Sales Spring, But for How Long?
March brought some good news for dealers who continue to battle for new- and used-vehicle sales in an economy ripe with high interest rates and manufacturers’ profit-reducing incentives. The true bright spot was in used-vehicle sales that were up 18.5 percent month-over-month. Days’ supply was 44, down from 53 at the beginning of February, reports Cox Automotive. And the 27 selling days in March ’24, the same number as in ‘23, saw new-car sales spring ahead 5.1 percent from the previous year, reports Wards. That’s up 15.5 percent from February ’24, reports automotive industry information and data service MarkLines. “The positive moves were assisted by the first material decline in interest rates in over two years,” says Cox Automotive Chief Economist Jonathan Smoke. “However, given the move-up in rates so far in April, that decline is likely to be short-lived.” And that will continue to dig into dealer profits. Although income growth continued, average new-vehicle sale prices decreased as incentives swelled. Click here for the full story.
U.S. Trade Chief Calls for 'Decisive' Action to Shield EV Sector from China
The U.S. must take "decisive" action to protect EVs from subsidized Chinese competition, U.S. Trade Representative Katherine Tai said as she completes a review of Trump-era China tariffs and considers President Biden's call for higher tariffs on imports of Chinese steel. According to Reuters, Tai told a U.S. Senate Finance Committee hearing that the U.S. needed to create a level playing field for U.S. workers and that Biden's call for higher "Section 301" tariffs on Chinese steel imports means that "we are in very, very advanced stages of our interagency work, and I expect that we will come to conclusion very soon." She said that China's "anti-competitive practices," including "enormous amounts of state support," had fostered overproduction of solar panels a decade ago that devastated U.S. producers. Tai said the U.S. was now facing a similar situation with EVs and the automotive sector, and leaving Chinese competition unchecked would cause the U.S. to lose the ability to produce those products. "So, we have to take early action, decisive action and we have to be really clear about why we're taking the action," she said. Click here for the full story.
How to Incorporate Employee Feedback and Win More Talent — Gloria Purdy | Hoffman Auto Group
Listening to employee feedback is more than a simple strategy for keeping workers happy. It is a critical component of your dealership’s talent acquisition and retention strategies. On this episode of CBT News’ Inside Automotive, host Shyann Malone is joined by Gloria Purdy, director of the Hoffman Auto Group’s Talent Engagement Center. Now, Purdy discusses the role employee feedback plays in spurring productivity and offers simple solutions for listening to and engaging with workers. Purdy places significant emphasis on the importance of listening to employee feedback to improve the workplace environment. Tools such as engagement surveys and confidential suggestion boxes provide avenues for companies to engage with their “internal customers” and adapt based on their input. Purdy highlights the company culture at Hoffman Auto Group as a key factor in worker retention and satisfaction. She stresses the importance of creating a transparent and comfortable environment where employees can speak freely and honestly. This culture not only helps retain employees but also attracts top talent who align with the company’s values. Click here for the full interview.
5-Figure EV Discounts Emerge Amid Bloated Inventories
Bloated electric vehicle inventory is pushing automakers and dealers to slash prices, with many discounts reaching far into double-digit percentages. Nissan is offering almost $16,000, or nearly a third, off its Ariya electric crossover, and that's before any state or utility rebates for buyers depending on their location, reports Automotive News. Mercedes-Benz is giving its EQS SUV a $19,442 cut from an average price of $104,747, a 19 percent discount, according to Cox Automotive. Automakers discounted EVs nearly $6,000 on average in the first quarter, according to Cox Automotive. (Some dealership-reported incentives may include the federal tax credit if it was applied at the point of sale, the firm said.) Automakers and retailers are offering the discounts to quickly sell the electric models that are flooding dealership lots. As of April 1, EVs were sitting on dealership lots for an average of 119 days. While that's fallen from a peak of 169 days in mid-February — helped by the discounts — it's still a lot higher than the 73-day supply average of gasoline-powered vehicles. Click here for the full story.
Congresswoman Carol Miller Introduces Bill to Prevent Chinese Dominance of American EV Market
U.S. Rep. Carol Miller announced the End Chinese Dominance of Electric Vehicles in America Act of 2024 on Monday. The act seeks to regulate the foreign entity of concern definition for the 30D electric vehicle tax credit and prevent Chinese companies from obtaining U.S. tax dollars, according to a press release. "China, or any adversary for that matter, should not have any access to American tax credits," Miller, R-W.Va., said in the release. In September, the Commerce Department issued rules defining a foreign entity of concern in terms of the semiconductor supply chain. In December, the Department of Treasury enacted similar guidance for the EV tax credit, but loopholes in this legislation allowed Chinese entities to access American tax dollars. According to Automotive News, Miller's bill closes the loopholes and prevents Chinese business owners from gaining U.S. tax dollars if they invest in American EV projects. It blocks China from boosting its battery supply chain dominance to produce upstream materials, parts, and intellectual properties eligible for the 30D tax credit. According to the press release, the bill is a continuation of Miller's endeavors to protect American advanced manufacturing and U.S. tax credits. Click here for the full story.
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