CBT automotive newscast: August 26, 2021

Featured Show:

The founders behind Dealer.com discuss their latest startup venture
Welcome to another episode of Founder Focus with Steve Greenfield, founder of Automotive Ventures. This ASBN original series dives into the inside stories behind some of the most impressive entrepreneurial journeys. In this segment, Greenfield sits down with the Co-founders of Fluency, Inc., a digital advertising automation platform for automotive professionals. CEO Mike Lane and President Eric Mayhew are also Co-founders of the incredibly successful Dealer.com, which was acquired by Dealertrack and later, Cox Automotive. Watch the complete segment here.

Headlines:

Prime Automotive Group of Westwood, Massachusetts is up for sale with plans to complete a deal by the end of the year. The Prime portfolio is made up of 31 dealerships and 3 collision centers, making it one of the larger dealership groups in the country, with retail sales of 31,529 new vehicles in 2020. An unidentified northeast dealer told Automotive News that the business submitted a bid in June to Jefferies Financial Group, in order to purchase some Prime stores. However, the offer was rejected because, according to the dealer, Prime Group is only looking at proposals to buy the entire Prime portfolio.

RocketAuto has officially launched its new online retailing platform. Rocketauto.com went live with over 35,000 used vehicles from more than 300 auto dealers. According to CEO Victor You, the company expects to add new “inventory partners” throughout the rest of the year and increase new-car sales and leases in 2022. The company hopes to be among the top 10 used-vehicle sites by the end of the year. In the coming months, the company intends to offer a “fully-built” digital retailing platform through which car buyers will be able to complete steps like securing financing and adding warranty coverage.

Toyota’s top digital leaders are pitching significant advances in the application of software, including faster product cycles and more fuel-efficient vehicles. Some of these advancements will head to market as early as this Fall when the second-generation Lexus NX arrives. The redesigned compact crossover features aerial updates, while the hybrid version has predictive efficiency features that help optimize battery usage. Chief Product Integration Officer, Keiji Yamamoto said in a statement, “a new automotive operating system Toyota is developing will reach the market within five years.” This OS is called Arene and is being developed by Woven Plant, Toyota’s automated driving, and artificial intelligence subsidiary.

The White House and other government officials have told the Environmental Protection Agency that its industry-backed plans to tighten vehicle emission restrictions were too loose, but EPA leadership disagrees. Recently released pages of correspondence, analysis, and drafts from an interagency review of the measure, highlight tensions within the administration on how to aggressively enforce regulations to combat climate change. A White House spokesperson said in a statement, “the proposed standards along with the administration’s push to promote the use of EVs, would be the boldest on the books.”

Self-driving company, Waymo, owned by Alphabet, became the first taxi operator to offer autonomous rides to the public in San Francisco. Waymo first began at Google before separating on its own. The company said it’s launching a research-focused program called “trusted tester.” Residents who enter this program will be able to use an all-electric Jaguar I-pace, for free and later provide feedback on their rider experience. According to The Verge, riders will need to sign non-disclosure agreements to participate and there will be human drivers behind the wheel as backup. This announcement comes after some employees reportedly grew frustrated with the company’s slow pace of expansion.

News & Opinion:

Used and new car shortage: An auto transporter’s perspective
Today’s automotive landscape looks a lot different than it did 18 months ago. During the early days of the pandemic, dealer new and used car inventory sat stagnant as nationwide lockdowns were enacted, keeping consumers at home and shutting down showrooms. The Manheim Used Vehicle Index estimates used retail days’ supply peaked at 114 days on April 8, 2020, when normal supply is about 44 days. Here we are now with a limited supply of new cars and skyrocketing demand for used cars, fueled by supply chain issues. Read more

How to keep first-time car owners safe from distracted driving
As school returns to session, roads will be inundated with students on their way to class. While the long weekend wraps up what’s known as the 100 Deadliest Days of Summer – the time between Memorial Day and Labor Day – the dangers are far from gone. It remains true that teens have the highest accident rate of any age demographic, and in six of ten crashes involving teens distracted driving is a factor. Read more