Inside Automotive:
Dealer Jamaal McCoy on how to thrive in the industry amid global shortages
From supply shortages to digital retailing, to an EV revolution, our industry is in the midst of a transformation. On today’s show, we’re pleased to welcome Jamaal McCoy, General Manager of Findlay Prescott, to discuss what business looks like today for his stores in Arizona. Watch the complete segment here.
Headlines:
Despite one Kentucky service center sustaining roof damage, mostly all franchised dealerships have been cleared of having any damage during the historic tornado event on last Friday night. FEMA says that all four states, including Missouri, Tennessee, Kentucky and Arkansas had experienced damage. Toyota confirmed its Toyota Bowling Green dealership was affected. General Manager Andy Foley, whose Kentucky dealership regularly gives $250 to charity for every vehicle sold during the holiday season, will give the remainder of funds for tornado relief. Foley hopes to contribute $5,000 to $8,000 for each community.
The Biden Administration has released a plan to build a nationwide network of charging stations for EVs. VP Kamala Harris said, “The auto industry is clearly moving toward electric. We need to make the shift faster and make sure it is driven by the U.S.” The $1 trillion infrastructure bill includes $7.5 billion to help build 500,000 EV charging stations across the U.S. and $65 billion for upgrades to the nation’s electric grid.
In more EV news, Toyota plans to invest $35 billion to build a full lineup of 30 battery-powered EVs by 2030. CEO Akio Toyoda says that Toyota aims to increase global sales of battery EVs by 3.5 million units a year by 2030. The battery-only EVs make up a fraction of current sales. Its luxury brand, Lexus, plans to have battery EVs account for 100% of vehicle sales in Europe, North America and China by 2030, and globally by 2035.
Speaking of Toyota, owners of the vehicles may have to start paying an unexpected subscription fee to continue using the remote start feature. The remote start key fob functionality requires an $8 per month subscription and only applies to 2018 and late models. Free trials run from 3 to 10 years. A spokesperson told Kelley Blue Book, “The vehicle must be enrolled in a valid subscription in order for the key fob to start the car remotely.” It is not clear when the change began.
News & Opinion:
Why sales process training is more important than ever
Dealership inventories are well below normal for both new and used vehicles and it’s likely to be another year before it has some semblance of usual business, give, or take. Prices are at record highs and the customers visiting the dealership online and in-person are arguably the highest intent purchasers the auto retail industry has ever seen. Read more
Best practices in reconditioning and ways to save costs
With used car sales outnumbering new car sales by nearly three times the amount, it’s important that your dealership understands how best to deal with the pre-owned inventory. When you get a vehicle in for used car reconditioning, you want to get it fixed up and back on the line as quickly as possible. After all, every day that it’s in the service center is a day the dealership can’t make money on it. With some of our best practices in reconditioning, we can show you the top ways to save costs. Read more
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