Dealers Do Good
AIADA is continuing to recognize dealers who are making a difference in their communities in 2021 through our Dealers Do Good campaign. If you’re a dealer doing good, or you know about one, let us know here. Or, tag us on Twitter or Facebook with the #DealersDoGood hashtag.
Don Ringler Automotive Group in Temple, Texas, recently donated $17,000 to Temple High’s CTE automotive technology program — funding that the Texas Workforce Commission nearly matched with a $16,500 grant. “The grant is part of the Texas Industry Partnership (TIP) initiative to help purchase equipment that addresses the training needs of Automotive Technology and prepare students to receive Automotive Service Excellence (ASE) industry certification,” according to Workforce Solutions of Central Texas. Read more here (Source: Killeen Daily Herald).
In May, Appleton, Wisconsin-based Bergstrom Automotive team members partnered with Make-A-Wish® Wisconsin to raise critical funds to help grant the wishes of local children battling critical illnesses to provide the essential hope, strength, and joy they need. During their 2021 Drive for Dreams campaign, Bergstrom Automotive team members raised $154,150, bringing their total contribution to nearly $2.5 million over this incredibly impactful 21-year partnership, which has helped make hundreds of wishes come true! Read the full press release here.
Group 1 to Post Profit Gain for Q2
Group 1 Automotive Inc. is expected to report higher profits on solid new-vehicle sales in the second quarter, despite a shortage of new cars and trucks to sell, reports Automotive News. The company provided preliminary data on the second quarter because the microchip-related supply disruption has "made it very difficult for the financial markets to grasp the impact on our business," CEO Earl Hesterberg said in a release Thursday. Group 1 expects earnings per share for the quarter to range between $10.20 and $10.70. Group 1 reported $1.63 in diluted earnings per share in the pandemic-stricken second quarter of 2020 and $2.64 in the second quarter of 2019. The company said its profits are being driven by strong vehicle margins in the U.S., a rebound in U.S. service business and recovery in the U.K., as well as cost controls. Read more here (Source: Automotive News).
EU Fines Volkswagen, BMW $1B for Emissions Cartel
The European Commission fined German carmakers Volkswagen and BMW a total of 875 million euros ($1 billion) on Thursday for colluding to curb the use of emissions cleaning technology they had developed, reports Reuters. The case, separate to the so-called 'Dieselgate' scandal, sets a precedent by extending the application of European competition law to technical-level talks between industry players. In this case, talks held a decade ago centered on design standards for AdBlue, an additive used to cleanse nitrogen oxide from the exhaust gases produced by diesel-powered cars. Under a settlement, Volkswagen will pay a fine of 502 million euros and BMW 373 million euros. Daimler, also part of the cartel, was not fined after revealing its existence. Read more here (Source: Reuters).
Honda Cracks Down: No More Returning Leased Cars to Others' Lots
Honda Motor Co. has a rude surprise for drivers of its leased cars: No more turning in your vehicles to other dealers. Bloomberg reports that the carmaker said Thursday it will require the drivers with expiring leases to return their vehicles to authorized Honda and Acura dealers and refuse to accept buyouts from unaffiliated dealers or others. Honda cited tight supplies of cars and trucks as a result of shortfalls in critical components and congestion at ports as the economy recovers. The Japanese company is the latest automaker to take more control over leases – and boost inventories – by limiting vehicle returns to its own dealer network. “Our goal is to make sure our dealers have access to quality pre-owned Honda and Acura vehicles to satisfy the needs of new and returning customers,” Petar Vucurevic, a vice president at Honda’s financing arm, said in a statement. Read more here (Source: Bloomberg).
Plug-In Sales Surging, BMW Now Targets All-Electric Market with i4, iX
Despite its role as an early pioneer in electrification, BMW has struggled to gain real traction in the emerging market, with Tesla siphoning away many of its once-loyal buyers. Now, reports The Detroit Bureau, the Bavarian automaker hopes to build momentum in the American market with a growing line-up of plug-in hybrids, as well as its first two long-range battery-electric vehicles. Delivering up to 300 miles per charge, the new i4 sedan and iX SUV can travel as much as three times further than BMW’s original all-electric model, the i3 city car. The automaker has also taken steps to make it easier to charge up, whether at home or on the road. But skeptics remain, the two models generating plenty of controversy over their design, among other issues. Set to reach U.S. showrooms later this year, the i4 and iX will join BMW’s expanding line-up of plug-in hybrids. The automaker added PHEV versions of both the X5 crossover and 3-Series sedan late last year – and the response has begun to move the needle. Read more here (Source: The Detroit Bureau).
Around the Web
Electrified 911 Starts Testing [MotorAuthority]
Here Are the Most Underrated Cars on Sale Today [Jalopnik]
Those Mundane Old Hondas and Toyotas Have Suddenly Become Collectible [NY Times]
Stellantis Teases Mystery Electric Chrysler Concept [Autoblog]
