Dealers Do Good Friday
Throughout recent months, dealers have spared no opportunity to reach out and help those who needed it. We’re highlighting a few in this week’s FirstUp. If you know of a dealer who is doing great things, let us know here or tag us on Twitter with the #DealersDoGood hashtag or by mentioning @AIADA_News.
Lost Pines Toyota in Bastrop, Texas, recently joined with In the Streets Hands Up High Ministry and the local Salvation Army to give food boxes to area residents in need. Use of the Lost Pines Toyota dealership for the drive-thru service came about thanks to a partnership between the Salvation Army and the Toyota Lexus Minority Owners Dealership Association. Local residents were also able to pick up food bags and boxes in person at the Bastrop Housing Authority. Read more here (Source: Austin-American Statesman).
Sheehy Auto Stores has announced donations of $115,500 among 22 charities throughout the communities they serve in Washington, D.C.; Baltimore, Maryland; Hagerstown, Maryland; and Richmond, Virginia. The donations are part of Sheehy's Annual Giving Program whereby each dealership partners with local non-profit organizations. "This past year has been extremely challenging for many people," said Vince Sheehy, President of Sheehy Auto Stores. "We are fortunate to be able to provide some help through our annual end of the year giving campaign that supports a variety of causes." Read more here (Source: Press Release).
Fenton Family Dealerships in New Hampshire held its 9th Annual Fenton Family Food Drive, which collected 805 pounds of food donations and $6,753 in cash donations to benefit the Community Kitchen in Keene. And by matching all cash donations, Fenton Family Dealerships doubled the amount of cash donated to the Community Kitchen to $13,506. “I’m constantly amazed at the support the [Community] Kitchen gets from the Keene community, and even more amazed with how well the Kitchen is managed,” said Bill Fenton, president and founder of Fenton Family Dealerships, who also made several donations to local organizations in December. Read more here (Source: SentinelSource.com).
Early EV Adopters Likely to Buy Another, J.D. Power Finds
Electric vehicle owners will consider purchasing another EV in the future based on their ownership satisfaction, according to J.D. Power's first Electric Vehicle Experience Ownership Study, released Thursday. Automotive News reports that the study found that the likelihood of EV owners purchasing the same brand lessens as satisfaction declines. Owners with satisfaction scores from 600 to 750 points are likely to purchase another EV, but only 25 percent of those owners will purchase from the same brand. "While early adopters of EVs say they'll remain loyal to EVs in general, staying with the same brand is not a sure thing," Brent Gruber, senior director of global automotive at J.D. Power, said in the study. "Auto manufacturers will have to keep EV owners and shoppers interested in their products beyond just the cost equation. With automakers expected to flood the market with EV launches during the next three years, to capture a share of the market they need to offer vehicles that evoke excitement and meet owners' broader needs." Read more here (Source: Automotive News).
Pandemic Acts as Catalyst for Additional Change in Auto Industry, Analysts Suggest
The COVID crisis is proving to be a bigger accelerator for altering the automotive industry in fundamental ways than originally expected, reports The Detroit Bureau. OEMs must continue to grapple with the challenges brought about by autonomous driving, shared mobility, driveline electrification, but now there are additional changes in manufacturing as automaking transforms to a product from a service. That’s the message emanating from the Society of Automotive Analysts’ 2021 Automotive Outlook Conference. There’s little doubt that the pandemic impacted the industry, with annual sales falling 14% worldwide, and 16% in the United States, according to Pete Kelly, managing director for LMC Automotive. While Kelly doesn’t foresee a complete rebound in the U.S., he does see a 9% increase to for 2021, with global sales improving to 87 million units from 74.6 million, although a shortage in semi-conductors is holding back production. Read more here (Source: The Detroit Bureau).
Ford to Spend $610M to Recalls 3M Vehicles Due to Potential Air Bag Issues
Ford Motor will recall 3 million older vehicles due to potential issues with their airbag inflators, costing the automaker an estimated $610 million, reports CNBC. The company confirmed the cost in a filing Thursday with the Securities and Exchange Commission after the closing bell. Ford stock fell into the red during after-hours trading, down about 2%. The shares ended Thursday up 6.2% at $11.53 a share — the stock’s highest close since June 2018. Ford’s market cap is more than $45 billion. In the filing, Ford said the expense will be treated as a special item as part of its fourth-quarter earnings on Feb. 4. That means it will not impact Ford’s adjusted earnings before interest and taxes or adjusted earnings per share – closely watched items by Wall Street. The National Highway Traffic Safety Administration on Tuesday denied a 2017 petition by Ford seeking to avoid recalling the vehicles with the potentially dangerous airbags, which were produced by auto supplier Takata. Read more here (Source: CNBC).
Washington Auto Show Postponed Amid Ongoing COVID-19 Pandemic
The Washington Auto Show is postponing the spring event because of the ongoing coronavirus pandemic, show organizers said Thursday. Automotive News reports that the event was set to run March 26 through April 4 at the Walter E. Washington Convention Center in the nation's capital. Show organizers in August moved the 2021 show from its original dates — Jan. 29 through Feb. 7 — because of the COVID-19 crisis. "Nothing is more important to us than the safety and health of our loyal attendees, our participating exhibitors, and all those who work so hard to make the show a success every year," show CEO John O'Donnell said in a statement. "With that in mind, we are doing everything we can to host a show in 2021 that meets the high standards our visitors are used to, while ensuring that our region stays safe and finally defeats this terrible pandemic," he said. Organizers said they're working with D.C. officials and the convention center to explore dates later in the spring to host the event. Read more here (Source: Automotive News).
Around the Web
What We Know About the Apple Car [Axios]
10 F1 Cars We Wish Were as Quick as They Looked [Formula1.com]
BMW Targets Higher Margins While Investing in Electric Cars [Reuters]
