Daily Digest Newsletter - Automotive’s Post

The U.S. auto industry is facing a pivotal moment as we near the end of 2024, marked by several key trends and developments: - **Sales Stability**: New vehicle sales have seen a modest increase, with a seasonally adjusted annual rate (SAAR) around 15.4 million units, signaling market stability amidst economic uncertainties. - **Electric Vehicle Push**: The industry's shift towards electrification continues, with EVs and hybrids gaining traction. Despite this, the pace of EV adoption has slowed, posing profitability challenges for many automakers in this sector. - **Regulatory Uncertainty**: Following the recent administration change, there's ambiguity surrounding federal EV regulations. Automakers are advocating for the preservation of existing rules to safeguard their substantial investments in EV technology. - **Inventory and Pricing**: Enhanced inventory levels and increased incentives have bolstered sales. However, transaction prices are facing pressure, potentially enhancing affordability for consumers. - **Market Leaders**: While General Motors retains its top position, Toyota has made significant advancements. Honda has also progressed, entering the top 5 and displacing Stellantis. - **Economic Factors**: Anticipated positive impacts on borrowing costs from recent interest rate cuts could bolster sales in the upcoming months. - **Manufacturing Shift**: The U.S. has witnessed a notable surge in EV battery manufacturing plants, escalating from fewer than six in 2017 to over thirty today. Navigating these transformations underscores the importance of adaptability and strategic planning for success in the evolving automotive sector. #AutomotiveIndustry #EVs #USEconomy #AutoSales Sources: - Cox Automotive Forecast: August U.S. Auto Sales Show Stability Amid Seasonal and Labor Day Boost

MSM reports an unimaginable CDK impact on dealerships nationwide. Resulting in significant losses, lost-income opportunities and market share. unacceptable.Enough said. Our small yet highly effective hands-on management teams consisting of operational experts to assist without compromise, Volume, profit, andCSI. Who’s on your floor? We deliver more units in 6-days, than a store normally does in (2) two months… launching the staffed event concept with ARG and Peter Bond in 1997. Our client list is a Who’s Who in the automotive industry, including two of the five major public auto groups. Top U.S. automakers faced slower sales growth in Q2 due to a CDK cyberattack affecting operations at over 50% of all dealerships. It's time to dominate your market, increase volume, profit, CSI and add significant, additional revenue streams. GM’s and Principals only please. Limited availability for 2024. Scheduling 2025 now. For questions/scheduling, contact: Mark Proctor - [email protected] or call 817-291-0677. #Dealerships #AutomotiveIndustry #Cyberattack #SalesGrowth

The recent cyberattack on CDK Global has significantly disrupted U.S. new-vehicle sales growth for the second quarter, hitting several dealerships during a crucial selling period in late June. This event underscores the critical role of cybersecurity in the automotive industry and the broader implications of cyber vulnerabilities on not only technology companies. #cybersecurity #automotive #vulnerability

After reporting its best quarterly sales in more than three years, General Motors is getting the “golden child” treatment. But anyone, like me, who’s steeped in the industry, may have some questions about what these figures actually mean. The success was due to notable increases in sales of full-size pickup trucks and all-electric vehicles. But EVs still compose a small amount of total sales. Did the volume increase because they are so reduced in pricing? In my opinion, this might be a classic case of supply and demand. There are more vehicles available because the supply chain bottleneck has eased and prices are lower now. At the same time, this remains good news for dealers, even if prices are reduced. That’s because the actual vehicle sale is just one part of the product they offer. There’s also financing, warranties, service and so much more. So, while, I’ll always prefer to sell at a higher price, a sale is a sale. #GM #GMsales #GMEVs #EVs #EVsales #electricvehicles #electricvehiclesales https://lnkd.in/epbfx2sf

