CBT automotive newscast: November 11, 2020

Today’s Featured Interview:

Why the automotive retail industry is a great career path for veterans
This Veterans Day we are celebrating and honoring America’s heroes, our veterans.  Many choose to get into the automotive field after service and to gain some insight into the lives of Veterans in the automotive field we have put together a panel of industry leaders. We’re pleased to welcome Joe Seppa, COO of Carlock Automotive Group and veteran of the U.S. Army, David Long, executive general manager at Hansel Auto Group, and former member of the Travis Regional Armed Forces Committee, and we’re also joined by Don Hall, President and CEO of the Virginia Automobile Dealers Association, and veteran of the U.S. Marine Corps. Watch the full segment here.

Top Headlines:

Lithia Motors has announced plans to acquire nine locations from one of the largest dealership groups in the southwest. In a press release, Lithia announced that it had acquired $1.4 billion in revenue from Keyes Automotive Group. Keyes has experienced a tremendous amount of success in luxury vehicle retailing, ranking in the top 10 nationally in sales volumes across Mercedes-Benz, Lexus, and Audi. The acquisition adds approximately 800 new customer-care associates and expands Lithia’s network to over $3.2 billion in total annualized revenue.

General Motors is investing in the advancement of its technology development and software by adding 3,000 new jobs. The new hires will help accelerate the automaker’s development of autonomous and electric vehicle technology. According to GM President Mark Reuss, the new hiring strategy will, “add diverse talent to evolve and grow our software expertise.” The automaker has committed to its multi-billion dollar investment to develop electric vehicles capable of solidifying GM’s footprint in the EV market.

GM will continue to build its autonomous vehicle technology if all goes well in a new partnership with Walmart. GM’s majority-owned subsidiary cruise announced plans to test grocery deliveries with self-driving cars. Starting next year, Walmart customers in Scottsdale, Arizona will be able to place an order and have their purchases dropped off by a cruise car. The terms of the deal were not disclosed, however, a successful launch could lead to an expansion of autonomous deliveries for the big-box retailer across the country.

With the election moving further into the rearview mirror, the auto industry is starting to gain greater clarity in what to expect from legislation and the presidency. Cox automotive released a chart of implications regarding a Biden presidency and split congress. Two likely positive outcomes for the auto industry are plans for a new stimulus deal and reducing global trade friction. However, the results also forecast an increase in regulations regarding emissions, mining, drilling, and energy production. Without the full support of Congress, it could be challenging for President-Elect Biden to push forward his tax agenda.

News Stories & Opinion:

Auto industry anticipates changes under Biden presidency
While emerging from the financial crisis in 2008, the Obama administration, which included president-elect Joe Biden, announced its goal to have 1 million electric vehicles (EVs) on U.S. streets by 2015. However, in January 2016, Reuters reported that despite more EV models being manufactured, this goal had not nearly been met and only about 400,000 EVs had been sold. During his time in office, President Trump has scaled back fuel economy standards and other environmental regulations, but Biden is expected to re-implement many of them as well as find ways to get more EVs on the road. Read More

Texas dealer donates new car to wounded veteran
Through a collaborative effort, one dealership in San Angelo, TX has donated a new vehicle to a retired U.S. Air Force Staff Sergeant wounded in combat. The donation is through an initiative by the Military Warriors Support Foundation and their Transportation4Heroes program. The recipient, Staff Sgt. George Campbell, was wounded in Iraq during a deployment in June 2005. For his injuries, Campbell received the Purple Heart and was retired from duty after 17 years of service. He’s also the recipient of several other awards for service and heroism including the Air Force Organizational Excellence Award with one Oak Leaf Cluster and the Air Reserve Forces Meritorious Service Medal with an Oak Leaf Cluster. Read More