Dealers Brace for Shutdowns, Absences as Cases Surge
With coronavirus cases rising across the country, retailers are guarding against outbreaks among their own staffs and bracing for new restrictions, which have been issued from California to Minnesota to New York, reports Automotive News. After their experiences in the spring shutdown — lobbying to be classified as essential, expanding digital processes, adding pickup and drop-off service — dealers are generally better prepared for whatever may come. The updated guidelines implemented during the past week have varied from state to state, but few have affected dealership sales departments, which is good news for retailers — and for consumers on the hunt for a vehicle. The economic disruption caused by COVID-19 has not dampened consumer interest in new vehicles. A Cars.com study for the third quarter showed higher demand for vehicles than a year earlier, even amid the pandemic. Read more here (Source: Automotive News).
Dealer Lots Have Fewer Cars – and the Industry Likes It That Way
The Covid-19 pandemic is changing an entrenched aspect of car shopping in America: finding your new ride on the lot and driving it home that day. For months, dealer stocks have been running about 25% thinner than normal, a hangover effect from two months of pandemic-related factory closures last spring. The shortfall is requiring many buyers to order their cars and wait a few weeks, running counter to the American car shopper’s desire for instant gratification, and dealers’ impulse to send the customer home in a new car that day. According to The Wall Street Journal, that change may outlast the pandemic as industry executives find that stocking fewer cars, amid high demand, has lifted profits for car companies and dealers alike. Now both are talking about carrying fewer vehicles on the dealership lot permanently, in what would mark a monumental shift in the way cars are sold in the U.S. Read more here (Source: The Wall Street Journal).
Moving Into Retail Can Mean Literally Moving
The next great opportunity to own a dealership could be just around the corner, but it may be in a different state. Or a different climate. According to Automotive News, that can pose a dilemma for minorities looking to get into the business or expand their existing footprint: Move to a new locale or hope an opportunity eventually arises closer to home? Minority dealer prospects are out there, but some would prefer to operate stores in the South or Southwest, a belt known as the Smile States. That can be a problem for automakers that are looking to diversify their dealer ranks but may only have openings in places where most candidates don't live. Uprooting raises numerous issues. Some come down to preferences, such as weather, but others require deeper analysis. Understanding the market dynamics is key, said NAMAD President Damon Lester, who advises the group's members not to be afraid of cold weather. Read more here (Source: Automotive News).
Rivian Buyers Can Customize Orders, But the Wait Could Be Long
Starting today, anyone can log onto Rivian’s company website, and use a configuring tool to choose features, such as color, interior, battery range, wheels, and tires. You even can add a $5000 pull-out kitchen and cooktop powered by the car’s battery. Those choices are quick—what won’t be so fast is delivery of the vehicle, reports Bloomberg. Rivian already has sold out the first batch of EVs it plans to build in 2021 and, because of limited production capacity, most prospective buyers are unlikely to receive their purchase before the first quarter of 2022 or later. Timing will vary, depending on how far down the order list one’s name appears, the buyer’s location and the model chosen. Given the backlog, Amazon.com Inc.-backed Rivian has accelerated its plan for ramping up production. But the complexity of launching two types of EV from scratch, in multiple variants, means it will take time. Read more here (Source: Bloomberg).
EV-Wary Dealers Offered Upward of $500,000 to Drop Cadillac
Cadillac dealers who don't see a place for themselves in the luxury brand's all-electric future can walk away with more than half a million dollars instead, reports Automotive News. General Motors last week showed the breadth of its commitment to electric vehicles as the future of Cadillac and its other brands, boosting its EV and autonomy budget by 35 percent through 2025. Cadillac's first full EV, the Lyriq, will launch in early 2022, nine months sooner than initially planned, and the brand expects to be selling only EVs by 2030, as long as GM feels the market is ready. Some dealers, on the other hand, aren't ready to make that shift — or to spend at least $200,000 on the chargers, tooling and training that GM is requiring. They have until Nov. 30 to decide whether they'd rather just get out instead. Read more here (Source: Automotive News).
Federated Insurance's Claim of the Month: Could It Happen to You?
This winter scene is all too common: A customer comes in from the snowy cold, interested in purchasing a vehicle. Believing they are safe from the elements, the customer takes a few steps into the showroom and loses their footing. Seconds later, the customer is on the ground. Emergency responders quickly come, and begin treating the unconscious customer, who just suffered a concussion and a spinal injury.
POTENTIAL CLAIM: $500,000+
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Take extra care to keep your showroom, waiting areas, and customer service areas clean and free of moisture.
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Create snow removal, and salting and sanding procedures
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Mop floors every hour, or more often if needed.
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Place absorbent mats or rugs near entrances for traction and footwear cleaning
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Display signage prominently to warn customers of potentially slippery floors.
Slips and falls are an unfortunate reality of working directly with the public in the winter. You can help cut down on their frequency, helping avoid injuries among customers and employees. Visit federatedinsurance.com or contact your local marketing representative for resources you can use to create or enhance your own risk management program.
Around the Web
Some of the Most Outrageous Car Collections in the World [USA Today]
Why Volvo is Dropping Cars from a Crane [MarketWatch]
Aston Martin and Mercedes Will Share F1 Safety Car Duties [Autoblog]
