CBT automotive newscast: August 31, 2022

Inside Automotive:

How car dealers can structure their buy/sell deals for maximum success — Len Bellavia, Esq.
We know there are plenty of buyers right now, and as we are all aware, it is a seller’s market. Brokers are constantly making inquiries and telling dealers that they will never be able to get a better price than they can get right now. Today on Inside Automotive, we’re pleased to welcome back Len Bellavia, Founding Partner of the law firm of Bellavia Blatt PC, also known as DealerLaw.com, who has handled hundreds of dealership buy-sells. Bellavia joins us to share his creative ways of dealing with this topic, which has been on the minds of many dealers lately. Watch the complete segment here.

Headlines:

According to a new forecast from J.D. Power and LMC Automotive, new-vehicle retail sales for August are expected to decline compared to august 2021. Retail sales for this month are forecasted to reach 980,400 units, which is a decrease of 2.6% when adjusted for selling days. According to Thomas King, President of the Data and Analytics Division at J.D. Power, the industry is still struggling with having sufficient inventory to meet consumer demand. As a result, the sales pace is slowing. The good news for retailers is that transaction prices and profits continue to reach record levels despite rising interest rates. Read More

Online auction company, ACV Auctions, has filed an antitrust lawsuit that alleges several companies in the physical auction sector conspired to hinder ACV’s ability to compete in the market. In a complaint filed with the U.S. District Court in New York, ACV names Manheim and ADESA as well as smaller wholesalers and independent auction groups as defendants. ACV claims that the companies worked to prevent ACV from accessing AutoIMS, which is a remarketing platform widely used by commercial consignors in the industry. Read More

The National Business League and automaker Stellantis revealed that they are partnering to launch a program to develop and support black-owned supplier companies. The National Black Supplier Development program has selected 15 black-owned supplier businesses – 60% of which are based in Detroit, Michigan. The program will assist the businesses with development through education, resources, and networking, with the end goal being to connect the companies with contracts. Stellantis will be offering opportunities for participants to work with the company. Read More

Stephen Roach, the former Chair of Morgan Stanley Asia and former Federal Reserve Economist, appeared on CNBC‘s “Fast Money” where he said the U.S. needs a “miracle” to avoid a recession. He suggested that Fed Chair Jerome Powell would need to hike interest rates further and raise unemployment numbers by 1-2%. Currently, the unemployment rate stands at 3.5%, but the number could change on Friday when the Bureau of Labor Statistics releases its August report. Roach predicts the rate will increase. He also said consumers might be the tipping point, speculating that persistent inflation will result in a pullback in spending. Read More

News & Opinion

What steps are being taken to curtail the uptick in catalytic converter thefts
Catalytic converter thefts have increased in multiple cities across the country. Between 2018 and 2020, catalytic converter thefts increased from 1,298 to over 14,000, according to the National Insurance Crime Bureau (NICB). Catalytic converters are a crucial part of a car’s exhaust system and transform hazardous chemicals from the engine’s emissions into more environmentally-friendly gases. Not having one can result in engine performance issues, resulting in costly repairs for consumers. So, what are states doing to prevent this problem, why is it happening, and are certain cars being targeted the most? Read More

Why every car dealership needs an upskill plan for their staff
Has The Great Resignation impacted your dealership? Are you concerned that it might? Well, offering opportunities for your dealership staff to upskill and expand their skill sets could be the answer. While upskilling may be a new buzzword, the idea is nothing new. Upskilling is the process of learning new skills, typically to advance into a higher position. You, as an employer, may know it as training and talent development. There are several benefits to having an upskill plan for your dealership staff, particularly if The Great Recession has affected your employment numbers. Read More

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