CBT automotive newscast: December 21, 2021

Featured Show:

What the 2021 Q3 Haig Report reveals about the automotive M&A market
As we’ve seen throughout much of the year, the buy-sell market is hot and dealership profits are through the roof. Haig Partners recently released their Q3 2021 Haig Report which details today’s buy-sell automotive landscape. On today’s show, we’re pleased to welcome Alan Haig, President and Founder of Haig Partners to go further in-depth on their findings. Watch the complete segment here.

Headlines:

General Motors will begin shipping its GMC Hummer EV pickup to customers. The new truck is the first to incorporate the automaker’s Ultium platform, which they plan to use as the foundation for its new EVs in the coming years. GM will invest almost $30 billion into the production of EVs such as the hummer pickup and other SUV models through 2025.

Ford’s push to get out more of the Mustang Mach-E and F-150 Lightning is delaying the next two EVs, the Explorer, and Lincoln Aviator. The automaker will need to choose where to produce them in the U.S. or Canada, with union contract negotiations set for 2023. Ford told suppliers to prepare for a combined annual volume of almost 100,000 for the Explorer and Aviator EVs, which will be in production from mid-2023 to late 2024.

The future of the minority dealer body might depend on EVs. NAMAD Chairman Fernando Varela told Automotive News, “The expected blitz of electric models could require future technicians to pick up a whole new skill set.” We Predict analytics firm, issued data to NAMAD NextGen showing that after 36 months on the road, EV service costs undercut gas vehicles by more than $200. NextGen President, Perry Watson lV said, “we’re going to make sure that we’re futuristic in our approach in terms of education.”

Due to supply chain issues, the chip crisis, and the new COVID-19 variant, Toyota is pausing production at five of its domestic factories in January. This will affect almost 20,000 vehicles but won’t impact their annual target to produce nine million vehicles.

News & Opinion:

As Rivian posts loss, where are they at with deliveries?
All-electric vehicle manufacturer Rivian Automotive Inc. has had its investors quite satisfied thus far – until last week. Recently released quarterly earnings and slow production have caused stock to crash, and while analysts are remaining positive, the company’s operation woes are now evident. Rivian has, however, begun deliveries of its R1S SUV and has announced it is making moves to increase the production of its R1T pickup truck and its electric Amazon delivery vans. Let’s take a look at Rivian’s updates from last week. Read more

Build Back Better bill on the rocks, threatening EV tax credit
The future of EV tax credits in the new year is in jeopardy as democratic West Virginia Senator Joe Manchin has said he will not support the Build Back Better Act. The $1.9 trillion-dollar spending plan includes key funding for social programs, health care and childcare costs, and climate change initiatives. It also includes up to $12,500 per new electric vehicle purchase in EV tax credits. Without Sen. Manchin’s support, the bill could be dead in the water. On Fox News Sunday, Sen. Manchin said, “I cannot vote to continue with this piece of legislation. I just can’t. I’ve tried everything humanly possible. I can’t get there. Read more