Deloitte consumer study, Penske Q4 performance, Rivian and Polestar

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Consulting firm Deloitte has published its 2023 Global Automotive Consumer Study, revealing the consumer perspectives and habits it expects will dictate this year’s market trends. The study, which sourced opinions from 26,000 buyers around the world, found that most EV drivers purchased their vehicle to lower operating costs, and that interest in hybrid technology is likely to remain higher than battery powered cars. The report also suggests that consumers have become used to long waitlists for vehicles, but attach high quality expectations to delayed orders. Finally, the researchers noted that car makers who implement subscription services face an uphill battle, as an overwhelming majority of participants remain against new monthly fees. Read More

Penske Automotive Group’s fourth quarter income dropped year over year despite record high revenue between October and December. The discrepancy is a result of fluctuating vehicle profit margins and hefty foreign currency exchange rates. The dealership group accrued $7 billion in revenue during Q4, an increase of 11% from the same period in 2021, while its income was $299.3 million, a 4.3% decrease. In total, the company’s annual revenue and income were $27.8 billion and $1.4 billion respectively, with the latter gaining 16% over the previous year. Read More

Yesterday, Japanese automaker Subaru announced a 9.3% cut to its 2023 production goal, citing ongoing shortages of semiconductors. The brand’s output target is now 880,000, down 90,000 from its original estimate. The company also reduced its delivery predictions by roughly 49,000 vehicles, although it maintains its profit goal of $2.29 billion. Multiple automakers have blamed chip scarcity for disappointing performance numbers in 2022. However, chip production is expected to pick up after June of this year. Read More

Research funded by EV brands Rivian and Polestar suggests that the auto industry is on track to miss three fourths of its climate change target. The goal, set by the Intergovernmental Panel on Climate Change, is to limit global warming to 1.5° Celsius within the next 27 years. Although many climate change activists have targeted EV production as a solution, both companies noted that “even if every car sold in the world tomorrow would be electric, we’re still on track to overshoot.” Read More

For Dealers

What makes lead nurturing different from lead generation?
As easy as it is to lump the lead process into a single bucket, several steps are involved, with lead generation as the starting point and lead nurturing as the final stage. For the record, lead tracking and lead qualification slot between these steps, but we’ll save the full rundown for another article. Read More

What changes can dealers expect to see in the used car market this year?
A crystal ball look into the 2023 used car market will be cloudy as this part of the industry responds to more stable new car supplies and higher consumer borrowing costs. Plus, steadily declining wholesale and retail prices don’t sharpen the picture. But before we dive in with projections for the future, let’s recap some of the highlights (or lowlights, depending on your point of view) of the used car business from last year. Read More

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