CBT automotive newscast: March 19, 2021

Featured Interview:

How Stellantis is working with its dealers to overcome challenges in 2021 – David Kelleher, David Auto Group
There were many lessons learned in 2020 for dealers across the country. On today’s show, CBT News host Jim Fitzpatrick is joined by David Kelleher, President of David Auto Group. Kelleher is also the Chairman of the Stellantis Dealer Council. Kelleher begins the conversation by discussing recent success and lessons learned from 2020. He says that dealers learned many new lessons including efficiency of inventory, operating with digital technologies, and quickly pivoting a business model. Watch the full segment here.

Top Headlines:

As General Motors prepares to bring salaried employees back to the office, many employees will be shifting to a new location. 900 workers from GM’s customer care and aftersales offices will transition to the global technical center in warren. The company will also move many of its marketing and product specialists to its office in Warren, transitioning them from the global headquarters in Detroit. GM spokesperson, David Caldwell, told Detroit Free Press, “the moves also reflect adapting to post-pandemic workplaces where the future will be more flexible.”

Volkswagen’s shares rose after it recently announced lofty electric-vehicle goals, garnering attention from market regulators. Shares in Volkswagen rose as much as 9% this week, their highest mark in six years. Germany’s top market regulator, Bahfin, said it was monitoring the share price move to ensure the automaker provided inventors with accurate information. The surge has lifted Volkswagen’s market value above $160 billion, making the automaker the biggest company on the DAX Index.

U.S. monetary policy was unchanged this week as the Fed issued their official statement following their second meeting of 2021. Behind the policy statement, the Fed released substantially upgraded forecasts for the economy that included higher inflation this year. With the Fed staying the course on monetary policy, trends in the economy and in the auto market are more likely to impact the rates consumers see on auto loans in the near term.

Carvana is boosting its capacity, betting that online car sales are here to stay. The online used-car retailer is investing $500 million in new facilities and hiring thousands of employees. Caravana and other online retailers have benefited from the COVID-19 pandemic lockdowns and consumer shift toward e-commerce. In 2020, Carvana sold 244,111 cars, up 37% compared to the prior year. The company expects that demand for its services will remain high even as the pandemic eventually subsides.

News & Opinion:

Carvana betting on online car sales with $500 million investment
The second-largest online auto retailer Carvana highlighted plans to invest another half-billion dollars into its business model. The massive investment comes after a very successful year where the retail chain capitalized on the trend toward online sales that spanned all industries, marking a 37% growth in 2020 over their 2019 figures. Read more

Auto industry advocates for new, less aggressive emissions deal
The push to produce more eco-friendly vehicles is continuing in full force, with negotiations underway regarding the future of tailpipe emissions and electric vehicle production. Former U.S. President Donald Trump had loosened Obama-era vehicle standards during his term, but back in January President Biden announced that his administration would “not only bring those standards back” but would also “set ambitious ones that our workers are ready to meet.” Read more