Edmunds 2023 forecasts, Swickard dealership acquisitions, EU debates auto incentives

Inside Automotive

OfferLogix’s new solutions help with changes in auto retail- Aaron Bickart
On today’s show we’re pleased to welcome back the Executive Vice President and General Manager of Offerlogix, Aaron Bickart. Watch full segment here.

Headlines

Analysts from Edmunds now expect U.S. auto-retailers to sell 14.8 million new cars in 2023, surpassing the last two years of sales. The auto-industry has undeniably experienced a hectic year since January. Used-car sales plummeted, new vehicle prices hit record-highs, and in the background automakers have invested over $1 trillion into clean energy production, hoping to compete with Tesla despite dismal EV sales. However, Edmunds expects minor normalizations to slowly bring customers back to the dealership, although struggles still remain. Chief among its concerns are the difficulties customers face when it comes to financing. Interest rate hikes have led to high monthly payments, which are expected to get even more expensive as the Federal Reserve is set to announce additional increases. Although companies have sought to combat this with generous warranties and low markups, the issue continues to keep many would-be buyers at home. Regardless, 2022 is on track to beat expectations for vehicle sales, despite gloomy forecasts, a trend which Edmunds is confident will continue into next year. Read More

California has moved closer to its clean energy goals after signing off on a $2.9 billion program which would add 90,000 new charging stations for public use. Earlier this year, California lawmakers set one of the most ambitious plans for carbon neutrality in the country, announcing that gas-powered vehicle sales would be banned by 2035. Energy experts immediately warned that the state’s energy infrastructure was nowhere near capable of supporting a transition of that magnitude. However, the new initiative would double the state’s current number of hydrogen and electric fueling units, bringing it to a total of 170,000, while plans are in place to add an additional 80,000 units by 2025. California also hopes the increase will attract more EV drivers, as consumers remain hesitant to ditch gasoline. Read More

One of the nation’s fastest growing dealership groups has announced new expansions on the west coast. Swickard Auto Group, based in Las Vegas, has 34 locations in five states, from Texas to Alaska, selling both new and used vehicles. Its new purchase will bring Acura, Honda, Jaguar, Mercedes-Benz, Lexus, Cadillac, Chevrolet and Buick dealerships located in Southern California under its wing by early 2023. This is the third acquisition the company has made this year, and highlights quickening consolidation in auto-retail after many smaller-businesses struggled to keep their doors open following the COVID pandemic. Read More

For our last story, In the midst of arguments between the EU and Biden administration over clean energy policies, regulators in Europe are now asking diplomats to provide evidence of damages as a result of U.S. climate policy. Earlier this year, congress approved significant subsidies and tax incentives for clean energy manufacturing, with the caveat that all production must take place in the U.S. for the credits to apply. Immediately following this decision, overseas automakers and suppliers announced a flurry of new facilities in America, including VinFast, Honda and Toyota. Worried that the new rules are siphoning business away from their countries, European and Asian political leaders began criticizing the policy for harming international trade relations. Since their concerns are unlikely to sway U.S. lawmakers, the questions posed by overseas regulators instead seek to find ways to plug losses, although it remains to be seen if the EU member states will agree to a solution. Read More

News & Opinions

How can car dealers prepare to serve future EV customers?
As EVs settle firmly into a mainstay, dealerships must regard their role in the coming electric future. True, internal combustion engines (ICEs) are not going anywhere soon; many projections don’t have ICE sales peaking until the late 2030s. However, dealerships should consider that not only have EV sales shown tremendous growth year over year with no sign of stopping, but they have also received significant boosts due to supportive energy and infrastructure policies and unexpected global phenomena, such as fuel shortages. Read More

5 tips to outperform your competitors in the online marketplace
When buying a car, today’s consumers have more choices than ever. They can buy from a traditional dealership, an online-only marketplace, or even directly from a manufacturer. With so many options available, it’s no wonder dealerships are feeling the pressure to compete.While online-only marketplaces may seem like a threat to traditional dealerships, there are ways to compete and outperform them. Here are five tips. Read More

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