CBT automotive newscast: March 24, 2022

Featured Show:

Representation and visibility are key to attract more women to the auto industry – Amy Phillis | Griffin Motors
Women make up to 52 percent of all new vehicle purchases and influence 80 percent of purchases so why aren’t more women in retail automotive? This Women’s History Month we continue to highlight the women of automotive to gain some insight into this question.  We’re joined now by Amy Phillis, Dealer Principal of Griffin Motors out of Pennsylvania. Amy joins us to share her story, advice for other women, and we’ll also learn a little about her market in Pennsylvania. Watch the complete segment here.

Headlines:

Tesla’s CEO Elon Musk has been the subject of many headlines this week. First, the Securities and Exchange Commission asked a judge to deny his request to throw out the 2018 agreement to have his Twitter posts monitored, with the regulator saying that “a deal is a deal.” On Tuesday, Musk also reiterated that Tesla is looking into building electric vehicle batteries with more manganese but said, for now, the automaker will stick to batteries made with nickel and iron phosphate. On Monday, Musk also tweeted that the main goal of his so-called “Master Plan Part 3” will be to scale Tesla to an “extreme size” and will also include other sections for SpaceX and the boring company.

Toyota said this week that it is planning an $826 million stock buyback plan, and the automaker promised more “flexibility” than any other buyback in history along with “stable dividends” for shareholders. Toyota’s announcement comes after a difficult few months for the automaker’s stock due to unforeseen circumstances such as a Coronavirus outbreak in China, a supplier’s cyberattack, and a devastating earthquake in Japan. The buybacks started today and will continue through May 10.

According to analysts for Oilprices.com, the only way to overcome the ongoing supply chain issues for critical minerals is to bring operations to the United States. While we have recently heard a lot about shortages of lithium and cobalt, the analysts report the supply of graphite is also dwindling. The White House said last month that the demand for critical minerals could rise to 4,000% in the coming decades. Companies like Graphex group are planning on moving more of their operations to the U.S. however, graphite is difficult to process, and Graphex is currently one of the only companies that have the means to mine it.

Cardinale Automotive Group finalized its acquisition of Lithia Motors Chrysler, Jeep, Dodge, Ram, and Fiat dealership in Santa Rosa, California. Cardinale’s general manager Ryan Pullara said the purchase would expand his auto group’s presence to the north Bay Area. He added that all staff would be retained while the dealership seeks to bring in more inventory despite ongoing supply chain issues. The purchase price was not provided.

News & Opinion:

Dealer profits remain high, record low incentives are the story in March
With just one week left in March 2022, the auto retail industry can expect significantly fewer sales but an inverse trend in profits if the forecast by J.D. Power and LMC Automotive is correct once again. The joint forecast estimates 75% of the sales volume this month compared to a year previous, despite having an extra selling day this year. However, dealers are keeping much more profit per unit and incentive spend is at a historic low right now. Read More

How rising electric vehicle prices might affect future adoption
It’s no secret that new and used vehicles have seen significant price increases since the start of the pandemic. And it’s turning out that electric vehicle manufacturers are not immune from this trend. This phenomenon may have far-reaching effects on the adoption of electric vehicles, possibly impacting all stakeholders — including dealers. Where are the price hikes happening, and what could this possibly mean for the future of EVs? Read more