CBT automotive newscast: November 3, 2021

Inside Automotive:

How to improve your car dealership’s online retailing strategy – Lisette Gole, Head of Auto Retail at Google
Despite the industry’s inventory and chip uncertainty, retail automotive has continued to shift and evolve online. Today’s successful dealerships are offering the entire vehicle purchase process through your mobile device. On today’s show, we’re pleased to welcome back Lissette Gole who is the Head of Automotive Retail at Google. Her nearly 20-year career has been dedicated to the automotive industry, so on today’s show, she’ll take us through today’s top trends and ways you can improve your online retailing. Watch the complete segment here.

Headlines:

Jaguar Land Rover records a $413 million loss in the third-quarter ending September 30. They had a profit of 88.6 million in the same period of 2020. CFO Adrian Mardell told investors that the company had unfulfilled demand of 160,000 vehicles. The company predicts that it will make a profit in the second half of this financial year as the chip crisis eases and it starts shipping the new range rover. Hyundai and Kia also posted low sales for the third straight month. Deliveries dropped 1.1% at Hyundai and retail volume rose 1% to an October record of 52,767. Kia deliveries fell 7.2% to 52,067 with 82% of its inventory sold during the month.

EV startup, Rivian is targeting a market valuation of as much as $54.6 billion in its upcoming initial public offering. The company plans to offer 135 million shares priced between $57 and $62, with an option for underwriters to purchase up to 20.25 million additional shares. Rivian is currently backed by Amazon and Ford.

Tesla is recalling nearly 12,000 vehicles that were sold since 2017 due to a communication error that may have caused a false forward-collision warning or unexpected activation of the emergency brakes. The recall was prompted after a software update on October 23 to vehicles in its limited early access version 10.2 full self-driving beta. The NHTSA said it will continue its conversations with Tesla to ensure that any safety defect is promptly acknowledged and addressed.

Beginning January 4, Mercedes-Benz will require proof of vaccination as a condition of employment. The automaker said in a statement that it had notified employees 90 days in advance to meet the requirement. The company also states that they expect the vast majority of their employees will provide proof of vaccination before the deadline. Two-thirds of U.S. employees have been vaccinated.

News & Opinion:

Nearly one-third of car shoppers are checking out EVs
Cars.com research suggests that 32% of car shoppers are now looking to get into  EVs. For these car shoppers, there will be over 100 new EV models entering the market over the next four years. However, federal funding and infrastructure for these electric vehicles are being debated right now. What do the numbers mean and what needs to happen moving forward? Read more

Are car commercials by dealers an effective marketing tool?
Manufacturers film car commercials with big-name talent. Think Matthew McConaughey behind the wheel of a Lincoln during the Superbowl intermission. But it’s well known that these types of ads are about brand recognition more than anything, an option to focus on the overall feel consumers can expect. Rarely do manufacturer commercials result in a car sales spike whenever they’re played, and there’s likely no effect on a dealership’s phone or website traffic after an ad plays across the TV. Read more