GM and Honda Expand Electric Vehicle Partnership
General Motors and Honda Motor Co said they will co-develop a series of electric vehicles based on a new joint platform, allowing production of millions of cars starting in 2027. Reuters reports the announcement expands on plans for GM to begin building two electric SUVs for Honda starting in 2024 — the Honda Prologue and an Acura model. The automakers said the new deal is for "affordable" EVs, including compact crossover vehicles, built using GM's Ultium battery technology. The compact crossover is the biggest selling auto sector in the world with annual volumes of more than 13 million vehicles, the companies said. The companies said they will also discuss future battery technology collaboration for electric vehicles in a push to drive down costs. "Honda and GM will build on our successful technology collaboration to help achieve a dramatic expansion in the sales of electric vehicles," Honda CEO Toshihiro Mibe said. Click here to learn more about GM and Honda’s EV partnership.
Russia War Could Further Escalate Auto Prices and Shortages
BMW has halted production at two German factories. Mercedes is slowing work at its assembly plants. Volkswagen, warning of production stoppages, is looking for alternative sources for parts. For more than a year, the global auto industry has struggled with a disastrous shortage of computer chips and other vital parts that has shrunk production, slowed deliveries and sent prices for new and used cars soaring beyond reach for millions of consumers. Now, a new factor — Russia’s war against Ukraine — has thrown up yet another obstacle. ABC News reports critically important electrical wiring, made in Ukraine, is suddenly out of reach. With buyer demand high, materials scarce and the war causing new disruptions, vehicle prices are expected to head even higher well into next year. The war’s damage to the auto industry has emerged first in Europe. But U.S. production will likely suffer eventually, too, if Russian exports of metals — from palladium for catalytic converters to nickel for electric vehicle batteries — are cut off. Click here for the full story.
Carmakers Struggle to Deliver Vehicles in the First Quarter
Struggling with shortages and signs of consumer resistance to the rising prices of new vehicles, carmakers saw sales fall during the first quarter of 2022 with the decline dramatically higher during March despite the appearance of new EV models. The Detroit Bureau reports General Motors, Honda, Nissan, Kia, and Toyota all reported big sales declines during the first quarter while Hyundai’s improved for the quarter but fell by double digits in March. GM reported sales dropped 20 percent in the first quarter even though the company boasted of getting ahead of the supply disruptions in key segments. Nissan reported sales of Nissan brand vehicles dropped 29 percent during the first three months of this year, despite a strong showing by the all-electric Leaf. Sales of Nissan’s luxury Infiniti brand vehicles fell by more than 41 percent. Sales of Hyundai’s electric vehicles, like the Ioniq 5, were up 179 percent last month. Toyota Motor North America reported March U.S. sales fell 23.5 percent versus March 2021. Click here for the full story.
Automotive News’ 2022 List of the Top U.S. Dealership Groups
The top 150 groups in the U.S. owned 4,138 stores, including a small but undetermined number of used-only and non-U.S. outlets, at the end of 2021, according to the Automotive News Research & Data Center, which compiles the list. That equates to 22.7 percent of Automotive News' total count of franchised dealerships in the U.S., up from 21.1 percent for 2020 and 13.9 percent for 2011. The top 10 groups owned 1,565 stores at the end of 2021, an 8.6 percent share of all U.S. dealerships and up from 7.1 percent for 2020 and 5.3 percent for 2011. The top 150 ranking doesn't include all of the biggest dealership groups in the country. Some elect not to report their data to Automotive News, and others report intermittently. The top 150's share of industry sales rose by more than a percentage point in 2021. The top 150 groups sold 3,652,826 retail and fleet vehicles last year — 24.3 percent of industry sales and up from 23.2 percent for 2020 and 18.2 percent for 2011. Click here to read the full report.
Three Entrepreneurial Lessons for the Auto Industry
If you study the principles of entrepreneurship and the individuals who find the greatest success as entrepreneurs, there’s a universal truth: Successful entrepreneurs are driven and resilient. They are scrappier than most because, in a lot of instances, they don’t have any choice but to move past failure and keep going. At this unprecedented time in the auto industry with used-car inventory at an all-time low, leaders at dealerships around the country are taking an entrepreneurial approach to vehicle acquisitions, turning to customer inventory as a new source of used-car inventory. In many cases, dealerships recognize this mindset is becoming the new normal as they weather the inevitable ups and downs that will continue in the industry. Wards reports three principles of entrepreneurship that are particularly important for dealerships to follow on this new journey: pivot and improve; manage the Endowment Effect; and try something different and when it works, scale your success. Click here to learn about the three principles.
Around the Web
This is What $150 Million Worth of McLaren F1s Look Like [Carscoops]
2023 Honda HR-V Shows Off its New Look [Car and Driver]
Visa Changes Rules for Gas Stations to Avoid $125 Pump Limit [Autoblog]
