CBT automotive newscast: October 27, 2020

Today’s Featured Interview:

Today’s best digital marketing strategies and practices for car dealers
In this competitive landscape, how do you get consumers to come to you? That’s the million-dollar question. Since the start of the COVID-19 pandemic, digital marketing efforts have made a tremendous shift for dealers. Many budgets have been reevaluated, and strategies have been tweaked. Across the country, many dealers we’ve talked to have been forced to adapt to the pandemic to continue to drive growth, so what should you be focused on now, in terms of marketing? Watch the full segment here.

Top Headlines:

Lordstown Motors is hitting the stock market. The electric vehicle startup began trading on the stock market Monday after completing its business combination with DiamondPeak Holdings Corporation. Lordstown shares will trade on the NASDAQ global select market under the ticker symbol ‘ride’. Back in June, the EV maker unveiled the prototype of its flagship ‘endurance’ electric pickup. The truck will be built next year in the former General Motors assembly plant in Lordstown, Ohio and should be ready for delivery in September of 2021.

In an effort to shift to zero-emissions vehicles, California governor Gavin Newsom signed an executive order last month to ban sales of gas-powered new vehicles by 2035. A month later, dealers are expressing their skepticism and concern. Most dealers in the state were unaware of the discussions being had by legislation before the executive order was made.

Brett Hedrick, owner of Hedrick Chevrolet in Clovis told The Business Journal that he found out about the ban through an announcement made on the news. Hedrick said, “in a state that’s already not considered business-friendly, this comes as another slap in the face. As a business owner, I don’t like being told what I cannot purchase. As a consumer, I don’t like being told that either.”

Hilary Haron, with Haron Jaguar Land Rover in Fresno, also showed her concern by saying that the wants of consumers are not matching the wants of state legislators. This divide has put California’s new vehicle market in murky waters for the years ahead.

While Tesla rolled out an incredible earnings report for the third quarter, the company also subtly released its first full self-driving beta to a small group of drivers. The new autonomous technology, which has been promised by CEO Elon Musk for several years, finally rolled out for testing last week. In regard to the testing process, Musk said on Twitter that the company will be, “extremely slow & cautious, as it should.” Once testing is complete, the EV maker plans to roll out the technology in every model of Tesla’s fleet.

Another electric vehicle maker is set to unveil its highly anticipated electric SUV at the LA Auto Show next year. EV startup Fisker announced that it is set to show off a production model of the Fisker Ocean at the LA Show in May of 2021. Fisker has big plans for the future, as the Ocean is one of four electric models the company plans to roll out between now and 2025. The startup is set to complete its reverse merger in the next few days, putting the company on schedule to go public on the new york stock exchange next week.

News Stories & Opinion:

Five takeaways from used-car consignment company CarLotz public merger
Even in light of the COVID-19 pandemic, business is still brewing for companies in the automotive industry. On October 22, 2020, used-car consignment company CarLotz went public in a merger with Acamar Partners Acquisition Corporation. The corporation valued the company at $827 million, which also includes debt that CarLotz also owns. Read More

How to build a service department that customers love
Customer retention continues to be a problem for auto dealerships. Less than 1 in 3 service visits are at dealerships once a vehicle reaches three years of age. Coincidentally, that’s the same time when most warranties expire. The expectation of a superior customer service experience just isn’t being realized. And when it comes to cost and convenience, customers are going elsewhere for their vehicle upkeep and repairs. Read More