CBT automotive newscast: May 24, 2022

Inside Automotive:

Market-based sales objections will happen—here’s how to work through them
There is still so much uncertainty surrounding our lives, like rising inflation rates, gas prices, and the COVID-19 pandemic. If you’re feeling the effects, then your customers are too, which may be causing them to hold onto their dollars a little tighter. Today on Inside Automotive, we’re pleased to welcome back Jeff Shore, expert sales trainer and founder of Shore Consulting, to talk to us about calming customer fears in our changing economy. Watch the complete segment here.

Headlines:

Hyundai has announced that it will be investing another $5 billion in the U.S. by 2025 to advance autonomous driving, artificial intelligence, and urban air mobility. The overall investment in the U.S. is now over $10 billion, which includes the recently-announced $5.5 billion plan to build an electric vehicle plant in Georgia. Part of the investment will also go towards the growth of robotics, including Hyundai’s Boston Dynamics firm that it purchased last year.

Logistics issues with California-based Rivian are continuing to make buyers unhappy. Dozens of consumers indicated that the company’s delivery plans have caused lengthy delays and that customers who ordered their vehicles later have already received them. Rivian previously sent buyers an email last month indicating that it would be manufacturing vehicles with similar features together instead of building them in the order of purchase.

Three car dealerships in New Jersey have agreed to pay $400,000 to settle accusations that they defrauded customers for several years. Among other allegations, the dealers were accused of failing to disclose information, charging elevated fees, and taking insufficient credit applications. The dealerships must go through arbitration with customers who lodged complaints against them.

Carousel Motor Group announced yesterday that it had launched its new eCommerce platform developed in collaboration with Cox Automotive. The platform is called “Carousel Online” and is a fully-virtual car buying experience. The company’s President Chase Hawkins said Carousel’s new platform will be different from other startup automotive e-retailers partially because consumers will not experience disruptions with registration issues or deliveries.

News & Opinion:

The average age of vehicles in operation rises to 12.2 years
Vehicles on the road in the US are getting older, on average. The most recent report from S&P Global Mobility shows that the average age of vehicles in operation has risen to 12.2 years, the highest it has ever been. Over the past year, that average has crept up by two months, and it’s the fifth year running that the American fleet has risen in age. The causes are no surprise to most in the automotive industry, a sector struggling to source enough semiconductor chips to build in-demand vehicles. Production lines for many automakers have had brief interruptions, and the reduced supply hasn’t been able to rise to the demand by consumers and fleets. Read More