CBT automotive newscast: November 9, 2021

Inside Automotive:

Why your car dealership should consider recruiting veterans – Ross Dickman, COO of Hire Heroes USA
This Veteran’s Day we want to celebrate, honor, and also highlight an organization that is helping America’s heroes daily. Hire Heroes USA is a non-profit organization that helps thousands of veterans and their spouses find employment. We’re pleased to welcome Chief Operating Officer of Hire Heroes USA, Ross Dickman, to discuss the importance and benefit of recruiting veterans and their spouses today. Watch the complete segment here.

Headlines:

More than one-third of Cadillac’s U.S. dealerships are fading as the company begins its transition to an all-electric vehicle lineup. The remaining stores account for more than 90% of Cadillac’s sales. The luxury brand will have almost 560 dealerships going into next year, down from 875. Cadillac offered buyouts, ranging from $200,000 to $1 million. The final number of dealerships that accepted increased, when almost a fifth of the brand’s U.S. network decided to quit. The remaining dealers are preparing to upgrade their outlets for EV sales and service by the end of Q1.

The new 2022 Ford Maverick is the automaker’s least expensive vehicle in its entire lineup of cars and trucks, costing about $20,000. It’s been said, the compact truck is already succeeding in attracting new, younger, and more cost-conscious buyers. Ford sold more than 4,100 Mavericks during the vehicle’s first full months of sale in October. According to Ford, early Maverick buyers are younger and more female, versus the traditionally male-dominated truck market.

Small supplier of compact cars, Mini, saw vehicle sales fall to 28,138, their lowest since its launch nearly 20 years. Mini is looking at alternatives to continue to support its base of owners. One option is service-only locations. As part of the pilot, mini allowed seven dealers to move to a service center. Head of Mini in the Americas, Michael Peyton, said to Automotive News, “Mini is exploring flexible formats that make sense for the market opportunity.”

Subaru has disabled their Starlink wireless diagnostic system for all new 2022 vehicles sold in the state of Massachusetts, so it doesn’t violate an amended right-to-repair law that is the subject of a debate in Federal court between the state and the Alliance for Automotive Innovation. Until a platform can be developed, and Subaru can redesign its telematics hardware and software to comply with the new’s requirements, they feel this is their only option. Several dealers assured that vehicles without Starlink would be functional and safe to drive.

Tesla shares fell more than 5% Monday morning after CEO Elon Musk asked his Twitter followers if he should sell 10% of his stock in the EV company. Over 3.5 million votes were cast, with a yes margin of 58% to 42%. The billionaire pledged to abide by the results of the poll, whichever way it went. The move comes after Musk disagreed with a proposal by Democrats to impose an extra tax on billionaires to pay for social programs. The tax hasn’t has been approved. Musk also says, he’ll sell Tesla stock to solve world hunger if the United Nations shows how the money would be spent.

News & Opinion:

Truck sales and tires truly do go hand in hand
For the 2020 calendar year, pickup trucks swallowed up five of the top ten spots for best-selling models in the US. That’s expected to continue when the numbers are reported for the 2021 sales year, and the Ford F-150 is all but guaranteed to take the top spot. The Chevrolet Silverado and Ram pickups are sure to be among the top sellers, and while models like the all-new Toyota Tundra and Ford Maverick won’t crack the sales leaders, they’re making waves and converting vehicle owners to truck buyers. Read more

4 ways to set the first service appointment that customers keep
While the new car buyer is sure to visit your dealership for a warranty repair, fewer are coming back for maintenance. Most customers prefer to go to a third-party mechanic, with the Cox Automotive Study suggesting the number is nearing 75%. While the data might be older, it’s been clear that nothing has changed recently. Considering how valuable dealership maintenance can be, what are some ways to set that first service appointment to ensure their return? Read more