CBT automotive newscast: March 22, 2022

2022 NADA Show Coverage:

How Velocity Automotive’s enhanced vehicle data boosts buying confidence
At this year’s NADA Show in Las Vegas, CBT News anchor Jim Fitzpatrick had the chance to stop by the Velocity Automotive booth to speak with Owner Hugh Hathcock and Executive Vice President Kalah McCoy. The pair discuss the vital importance of having digital window stickers, efficient appraisals, and a top-notch reconditioning process. Watch the complete segment here.

Headlines:

Audi said last week that the conflict in Ukraine is likely to cause “tremendous interference” within supply chains. An Audi board member told reporters last Thursday that the disruptions will be seen across all global supply chains and not just the semiconductor chip and wire harness supply chains. Audi did not provide a statement regarding any newly projected sales numbers for the year, but other luxury brands such as Mercedes-Benz and BMW have also announced potential losses due to the situation.

Rivian is facing a class-action lawsuit after allegations that its executives and board of directors have violated securities laws. The lawsuit alleges that Rivian’s initial public offering statement was “misleading” and “inaccurate” because it did not report that Rivian’s vehicles were underpriced and there would be future price hikes, even for customers who had pre-ordered vehicles. Rivian announced prices of its vehicles would be raised by at least 17% earlier this month, which led to many order cancellations before the company backtracked two days later and said pre-order prices would not be impacted.

A Greenfield, Indiana dealership is being accused of deceptive practices after a customer purchased a new Kia Optima in may of 2020. Jessica Poertner alleges that Napleton Kia of fishers forged her signature agreeing to a higher interest rate than she verbally agreed to, as well as various other fees and an unknown payment of over $1,000. One of the dealership’s attorneys declined to comment on the matter but previously filed a motion stating Ms. Poertner had agreed to take any disputes to arbitration instead of the courts.

Online car retailer Vroom is facing scrutiny after two customers claim they have had serious issues with their recent purchases. Vroom customer Patrick Myers said his title and registration for his new vehicle had still not shown up after five months, and customer Amanda Patrick said she was unable to reach the salesperson to cancel her purchase after a mechanic noted severe issues with her vehicle. Vroom’s sales practices have been criticized for several years, as it has thousands of complaints with the better business bureau and has faced thousands of dollars in fines and cease-and-desist orders in several states.

News & Opinion:

Auto dealers have room for improvement when it comes to the tire market
Last week, the J.D. Power 2022 US Original Equipment Tire Customer Satisfaction Study was released, highlighting the experience of car owners with tires that their vehicle was equipped with from the factory. The study also analyzes trends in tire replacement and the effect tires have on loyalty. This year, the tire study identified that while a great number of car owners expressed satisfaction with their vehicle’s OEM tires, only a small segment considered expert insight when purchasing their next set of tires. Read More

Stellantis and LG Energy Solution choose Canada for battery plant
In October of last year, Stellantis NV announced it was creating a joint venture with LG Energy Solution (LGES) to manufacture batteries that will be used in Stellantis’s hybrid and fully-electric vehicles. The companies entered into the agreement hoping it will help Stellantis reach its goal of being over 40% electric by 2030. At the time, the announcement said the parties had not chosen a location for the manufacturing plant, but that groundbreaking on a facility would start in Q2 of 2022, and production of batteries would start in 2024. Read more