CBT automotive newscast: March 31, 2022

Inside Automotive:

The importance of properly training your dealership team – Cory Mosley, Mosley Strategy Group
On this edition of Inside Automotive, Cory Mosley, Founder of Mosley Strategy Group and award-winning business growth strategist and coach, joins Jim Fitzpatrick to discuss profitability in retail auto, the buy-sell market, electric vehicles, and coaching. Watch the complete segment here.

Headlines:

Vietnamese electric vehicle company VinFast announced on Tuesday that it will be investing over $4 billion to build a manufacturing plant in North Carolina. The new facility will be located south of Raleigh in Chatham County, and it will be VinFast’s first North American plant. The so-called “megasite” will span across more than 2,000 acres and will include areas for electric vehicle and bus production as well as EV battery production. VinFast said the site will eventually employ over 7,500 people. Construction is expected to begin this year.

The auto industry is already feeling the impact of Shanghai’s COVID-19 lockdown that began this week, with various automakers and suppliers either shutting down or scrambling to find ways to continue operations. While Tesla and critical suppliers such as Aptiv sent all of their employees home this week, General Motors requested that employees sleep on the floor in the Shanghai factories to make production losses as low as possible. Shanghai’s shutdown is part of China’s “zero-COVID” strategy and is expected to last until at least Friday.

After gaining approval from the Pflugerville City Council, electric vehicle technology firm REE Automotive will officially be opening its first US-based headquarters in Texas. The eight-year agreement states that REE Automotive will receive up to $1M in grants as long as it invests almost $25M into the project and hires at least 125 full-time employees. REE Automotive has current partnerships with Toyota subsidiary Hino Motors and other mobility companies.

On Monday, the US Senate voted 68 to 28 to approve a $52B bill that would allocate subsidies for the production of semiconductor chips. If ultimately passed, the bill would aim to ramp up chip production in the US, which would alleviate the ongoing global supply chain issues and make the US less reliant on other countries for the chips. Shortages have forced automakers to shut down or cut back on production, furthering already-strained inventory levels. Members of the Senate and the House will now hold a so-called “conference” to make compromises and agree to a final bill.

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