Beltway Talk Podcast: Connecting with Dealership Customers in a Contactless World
Ross Tinkham, Director of OEM Sales and Business Development at AIADA Affinity Partner Podium, joins the Beltway Talk podcast to discuss how dealers can connect with customers in a contactless business world. He discusses the ins and outs of text messaging as a mode of customer engagement, how it has increased during the pandemic, and what dealers should consider as they maintain customer engagement in a post-pandemic environment. Find out more about what Podium can offer dealers at AIADA.org/Podium. Listen to the podcast here – and make sure to subscribe so you don’t miss future episodes.
Honda Raises Full-Year Profit Forecast Helped by Car Sales Rebound, Cost Cuts
Japanese automaker Honda Motor Co on Tuesday hiked its full-year operating profit forecast 23% to 520 billion yen as demand in China and elsewhere gained momentum and it trimmed costs, reports Reuters. The sales rebound led by China, the world’s biggest auto market, comes as driver demand for new models including electric vehicles and autonomous drive cars grows. A global shortage of semiconductors, however, is forcing Honda and its global peers to trim vehicle production. Honda’s latest profit forecast is up from the 420 billion yen profit it predicted three months ago and higher than an average 463.6 billion yen forecast from 21 analysts, Refinitiv data shows. “Automobile sales results exceeded the same period last year since October due mainly to the launch of new N-ONE,” Seiji Kuraishi, Honda’s COO said at a press briefing, referring to the company’s micro city car. Read more here (Source: Reuters).
Dealerships Look Outside the Industry to Resume Hiring, But Slowly
After an 11-month period in which mass layoffs were followed by a near-equal hiring surge, many U.S. dealerships are nearing pre-pandemic staffing levels as they continue to scout for new talent, reports Automotive News. It's a striking rebound from the early days of the coronavirus crisis last spring when dealerships laid off or furloughed hundreds of thousands of employees. While many dealerships are hiring again — and even recruiting from industries hit harder by the pandemic than automotive retailing — they remain careful about the number of jobs they're adding back. Dahl Automotive of La Crosse, Wis., with six stores in Wisconsin and Minnesota, cut jobs early in the pandemic and is now hiring — but cautiously. "We did have that opportunity to right-size," Heather Ladwig, Dahl's vice president of human resources, told Automotive News. "We don't want to get ourselves too far ahead of the game. But obviously we want to be adequately staffed for the business level." Read more here (Source: Automotive News).
Chip Crisis Pulls the Reins on Recovery
The global shortage of microchips continued to bring down vehicle assembly lines last week, even as industry leaders worked to restore sales volumes derailed by the coronavirus pandemic, reports Automotive News. The shortage — widely believed to be caused by sudden competition for chip production capacity as auto sales resurged last year — threatens to slow the industry's recovery. Last week, the pipeline problem cut into Ford Motor Co's main profit driver, the F-150 pickup. Ford said that because of the supply issue, it will drop two of three production shifts at its Dearborn Truck Plant in Michigan this week, while the truck side of its Kansas City Assembly Plant in Missouri will drop one of three shifts. Both locations produce the F-150. General Motors said it will stop output this week at three North American plants as a result of the shortage, in Kansas City, Kan.; Ingersoll, Ontario; and San Luis Potosi, Mexico. It will operate its Bupyeong 2 plant in South Korea at half-capacity. Read more here (Source: Automotive News).
Toyota Takes Four Spots in 2021 Best Cars for the Money List
With auto sales trending up to return to more normal levels, buyers are going to be looking to not only get the new vehicle they want, but also want good value for the money they’re paying. However, reports The Detroit Bureau, car buyers may be in luck as automakers are wanting to move metal so finding a good deal isn’t likely to be too difficult. That said, U.S. News & World Report are lending some insight with their 2021 Best Cars for the Money awards. The winning brand for this year is Toyota, claiming top honors in four segments with Kia and Honda coming in second with three winners each. The publication picked winners in 11 categories. It should be noted that all of the winners were either Japanese or South Korean automakers. “When it comes to car buying, value is about more than a low price tag,” said Jamie Page Deaton, executive editor of U.S. News Best Cars. “Buying the least expensive car on the lot can mean buyers end up with high ownership costs and a vehicle that doesn’t necessarily fit their needs. Read more here (Source: The Detroit Bureau).
Around the Web
Chrysler, Fiat Dealers Want New Boss to Fix Ailing Brands or Consider Cuts [WSJ]
Tesla's China Sales More Than Doubled in 2020 [CNBC]
Toyota, Lexus Upgrade Tools So You Can Buy New Cars 100% Online [Car and Driver]
VW ID.Buzz Spy Photos Show It Wearing Transporter Clothes [Autoblog]
