CBT automotive newscast: November 18, 2020

Today’s Featured Interview:

Erin Kerrigan discusses representing Keyes Automotive Group with its monumental sale to Lithia Motors
Lithia Motors is growing! They have now acquired nine Keyes Automotive Group dealerships, which is $1.4 billion in revenue for Lithia. This sale encompasses some of the highest volume auto dealerships in the U.S. and on today’s show we’re pleased to welcome Erin Kerrigan of Kerrigan Advisors, who represented Keyes Automotive Group in this transaction, to discuss one of the largest transactions in the automotive industry. Watch the full segment here.

Top Headlines:

As powers begin to transition in Washington D.C., President-Elect Biden is already meeting with high-level CEOs to discuss his economic agenda. In a virtual meeting on Monday, Biden met with many business leaders including General Motors CEO, Mary Barra. Biden delivered a message of building a strong recovery plan for the U.S. market. The meeting also included key labor leaders such as UAW President Rory Gamble. In a statement on Monday, GM said that the company was, “pleased to participate in this important discussion with President-Elect Biden and Vice President-Elect Harris and others from the business and labor community.”

As another wave of COVID-19 cases continues to rise, automakers are taking every precaution to avoid another shutdown. New cases are especially high in Michigan, compelling state leaders to enact a new round of restrictions to help stop the spread of the virus. Automakers in Detroit are hopeful that recent success with safety protocols will allow production plants to remain open and operational. Back in the Spring, automakers underwent an eight-week plant closure, and now plants are at risk of closing once again. Last week, Michigan broke its record for weekly COVID-19 cases with a total of 44,109 new cases reported. FCA, Ford, and GM have all stated that they feel confident in their health and safety protocols and fully believe they are capable of continuing production in a safe manner.

On Tuesday, Tesla achieved a major goal that many believe is long overdue. The electric-car maker finally secured a spot in the S&P 500 index. Starting December 21, Tesla will join the S&P 500, a move that could boost the company’s opportunity to obtain even more funding. Back in September, Tesla was snubbed by the index despite a market capitalization of $400 billion. Following the announcement, CEO Elon Musk’s wealth grew by $15 billion, helping him pass Mark Zuckerberg to become the world’s third-richest person.

The end of the calendar year brings numerous awards across the auto industry. Mercedes E-class is the latest award recipient, being named Motor Trend’s 2021 “Car of the Year”. The German automaker beat out five other finalists with its strong E-class variants including the coupe, sedan, wagon, and convertible. Mercedes has been rolling out updated versions of the new model since last spring. Other auto brands that were nominated included BMW, Hyundai, Nissan, and Porsche.

News Stories & Opinion:

Vehicle subscription options on the rise from car manufacturers
In the United States, more than 90% of households own a car. However, a shift is happening in the auto industry where urbanites are leaning away from car ownership in the traditional sense. Largely driven by the millennial generation, alternative mobility options are on the rise – options like Lyft and Uber ride-sharing as well as vehicle subscription models. Read More

Do you see your female customer the way she sees herself?
Sandwiched between a Toyota Tundra 4Runner and a Jeep Rubicon, my 2017 Jeep Renegade Desert Trail Hawk and I navigated slick rock and soft sands, on my brand-new BF Goodrich K02 AT tires, to ascend the plateaus of Moab, Utah during our recent week-long adventure with Charlene Boyer and the Ladies Offroad Network (LON). Read More