CBT automotive newscast: October 11, 2021

Inside Automotive:

3 automotive marketing trends to watch in Q4 with Facebook’s Bob Lanham
There are trends dealers must understand and adapt to thrive in today’s market. On today’s show, Facebook is giving us some insight into three trends to consider as we approach the final quarter of 2021 and enter 2022. We’re pleased to welcome Bob Lanham, Facebook’s Head of Automotive Retail. Watch the complete segment here.

Headlines:

According to Cox Automotive’s Manheim Used Vehicle Value Index, wholesale values increased 27% last month from September 2020. Cox Chief Economist Jonathan Smoke said, “Average wholesale prices have increased for eight straight weeks and does not appear to be at a peak for 2021.” Used retail days’ supply was estimated at 37 days in September. Wholesale supply ended September at 18 days. A normal wholesale supply is 23 days. Smoke said, “Used inventory levels have been faring far better than new and have been inching toward normal levels as of late.”

The 2022 Geneva International Motor Show scheduled for February has been canceled for the third year in a row. Organizers stated that there are still too many “uncertainties” related to the pandemic and chip crisis for automakers to commit to the show, which usually serves as a showcase for wild supercars, concepts, and prototypes. They hope to have a “more impactful show in 2023” that includes more virtual presentations.

Tesla CEO, Elon Musk announced that Tesla is moving its headquarters from Palo Alto, California to Austin, Texas. However, the company plans to increase production in its California plant regardless of the headquarters move. Musk said, “It takes Tesla time to build a factory than to reach high-volume production.” Musk personally relocated to the Austin area from Los Angeles, where he had lived for almost twenty years.

LMP Automotive Holdings has purchased White Plains Chrysler-Dodge-Jeep-ram in New York. This acquisition has been under contract since March. LMP bought an 85% stake in the store. Jonathan Grant will remain the store’s dealer operator and will join LMP as a Regional VP and Partner.

The Senate approved a bill to help the U.S. avoid a default on its debt in the next few weeks. The U.S. risks economic disaster if Congress doesn’t raise or suspend the borrowing limit by October 18. The agreement allows the debt limit to increase by $480 billion, a sum the treasury department estimates will allow it to pay bills until December 3. The current national debt is almost $28.4 trillion and would be permitted to rise to about $28.8 trillion. The bill heads to the House, where Speaker Nancy Pelosi is expected to take up the legislation this week.

News & Opinion:

Doing more with less
Profound change is often triggered by adversity. As we continue to deal with a pandemic that has reduced both staffing and inventory levels, there’s still an opportunity to make a profound change in the industry. The need to do the most with the resources you have has always been there but, now is the time to look at how you take those resources and conduct business with customers in the way that they want rather than how you want to deal with them. But before you can adapt our approach to what the customers want, you need to know how they want to buy. Read more

Tips to improve your social media relationships
Helping your customer through social media isn’t always about problem-solving. You can help them schedule service and have a car delivered or help increase consideration for additional vehicles they may need now or the months ahead. In the end, social media is just another way to enhance the customer’s experience with you further and show that your dealership cares. Read more