CBT automotive newscast: March 30, 2022

Inside Automotive:

Advertising your dealership to attract new hires – Glenn Pasch, PCG Digital
On this episode of Inside Automotive, Jim Fitzpatrick speaks to Glenn Pasch, CEO of PCG Digital and automotive marketing expert. They discuss topics like the NADA Show, strategies in dealer marketing, and the upcoming Digital Marketing Strategies Conference. Watch the complete segment here.

Headlines:

On Monday, General Motors announced it will be forming a new organization that will help the automaker be more profitable throughout the electrification of the auto industry. Current Vice President of Chevrolet Steve Hill will lead the organization, which has been named “Commercial Growth Strategies and Operations.” The group will oversee existing teams such as the GM Fleet Team, EV Retail Innovation Team, and the U.S. Sales Operations Team. The recent move is part of GM’s plan to be all-electric by 2035.

According to Cox Automotive’s March forecast, new vehicle sales for the month are expected to drop almost 25% year-over-year, and sales volume for the quarter is projected to be the lowest it has been in ten years. This week’s report projects the seasonally adjusted annual rate will drop to 13.1 million for the month, which is down one million vehicles from February. Cox Auto’s Senior Economist Charlie Chesbrough said the market is “stuck in low gear” and that despite low unemployment and attractive interest rates, supply shortages will continue to negatively impact sales numbers.

After laying off around 400 employees in November, Stellantis said this week it will be terminating more at a Michigan factory in the coming months. The automaker did not specify how many employees at the Belvidere-based assembly plant would be affected, but salaried and hourly employees will be terminated and union-represented employees will be offered retirement packages starting at the end of May. The semiconductor chip shortage has had a tremendous impact on this specific plant, and Stellantis said the new round of layoffs will help it operate in a “more sustainable manner.”

The National Highway Traffic Safety Administration announced earlier this week that automakers who do not meet fuel efficiency standards for their newer-model vehicles will face fines of over twice the amount of previous penalties. The new penalties will apply to vehicles made in or after 2019, and the fine will be raised from $5.50 to $14 for each 10th of a mile the cars exceed the current standard. The regulator said the higher penalties will boost accountability for automakers and motivate them to increase fuel efficiency in their vehicles.

News & Opinion:

GM launches Commercial Growth Strategies and Operations division, Steve Hill to lead
On Monday, General Motors announced that a new organization has been created, Commercial Growth Strategies and Operations, to oversee current operations across all brands and strengthen market position. The new division will also assess and commercialize any new opportunities that GM commits to. Leading the new Commercial Growth Strategies and Operations organization is Steve Hill, effective Friday. Read More

Why Selling Extended Warranties is Good for Customer Relations
The average bumper to bumper car warranty lasts three years. After this time, customers can choose to extend the car warranty or can go without protection. If the customer goes without protection, it can cause a dent in how often they visit for service, cutting into your bottom line. For this reason alone, you need to understand why selling extended warranties is good for customer relations and the dealership’s profitability. Read more