CBT automotive newscast: June 24, 2022

Inside Automotive:

Industry vet Jim Ziegler discusses Jim Farley’s plan to sell EVs online only
Some dealers and dealer advocates are saying that the franchise model is under attack. The latest concern is surrounding Ford CEO Jim Farley’s recent statements regarding future OEM operations. Today on Inside Automotive, we’re pleased to welcome back Jim Ziegler, automotive retail veteran, speaker, and president of Ziegler SuperSystems, to share his perspective on Farley’s comments and whether dealers around the country should be concerned. Watch the complete segment here.

Headlines:

Elon Musk says Tesla is losing billions of dollars at its Berlin and Austin gigafactories as the company wrestles with supply chain slow-downs which are preventing increased electric vehicle production. In a recent interview with an official Tesla-recognized club, the CEO stated, “Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It’s really like a giant roaring sound, which is the sound of money on fire.” Further slow-downs in Shanghai have impacted Tesla’s California plant, which relies on parts manufactured in China.

Sad news hit headlines this week as Bruton Smith, Founder and Executive Chairman of Sonic Automotive, passed away at age 95. Smith was a legendary philanthropist and entrepreneur who influenced dozens of business and entertainment ventures. He was also inducted into the NASCAR Hall of Fame and raised $61 billion for local charities and organizations focusing on improving the lives of children across the nation.

Trevor Milton, the former CEO of Nikola, faces new charges of wire fraud. The new accusation is in connection to Milton’s alleged attempt to defraud the Utah seller of Wasatch Creeks Ranch by making untrue and deceptive claims regarding Nikola’s goods and business opportunities. Milton previously entered a not guilty plea to two counts of securities fraud and one count of wire fraud for comments made between November 2019 and September 2020. His jury trial in federal court in Manhattan is set to begin on July 18.

Labor markets remain tight, prompting a slow decrease in unemployment claims. Currently, there are 11.4 million job openings since the end of April. With these job openings, there are at least two jobs for each person receiving unemployment benefits. The Federal Reserve and the U.S Central bank are making moves to decrease inflation, even with the risk of a recession.

News & Opinion:

Ford partners with car dealers to train young, up-and-coming auto technicians
With how popular electric vehicles have become, it is no wonder that large dealerships and training companies are partnering together to work with technicians and auto service students to service electric vehicles. These vehicles have very different materials and parts compared to gasoline-powered cars. Instead of training new employees, Ford and other dealers are working together to create a quick guide for high school and college-aged individuals to learn about electric vehicles and how they work, during school hours. Read More

The link between emotional intelligence and selling cars
Emotional intelligence is just as important as technique in car sales. Consumers want more than just a competent car salesperson that can state the facts. Instead, consumers want someone who can understand their needs and purpose for car shopping. It is much easier to speak to someone who is emotionally intelligent compared to someone who only knows how to calculate numbers and sales. EQ, or Emotional Intelligence, is a relatively new concept. It is now being combined with sales and customer service because of how comfortable it is. A person who can tell what another person is feeling and help them solve problems is a valuable asset to your team. Using emotional intelligence in sales, though, is not new. Even if this is the first time you have heard the phrase, someone has likely used this type of intelligence on you. Read More

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