CBT automotive newscast: July 6, 2021

Featured Interview:

What is the most important measurement in business that leaders should consistently monitor? – Shep Hyken, NY Times best-selling author
Loyal and repeat customers are ideal for business owners to acquire, but not all businesses have a clear strategy to bring customers back. To discuss this further, we recently spoke with Shep Hyken, customer experience expert, and New York Times best-selling author of “The Loyal Customer,” and “The Amazement Revolution.” His latest book titled “I’ll Be Back”, is set to hit shelves this September. Watch the complete segment here.

Top Headlines:

Ford Motor Company recently announced its June 2021 U.S. sales results and the Detroit-automaker’s electrified vehicle sales are up a staggering 117%. In the first half of 2021, Ford sold 56,570 vehicles; a new all-time record driven by models like the Mustang Mach-E and the F-150 PowerBoost hybrid. Additionally, Ford has taken over 100,000 reservations for the all-new F-150 Lightning, making it a solid emerging EV competitor.

In other EV news, Mitsubishi Electric, a subsidiary of the Japanese automaker, is under fire for “three decades of systematic deceit” regarding fraudulent inspection data for air conditioners and brake compressors, Reuters reports. Ceo Takeshi Sugiyama has announced he will step down from his role and take responsibility for the falsified data. Sugiyama’s successor will be chosen within a month and a full investigative report is set to be released this September.

German carmaker BMW has released its concerns regarding the ongoing shortage of chip supply. According to board member Milan Nedelikovic, vehicle production is being temporarily suspended at various sites, and lost output is estimated at around 30,000 units so far in 2021. Nedelikovic says, “the outlook for the second half of the year, too, remains critical.”

In dealership news, M&A activity continues to be strong in automotive retail. Ciocca Dealerships has acquired Kerbeck Corvette, the highest performing Corvette dealership for 27 years running. The deal also includes the acquisition of Kerbeck Chevrolet-Buick-GMC and Kerbeck Cadillac. Ciocca dealerships CEO Gregg Ciocca told Automotive News, “It’s an iconic acquisition, once in a lifetime.” Ciocca Dealerships now own 24 stores representing 16 brands in the northeastern United States.

News & Opinion:

How to leverage the service drive for profitable pre-owned acquisitions
As the ongoing chip shortage continues to delay OEM production, dealership inventories have reached historic lows. At the same time, increased consumer demand – further sparked by concerns over vehicle availability – has driven both new and pre-owned prices to new highs. This combination has dealerships on the hunt for in-demand, high-quality vehicles. With auction prices rising alongside the consumer index, many dealers have turned their focus to buy-backs and trade-ins to maintain profitable and sustainable pre-owned inventory. Read more

Tips to keep your car dealership’s digital storefront updated
Is your dealership’s digital storefront pulling in the number of customers to meet your quarterly plan? Or do you find one department doing all the heavy lifting and other areas just maintaining or – at worst – not involved at all? It may be time to consider what’s wrong. It’s essential to balance your marketing across every dealership area because you have multiple voices and multiple touchpoints. That’s a crucial benefit when it comes to updating your digital storefront. But how can you get that started? First, let’s assist you by reviewing some measures that can help you keep your digital storefront updated. Read more