CBT automotive newscast: March 15, 2021

Featured Interview:

How automotive professionals can manage stress and live healthier lives
On the latest edition of Straight Talk, host David Lewis, President of David Lewis and Associates, tackles the topic of stress and how it impacts the mental health of automotive professionals. Dealers and their teams face many levels of stress, in both personal and professional aspects of their lives. Stress can be very harmful if it isn’t managed properly. Watch the full segment here.

Top Headlines:

Large tech companies believe the chip shortage might continue for several months. Last week, executives at Renesas Electronics warned that the global scarcity of automotive semiconductors could persist into the second half of 2021. The crisis could cost the auto industry as much as $61 billion in lost sales for the year.

Lithia Motors could lead a consolidation of some publicly listed dealership groups to compete with online retailers. CEO Bryan DeBoer said that mergers with three public retailers would allow Lithia to expand its online sales platform. Many auto retail companies have started investing in online resources to enhance their digital retailing capabilities and to compete with Carvana, Shift, and Vroom.

General Motors has announced a partnership with SolidEnergy Systems, a lithium metal battery startup. GM said the partnership would allow it to cut weight from its electric vehicles and cut the cost of battery packs by 60%. Kent Helfrich, GM’s Executive Director of Global Electrification and battery systems, said, “this is a great opportunity for us to find greater energy in a smaller package that will free up the space inside the vehicle for other technology.”

A fire broke out at electric carmaker Tesla’s factory in Fremont, California. The fire was brought under control Thursday evening and there were no immediate reports of injuries. The fire was caused by hydraulic fluid coming in contact with molten aluminum according to the Fremont Fire Department.

New vehicle prices continue to pace ahead of levels from last year. According to valuation analysts at Kelley Blue Book, new vehicle prices increased last month by 6.52% from February 2020 levels. Most manufacturers saw year-over-year growth in February with Stellantis reporting the greatest increase, up 12.27%, while Mitsubishi was down the most with a 6.67% decline.

News & Opinion:

Short-seller firm Hindenburg Research targets Lordstown Motors
The investment research firm that exposed Nikola’s false claims last year has set its sights on Lordstown Motors. Hindenburg Research postulates that Lordstown Motors hasn’t been truthful with their investors and the public about their ability to produce vehicles on schedule. They also believe that many of Lordstown’s orders for all-electric trucks are “fictitious”. Hindenberg said, “Lordstown is an electric vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.” Read more

How to improve compliance in your auto dealership’s service department
When you discuss automotive compliance, you automatically think about regulations over the F&I department or with selling new cars. However, there are just as many regulations and rules in the dealership’s service department. Aspects such as customer communication or how to format emails are just as important. Dealerships must take compliance seriously in all departments. But, how can you improve compliance in the service department when the focus is elsewhere? We look at five helpful tips. Read more