Dealers Do Good Friday

AIADA is proud to highlight dealers who are helping their communities in 2021. Please join us in recognizing the outstanding work dealerships are doing by contacting us here, tagging us on Twitter, Facebook, or LinkedIn, or using the #DealersDoGood hashtag.

International Kia of Orland in Tinley Park, Illinois, recently presented Carole Kelly with a new 2021 Kia Seltos AWD. Carole is single mom of two daughters, one of which has special needs. Prior to the pandemic Carole was employed as school bus driver, but she has lost her job twice due to school closures. The family’s current vehicle is over 10 years old with a laundry list of issues, and having a reliable vehicle will be monumental to this family. Watch a video here.

Gettel Automotive Group in Bradenton, Florida, recently announced a $10,000 donation to The Academy of Glengary which will also receive a $10,000 contribution from Toyota Motor Sales, U.S.A., Inc. The funds will be used to educate and mainstream students with mental health issues into the work force. Training offered in: Arts and Communication, Business and Technology, Culinary Arts. Click here for a picture.

The West Herr Automotive Group, Inc. in Erie County, New York, has issued a community challenge to support the All Hands on Deck fundraising campaign to save the USS The Sullivans. Scott Bieler, President and CEO said “when we heard the USS The Sullivans was in danger of sinking and needed emergency fundraising, we immediately felt compelled to help through our West Herr Cares Initiative. West Herr Cares is about providing assistance to the Western New York community that has shown us consistent support and loyalty over the last 70 years. We feel humbled by this support and determined to continue giving back wherever we can.” Read more here.

Monthly Auto Loan Payments Surge to Record High as Borrowing Hits Biggest One-Year Jump

Don’t look now, reports CNBC, but the average monthly loan payment for a new car is approaching $600 according to Experian, which analyzes millions of new and used vehicle loans. “We went up higher amounts year over year in 2020 than we ever really have before and hit record highs in loan amounts and record highs in payments,” said Melinda Zabritski, senior director for Experian’s automotive financial solutions team. Experian’s latest auto financing report covers the fourth quarter of last year when new vehicle sales improved, but were still well below the pace of sales in 2019. Nonetheless, those taking out loans to buy a new vehicle borrowed an average of $35,228, an increase of almost $2,000 from a year earlier. As a result, monthly loan payments jumped $13 to a record high of $576 according to Experian. Loans for used vehicles also hit all-time highs, with consumers borrowing an average of $24,467, up almost $1,700 year over year. Read more here (Source: CNBC).

VW Brand Will Accelerate Electric Vehicle Shift

The Volkswagen brand plans to more than double the share full-electric vehicles will have in its European sales by 2030, in a bid to accelerate the automaker's shift toward battery-powered cars, reports Automotive News. Full-electric vehicles are expected to account for more than 70 percent of the brand's European vehicle sales by 2030, compared with a previous target of 35 percent, VW said on Friday as it unveiled its 'Accelerate' strategy. "With Accelerate we are increasing the speed on our path to a digital future," said Ralf Brandstaetter, who heads the VW brand and also sits on VW Group's management board. In the U.S. and China, the brand is targeting a market share of over 50 percent for full-electric vehicles by 2030, VW said, taking aim at rivals including Tesla Inc. to become the world's leader in electric vehicle production. Read more here (Source: Automotive News).

Traffic Deaths Rose 8% in 2020, Even as Americans Drove Fewer Miles During Pandemic

Pandemic lockdowns and stay-at-home orders kept many drivers off U.S. roads and highways last year. But, reports USA Today, those who did venture out found open lanes that only invited reckless driving, leading to a sharp increase in traffic-crash deaths across the country. The nonprofit National Safety Council estimates in a report issued Thursday that 42,060 people died in vehicle crashes in 2020, an 8% increase over 2019 and the first jump in four years. Plus, the fatality rate per 100 million miles driven spiked 24%, the largest annual percentage increase since the council began collecting data in 1923. And even though traffic is now getting close to pre-coronavirus levels, the bad behavior on the roads is continuing, authorities say. Read more here (Source: USA Today).

Foam Shortage Looms Over Seating Suppliers, Auto Production

After the unprecedented winter storm in Texas and other states last month, automakers and suppliers could be slammed by yet another devastating parts shortage that could idle seating plants as early as next week, reports Automotive News. The blizzard halted the region's critical petrochemical plants, which could lead to a shortage in automotive seating foam, industry sources say. The storm that left millions without heat or power amid subfreezing temperatures has impacted production of oil refinery byproducts used to make propylene oxide needed for the polyurethane foam found in auto seats. The potential shortage comes as the supply-constrained industry navigates an unexpected rebound in consumer demand and an alarming microchip shortage that has halted production lines for a number of automakers. An auto-industry executive who spoke with Crain's Detroit Business on the condition of anonymity said some seating supplier assembly lines were expected to run out of foam by Monday. Read more here (Source: Automotive News).

Webinar: Charlie's Real Time Quarterly Market Update

Cox Automotive Senior Economist Charlie Chesbrough is back on the AutoTalk webinar on March 11 at 2:00 p.m. EST to present the most up-to-date, real time data. Topics to be reviewed include:

U.S. economic outlook: Is inflation on the horizon?
What’s expected in 2021 for new and used vehicle markets
New market trends in the post-COVID market
Obstacles for market recovery – affordability and inventory

To register for this and other upcoming AutoTalk webinars, click here.

Around the Web

Jeep Cherokee Name Could Go Away, Stellantis CEO Suggests [Autoblog]

The 10 Least Boring Luxury Cars Under $50K You Can Buy Today [MotorTrend]

Hyundai Offers First Look at New Bayon Subcompact [The Detroit Bureau]

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