Earlier this week: NADA and state dealer associations set to challenge Scout Motors’ direct sales strategy. Ford sees $892M Q3 profit but faces challenges amid rising costs and EV losses. Stellantis reports a 27% decline in Q3 profits. BYD surpasses Tesla in quarterly revenue as hybrid sales drive record growth. Volkswagen faces union backlash over planned plant closures amid profit plunge. New EV models drive October’s market share. Who will drive America’s future? The battle for Michigan’s automotive crown heats up
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
1. NADA and state dealer associations set to challenge Scout Motors’ direct sales strategy
The National Automobile Dealers Association (NADA) and state dealer groups across the U.S. are gearing up to challenge Scout Motors’ recent decision to bypass traditional dealerships and sell electric vehicles directly to consumers. This decision by Volkswagen’s new EV brand Scout follows a model used by Tesla, Rivian, and Lucid, who have leveraged direct-to-consumer sales to offer transparent pricing and streamlined purchases without an intermediary dealer network. Read More
2. Ford sees $892M Q3 profit but faces challenges amid rising costs and EV losses
Ford Motor reported a net income of $892 million for the third quarter of 2024, marking a 25% decrease compared to the previous year. This decline followed a previously anticipated $1 billion charge for canceling its all-electric three-row SUV program. Despite this setback, the automaker achieved revenue of $46 billion, up 5.5%, reflecting its tenth consecutive quarter of revenue growth, though it fell short of analysts’ earnings per share expectations.
3. Stellantis reports a 27% decline in Q3 profits
Stellantis, the parent company of Chrysler, Jeep, Dodge, and Ram, continues to struggle. Its third-quarter results, published on October 31, revealed that revenue fell by 27%. The automaker attributes its disappointing results to low sales, weakened pricing power, and an inventory surplus across U.S. dealerships. Read More
4. BYD surpasses Tesla in quarterly revenue as hybrid sales drive record growth
On Wednesday, China’s BYD reported a quarterly revenue of 201.1 billion yuan ($28.2 billion) for the third quarter, marking the first time it has outpaced Tesla in sales. Despite falling slightly short of analysts’ estimates, BYD’s revenue leap represented a 24% year-over-year increase, surpassing the EV maker’s reported $25.2 billion in the same period. Read More
5. Volkswagen faces union backlash over planned plant closures amid profit plunge
Volkswagen’s already struggling finances took another hit as it reported a 42% drop in third-quarter profits, reaching a three-year low. This economic blow came as worker unions threatened strikes over proposed factory closures and restructuring plans in Germany, increasing tensions between management and labor at Europe’s largest automaker.
6. New EV models drive October’s market share
The newest wave of highly anticipated EV models from big brands such as Chevy, Honda, Jeep, and Volkswagen are expected to drive October’s market share. According to Cox Automotive’s EV Market Monitor report, the EV market continues to expand rapidly in the U.S. The share of EVs in total vehicle sales has steadily increased by 1% since June and is currently over 9%, the highest on record. Read More
7. Who will drive America’s future? The battle for Michigan’s automotive crown heats up
The automotive industry has become a centerpiece in the 2024 presidential election, with Michigan, the heartland of U.S. auto manufacturing and home to over 1.1 million auto-related jobs, playing a pivotal role as a critical swing state. Read More
8. Ryan Kerrigan, Michael Dunne consider if U.S. auto market is ready for Chinese upsurge
Chinese automakers are rapidly expanding, leaving dealers to question whether this poses a threat or an opportunity for the U.S. market. In today’s episode of Inside Automotive, we are joined by two esteemed guests: Ryan Kerrigan, Managing Director of Kerrigan Advisors, and Michael Dunne, CEO of Dunne Insights and host of the Driving with Dunne podcast. Their automotive industry expertise will provide valuable insights into the implications of this growth in Chinese commerce. Watch the full segment here.
9. How dealers can convert digital leads into major revenue – Sean and Karen Bradley | Dealer Synergy
With a staggering increase in Americans using the internet as their first step in their hunt for a new vehicle, BDCs are proving to be an effective way for dealerships to leverage internet leads to drive revenue. However, many dealerships struggle to effectively utilize a BDC properly and make it profitable. Watch the full segment here.
10. Eric Barbosa on cultivating a culture of growth at Cavender Automotive
In this episode of Training Camp with Adam Marburger, Eric Barbosa, Vice President of Variable Operations for Cavender Automotive Group, takes us behind the scenes of Cavender’s growth and culture. Barbosa shares his unique insights on fostering a cohesive and empowered workplace in the automotive industry, from groundbreaking dealership expansions to training the next generation of leaders. Watch the full segment here.
