CBT automotive newscast: December 6, 2021

Inside Automotive:

How will the new covid variant affect dealers today? Tom Maoli weighs in.
On today’s episode of Inside Automotive, we’re diving into today’s headlines, from inventory, to the latest COVID variant, Omicron. What does all of this mean and how could you be impacted? We’re pleased to welcome back Tom Maoli, President and CEO of Celebrity Motor Cars and host of Go Big or Go Home on iHeartRadio. Watch the complete segment here.

Headlines:

It’s been said that Ford is currently the best-selling automaker in the U.S. for the third consecutive month, with a 5.8% increase in light-vehicles sales. Ford’s utility vehicle sales rose 21% from a year prior and F-series sales increased 15%. Ford said sales of its electrified vehicles grew three times as much as other manufacturers. According to Ford, 29% of November’s retail sales came from customer orders, not dealer inventory.

EV maker, Polestar says it aims to double its number of U.S. showrooms in two years while developing its own platform architecture for upcoming vehicles. CEO Thomas Ingenlath, says, “From here on out, polestar is all about growth.” The company plans for 29,000 vehicle deliveries this year and forecasts to sell 290,000 annually by 2025, operating in 30 markets by the end of 2023.

Honda has recalled almost 725,000 vehicles for hoods that may open while driving. The affected models are the 2019 passport midsize crossovers, 2016 to 2019 Pilot midsize crossovers, and 2017 to 2020 Ridgeline midsize pickups. As of November 19, Honda has received 116 warranty claims and no reports of crashes or injuries. Vehicle owners will be notified by January 17.

Economists predicted 573,000 jobs would be created on top of the 531,000 added in October. The number was well below wall street expectations, increasing by just 210,000 for the month. Wages increased by 4.8% year over year. The unemployment rate fell to 4.2% from 4.6%. The emergence of the new variant of the Coronavirus, Omicron, has been a factor as well as companies trying to find workers.

News & Opinion:

What shoppers expect to find on your website VDPs
Modern retailing in the automotive industry now includes an ability for shoppers to perform much of their transactions online. But even before buying a car online was common, shoppers spent more than 14 hours online performing research. Much of it is conducted on third-party sites, though inquiries through a dealer’s website are among the hottest leads generated. Leads from a vehicle details page, or VDP, inquire about a specific unit in the store’s inventory. Although every dealership website has VDPs by the dozens or even hundreds, it can be a make-or-break moment in the sales process for the shopper. Read more

US new vehicle sales in November are down once again
Auto sales are yet again being hindered by the ongoing supply chain issues, with a handful of automakers reporting notable drops in sales for the month of November. While a lack of sales sometimes comes when there is a drop in demand, consumers are still eager to buy new vehicles. However, they cannot find the ones they want because inventory is so low. Toyota, Honda, and Hyundai are just three automakers who reported significant drops for November, and while some experts remain positive that auto production will continue to bounce back, others are concerned the new coronavirus variant may stymie production further. Read more