CBT automotive newscast: November 5, 2020

Today’s Featured Interview:

FCA’s Yalda Ghorashy explains their new online retailing experience for car dealers
FCA’s newly named ‘E-Shop‘ was first announced as an online retailing experience at the height of the pandemic when consumers were forced to stay indoors. Since then, they say their online shopping traffic across their dealer network has increased by more than 65%. On today’s show, we’re pleased to welcome Yalda Ghorashy, head of FCA global digital marketing, to discuss the newly launched E-Shop. Watch the full segment here.

Top Headlines:

The national still awaiting the final count from key battleground states in the 2020 presidential election. Be sure to stay tuned to CBT News for more on the election and how it will impact the retail automotive industry.

Ride-sharing services such as Lyft and Uber have been pushing to keep California drivers as contractors, and on Tuesday they got their wish. California voters approved proposition 22, denying contract workers the benefits of full employees. Uber and Lyft have poured more than $200 million into the campaign to keep the system as it is. California passing Proposition 22 is likely to have national implications as other states have watched and waited to see the outcome. If the proposition had failed, ride-sharing companies may have been forced to change their business approach to accommodate drivers and daily commuters.

Market trends have shown that Ford and GM are two auto stocks to watch for the month of November as both are currently outpacing market juggernaut Tesla. The EV maker has recently fallen flat, potentially due to the election causing hesitation for investors. Meanwhile, Ford Motors blew away analyst expectations when it posted strong third-quarter earnings. The company reported $34.71 billion in revenue and reported higher demand for Ford trucks and SUVs. As Ford continues to evolve under the leadership of new CEO Jim Farley, market expectations are high for Ford for the rest of 2020 and moving into the new year.

Market analysts are also encouraging investors to watch the stock of General Motors. In a recent test by Consumer Report, GM’s Super Cruise technology has performed better than Tesla’s autopilot. These results have GM investors excited moving forward as the automaker continues to gain traction in the EV market.

While the competition for Tesla continues to grow, the automaker still has a stronghold on the market. However, this wasn’t always the case. This week, CEO Elon Musk tweeted that Tesla was nearly a month away from bankruptcy three years ago. The nightmare scenario was almost a reality in 2017 as the EV maker was attempting to ramp up production of the Tesla Model 3. Musk said that from 2017 to 2019, production and logistics for the company created tremendous stress and pain for the company. Tesla has come a long way since 2017 as the EV maker is coming off of its fifth straight profitable quarter. The company looks to continue building off of its huge success in 2020 as it moves further away from the dark times of 2017.

Toyota Motor Company reported strong numbers for the month of October as total volume was up 8.8% to 205,349 units. The company also reported that sales increased by 7.8% during the month with a strong showing from its Lexus division. The biggest jump for Toyota came from pickup truck deliveries as the Tacoma and Tundra combined to account for a 21.5% jump to 33,773 units. Light truck deliveries rose by 13.6% and Rav4 sales increased by 8.6%.

News Stories & Opinion:

NADA seeks to lead by example by setting new diversity and equity policies
The makeup of consumers is continuously changing. As populations continue to diversify, the needs of these consumers will indeed evolve to reflect this. As a result, companies—including dealerships—will have to see how their teams can better reflect the audiences they serve. According to BLS, only 17.9% of automobile dealers are women, while only 33.1% are minorities. Read More

Stock prices are pointing to critical areas in the automotive market
Tesla’s unprecedented ascension to a household name within the past year comes on the shoulders of truly special vehicles like the Model 3 and the Cybertruck reveal. On the stock market, TSLA began November 2019 at around $62 per share and has now risen to around $425 per share, peaking at just over $500 per share along the way. The electric car brand has elbowed their way into contention as a true mass-market automaker and is certainly one to watch. Read More