Good morning to all the Ford Fixed Ops Women and Men in particular and Good Morning to all the Great Fixed Ops women and men this morning as well. Something to deflect off of the CDK issues and "Opportunities" that exist to increase Revenue in your Stores - Ford has announced it will be recalling 550k plus F-150's going back to the model year 2014 "Can abruptly downshift to a lower gear and increase the risk of a crash" - Sounds serious and it is - Truck Owners "love" their trucks - While "Recalls" can be seen as a negative to a Brand in general it's of my thought that the US Government has actually reduced the "negative" and has sent a message to the US People it is a "Precaution" rather than a detriment. Just my two cents having lived years of Hyundai Recalls and ALWAYS looking for the opportunity to Increase Customer Repair Lines off that Warranty Ticket - 2nd, 3rd, 4th, etc F-150 owners have fallen off the OEM's Radar and the Opportunity is huge for your Service Departments to Increase Revenue, Sell more parts and build a relationship with a NEW Customer that has never been in your service department - Tell me you do not want to get the Wheels off a F-150 with 80k plus miles or a 2014 hitting 200k with more issues than the Recall and a New Truck Sale happens - All with simple communications to these customers - Customers will be notify in July - You might already be receiving phone calls from your current customers - However there will be many F-150 owners unaware and not communicated with at all - Be a Game Changer and jump into that arena today - Get set up by the end of July now! Number One Recall Company in the US - Recall Masters Message me today and I'll get your Recall Masters Regional Sales Director on the phone with you or in your office ASAP - Northeast Dealers I can visit your showroom personally anytime with Jeff Tampe, Northeast Regional Sales Director. P.s. As a former Hyundai General Manager - I partnered with Recall Masters for years and they are the BEST and deliver results - Oh, it's Guaranteed!

DesRosiers Automotive Consultants: The lack of new vehicle inventory has been a significant driving force in the Canadian automotive market since shortages first became apparent in Q2 2021. These shortages have largely been alleviated and inventory has, overall, begun to normalize. But the surface level picture does not capture the full story. As we do every year, DAC reached out to the new vehicle dealer community through our friends and colleagues at the Canadian Automobile Dealers Association. Amongst the many questions we asked, we explored where inventory levels are at present, and the distribution of opinion regarding both ZEV and ICE vehicles. When asked about ICE vehicles, the plurality of dealers, at 43.1%, cited that they still did not have enough inventory. A further group of 32.6% cited that they had the right amount of inventory, with the smallest group, at 24.3%, stating that they had too much ICE inventory. When asked about ZEVs, a similar group at 31.4% of dealers cited sufficient inventory but for these vehicles the largest group, at 44.4%, cited that they had too much ZEV inventory. A further 24.3% stated that they did not have enough ZEVs. “Whilst dealer inventory is by no means a prerequisite for sales success, dealer opinion regarding ZEVs and ICE stock levels is certainly interesting” commented Andrew King, Managing Partner at DAC. He continued, “Consumers are increasingly pushing back against higher priced vehicles and as the ZEV focus shifts from eager early adopters to a more hesitant general market, the path forward will be challenging.” Overall, dealers cited an average inventory level at 88.4% of their normal pre-pandemic baseline. However, the path back to one hundred percent may not be the road taken going forward, as many OEMs have indicated a preference for lower inventory levels compared to pre-pandemic practices. Whether they possess the discipline to pursue that goal as the market slows remains to be seen.

