CBT automotive newscast: March 25, 2021

Featured Interview:

CADA Pres. Tim Jackson talks about the Denver Auto Show, EVs, and direct car sales
Last year, the ever-popular Denver Auto Show was postponed and eventually canceled as the world dealt with the impact of the coronavirus pandemic. This year as restrictions begin to loosen, the Denver Auto Show is expected to return. Today on CBT News, Tim Jackson discusses the impact of the show’s return. Jackson is the CEO of the Colorado Automobile Dealers Association. Watch the full segment here.

Top Headlines:

Automakers are being forced to extend production cuts due to the shortage of microchips. This week, Honda and General Motors both announced that production will continue to be suspended through next week. Hyundai Motors is also expected to face disruptions in production. The South Korean automaker has been able to avoid a hit from the shortage so far largely because it maintained a stockpile of chips.

The chip shortage has also started to impact new-vehicle inventory in North America. According to Cox Automotive, several popular pickup truck models are experiencing production cuts. Ford F-150, F-series super duty, Chevrolet Silverado, and GMC Sierra are all running well below the national industry average of 71 days’ supply. GM said it is building pickup trucks without the fuel management module for which it does not have the computer chip. GM will sell those vehicles, noting that fuel economy will be diminished.

Elon Musk says that it is now possible to buy Tesla vehicles in the U.S. with Bitcoin. Musk made the announcement on Twitter saying that Teslas can be bought with Bitcoin in the U.S., while people outside of the u.S. will be able to perform a transaction with Bitcoin later this year. Last month, the automaker revealed that it purchased $1.5 billion worth of Bitcoin and that it intended to start accepting Bitcoin as a form of payment in the near future.

The arguments for and against making Washington, D.C. the 51st state have resurfaced, with the GOP making an interesting claim. Republican representative Jody Hice claimed that D.C. ought not to be a state because it didn’t have car dealerships. According to Hice, car dealerships, along with landfills and airports, are amenities and resources that D.C. would need to gain statehood. After Hice’s claim, multiple speakers pointed out that there are multiple dealerships in the district. Hice then apologized for misspeaking, claiming that he was unaware of the location of the dealerships.

News & Opinion:

Lawmakers pressure Biden Administration for gasoline car phase-out date
Furthering the current push by many lawmakers to create more eco-friendly vehicles that will reduce and eliminate emissions, two California senators are now pressuring President Joe Biden to “follow California’s lead and set a date by which all new cars and passenger trucks sold be zero-emission vehicles.” This week, California senators Alex Padilla and Dianne Feinstein sent Biden a letter thanking him for his “early commitment to restoring clean car standards” but also urged that “California and other states need a strong federal partner.” Read more

More parts shortages hit auto industry, affecting new inventory
On Friday, Mar 19, a fire at Renesas Electronics Corp northeast of Tokyo, Japan has exacerbated the semiconductor shortage affecting the auto industry. The manufacturer has stated that it will be at least a month until the factory will restart, and Renesas’ CEO Hidetoshi Shibata has stated that the impact on supply would be significant. Two-thirds of the microprocessors made in their factory are destined for auto production, and the news caused Toyota, Nissan, and Honda shares to decline simultaneously. Read more