Scare Inspired New AIADA Chairman to Use His Voice
Steve Gates joined the American International Automobile Dealers Association's board of directors in 2014 amid a worrisome period for Toyota retailers. The Japanese automaker faced growing scrutiny by U.S. safety regulators and the Justice Department over claims of unintended acceleration — an investigation that resulted in a record $1.2 billion settlement. "When this happened — sort of like the pandemic — I was certain I was going to go out of business. We were never going to be able to sell another Toyota," said Gates, who owns Gates Auto Family, which has 11 stores across Kentucky, Tennessee and Indiana. "I was in the middle of building a building for Toyota, and I wanted to jump." Gates said the experience impelled him to get more involved in issues on Capitol Hill, especially those affecting auto dealers. "I made the decision from this time forward, I'm going to have a voice," he told Automotive News. Gates, 69, spoke with Staff Reporter Audrey LaForest about his priorities and concerns for his year as chairman. Read more here (Source: Automotive News).
Kia EV6 Crossover Heralds New Design Language
Kia's new EV6 electric crossover will embody the brand's new "Opposites United" design language, a fresh, modern look that plays with melding contrasts, reports Automotive News. The goal is to move beyond the "simplicity of the straight line," global design chief Karim Habib said, adding that Kia styling needs to evolve with the brand's upmarket shift. Kia outlined the design overhaul Monday in South Korea, while revealing the first full images of the exterior and interior of the EV6, which is expected to be launched by the end of the month. Habib said the design revamp is a holistic approach that looks at the image, presentation and function of everything from the grille and logo to the glove box and even the dealership. As part of Kia's global brand relaunch in January, for example, the company has introduced a new logo. Read more here (Source: Automotive News).
Tesla Sitting on Top of U.S. Luxury Sales Segment
The Detroit Bureau reports that Tesla has emerged as the top-selling luxury brand in the United States, surpassing German and Japanese brands that have been the top-selling luxury marques in recent years and American brands such as Cadillac and Lincoln, according to a review of recent sales figures by IHS Markit. Tom Libby, associate director, automotive industry analysis, IHS Markit, said Tesla delivered 24,237 new cars and crossovers in the U.S. in January, the most of any of the 16 luxury brands selling vehicles here. The total represented was a 10% improvement compared with the year-ago period. It also blew away the results of the rest of the luxury market, which posted a 3% decline. The results put it just ahead of Mercedes-Benz with Lexus in third. Sales of the Model 3 and Model Y are what pushed Tesla to the top of the luxury rankings. Read more here (Source: The Detroit Bureau).
BMW Plans for All New Cars to Be Reusable Before 2026
BMW AG will unveil plans this week for all new vehicles to be made of reusable parts as of 2025, reports Bloomberg, citing German newspaper Bild am Sonntag. Chief executive officer Oliver Zipse will announce the transformation on Wednesday at a press conference. The strategy is to use as many recyclable raw materials in a car’s design as possible. Zipse’s goal is to build the “greenest” car in the world, Bild am Sonntag said. Bloomberg reported on Friday that BMW is also set to announce plans for its Mini brand to go all-electric from 2030 as the automaker intensifies its transition to battery-powered vehicles. Read more here (Source: Bloomberg).
Volkswagen to Switch EV Battery Type, Leaving Supply Deals in Doubt
Volkswagen plans to gradually switch the type of battery used in its electric vehicles, three sources with knowledge of the matter said on Monday, moving away from the technology supplied under current deals with South Korea’s LG Energy Solution and SK Innovation. Reuters reports that Volkswagen plans to use the prismatic type of battery, increasingly turning to supplies from China’s Contemporary Amperex Technology Co Ltd (CATL). Volkswagen plans to announce its battery procurement plans at its Power Day event on Monday, Money Today reported. South Korea’s LG Energy Solution and SK Innovation have been manufacturing pouch-type batteries for Volkswagen, while CATL and Samsung SDI have supplied it with prismatic ones. Read more here (Source: Reuters).
Webinar Tomorrow: Kerrigan Advisors' Outlook on 2021's Buy/Sell Market and Franchise Valuations
Erin Kerrigan of Kerrigan Advisors will join AIADA's AutoTalk tomorrow, March 16 at 2:00 p.m. EDT to review the following in detail:
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Highlights from Kerrigan Advisors’ 2020 Full Year Blue Sky Report®
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Key drivers of the white-hot buy/sell market, including what is bringing both buyers and sellers to market
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Regions that are in the highest demand are achieving higher than average multiples
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Dealership valuations in a post-COVID world
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Blue sky multiples by franchise, including multiple outlooks for 2021
Around the Web
Fast and Reliable Used Cars for Less Than $15K [Car and Driver]
Which of These Two Powerful Sports Cars Should You Get? [MarketWatch]
Genesis Begins to Break Through [Car and Driver]
This Lamborghini Countach is the Time Capsule Classic You've Been Looking For [Robb Report]
