CBT automotive newscast: June 17, 2022

Inside Automotive:

VADA Pres. Don Hall: ‘We must pull together’ to preserve the future of franchise dealers
Welcome to another edition of Inside Automotive with anchor Jim Fitzpatrick. Joining the show is Don Hall, the President and CEO of the Virginia Automobile Dealers Association. Today, Hall shares his thoughts on Ford CEO Jim Farley’s recent comments regarding the future of the franchise dealer network. Watch the complete segment here.

Headlines:

Tesla is making headlines once again this week after announcing price increases due to rising raw material costs and inflation. After postponing deliveries of some long-range models by up to a month, the electric carmaker raised the price of the Model Y by around 5%. Elon Musk has previously stated that lithium is the cause of rising costs and a barrier to EV growth.

In other Tesla news, the EV maker is under fire for approximately 273 crashes reported since last July involving its advanced driving assistance systems. According to recent data from U.S. auto safety regulators, Tesla has had more crashes than any other automaker involving driver-assist systems. Democratic senators wrote in a letter to the NHTSA, saying, “Publicizing the data alone is not enough. We urge NHTSA to shed needed light on this out-of-control industry and impose guardrails to prevent more deadly crashes.”

General Motors announced it is investing $81 million into its tech center near Detroit to build the upcoming Cadillac Celestiq. The Celestiq will be the brand’s flagship electric car, and it will be hand-built in limited batches. GM President Mark Reuss stated that the investment announcement, “emphasizes our commitment to delivering a world-class Cadillac with nothing but the best in craftsmanship, design, engineering, and technology.” The car is expected to be unveiled next month and will be priced at around $200,000.

To combat rising inflation, the Federal Reserve announced Wednesday that it will increase interest rates by 0.75% to stabilize the economy and housing market. The Fed is now projecting steeper rate hikes than previously anticipated. The median Fed policymaker expects interest rates to rise another 1.75% over the course of the remaining scheduled policy meetings.

News & Opinion:

How car dealers can expand their social media strategy on TikTok
TikTok is the ‘it’ social media platform to be on now. If you own a car dealership or work at one, don’t look down on using TikTok’s ever-changing algorithm to gain followers, likes, and sales. Social media strategies are more powerful than paper ad campaigns. Many Millennials, which make up more than a quarter of car sales, use TikTok frequently, especially for reviews and purchasing ideas. So, how do you use social media strategy on TikTok for car dealerships? Read More

4 strategies to manage vehicle servicing in an ICE and EV world
The rise in popularity of electric vehicles, thanks to a combination of consumer demand and regulatory efforts, will drive a significant increase in their market share over the next two decades. Yet even as sales of internal combustion engine (ICE) vehicles are replaced by EVs, analysts predict that only a third of the U.S. car market will be electric by 2030, rising to nearly half (45%) by 2035. That means our roads and driveways will be shared by a mix of ICE vehicles and EVs for the foreseeable future. And while these two generations of mobility can exist in harmony on the road, the maintenance needs of EVs can differ significantly compared to their ICE equivalents. Read More