October US sales forecast, Penske Q3 earnings, new study from CarGurus

Inside Automotive:

Consumer Focus: Is the Tesla buying experience really that good?
Tesla has led the market for electric vehicles in the US for many years now. While the company’s market dominance will likely decrease as more EV options become available, US EV sales still rely heavily on Tesla’s output and deliveries. In fact, Tesla cars made up 79% of all new electric vehicles registered in the US for the entire year of 2020. That percentage dropped to 69.95% in 2021—still a powerful position for the EV maker. On this edition of CBT’s Consumer Focus, we caught up with Faiz Aly, a digital content creator, tech enthusiast, and the owner of a brand new 2022 Tesla Model X. Today, we find out all the details about his buying and ownership experience. Watch the complete segment here.

Headlines:

According to Cox Automotive‘s October forecast, US new car sales volume is likely to increase 4.4% from last year and finish with 1.11 million units sold. 14.3 million is the seasonally adjusted annual rate (SAAR) forecasted for October, marking the fastest sales pace since April. Cox Senior Economist Charlie Chesbrough said the gains were likely a “statistical trick” resulting from an additional selling day. Overall, new-vehicle inventory levels have improved significantly over the last three months, meaning the new-vehicle market today is in a much better place than it was a year ago. Read More

Penske Automotive Group announced third-quarter earnings on Wednesday, reporting a revenue increase of 7% to $6.9 billion. Income from continuing operations decreased 2% to $467.2 million, and earnings per share increased 3% to $4.61 from $4.46 over the same period last year. Chair and CEO Roger Penske said the group’s performance “continues to demonstrate the benefits of the company’s diversification.” Read More

CarGurus released its annual Consumer Insights Report on Wednesday and found that buyers are returning to some pre-pandemic behaviors, like visiting dealerships in person, which increased 28% from 2021. However, the shift to digital sales is likely here to stay. 59% of buyers say they’re open to buying online, but more report interest in a hybrid approach combining digital and in-store experiences. The report also revealed that buyer satisfaction remains strong even with high prices. Read More

Tesla CEO Elon Musk has offered the first look at the company’s new megafactory in Lathrop, California, since breaking ground last year. Musk shared a video of the factory on LinkedIn in an effort to promote hiring as the company starts to ramp up production. The CEO says the megafactory will produce 40 GWh of megapack batteries per year, which would be a 10-fold increase over its current production capabilities. Production at the California plant is ramping up surprisingly fast for only a year past groundbreaking, with the capacity to produce up to 25 megapacks in a single day. Read More

News & Opinion

NADA outlines new auto retailing principles for dealers and OEMs
In light of today’s changing landscape for auto retailing — from the emergence of direct-to-consumer selling models to evolving car technologies — NADA has released a new set of principles for dealers, OEMs, and regulatory entities. The organization seeks to set up standards that help dealers service consumers and ensure that the franchise model is prioritized. Here are some takeaways from NADA’s guiding principles on Evolving Business Models and the Dealer Franchise System for dealers. Read More

5 areas where dealers can communicate better with customers
About 90% of loyal dealership clients are still going to consider another brand when the time comes to get a new vehicle. Even if you are doing everything right, you might lose a customer. However, if you aren’t communicating with your audience, you have a much higher chance of them going elsewhere. That’s why you want to focus on these five areas where dealers can communicate better with customers. Read More

Did you enjoy this automotive newscast? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.