CBT automotive newscast: November 17, 2021

Inside Automotive:

J.D. Power’s Tyson Jominy shares his auto retail predictions for Q4
In the third quarter, as record sales and consumer spending declined, we talked to Tyson Jominy, Vice President of Data and Analytics at J.D. Power to get his insight on why this was happening and the impact it could have on the industry as a whole. Today, we chat with Jominy to find out if data has improved here in the final quarter and where things stand today. Watch the complete segment here.

Headlines:

BMW’s CFO, Nicolas Peter says he expects the company to reach the upper end of its 9.5% to 10.5% automotive profit forecasted for the year. Last month’s sales were better than expected and this month’s sales are starting off positively. The company predicts EV sales to almost double in 2022. The automaker plans to increase prices for all of its new cars by 1%. Early this month, BMW reported a 42.4% increase in Q3 net profits to $2.93 billion.

Speaking of increased pricing, the rise in vehicles’ nonnegotiable shipping fees has come as consumers pay record-high transaction prices, without even noticing. Shipping costs now add $1,695 to the price of all six full-size light-duty pickup nameplates sold in the U.S. According to Consumer Reports, the average amount charged for transportation from the factory to the dealership grew triple the rate of inflation during the past 10 years.

JPMorgan Chase has sued Tesla for $162.2 million, in a dispute over stock warrants, after its share price soared. JP Morgan alleges Tesla has breached the terms of the contract that the companies signed pertaining to re-pricing the warrants. The complaint also states, that Tesla was supposed to deliver shares or cash if its share price went above a contractually set “strike price” by a certain expiration date. Tesla’s share price increase 10-fold by the time the warrant expired. The bank states Tesla’s failure to do that amounted to a default.

BEV maker Rivian, is in late discussions on opening a manufacturing and battery plant in Atlanta, Georgia. Sources told the Atlanta Journal-Constitution that negotiations are not final and details are subject to change. Rivian stated they are considering “multiple locations.” The EV maker is likely to purchase a plot of land between 2,000 and 10,000 acres. The Rivian project could possibly be one of the biggest economic development deals in Georgia in over a decade.

News & Opinion:

ICE vehicles are most common choice among consumers, they deserve our attention
Headlines on Tuesday, November 16 sought to command attention from consumers in the market for a vehicle but from two very different perspectives. Dodge unveiled Jailbreak Models for the 2022 Dodge Charger and Challenger SRT Hellcat Redeye Widebody editions that boast a blasphemous 807 horsepower and appeal to traditional gas-powered muscle car lovers. Possessing unique color palettes and features, these special editions supercharged V8’s are available to order later this quarter. Read more

How AI helps to retain more service customers
The current inventory shortage presents a problem for dealership service departments. Fewer new vehicle sales will translate to fewer service customers in the coming years. This means it is more important than ever to focus on customer retention in the service department. Yet, in most dealerships, service staff are too busy to keep in touch with customers. While service marketing partners can help, blanket campaigns lack the personalization that your customers expect, and BDC outreach campaigns can get expensive. After all, the average service customer database contains tens of thousands of customers. How can you possibly stay in touch with all of them? Read more