CBT automotive newscast: March 8, 2021

Featured Interview:

Google’s Head of Automotive Retail Lissette Gole, discusses 4 industry trends caused by the COVID-19 pandemic
The COVID-19 pandemic brought many changes to the automotive industry. Dealers discovered new ways to manage associates, interact with customers, and conduct daily business. Today, Lissette Gole, Head of Automotive Retail for Google, joins CBT News to discuss how the pandemic changed specific areas of retail automotive and how dealers can manage those changes. Watch the full segment here.

Top Headlines:

Volkswagen plans to speed up its production timeline of electric vehicles. Fully electric vehicles are expected to account for more than 70% of the German automaker’s vehicle sales by 2030, compared to its previous target of 35%. Volkswagen officials say the accelerated timeline will help the company integrate new data and software functions that would open new sources of revenue.

Ford Motor Company has quietly launched production of a new pickup. Last week, Ford disclosed to investors that it had begun production of a “C-pick up” at its Mexico plant. The vehicle is expected to be a compact truck, slightly smaller than the company’s Ford Ranger.

Vroom shares stalled late last week as the company reported a wider-than-expected fourth-quarter loss. The online used-car retailer’s stock plunged nearly 25% at the end of trading on Thursday. Last Wednesday, Vroom reported a 2020 Q4 net loss of $60.7 million.

While the chip shortage continues to cause anxiety for automotive executives. Currently, there are 30 vehicle models in the U.S. that have been affected by the scarcity of semiconductors based on Autoforecast Solutions’ analysis of auto plants experiencing production cuts. According to Cox Automotive, affected vehicle models have around 1.06 units in inventory for an 86 days’ supply, above the national average of 77.

News & Opinion:

Virtual 20 groups create new possibilities for continuous improvement
Have you ever thought of joining a 20 Group to understand how your dealership can optimize workflow, people, processes and tools to drive more revenue? If so, what stopped you? Was it the cost of travel? The frequency of meetings? Time away from the dealership? 20 Groups bring industry professionals together for focused, success-driven meetings that make a real business difference. Virtual 20 Groups open up new possibilities to use your dealership’s financial data, coupled with the results from other non-competing business owners, to create a robust financial composite to strengthen your business. These virtual workshops are moderated by experienced consultants who will share best practices, discuss challenges, and create plans for profit. They’ll use data to help you drive revenue with real, actionable insights. Read more

A guide to understanding the ROI of your phone calls
Every interaction you have with a customer has an impact on your bottom line and the reputation of your dealership. Whether that touch point takes place on digital channels or via direct customer interaction, you have the potential for increased business. With the recent year of COVID, dealers have certainly felt the lack of a physical presence in the showroom, making alternate communication methods the premium choice. While many have invested in chatbot technology and even relied on emailing, customer phone calls continue to offer the most return on investment. A recent Salesforce study showed that telephone outreach outperformed email outreach by a significant stretch, with the telephone converting at a rate of 8.21% compared to an email conversion rate of 0.03%. Read more