Japan Automakers Boost R&D Spending, Even as Profits Slow
Japanese automakers — even Toyota — are bracing for a tough year. With few exceptions, the country's manufacturers expect profits to decline or stall out as soaring costs eat up earnings. And spiraling R&D budgets — virtually across the board — are only pushing costs higher. Japan's automakers are keeping the pedal to the metal on product development, sometimes to record levels, to meet mounting demand for a staggering array of new technologies. Chief among them is electrification, as Japan Inc. races to catch up in full-electric vehicles in the face of criticism from climate advocates. Automotive News reports Toyota Motor Corp. by far outpaces the pack, with plans to spend more than $9 billion this year on R&D, more than double the budget of its nearest Japanese rivals. But Honda, Nissan, Subaru, Mazda, and Mitsubishi all plan to ramp up R&D spending, even amid the earnings slowdown. Bigger R&D investments will gobble up a bigger slice of shrinking profits. Some Japanese players even plan to shell out more on R&D than they anticipate booking in fiscal year operating profit. Click here for the full story.
5 Ways to Combat Staffing Shortages in Fixed Operations
Staffing shortages are affecting dealerships across the country as they struggle to hire new employees and keep their turnover rate low. CBT News reports, the “Great Resignation” is causing a massive shift in employment as nearly 40 percent of American workers have left their former jobs or are actively seeking new employment. Within dealerships, fixed ops is getting hit hard and this impacts the bottom line of the entire business. If dealerships want to hire, grow and maintain a strong fixed ops team, they should turn their attention toward creating an employee-focused culture that can help mitigate staffing shortages. Here are some unique strategies your dealership can use to combat staffing shortages in fixed ops. Solution 1: Grow your own techs in service. One of the many growing issues for incoming service technicians is cost. At many dealerships, technicians must provide their own equipment, which can be expensive, especially for a technician just starting out. Dealerships can help combat this problem by giving new techs an option to buy/rent out equipment, eliminating a major barrier. Click here the four other ways to combat staffing shortages in fixed ops.
Infiniti of Denver Used Valet Service to Boost Business Amid Product Void
In early summer 2020, Infiniti of Denver debuted a vehicle pickup and delivery program for its service customers. It was an effort to keep customers from defecting because the dealership knew it was going to be without a critical vehicle for months. Production of Infiniti's previous-generation QX60 midsize crossover would end in December 2020, and a redesigned version wouldn't arrive at U.S. stores until a year later as a 2022 model. "While we were offering lease extensions to current customers, I was concerned about them leaving the brand altogether," Infiniti of Denver dealer principal Christopher Smith told Automotive News. "We needed something to differentiate ourselves, especially in this time of a product void." The convenience for customers has also helped draw new business to the out-of-the-way dealership in Aurora, Colo. "We are difficult to find and not necessarily in the best part of town," Smith said. "What better way to get customers to continually come to us for service than to pick up their vehicle, drop off a loaner if necessary and bring their car back when finished?" Click here to learn more about how Infiniti of Denver boosted business.
EV Apps are Lacking, but Dealers Can Overcome Customers’ Concerns
High-tech apps for battery-electric vehicles add value to those rides…until customers become confused or frustrated with their performance. Dealers should ensure customers have points of contact for questions and tutorials long after the day of sale. Wards Reports Bill Feinstein, dealer principal, Planet Honda, Tilton, N.H., understands the need for such education. He recently began to drive his summer car and had to refamiliarize himself with much of the technology. “We’ve gone from cars being very standardized. You would get in the car and have a gearshift, a steering wheel, an accelerator and a brake, no matter what model you bought,” he says. “Now we have different infotainment systems, head units and other very distinct elements from car to car. The functionality is different. It’s important that dealers and OEMs are both cognizant of that.” Feinstein says training customers on apps is vital for satisfaction. Delivery specialists in Feinstein’s dealerships, including his Honda store, explain the tech to each buyer and are available to answer questions and otherwise consult with them after delivery. Click here to learn how dealers can overcome customers’ concerns about EV apps.
VW’s Supervisory Board Wants More Ambitious Software Plans
The Volkswagen Group’s supervisory board wants the company to establish more ambitious plans for its software division. Carscoops reports VW management’s plans for the carmaker’s Cariad software vision have not been enough and that the supervisory board is expecting to receive an update before the summer break. Volkswagen says its ambitions for Cariad are central to its push towards autonomous vehicles and describes it as “the most ambitious project of our entire industry to tap into the most relevant profit pools of the future.” Cariad has been established as an independent automotive software company in the Volkswagen Group. VW says the company is developing leading technology for the automotive industry. They are currently working to build a uniform platform and technology platform for all Volkswagen Group brands, including a unified operating system, a unified E/E architecture, and an automotive cloud. Cariad is also developing digital functions for vehicles that include ADAS, highly automated driving functions, a standardized infotainment platform, software functions for linking powertrains, and chassis and charging technology. Click here for the full story.
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