the late Lieutenant S. Kirby Hight’s legacy as a war hero and business icon. The group has four stores in central Maine, and they will be donating $1 for each can of Tin Can Sailor sold, to the Skowhegan Free Public Library. The Hight Family of Dealerships says it is the only group in New England recognized by the National Automobile Dealers Association as having been owned by the same family for more than a century.

News & Opinion:

Video communication during service visits breaks the trust barrier
According to a 2020 study by CDK Global, 55% of consumers identified distrust as one of the main reasons for choosing aftermarket service providers over the dealership. What should come as no surprise to anyone, two overarching beliefs dominate their reasons for not trusting franchised service departments: they’re going to be upsold services they don’t need, and they won’t be kept properly informed during their visit. Read more

serviceHow to get customers to come back for the first service
It’s easy to think that a manufacturer’s free maintenance plan is enough to bring someone in for the first service if you just had one to offer. If you don’t have that option, how could you get your buyer in for their first service? Let’s look at some ways to get them back and keep them coming back to an essential part of your dealership. If you have a plan and build a relationship, then your customer will not only come back for their next purchase, but they’ll bring others with them. Read more

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CBT News
CBT News
For over 11 years, CBT News has been informing and helping automotive retail professionals grow their businesses and thrive in their careers through an awarding-winning, on-demand streaming platform. With exclusive interviews featuring the biggest names in the industry, daily newscasts, up-to-date market data, and exclusive articles covering the latest trends, CBT News is your #1 source for auto industry news and content.

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