Car Dealers Are Selling More Vehicles Above the Sticker Price
The sticker price on cars isn’t sticking. In some cases, it’s going up, reports The Wall Street Journal. Some buyers say they have encountered dealerships asking for thousands of dollars above MSRP. And analysts and dealers say the practice is becoming more widespread and occurring on a wider range of vehicles, including more mainstream models that typically wouldn’t be targeted for such price increases. The U.S. car business has sharply shifted to a seller’s market within the past year. In mid-June, about three-quarters of all vehicles sold in the U.S. went for the sticker price or above, according to research firm J.D. Power. That is up from 67% at the end of May and higher than the average of around 36% before the pandemic, the firm’s data shows. “That percentage of people paying above sticker for a vehicle has been going up and up and up,” said Ivan Drury, an automotive analyst for car-shopping website Edmunds.com. “There’s no end in sight because there’s fewer and fewer cars on dealer lots.” Read more here (Source: The Wall Street Journal).
Ransomware Atacks Could Crimp Industry's Recovery From Pandemic, Report Says
Almost half of 100 automotive manufacturers and more than 17 percent of suppliers are at high risk for a ransomware attack, according to cybersecurity ratings provider Black Kite. Automotive News reports that automakers are ramping up digitization but lack cybersecurity. That's music to the ears of cyberattackers. Almost half of 100 automotive manufacturers and more than 17 percent of automotive suppliers surveyed by cybersecurity ratings provider Black Kite are at high risk for a ransomware attack. That's the latest from the provider's new report on the topic. If left unchecked, cyberattackers can infiltrate unsecured corporate IT systems and install malware, restricting companies' access to crucial data and holding it for ransom. Black Kite says more attacks could exacerbate current industry headwinds, such as parts shortages and production stoppages. Read more here (Source: Automotive News).
Asbury's CFO Departs After 1 Year on the Job
Asbury Automotive Group Inc. CFO Patrick Guido has stepped away from his role due to personal reasons, the auto retailer said Monday. The change was effective June 24. William Stax, Asbury's corporate controller and chief accounting officer, was appointed interim principal financial officer effective June 25. The public dealership group will conduct a national search for Guido's replacement. A former executive at athletic apparel company Lululemon Athletica Inc., Guido held his position at one of the nation's largest auto retailers for about one year. This is Asbury's third CFO change in three years. In May 2020 Guido replaced Sean Goodman, who departed Asbury after just two years to join AMC Entertainment. Before his time as Asbury's CFO, Goodman held positions with several companies in various fields, including Home Depot Inc., Morgan Stanley Inc. in London and Deloitte & Touche in New York. Read more here (Source: Automotive News).
Honda Hastens EV Shift in U.S. with Mass Market, Upscale SUVs
Honda Motor Co. took a step closer toward a goal of electrifying its U.S. lineup by naming an upcoming all-electric model and adding a battery-powered sport-utility vehicle to its upscale Acura brand, reports Bloomberg. The Japanese automaker, which last year partnered with General Motors Co. to develop electric vehicles, said Monday its new Honda Prologue and an accompanying Acura model will debut in 2024. The two SUVs are part of the company’s global move to phase out gasoline-powered vehicles completely by 2040 and represent an effort to accelerate the arrival of EVs in Honda’s U.S. showrooms. They are the vanguard of a series of all-electric models Honda plans to roll out in North America and will be powered by GM’s Ultium battery. Honda declined to say where the SUVs will be built or provide any description of their design or features. Read more here (Source: Bloomberg).
Shares Pop on Trading Debut of Electric Last Mile, the Latest Speculative EV Company to Go Public
Shares of Electric Last Mile Solutions began trading Monday on the Nasdaq, adding to a growing list of EV start-up companies to go public through deals with special purpose acquisition companies, reports CNBC. The Michigan-based company plans to begin production of a small electric commercial van at a factory in Indiana this fall. Shares of Electric Last Mile Solutions popped on their trading debut Monday on the Nasdaq, adding to a growing list of speculative electric-vehicle start-up companies to go public through deals with special purpose acquisition companies. The Michigan-based company plans to begin production of a small electric commercial van at a factory in
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