Automakers Report June Sales Decline
Shortages and limited inventories, led to lower sales in June and for the second quarter as General Motors passed Toyota Motor North America to be the top seller during the first half of 2022. Toyota reported sales dropped compared with June 2021 totals. This June sales of electrified vehicles totaled 39,965, representing 23.5 percent of total monthly sales. For the first half of 2022, TMNA reported U.S. sales of 1,045,697 vehicles, down 19.1 percent on a volume basis and down 19.6 percent on a DSR basis. Hyundai Motor America sales dropped 13 percent in June compared with June 2021, but retail sales declined 5.5 percent. The Detroit Bureau reports Hyundai’s monthly sales results were better than industry predictions that forecasted a 15.8 percent decline in June. Kia sales dropped 4.9 percent in June and were down 12 percent for the second quarter. Click here to learn more about automaker’s June sales.
The Value Lifelong Customers Bring to Your Car Dealership
Building a loyal base of customers is one of the most challenging endeavors for any automotive retail store. Research shows that a commitment to building lifelong, loyal customers can have overwhelmingly positive results for the bottom line as these customers are willing to pay more for brands they love. Reflect on your own life, and you’ll no doubt realize there are dozens of products and services that you use time and again without shopping around. From soft drinks to underwear and smartphones, the human brain has a strong propensity for loyalty, and that’s all built on trust. CBT News reports building loyalty toward an auto dealership is no different than how automobile manufacturers build brand loyalty. To build lifelong clients, retail automotive stores need to consider the following: Communication is key. Service can make or break a store. Trust is powerful. Trust equals lifelong customers (and referrals). Click here for the full story.
Dealers Unlikely to Feel Recession
Even if a recession hits, U.S. car dealers and manufacturers likely won’t reach a “worrisome state” until the 12- to 18-month range, says Jonathan Smoke, chief economist-Cox Automotive. “Most of the (economic) models and most of the individual market analysts and forecasters” don’t think a recession is imminent, “other than those who are deliberately seeking specific headlines or have a reason to be so negative in reading of the data,” Smoke says during a recent Cox Automotive panel discussion. “And one of those data points being the low unemployment rate and the continued job creation, stable and historically low jobless claims and the general financial shape of the majority of households.” Smoke does cite concern about declining durable-goods sales. Wards reports they are the likely result of increased prices of groceries and gasoline that has caused consumers to shy away from major purchases such as cars, he says. He likens the current downturn as less like “dropping off a cliff” and more like “falling off the curb” with new-vehicle sales declining because of supply constraints. Click here for the full story.
Why the FTC is Issuing Car Dealer Rules Now
In the wake of the Federal Trade Commission's proposal of new, sweeping regulations on car dealership price advertising and F&I product disclosure, a client of Hudson Cook partner Jean Noonan asked her, "Wasn't all of this already illegal?" Yes and no, said Noonan and other compliance experts who explored the rationale and timing of the draft regulations in interviews with Automotive News. The FTC already can take action if dealerships violate the federal prohibition on unfair or deceptive acts or practices, according to Shannon Robertson, executive director of the Association of Finance and Insurance Professionals. But this entails the agency going to court and proving the behavior was indeed unfair or deceptive, he said. "There's an entire process there," Robertson said. But if a particular behavior is specifically defined as illegal by itself in a regulation, it's easier for the government to make its case, according to Robertson. "It's hard-coded in there," he said. "'You cannot do it. We caught you doing it. Here's your fine." The FTC allows a maximum civil penalty of $46,517 per violation. Click here for the full story.
Is Jaguar Land Rover at a Tipping Point in the Seismic Shift from Internal Combustion to Electric Power?
Jaguar Land Rover’s journey towards an electric future is one that has begun but the company still has some way to go. Like all car makers it is in the process of a transition from the internal combustion engine to electric power, arguably the biggest change in the global automotive industry since the invention of the car. The CoventryLive reports the car maker’s CEO Thierry Bollore has made his intentions clear as part of an ambitious Reimagine strategy. This will see Jaguar paving the way for an electric future and Land Rover following suit. As part of Jaguar’s reinvention, it will become an all-electric brand and designers and engineers are currently hard at work creating the next generation of Jaguar cars. That said, the company still only has one all-electric car in the shape of the Jaguar I-Pace. It does also have plug-in and mild hybrids and all-electric versions of Land Rover vehicles are on the way. Click here for the full story.
Around the Web
Ferrari, McLaren And Other Supercar Firms Get Extra Time to Meet CO2 Target [Carscoops]
More Than 12 Percent of New Car Payments Top $1000 a Month [Car and Driver]
Which Used Cars Under $30,000 Have the Best Fuel Economy? [Motortrend]
