Audi Turnersville Takes 'Best Dealership to Work For' Title Again
Audi Turnersville in New Jersey reclaimed the No. 1 spot on the 10th annual Automotive News list of the 100 Best Dealerships To Work For. Best Companies Group selected the winners based on surveys of 40,146 U.S. employees. Automotive News announced the winners Tuesday at the Four Seasons Hotel in Chicago. The 35-employee Audi Turnersville won in 2019 and made the Top 10 in 2018. It also ranked No. 42 in 2015. General Manager Jimmy Magee said his dealership learned how to be a better employer during the COVID-19 pandemic. "We thought 'flexibility' meant working from home," Magee said. "But now we realize that what (employees) actually meant was the ability to fit their work into their personal lives." Magee also shared advice for fostering diversity, equity, and inclusion in the work force. "Promote pay equity," he said. "Develop a strategic training program. Make it easy for your people to participate in employee resource groups." Learn more about Audi Turnersville and the 99 other 2021 Best Dealerships To Work For here (Source: Automotive News).
Lithia's Q3 Income Nearly Doubles on 47% Jump in Vehicle Sales
Lithia Motors Inc.'s revenue hit a third-quarter record driven largely by increased new- and used-vehicle sales, higher average vehicle selling prices, and strong gross profits per vehicle, reports Automotive News. Net income totaled $307.9 million, nearly double the $158.8 million a year earlier. Revenue for the Medford, Ore., retailer climbed 70 percent to $6.17 billion. Adjusted net income more than doubled to $342 million, from $160 million in the third quarter last year, reports Automotive News. Lithia continued its dealership acquisition tear in the third quarter with purchases in Alabama, California, Texas and Georgia. It also expanded into Canada – the group's first international acquisition – when it bought Pfaff Automotive Partners on Aug. 30. Lithia's third-quarter dealership acquisitions combined are expected to generate annual revenue of $1.7 billion, the company noted. Read more here (Source: Automotive News).
Dealerships Changing Hands at Record Rates
There may be some potential headwinds next year, but for 2021, brokers for dealership mergers and acquisitions report the dealership buy-sell market is still red hot, reports WardsAuto. The question for buyers and sellers is how long the current, favorable environment can last, with demand outpacing supply, record average transaction prices for new and used vehicles, and pent-up demand for parts and service. Cuts in dealership head counts and marketing budgets have also contributed to record profitability. Kerrigan Advisors, says the total number of completed dealership transactions was 144 in first-half 2021, an increase of 27% vs. a year ago, and on track to surpass a record of 289 buy-sells last year. For the 12 months ended June 30, the total number was 320, up 11%, the company says. “Today, we are tracking to hit another record,” says Erin Kerrigan, founder and managing director of Kerrigan Advisors, Irvine, CA. In a webinar hosted by the American International Automobile Dealers Assn., she predicts 2021 buy-sells will pass 350 in 2021. Read more here (Source: WardsAuto).
Biden to Tap No. 2 Official to Head U.S. Auto Safety Agency
President Joe Biden plans to nominate the No. 2 auto safety official to head the National Highway Traffic Safety Administration (NHTSA), the White House confirmed on Tuesday. According to Reuters, Steven Cliff, who has been deputy administrator since February, has been a key figure in the Biden administration's proposed rewrite of fuel economy standards through 2026. Heis also overseeing the department's safety probe of Tesla Inc and investigation of whether 30 million vehicles produced by nearlytwo dozen automakers have unsafe air bags. Reuters first reported Cliff's planned nomination earlier on Tuesday. NHTSA later confirmed a Reuters report that Duke University engineering and computer science professor Missy Cummings is being named a new senior adviser for safety at NHTSA, saying in a statement it looks forward "to leveraging her experience and leadership in safety and autonomous technologies." Read more here (Source: Reuters).
Automakers Are Spending Billions to Produce Battery Cells for EVs in the U.S.
As supply chains remain in distress across the globe, automakers are spending billions to move production of battery cells to their home countries to meet what’s expected to be rapidly growing demand for electric vehicles over the next decade, reports CNBC. Based on a rolling five-year average of announced investments, AlixPartners expects companies to invest $330 billion in the next five years throughout the EV supply chain globally. Toyota Motor on Monday said it plans to invest about $3.4 billion (380 billion yen) on automotive battery development and production in the United States through 2030, including a new $1.3 billion battery plant. “The 10s of billions of dollars that are being invested by most of the big automakers over the next five to 10 years on making the transition to electric, the last thing they want to do is be stuck without key components that they need whether it be batteries or chips,” said Guidehouse Insights principal analyst Sam Abuelsamid. “They are increasing going vertical in some cases or diversifying their supplies in other cases.” Read more here (Source: CNBC).
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