Aug. 4, 2020
Nissan Keeps Its Eyes on the U.S. Prize, But Record Loss Looms
Nissan Motor Co. has declared a five-point plan to revive its flagging fortunes in the U.S., even as it braces for its worst operating loss ever. The gambit focuses on rolling out new product, improving dealer engagement, boosting brand image, cutting fixed costs and shifting the corporate culture from volume to value. Automotive News reports that Nissan has already seen a modest uptick in some benchmarks, such as retail market share, inventory control and net revenue per vehicle. But the uphill battle to improve Nissan's U.S. business comes as the COVID-19 pandemic continues to hammer sales and drown the company in red ink. COO Ashwani Gupta outlined the U.S. revival strategy last week at the Japanese carmaker's earnings announcement, where Nissan revealed massive operating and net losses in the fiscal first quarter ended June 30. Nissan predicted it would incur a full-year net loss for this fiscal year, for the second-straight year, and rack up a full-year operating loss that will rock the scales as the company's biggest since 1977, which is as far back as comparable records go. For more on Nissan’s strategy, click here.
Demand for the Kia Telluride SUV is So High Dealers Can't Keep Them on Their Lots
Kia has been trying for years to be seen as more than just a maker of inexpensive cars for buyers on a budget. Success has come gradually, but has now been capped off in the form a three-row crossover SUV named after Colorado ski town. According to CNN, Kia's award-winning Telluride is selling so fast that its West Point, Georgia, factory can't make them fast enough. Kia dealers have, on average, a 15-day supply of Tellurides on their lots, according to data from Cox Automotive. In real terms, that means that these SUVs are going out almost as fast as they come in. Ben Burton, general manager at Parkside Kia in Knoxville, Tennessee, said he already has a buyer lined up for each Telluride he expects to get from now through September. "As soon as I get a VIN number, people are like 'OK, that's the one I want,' he said. "They haven't seen the car, they haven't touched the car, they haven't smelled the car and they're contracted on the car and they're ready to go." For how dealers are handling the demand, and Kia’s changing brand image, click here.
Toyota, Honda, Kia Rally Continues
Toyota Motor Corp., American Honda and Kia in July posted their smallest U.S. sales declines since the coronavirus outbreak took hold and four brands chalked up increases, signaling the market continues to recover from the pandemic. Automotive News reports that volume fell 19 percent at Toyota Motor, 11 percent at America Honda and 1.7 percent at Kia, the companies said Monday. Meanwhile, July sales rose 3.4 percent at Mazda and 10 percent at Volvo, but fell 20 percent at Subaru and 21 percent at Genesis.Among the six automakers that reported Monday, overall volume was off just 12 percent. The rest of the industry releases results quarterly. The seasonally adjusted, annualized rate of sales last month came in at 14.53 million, Motor Intelligence reported, above the range of forecasts -- 13.3 million to 14.3 million -- from ALG, LMC Automotive and Cox Automotive, but down sharply from a revised July 2019 rate of 17.02 million. Consumer sentiment fell throughout July as COVID-19 cases continued to rise, mostly in the South and West, key regions for new-vehicle sales. Click here for the full sales and incentives report.
Best Cars for Dogs in 2020
Both cars and dogs come in all kinds of shapes and sizes, and what’s best for one dog is not necessarily ideal for another. Small dogs and older dogs will appreciate a low floor to make hopping in and out a little easier. Dogs who have never said no to a body of water, be it a pond or a puddle, will need easy-to-clean upholstery or maybe a custom cargo liner. Nervous dogs still need to climb into the car for training or vet appointments, so a quiet ride is crucial. US News & World Report took several factors into account when choosing the best cars for dogs. They started with plenty of cargo space, preferably with climate control and tie-down hooks, since many dogs ride safely in a kennel. Doors that open wide and low floors or bumpers were also important. Upholstery that can be easily cleaned and rear seats that can fold fully flat make humans’ lives easier, as do features like a hands-free or power liftgate. And while some dogs are oblivious to rattles and squeaks, they did take note of a quiet interior and smooth ride for nervous or carsick dogs. Click here for the complete slideshow of all the best cars for dos in 2020.
Pandemic Revs up Race for U.S. Online Car Sales
After years of being part of a future that never quite arrived, the coronavirus pandemic has put U.S. online car sellers on the map. Now, reports Reuters, comes a race to spend vast sums on digital commerce platforms specifically designed to handle auto sales. Without deep pockets, many startups and others trying to join the online game will likely be left in the dust. “The big three (auto) e-commerce players will grow substantially, but it will be hard to be a new entrant,” said Toby Russell, joint chief executive officer of Shift, which will go public to join rival Carvana and Vroom later this quarter. “The pay to play on this thing is in the hundreds of millions and the early journey is hard, especially building out the technology,” Russell said. Online sales still only account for around 1 percent of the roughly $840 billion Americans spend annually on around 40 million used cars. But, in a sign of the times, an April survey by CarGurus Inc. found 61 percent of people shopping for cars were open to buying online. That compares with 32 percent before the pandemic. For more on online sales, click here.
Webinar TODAY: Drive Your Online Reputation, CSI, and SSI Scores
Join AIADA's next AutoTalk webinar today, Tuesday, August 4 at 2:00 p.m. to learn how to drive your dealership's online reputation. Listen to Acura Columbus Dealer, John Connelly give his firsthand experience of implementing some best practices. He will be joined by Thomas Clawson of Podium to discuss the following:
-
Understanding how to effectively text customers from search to sold to service
-
Looking at the newest sales and service satisfaction reports to understand the impact of texting
-
Driving your online reputation through communication best practices
