CBT automotive newscast: June 13, 2022

Inside Automotive:

Why buy/sell activity continues to thrive despite the inflationary environment – Erin Kerrigan
Today on Inside Automotive, we’re pleased to welcome back Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors, who shares her insights and expertise into the current state of the buy/sell market. Watch the complete segment here.

Headlines:

The National Highway Traffic Safety Administration has expanded its investigation into Tesla’s autopilot technology and is now asking for an “engineering analysis.” Reports of crashes involving the use of the technology have continued to accumulate, and an investigation would help determine whether or not Tesla vehicles do enough to make sure drivers still pay attention while using it. The outcome of the investigation could result in a recall of over 830,000 Tesla vehicles.

A report from Cox Automotive last week indicated that dealer sentiment lowered for the second quarter due to concerns about high costs, low inventory, and inflation. Dealers reported they are worried about a potential recession as well as high prices that customers are unable to pay. Cox Auto also reported COVID-19 is no longer in the top 5 concerns of dealers, as the economy, political climate, and expenses have exceeded it.

Electric vehicle maker NIO has announced plans to start building its own battery packs to compete with other prominent EV makers such as Tesla. The company said it is planning on beginning production of 800-volt battery packs in 2024, which recharge faster and provide more power than typical 400-volt batteries. The automaker said it eventually plans on following Tesla’s system of using batteries built in-house and those sourced from other places.

While there have been many recent supply chain issues related to semiconductor chips and other auto parts, a dealership in Oklahoma is experiencing a new disruption. The dealership’s owner says the Oklahoma Tax Commission does not have enough stock paper to print car titles, meaning they are unavailable for car buyers, and dealers may not get their money for several months. The tax commission said it will postpone penalties for certain circumstances but did not indicate any leniency for others.

News & Opinion:

Ways to get a bump in average dollars per RO during trying times
Service departments have been busier across the United States this year, driven by a lack of inventory to switch out an aging vehicle for a new one. At the same time, record prices for new and used purchases along with a stumbling economy could put vehicle purchases on hold for some. With the American fleet creeping up in age to 12.2 years, more repairs are going to be due. Read More

Capital One 2022 Car Buying Outlook reveals consumers’ perceptions of today’s car buying experience
With growing digitization  in the auto industry, consumers are looking for more transparency in the car buying process, and dealers who wish to stay competitive are encouraged to meet this demand. This is where the 2022 Capital One Car Buying Outlook (CBO) comes in, which highlights dealers and consumers perceptions of the car buying process. Key findings from the research are included below. Read More