Chairman's Blog: Invested in America
Strength in Numbers
Chairman Connelly is back with another blog post. One of the greatest challenges international nameplate dealers face in Washington, D.C., is convincing lawmakers that our stores and brands are fully integrated into the fabric of the American economy. Too many legislators still view us and our 543,000 employees as interlopers, easy pickings for their protectionist trade agendas and unequal tax policies. They can’t seem to accept that our stores, and the vehicles we sell, are vital to the communities we serve. Never mind that the parking lots of Capitol Hill are packed with our products. They’re living in the distant past, and while we can talk about our positive economic impact until we’re in blue in the face, their minds are made up. So, every once in a while, I like to stop talking and let the number speak for themselves. AIADA, in conjunction with our manufacturer partners at Autos Drive America, recently released our 2022 Economic Impact Report. The report lays out, in remarkable detail, the crucial part our brands and stores play in keeping America moving. Click here to read the rest of the blog post.
When Temps Drop So Does the Range on Your EV
As we head into the cooler months of the year, EV owners are likely to discover themselves charging up more frequently. It’s not that they’re clocking more miles. Like humans, lithium-ion batteries don’t like the cold. Add the fact drivers will be needing to heat up the cabin, that can take a serious toll on range. According to a new study by Consumer Reports, your EV might lose 25 percent, and even more than 40 percent of its range during winter months. That was not entirely unexpected, but researchers also discovered something that they didn’t anticipate. In the middle of summer, even with air conditioners on full, all but one of the four battery-electric vehicles they tested delivered better range than their EPA estimates, reports The Detroit Bureau. “Cold weather really eats into range considerably,” said Gabe Shenhar, associate director of auto testing at the non-profit CR. “Across the board, no matter what EV, you’re going to see a 25 percent cut for cold weather.” And that’s at a minimum, he added. Click here to learn more the study.
Strong Demand Kept the Buy/Sell Market Pretty Active in August
According to the recently released Blue Sky Report® by Kerrigan Advisors, the auto dealership buy/sell market continued its record-breaking activity during the second quarter of 2022, up 16 percent compared to 2021, despite economic challenges. In the first half of 2022, 167 dealership buy/sell transactions were reported, totaling 406 transactions for the trailing twelve months ending in June 2021, a new record. Average dealership blue sky values reached a new high of $12.1 million in the second quarter of 2022, up $5.7 million from the previous year, primarily due to record dealership earnings. The robust M&A activity we have been seeing continued through August, with four new acquisitions in Florida, Missouri, California, and Illinois. CBT News reports Morgan Automotive Group increased its rapidly growing footprint in Florida with the August 16 acquisition of three Wilde Automotive Family stores. The purchase, confirmed by Morgan Automotive CEO Brett Morgan, included brands covering three consumer segments: Wilde Honda, Wilde Lexus, and Wilde Jaguar-Land Rover, all of Sarasota. The dealerships will drop the Wilde name and be known as Honda of Sarasota, Lexus of Sarasota, and Jaguar-Land Rover of Sarasota. Click here for the full story.
Balancing Technology with Safety at Volvo
Longtime Volvo executive Lex Kerssemakers is now strategic adviser at the Swedish automaker after its new global CEO Jim Rowan handpicked him for the role. Kerssemakers, 62, who once served as CEO of Volvo Cars North America, has a deep understanding of the automaker's product, purchasing, sales and marketing arms — giving him a good perspective on how Volvo will use technology to continue its evolution in advanced safety and digital technology. He spoke with Automotive News Europe Managing Editor Douglas A. Bolduc and outlined key lessons Volvo has learned as it strives to boost online sales, offer autonomous driving and provide even more in-car features without sacrificing on safety. Q: How has Volvo balanced its desire to pack cars with technology with its commitment to safety? A: When we launched the current XC90 in 2015, we made a big thing out of there being one touch screen that should be relatively easy to operate. We could have loaded it with all kinds of different features, but we decided against this. People would have had so much to deal with, which would undermine the safety of the car. Click here to read the rest of the interview.
These Replacement Battery Costs for These Six Normal EVs Is Staggeringly High
TheDrive.com investigated the cost of replacing six different contemporary EV batteries. The news isn’t pretty. Click here for their findings. Though these numbers look bleak, the chance of batteries continually getting cheaper as new technologies emerge is fairly high. The real risk is old batteries becoming obsolete, going out of production, and leaving cars without replacement parts. This happened with the early nickel-metal hydride EVs and could happen to lithium-ion EVs as solid-state batteries approach viability. But there should be a healthy supply of used batteries for years to come. Also, the EV aftermarket hasn’t quite happened yet but as demand for EVs grows, reconditioned or aftermarket battery packs could be available in a few short years. There is no getting around the high cost of batteries. At least for now. Ten years from now, there will be a reckoning on EV longevity. It will be interesting to see where used EVs land compared to ICE cars. Click here to see how the six batteries compare.
Around the Web
The Nissan Leaf Can Now Power the Grid [Carbuzz]
Mercedes-AMG Is Open to Keeping the V8 Alive Beyond 2030 [Autoblog]
Aston Martin Valhalla Build Slot Listed for a Cool $1.2 Million [Carscoops]
The Top 10 Most Influential Electric Vehicles of the Last Decade [CBT News]
