Hyundai Wants to Restart Facility Upgrades; Dealers Wary
Hyundai and Genesis are resuming their dealership upgrade programs after halting them six months ago when the coronavirus pandemic disrupted the U.S. auto market. And some dealers are pushing back, reports Automotive News. Retailers say economic conditions remain uncertain in the U.S. and car buyers are increasingly moving online, especially under the shadow of the pandemic, making major investments in physical stores less appealing. But executives at Hyundai Motor America say they feel the company's retail sales have rebounded from the coronavirus crisis thanks to aggressive factory promotions and hard work by dealers. And now is the time to move forward. Dealers say the facility upgrades can cost from hundreds of thousands to millions of dollars, depending on their scale. Hyundai is moving from its classic "blue box" design to a bronze theme based on its Global Dealership Space Identity Program. Read more here (Source: Automotive News).
Nikola Founder Trevor Milton to Voluntarily Step Down as Executive Chairman
Nikola announced early Monday that founder Trevor Milton is voluntarily stepping down from his roles as executive chairman and a member of its board. According to CNBC, the electric truck company said the board accepted Milton’s resignation, adding that Stephen Girsky, former vice chairman of General Motors and a member of Nikola’s board, has been appointed chairman of the board, effective immediately. “Nikola is truly in my blood and always will be, and the focus should be on the Company and its world-changing mission, not me,” Milton said in a statement. “So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman. Founding Nikola and growing it into a company that will change transportation for the better and help protect our world’s climate has been an incredible honor.” The announcement comes after short-selling firm Hindenburg Research accused Nikola of fraud. Read more here (Source: CNBC).
Buy-Sells Are Unleashed After COVID Slowdown
Dealership buy-sell activity was mixed in the 1st half of 2020 as deal-making slowed to a crawl in mid-March before recovering in June, reports Automotive News. Kerrigan Advisors, an Irvine, Calif., sell-side firm, said in its second-quarter Blue Sky Report that the number of dealership transactions — both single-store and multistore sales — rose by nine deals in the second quarter to 58. And first-half buy-sell transactions increased 9.7 percent to 113, Kerrigan Advisors said. "We're as busy as a firm as we ever have been," said Erin Kerrigan, managing director. "The volume of transactions that are tracking to close in the second half is at a peak level for our firm." Kerrigan estimated the average dealership blue-sky value was $6.6 million in the second quarter, up 3.3 percent from the end of 2019. Blue sky is the intangible value of a dealership, including goodwill. According to Kerrigan, the average dealership enterprise value, when including real estate, is at a record $17.7 million. Real estate value for the average dealership has jumped 15 percent since 2015 to $11.1 million, she said. Read more here (Source: Automotive News).
Mitsubishi Teases Next Year's Launch of New Eclipse Cross
Mitsubishi promises to redouble its efforts in the U.S., with a “commitment to delivering a full showroom full of new and extensively redesigned vehicles” by the middle of 2021, reports The Detroit Bureau. One of the most critical of those models will be a makeover of the Eclipse Cross crossover that made its debut in 2017, harkening back to the once-popular Eclipse sports car, albeit now in CUV form. While it will be some months before we get to see the 2022 Mitsubishi Eclipse Cross in all its glory, the automaker has kindly provided a shadowy teaser image. And, with a bit of help from Photoshop, we’ve pulled out some details from the mist. “The new design draws inspiration from the e-Evolution Concept, emphasizing the strength and dynamics from our SUV heritage, while enhancing the cleanliness and elegance of a coupe-like SUV,” said Seiji Watanabe, division general manager of Design for Mitsubishi Motor Corp. “The Eclipse Cross is the first step toward the next generation of Mitsubishi Design, and there is so much more to come.” Read more here (Source: The Detroit Bureau).
New Report Brings Positive News for SC Automakers Volvo, BMW
The coronavirus-related drop in new vehicle sales appears to have bottomed out, a new report says, giving South Carolina automobile manufacturers Volvo Cars and BMW some rare good news for 2020. However, The Post and Courier reports that the recovery from a 27 percent plunge in global car sales during the first half of this year won’t be fast or easy, according to analysts at Moody’s who this month changed their outlook for the automotive industry to stable from negative. “We expect a steep climb from these low levels through 2021,” said Bruce Clark, a senior vice president for the credit-rating firm. “However, the recovery for automakers will be a long one. We expect increases to slow through 2023, and that auto shipments will not recover to pre-downturn levels of about 95 million units until the middle of the decade.” Moody’s says challenges from the pandemic and a subsequent coronavirus-induced recession come at the same time automakers are contending with costly restructuring and modernization efforts, adding to risk for an industry with already thin margins. Read more here (Source: The Post and Courier).
Webinar: Maintaining Your Sales Momentum
The last few months have seen some respectable new and used car sales results. Join former dealer and Google for Automotive Team Member Lane Fortinberry on Tuesday, September 29th at 2:00pm EDT for some modern online tips on maintaining the sales momentum, including:
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Driving Digital sales through effective Online Retailing practices
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A look at other "brick and mortar" industries that have leaned in to eCommerce, what can we learn?
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New and cutting edge digital opportunities to increase sales
Around the Web
Cool and Useful Things for Your Car That You'll Basically Be Racing to Buy [BuzzFeed]
Nissan's New Z Car is All About the Connection [CarBuzz]
Toyota Gazoo's No. 8 Car Wins 24 Hours at Le Mans for the Third Year [StarTribune.com]
