CBT automotive newscast: June 8, 2022

Inside Automotive:

What is driving the tremendous growth in Central Florida’s auto market? – CFADA Pres. Dr. Evelyn Cardenas
There has been a lot of disruption in retail automotive over the past few years, yet dealers have adapted and remained resilient. Today on Inside Automotive, Jim Fitzpatrick speaks with Dr. Evelyn Cardenas, President and CEO of the Central Florida Automobile Dealers Association. They discuss the association’s goals for 2022 and how central Florida car dealers manage the current economic climate. Watch the complete segment here.

Headlines:

The United States has lodged a fourth complaint asking Mexico to investigate potential employee rights violations at a Stellantis-owned plant located in the country. The Teksid Hierro de Mexico facility is accused of violating employees’ free association and collective bargaining rights. If an investigation does reveal violations, the facility’s tariff-free status could be revoked. Mexico is required to either approve or deny the U.S.’s request within 10 days.

Toyota announced several leadership changes earlier this week, including the departure of Bob Carter, who has served as Executive Vice President of Sales since 2017. The automaker is reportedly making changes to drive growth, improve dealer-customer relationships, and work towards the goal of reaching carbon neutrality. Other notable departures include Zack Hicks, who currently leads Toyota Connected North America, and Mike Owens, who is the Chief Risk Officer for Toyota Financial Services.

Tesla Chief Executive Officer Elon Musk is again threatening to terminate his $44 billion purchase of Twitter, citing that the social media platform has not provided him with requested information on fake accounts. Musk has said one of his priorities as Twitter’s owner would be to eliminate fake profiles and also referred to Twitter’s withholding of the information as a “clear material breach.” Twitter said it will continue to provide information to Musk per the terms of the purchase agreement.

Online automotive marketplace TrueCar announced it has acquired fintech firm Digital Motors this week as part of its effort to improve its TrueCar Plus platform. The technology from Digital Motors will provide TrueCar with an up-to-date virtual storefront and will make payment and financing processes easier for customers and dealers. The financial terms of the acquisition were not disclosed.

News & Opinion:

Drivers continue to fill up despite skyrocketing gas prices
The cost of fueling a gas-powered vehicle continues to climb across the United States. According to AAA, the national average for one gallon of regular unleaded gasoline topped $4.86 on June 6. And unfortunately for consumers, that doesn’t seem to be near the peak, and it could be months before gas prices begin to come down. 10 states have an average price above $5 per gallon, and others are toeing the line. The only state with an average price per gallon below $4.30, is Georgia. Gas prices are closely tied with the declining oil reserves and, more directly, with the cost per barrel of crude oil. That price is hovering around $120 per barrel, and there’s a serious risk of recession if the price climbs to $150 and higher. Read More

6 strategies to build a better DEI program in your F&I department
Every dealership in the new post-lockdown COVID world has had to deal with staff turnover and the fallout from what most economists have dubbed The Great Resignation. Millions have left the job market in the last couple of years, and dealerships have not been immune. Add to that the already challenging headwinds of low inventory and rising interest rates, and you have a pretty turbulent time for most dealers. So, the question becomes, how do you bring more diverse applicants back into the dealership environment, particularly in F&I? And are there better ways to attract more women and minorities to apply? When businesses are focusing more resources and attention on DEI (diversity, equity, and inclusion) for their employees, dealerships should, too. Read More