Beltway Talk Podcast: The Year That Was
AIADA chairman Jason Courter takes a look back at 2020 and his year at the helm of the association on the newest episode of Beltway Talk. In a period filled with challenges, Courter chooses to focus on the resilience of dealers. He discusses what it was like to watch the COVID-19 epidemic unfold in his own community in March, his efforts to keep his employees safe, and the one thing his father told him that guides his decision making even today. Click here to listen to the podcast.
Automakers Pledge to Work with Biden to Reduce Emissions
The Alliance for Automotive Innovation, representing General Motors, Volkswagen Group, Toyota Motor Corp., Ford Motor Co., and most major automakers, said after a meeting Tuesday that it "looks forward to engaging with the incoming Biden administration ... to advance the shared goals of reducing emissions and realizing the benefits of an electric future." Biden has made boosting EVs a top priority and pledged to spend billions to add 550,000 EV charging stations. Ford urged automakers to consider backing a framework deal with California on vehicle emissions in a bid to reach industry consensus before Biden takes office, according to a letter first reported by Reuters on Monday, but automakers did not immediately take that step. Read more here (Source: Automotive News).
New Vehicle Sales Hold Up in November Under Weight of Pandemic
Aided by special incentives during the Thanksgiving weekend, sales of new vehicles held up in November, remaining a bright spot in an economy hobbled by the rising number of COVID-19 cases reported across the country, reports The Detroit Bureau. On the surface, sales will appear as if they declined last month, but when compared on an apples-to-apples basis, the numbers show that sales remained mostly flat compared with year-ago results. Hyundai Motor America reported total November sales of 55,171 units, a 9% decrease compared with November 2019. Retail sales were down 11%. However, there were three fewer selling days and one less selling weekend in November 2020. With three fewer selling days compared to last November, Toyota Motor North America reported November 2020 sales of 205,765 vehicles, down 1% on a volume basis. Toyota Division sales for the month were 177,725 vehicles, flat versus last November. Read more here (Source: The Detroit Bureau).
Hyundai Motor to Launch Dedicated EV Platform in Major Push Into Electric Cars
According to Reuters, South Korea’s Hyundai Motor Group said on Wednesday it will introduce an electric vehicle-only platform early next year that will use its own battery technology to cut production time and costs. The plan underscores efforts by the world’s No.5 auto group to become a major player in the global EV market, as car makers around the world are pouring billions of dollars of investment to improve battery technology, which keeps EV prices high compared with combustion engine models. Hyundai expects its dedicated Electric Global Modular Platform (E-GMP) will allow it to use its own battery module technology across various EV models and cut the number of components by 60%. An electric vehicle based on E-GMP will offer a driving range of 500 kms (310 miles) or more on a single charge, an improvement of at least 23% from the Kona EV, the longest driving range model among Hyundai’s EV lineups. Read more here (Source: Reuters).
COVID-19 to Remain X Factor in 2021 Auto Retailing
Despite promising news about effective vaccines in the pipeline, 2021 is still going to be all about the ongoing COVID-19 pandemic and its equally continuing effects on the U.S. economy in general, and the U.S. auto industry in particular, reports WardsAuto. The 50,000-ft. view on the economy, consumers and auto sales is what TrueCar’s ALG subsidiary calls a two-tier, “K-shaped” recovery in 2021 from business shutdowns in the spring of 2020. ALG believes that’s the most likely scenario, as opposed to a quick and uncomplicated “V-shaped” recovery; a more prolonged “U-shaped” recovery; or an up-and-down “W.” In total, ALG’s latest full-year sales forecast is 14.5 million for 2020 U.S. new light vehicles. That’s a big improvement over ALG’s forecast of only 13.2 million last spring, but obviously still way below the 2019 total of 17.1 million, and short of ALG’s pre-pandemic forecast for 2020 of 16.9 million. ALG’s forecast for 2021 is 15.5 million. Read more here (Source: WardsAuto).
Webinar: Maximizing 2021 Profit Through Aggressive Expense Control
Join the next AutoTalk webinar on Tuesday, December 8 at 2 p.m. EST, when Doug Austin, President of StrategicSource, a leader in spend management services for auto dealerships, will share his expertise in expense categories that can have long-term financial impact.
He will review in detail:
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Best expense planning strategies
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Identify categories to reduce costs in 2021
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Several new revenue generating opportunities
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Strategies to achieve “Sustainable cost reductions”
Around the Web
Volkswagen Quits Motorsports to Focus on EVs, Racing Division to Be Dissolved [MotorAuthority]
Acura Teases Production MDX Ahead of Next Week's Unveiling [Autoblog]
