CBT automotive newscast: January 8, 2021

Today’s Featured Interview:

Facebook & PureCars joint-study reveals key social marketing findings for car dealers
Measuring and attributing social media marketing campaigns to offline sales is often tricky for car dealers. Recently, a joint study ran by Facebook and PureCars, focused on the impact digital retailing can bring for auto dealers by looking at real-world cases. The study also aimed to show the overall impact that advertising on social media channels has on car buyers. The companies observed a lift test at the beginning of this year to reveal the gradual impact Facebook automotive ads can have on dealer businesses.  So, what are the results? Watch the full segment here.

Top Headlines:

As the pandemic caused many automakers to rethink the way customers shop, General Motors took action this week to revolutionize the car buying experience for its Chevy brand. The new virtual “Chevy MyWay” live vehicle tour allows customers to have one-on-one access to live tours of the Chevrolet lineup with product specialists. The platform can also be used to create a virtual auto show experience. Chevy expects to ramp up the platform’s capabilities in the coming months to give customers complete access to products in the comfort of their homes. While the product is being used to mitigate GM’s losses from canceled auto shows, GM fully expects “Chevy MyWay” to be a strong tool for dealers as well.

Elon Musk has been trending up for the last few years, and on Thursday he finally reached the top. The Tesla CEO became the richest person in the world this week, surpassing Jeff Bezos, founder and CEO of Amazon. Bloomberg reported that the recent gains in Tesla shares boosted the net worth of Musk to more than $188.5 billion. On Thursday, Tesla shares were up as much as 7.4% at a record high of $811.61.

The pandemic has truly split car shoppers into two categories – Americans who have lost their jobs and can’t afford a new vehicle, and Americans who have started working from home and have extra cash from spending less on travel and dining. Analysts believe the current state of American car consumers is the cause for average new-car transactions in December rising above $40,000 for the first time. GM reported that larger SUVs such as the Chevy Tahoe and GMC Yukon saw deliveries rise by more than 30% in Q4 while smaller, more affordable options such as the Chevy Equinox crossover sank by 22%. Many analysts believe that once the unemployment rate drops, the auto market will begin to balance among SUVs, crossovers, and sedans.

Kia is launching a brand new look. The automaker unveiled a new logo this week, saying it will help build, “new brand purpose and strategy.” The bold new look was unveiled during a dramatic video presentation, in which the automaker introduced its new tagline “movement that inspires.” The new design will replace the old oval logo on new Kia vehicles moving forward.

News & Opinion:

With remote sales here to stay, salespeople need to be strong in four areas
According to V12’s compiled data, four in five car buyers want to configure a payment online to begin their journey toward purchasing a vehicle. Research has shown that customer loyalty and increased sales are both contingent on the customer experience matching what they desire in the process, and that’s been trending more toward a virtual sales practice, albeit accelerated by the COVID pandemic. It’s certainly a consensus that remote sales and virtual selling practices are a completely different look than a traditional face-to-face experience, regardless which industry you’re selling in. Read More

Preparing to thrive in auto retail in 2021
2020 has brought about massive change to the automotive industry and especially for dealers. With less traffic due to widespread digitalization and mobility, COVID has caused further distance between the dealership and the consumer. Thankfully, many dealers have implemented concierge programs to keep fixed ops running, but what about selling vehicles? Has this year caused a complete break in the aging process of car marketing and selling? With autonomous cars arriving soon, will new car purchases take on the looks of electronic device purchases? What does this current transformation mean for the industry and its customer base? Let’s see where it might be headed and what can be done to thrive during the reset. Read More