CBT automotive newscast: March 25, 2022

Inside Automotive:

How car dealers can build record-breaking sales teams for the long-haul
Every month on CBT News, Jonathan Dawson shares his techniques to more effectively influence buying behavior on the show, Mind Your Own Business. He is also the Founder and President of Sellchology Sales Training and a best-selling author. He joins us today on Inside Automotive to discuss his presentation at NADA 2022 and the customer experience trends that car dealers should watch. Watch the complete segment here.

Headlines:

Shares of Nikola rose over 9% this week after the automaker began production of its battery-electric Tre semi-truck in Arizona. Shares were trading at slightly under $10 yesterday after the company also confirmed that it still expects to deliver 300 to 500 of its Tre vehicles this year. Nikola added that it plans on starting production of the semi-trucks at its Germany plant next summer.

Supply chain disruptions are continuing to impact the auto industry, with Mazda being the latest to announce production cuts due to the ongoing issues. The automaker said yesterday that it will be suspending production at two of its Japanese facilities on April 4 and April 5. Mazda also cited a rising number of Coronavirus cases in china but did not give an estimation of potential production losses.

This week, Toyota and automated driving system developer Aurora Innovation announced they had begun testing their self-driving ride-hailing fleet in Texas, which includes test drives in suburban areas and on highways. Aurora innovation previously purchased Uber’s self-driving sector and the two companies continue to collaborate and share information. Aurora innovation already has Class 8 trucks in testing and is hoping its so-called “Aurora Connect” robotaxis will be available to rideshare passengers by the end of 2024.

New unemployment claims dropped by 28,000, marking the lowest they have been since 1969. The Department of Labor reported that claims fell to 187,000, which is a steep decline from the estimated 210,000. Continuing unemployment claims also dropped under 1.4 million for the first time in over 50 years. Many analysts estimate that most of the 22 million people who lost their jobs throughout the pandemic will regain employment by the end of the year and also expect that the Federal Reserve will raise interest rates soon in an attempt to alleviate inflation.

News & Opinion:

Is 2022 shaping up to be another strong year for F&I?
The forecast for 2022 in the automotive industry has been a bit of a mixed bag as 2021 did not see the huge turnaround from COVID that many had hoped for. Delta and Omicron delayed a stout rebound until much later in the year. Add to that the chip shortage that settled in early last year and you have an industry that is being affected on all fronts. Higher prices for new and used vehicles, empty lots, and inflationary pressures at a 40 year high put dealerships and manufacturers in a rather precarious position with little choice but to wait it out the best they can. Read More

Tips to improve the close on service transactions
For most dealerships, the aim for 100% service absorption is a lofty goal. Achieved, it pays the overhead expenses completely for the month, alleviating pressure on the rest of the departments for profitability. That’s especially important when the sales department isn’t able to hold gross in every deal, like the industry pre-COVID. While the sales department is more than capable of holding their own at the moment, it’s no reason for the service department to let up. There will likely come a time not too far down the road when sales profitability is a challenge, and that could still be due at times to supply chain issues. Read more