New vehicle sales operations involve a lot more than upfront sales—they involve a bunch of different elements that need to come together to create a smooth customer experience, effectively manage the dealership, and keep up with changing market trends. Some elements included in sales operations are forecasting sales, managing inventory, automotive marketing, and building customer relationships. Recently, the U.S. auto industry has been navigating through a minefield of wins and losses. In the second quarter of 2024, sales increased slightly, up by 0.1% with about 4.1 million vehicles sold (Russo, 2024). This micro-bump reflects a stable demand, but there’s also the challenge of the high interest rates right now and economic uncertainty impacting buyer decisions, not to mention the active election. Adding even more into the field would be the cyberattack on CDK Global, a major tech provider of dealership software. Without this tool, dealerships find it hard to manage inventory, process customer info, and finalize deals. Many expected delivery delays well into the next quarter (Russo, 2024). Some automakers had a great quarter. Toyota had a 9% jump in sales, because of the growing popularity of its hybrids and PHEVs. GM also saw some increases, thanks to a topic I mentioned last week with growth in electric vehicle (EV) sales (or market share), which shot up by 40% (Russo, 2024). Growing interest in EVs and hybrids reflects a positive consumer interest in “sustainable” options. Tesla didn’t have the best quarter, down by 16%. Increased competition and changing consumer trends for newer body styles most likely played a role in their decline. Dealerships need to understand what people are going through when they walk through the door of the dealership expecting to be able to drive off the lot with a new car. They want a car they can afford, understand, and depend on. With changing prices, new technology, and high interest rates, would you want to buy a new car? By staying flexible and customer-focused, dealerships can build stronger relationships and drive growth—even in a tough market. -Wyatt Reference Russo, D. (2024, July 3). Modest growth in U.S. auto sales for Q2 2024: Winners and losers. Auto Sales.

For several years, my career has taken me into automotive dealerships across the U.S., where I’ve facilitated sales strategy discussions and product trainings with managers and sales teams. Recently, my focus has been on the transition to electric vehicles (EVs), a shift being driven not just by consumer demand and market trends, but also by regulations and foreign competition. One consistent trend I’ve observed at dealerships nationwide is a general reluctance to invest time in learning how to effectively sell EVs. Many salespeople are hesitant to adopt a new product that requires more training and a deeper understanding than their traditional gasoline counterparts. This resistance reminded me of my time with the Scion brand from Toyota. Scion’s concept was simple: make car buying as easy as ordering a pizza. Customers could pick from a menu of options to personalize their vehicle, with the sales process designed to be "no haggle, no hassle." Salespeople were paid hourly, with bonuses tied to accessories. Yet, despite the customer-centric model, Scion failed to meet sales goals and lost market share to more aggressively marketed brands like Kia. Toyota eventually absorbed the brand back into its main lineup. So why is this relevant now? Scion’s initial success couldn’t be sustained without a dedicated sales team passionate about the product. There’s a parallel with the EV market today. Without a committed salesforce willing to promote these vehicles, the long-term success of EVs remains uncertain. For those of you who sold Scions, I ask: Was it more profitable to sell a tC, or did you find greater success selling a standard Toyota product? The takeaway here is that the viability of any product can’t solely rely on early adopters or novelty. For sustained growth, the product needs to be more profitable for the salesperson than their current offerings. If salespeople aren’t motivated or don’t see the financial upside, the product won’t get the attention it deserves. To succeed, manufacturers need to ensure that those on the frontlines—salespeople—are as invested in the product’s success as the company is. Otherwise, it risks falling into the same pitfalls as Scion: a great concept, but not enough support to sustain it. What do you think? Are you seeing the same challenges in the push towards EVs? What are your thoughts on overcoming these barriers to adoption?

Mullen(MULN) News: Forgone Mullen FIVE & Bollinger B4 Selling -Overhead Cut https://lnkd.in/gW_MW2yy auto connected car newsMullen Automotive has changed directions– focusing on the commercial vehicle market and no longer supporting the Mulle FIVE SUV and reducing $5.5 million in spending. Mullen Automotive  announced a strong forecast of $75 million in estimated GAAP revenue over the next six months. The Company will immediately reduce $5.5 million in overall spend (operating and investing cash flows), from $12.8 million to $7.3 million. The Company will reduce overall spend by executing a 20% reduction in headcount, elimination of passenger vehicle programs, and facility consolidations. Mullen continues to focus on overall near term commercial revenue generation while streamlining operational efficiencies.