Ford Q3 earnings, GDP results, Elon Musk fires Twitter execs

Inside Automotive:

CADA Pres. Tim Jackson discusses Colorado’s enormous spike in EV and PHEV sales
The Colorado Automobile Dealers Association recently released a report showing a decline in new vehicle registrations and a growing EV market share in the state. Today on Inside Automotive, we are joined once again by Tim Jackson, the President and CEO of the Colorado Automobile Dealers Association, to walk us through more key findings from the report. Watch the complete segment here.

Headlines:

Ford Motor Company has released its third quarter financial results, reporting a net loss of $827 million for the quarter, which the company attributed to supply chain problems and costs related to disbanding its autonomous vehicle unit, Argo AI. Despite the loss, the automaker still managed to narrowly beat Wall Street expectations, reporting a revenue of $37.2 billion versus the estimated $36.25 billion and adjusted earnings per share of $0.30 compared to the expected $0.27. Read More

Group 1 Automotive, AutoNation, Asbury Automotive Group, and Sonic Automotive all released record-breaking third-quarter earnings results this week. Group 1 reported total revenues for the quarter of $4.2 billion, a 22% increase over Q3 last year, net income of $197.1 million, and earnings per share of $12.57, the highest in the company’s history. AutoNation also had record earnings per share of $6.31 and reported $6.7 billion in revenue. Asbury reported revenue of $3.9 billion and earnings per share of $9.23. Sonic Automotive reported a record third-quarter revenue of $3.4 billion, a 12% increase year-over-year, and a record net income of $87.3 million. Read More

The US recorded third-quarter GDP results, marking the first period of positive growth so far this year. The GDP increased at a 2.6% annualized pace for Q3, beating the Dow Jones forecast of 2.3%. A narrowing trade deficit contributed to the quarterly growth, although economists say it’s likely a one-off occurrence that won’t carry forward into future quarters. An increase in consumer spending, nonresidential fixed investments, and government spending were all positives for the quarter. Read More

Tesla CEO Elon Musk visited Twitter’s corporate headquarters in San Francisco this leading up to his expected takeover of the social media platform on Friday. Musk shared a video of himself carrying a kitchen sink into the offices and changed his public profile descriptor on Twitter to “Chief Twit.” Musk is expected to address staff on Friday, which marks the deadline for his planned $44 billion deal to acquire the social media platform. The deal is expected to be finalized by 5 pm eastern time on Friday. Read More

News & Opinion

Used car affordability has declined 26.7% in three years, study finds
An analysis by iSeeCars.com, a search engine designed to help buyers find the best deals, clearly shows the effects of rising inflation and higher used-car prices on the retail auto market. Fewer buyers are in a position to afford a used car this year, and the percentage of people who can reasonably afford one has plummeted since the onset of the pandemic in 2020. The report shows that even popular, typically affordable models are now out of reach for many consumers. A combination of post-pandemic issues, such as persistent supply chain shortages and logistical issues, have contributed to rising prices. Read More

How to use loyalty programs effectively at your car dealership
In selling products, dealerships have an incredible opportunity to acquire new customers and retain existing ones. But, according to Polk, the sad truth is that less than 30% of owners are loyal to a dealership. For a dealership, an average defection rate of 70% should be a great motivator to improve loyalty. And in such a competitive market, dealerships often need to use ad campaigns, loyalty programs, promotions, and various other marketing techniques to generate more revenue. Read More

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