Dealers Do Good Friday
Read about some of the dealers who are doing good across America in today's #DealersDoGood installment. If you know of a dealer doing good, let us know here, or tag us on Facebook or Twitter with the #DealersDoGood hashtag.
A new pavilion was constructed in the City of Whitehall, Ohio, thanks to the contributions of Byers Auto Group. The park and pavilion will offer Whitehall residents fitness classes, farmers markets, and year round entertainment! Click here for photos (H/T Ohio Automobile Dealers Association).
Findlay Automotive Group – with dealerships in Nevada, Utah, Oregon, Idaho, California, and Arizona – recently presented a check for $13,000 to the Southern Nevada YMCA. As people have been able to return to their activities and routines, the Findlay Automotive Group saw an opportunity to give back to the community by supporting the YMCA. Read more here (Source: Las Vegas Review-Journal).
For the seventh year in a row, Gary Rome Hyundai in Holyoke, Massachusetts, is partnering with Holyoke High School to offer one lucky senior the chance to win a brand new car. Out of over 100 qualifying students, 2021 Holyoke High School Senior Amelya Santana is the proud owner of a new car after going above and beyond this school year. Rome said this is the seventh year partnering with the school, and he is happy to continue the tradition. Read more here (Source: WesternMassNews.com).
No Quick Relief from Microchip Shortage for Automakers
Global ratings agency Fitch warns the current global shortage of semiconductors is expected to continue – a major worry for automotive manufacturers and traders seeking to ramp up production as COVID-19 declines, especially as vehicles become ever more reliant on microchips. According to WardsAuto, Fitch’s prediction that chip markets will remain tight, “intensifying and likely extending the current cyclical upturn into next year” comes as the U.S.-based Semiconductor Industry Assn. (SIA) has said worldwide sales of semiconductors totaled $123.1 billion during Q1 2021, up 3.6% from Q4 2020 and up 17.8% up year-on-year. Jennifer Safavian, president of Autos Drive America, an industry association that seeks to encourage the growth in auto production within the U.S., tells Wards, “The recent shortage of semiconductor chips for automotive manufacturing has highlighted the need to reinvigorate advanced manufacturing here in the United States.” Safavian also stresses the continued importance of a diversified trade in these important components: “You cannot put all of your eggs in one basket.” Read more here (Source: WardsAuto).
Tesla Model 3 Loses Coveted 'Top Pick' Consumer Reports Rank
Tesla Inc.’s Model 3 sedan was stripped of its Top Pick status by Consumer Reports, which cited the temporary loss of automatic emergency braking and other safety features. According to Automotive News, the influential nonprofit consumer research organization said Thursday it removed the designation after Tesla ditched radar as a supplement to its camera-based sensors, a move that temporarily suspended several advanced safety systems. “If a driver thinks their vehicle has a safety feature and it doesn’t, that fundamentally changes the safety profile of the vehicle,” David Friedman, vice president of advocacy for Consumer Reports, said in a statement. Consumer Reports said its scoring of the Model 3 dropped by three points to 75 – but it was still enough to retain its “recommended” status. Read more here (Source: Automotive News).
Japan Carmaker Sales Soar While Chip Dearth Weighs on Production
Japanese automaker sales soared in April on rising demand for cars in China and the U.S. but production slipped from pre-pandemic levels, pointing to the emergence of a gap between supply and demand that’s likely to grow worse as a global shortage of automotive semiconductors drags on, reports Bloomberg. Toyota Motor Corp.’s global sales rose 103% to 859,448 units in April, a record, the company said in a statement Friday. The world’s largest automaker cited particularly strong demand in America and China for models like its Rav4. Nissan Motor Co.’s global April sales rose 65% to 358,656 units while Honda Motor Co.’s domestic sales were up 106% to 47,817 units. Production numbers tell a slightly different story. In April, Toyota made 761,459 cars, about double a year earlier when the pandemic was just forcing global automakers to suspend factory lines. But compared with the same month two years ago, prior to Covid, production was down slightly. Nissan and Honda’s April production figures were down 29% and 7% respectively versus 2019. Read more here (Source: Bloomberg).
Used Car Prices Show 'Unparalleled' Growth; High Values Likely for 'Foreseeable Future'
The used-car market is usually a steady one, which makes this year’s price surge all the more “unparalleled,” as iSeeCars.com details in an analysis released this week. For instance, used-vehicle prices climbed just 0.1% year-over-year in April 2020, according to iSeeCars. In April 2019, they dipped just 0.2%. However, in April of this year, there was a 16.8% year-over-year spike in used-car prices. And while a near-17% jump is nothing to sneeze at, some models nearly doubled that hike. In an analysis released Thursday, Jonathan Banks, J.D. Power's vice president of valuations services, had this to say about the used-car market: “Wholesale prices in April continued to surge as consumers, dealers, and rental companies leaned on this side of the market to satiate increased used-vehicle demand resulting from ongoing new-vehicle production challenges. Read more here (Source: Auto Remarketing).
Federated Insurance's Claim of the Month: Could It Happen to You?
A customer tripped on an uneven crack in the parking lot while looking at vehicles to purchase. The ground had raised an inch and a half from one side of the crack to the other. The customer suffered a fractured arm and dislocated shoulder requiring hospitalization and surgery.
CLAIM AMOUNT: $375,000
To help mitigate this risk and avoid potentially dangerous situations, keep your property well maintained. Consider:
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Inspecting your lot for cracks and potholes. Make this task a regular task and document it.
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Moving your vehicles periodically. Hazardous conditions can be obscured by vehicles.
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Drawing attention to known hazards with a traffic cone or sign to help customers avoid it. Then, remedy it as soon as possible.
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Inspecting your property frequently and with extra vigilance if you reside in cold-weather states where the ground freezes and thaws regularly, and pavement damage and shifting can happen quickly.
Visit federatedinsurance.com or contact your local marketing representative for resources you can use to create or enhance your own risk management program.
Around the Web
Here's What You Think Are the Most Overpriced Cars [Jalopnik]
Bugatti Begins Testing the Most Expensive New Car Ever Sold [Autoblog]
The Most Popular New and Used Cars in Every State [WNCT]
Rolls-Royce Launches 'Most Ambitious' Car It's Ever Created [CNBC]
