CBT automotive newscast: November 23, 2021

Inside Automotive:

3 auto industry trends that will become more important in 5-10 years
We often talk about dealer profitability, digital retailing, sales training, and other subjects related to what’s currently happening in the auto industry. However, today we take a step back or forward, depending on how you look at it, to talk about the future of the auto industry five to ten years from now. Here to share his perspective is Bob Lanham, Head of Automotive Retail for Meta, formerly known as Facebook. Watch the complete segment here.

Headlines:

On the heels of Rivian’s massive IPO this month, Ford Motor Company, one of Rivian’s earliest financial backers, has scrapped plans to jointly develop an electric vehicle. In an interview with Automotive News, Ford CEO Jim Farley explained that this decision was in part due to hardware and software complexities, as well as Ford’s confidence that it can double its EV production to 600,000 vehicles by 2023.

Former Prime Automotive Group CEO, David Rosenberg has reached a $30 million settlement with GPB Capital Holdings, clearing the way for Group 1 Automotive’s acquisition of 27 Prime dealerships last week. Now the New England dealer intends to use the settlement to expand his own DSR Motor Group, which currently has six dealerships in three states.

Tesla and its Fremont, California factory are under fire again, this time for alleged sexual harassment, Reuters reports. Production Associate Jessica Barraza has come forward with a lawsuit that claims supervisors ignored her complaints of rampant sexual harassment. Her claims include “nightmarish” conditions and “near-daily” catcalls as well as inappropriate touching. This past October, Tesla was ordered to pay $136.9 million to Owen Diaz for the racial harassment he was subjected to at the same factory.

As more and more automotive companies make environmentally conscious changes, one Colorado dealership is following suit, in its own way. Stapp Interstate Toyota in Frederick has installed 720 solar panels which can produce 375,000 kilowatts per hour. These panels also double as hail protectors which can cover up to 345 vehicles. With the panels, Stapp Toyota is saving around $8,000 per month on power.

News & Opinion:

Is it time for dealers to start thinking about virtual showrooms?
Car sales were heavily stymied as a result of the pandemic, and it undoubtedly forced dealerships to change procedures and try to find other ways to make up for missed sales opportunities. While many consumers were afraid to go out in public, including the fear of entering a dealership, car sales were also impacted by many consumers’ loss of wages and their unplanned inability to buy a car. Now, many people are back in the market for a vehicle, and dealerships are needing to explore new ways of selling what they have in stock. Read more

Moving forward: The focus and path for Roadster and CDK Global
In early June 2021, CDK Global acquired Roadster for $360 million. The two companies joined forces with the intent to drive modern retailing to a new level, enhancing both the sales process and the customer journey and experience. Roughly six months post-acquisition, Roadster founder and CEO Andy Moss and Chief Marketing Officer Michelle Denogean spoke with CBT News about the transaction and their focus for the future. Read more