CBT automotive newscast: August 5, 2021

Featured Interview:

How car dealers can increase their brand awareness and engage with customers on Twitter – Guy Schueller, Industry Director for Autos
If a topic is trending, it’s most likely being discussed on Twitter. As more sales move online, the social networking site has become a key tool for retail automotive. So what’s trending right now? On today’s show, we’re pleased to welcome Guy Schueller, Industry Director of Automotive for Twitter, to discuss how dealers are being affected by current trends and how they can utilize Twitter. Watch the complete segment here.

Top Headlines:

Many automakers are still feeling the effects of the pandemic and ongoing microchip shortage. However, Toyota blew right past competitors to earn a record operating profit in Q2, despite production challenges. Operating profit rose to $9.14 billion in the fiscal first quarter, from $127.4 million, from the year prior. Strong sales and low incentives are part of what’s keeping the company consistent as they were before the pandemic hit. Toyota predicts a rebound in global sales, and an increase of 6.4% to 10.55 million units, with revenue expecting to reach near-record levels at $274 billion.

The Detroit Big 3 automakers and the United Auto Workers have reinstated a mask mandate, regardless of vaccination status. This move comes in response to the C.D.C change in guidance of the rapidly spreading Delta Variant, fueling a surge in cases domestically. The announcement comes a month after companies and unions made face masks optional for employees who were fully vaccinated. The U.A.W. hasn’t released an estimate of how many of its 153,000 members with the Detroit automakers have been vaccinated. The new mask mandate went into effect yesterday on August 4.

General Motors has announced $2.8 billion in second-quarter net income. The automaker forecasts as much as $13.5 billion in adjusted earnings this year, compared with a previous prediction of $10 billion to $11 billion. Consumer demand and strong performances are what helped drove the earnings boost. Global revenue doubled from $16.8 billion prior to $34.2 billion.

In an interview with CNBC’s Squawk Box this week, the CEO of General Motors, Mary Barra, continues the discussion of the company’s earnings and autonomous vehicle technology. She said, “it’s some uncertainty when it relates to covid, but when you look at the strength of our underline business, our product portfolio, the work that we’re doing from an electrification perspective, and the launches we have coming, yet this year, I think it’s going to be a good second half.” Barra says she doesn’t believe the chip shortage or any other obstacle, will delay GM’s EV launches.

News & Opinion:

Carmakers exceed expectations for Q2 profit in the US
As anticipated, the first few days in August have second-quarter financial reports rolling in from carmakers. In large part, Q2 2021 has been one of the best on record with profits exceeding the forecasts set earlier in the year as the chip shortage was factored in. GM, Stellantis, Toyota, Hyundai, Mazda, and others are into the black – a position many feared wouldn’t be possible earlier in the year. Read more

3 Ideas for using the car wash as an income generator in your dealership
With less than 29% of consumers washing their vehicles at home, your dealership can gain a lot of profit by focusing on a car wash. In fact, a professional car wash at your location could dramatically increase revenue in the service department. In this article, we examine the ways a car wash can be used and offer three ideas for generating more income with this invaluable service. Read more