CBT Automotive News Bulletin: April 29, 2021
Will the dealer acquisition market stay warm for the remainder of 2021? Erin Kerrigan, Kerrigan Advisors
The auto buy / sell market has been busier than ever. Today on CBT News, host Jim Fitzpatrick is joined by Erin Kerrigan, Founder and CEO of Kerrigan Advisors. She joins the show to provide the latest update on the Kerrigan Index and discuss the latest trends and activities in the dealer acquisition market. Wreach full segment here.
Toyota’s global sales rose 44% last month as the automaker was able to continue producing vehicles despite the industry-wide chip shortage. In a statement released yesterday, Toyota said its global sales in March increased to 982,912 units, the best-selling in a single month for the company. The automaker plans to continue monitoring its supply chain and stockpiling chips to meet growing demand.
After one of the biggest acquisitions in automotive history, Lithia Motors doesn’t plan to slow down anytime soon. The company announced that it had acquired Planet Honda of Union in New Jersey, a deal that is expected to add $ 240 million in annualized revenue. The Honda dealership is Lithia’s 247th store and the first acquisition since purchasing the Suburban collection. CEO Bryan DeBoer said in a statement that the acquisition of one of the top performing Honda stores will help strengthen Lithia’s ability to serve communities in New York and New Jersey.
This week, Ford announced plans to invest $ 185 million in a new battery lab. The new lab will bring the automaker closer to manufacturing its own battery cells for electric vehicles. The funds will be used to build Ford Ion Park, a 200,000 square foot production facility. The lab is expected to open in metro Detroit by the end of 2022.
The Motor & Equipment Manufacturers Association, an organization representing more than 1,000 vehicle suppliers, says it opposes setting a firm date to end the sale of new gasoline passenger cars. The group told a Senate commerce subcommittee that the Biden administration should continue to establish regulatory requirements that ensure suppliers continue to work to improve internal combustion engines. The association’s senior vice president of government affairs, Ann Wilson, has warned that a rapid transition to a fully electric fleet could leave more than 560,000 U.S. auto industry workers jobless.
Hot March new vehicle sales continued through April. According to Cox Automotive, the expected sales pace for April reached 16.5 million, up dramatically from the historic low of 8.7 million in 2020 caused by the COVID-19 pandemic. The forecast for auto sales in the United States has improved 2.3% from 2019 levels, suggesting that sales are starting to normalize.
News & Reviews:
Recall repairs stand out as an opportunity for car dealerships
According to CARFAX data, the number of vehicles on the road with open recalls decreased by 5% in 2020. However, more than 53 million vehicles continue to circulate on US roads with a recall campaign not yet finished. According to their estimates, that’s about one in five vehicles that may have potentially serious safety issues. Read more
Aspects of a great customer experience
One of the biggest challenges of a dealership is tailoring its operations to customer needs. In January, JD Power’s executive vice president of strategic development, Tim Copacia, moderated a meeting between automotive marketing leaders at the JD Power Auto 2021 summit. After analyzing all of their interactions, he was able to generate the eight ” pillars of a successful and differentiated customer experience ”, all of which are essential to marketing tactics and can be used by dealers nationwide. Read more
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