Nov. Sales Expected to Drop Because of Calendar Quirk
With sales softening amid another surge in COVID-19 cases, a fluke of the calendar may make it look even worse, reports Automotive News. Light-vehicle sales in November probably fell 12 percent, according to TrueCar and ALG. It projects that Ford, Fiat Chrysler, Honda, Nissan, BMW, Mercedes-Benz and the Volkswagen Group will all report sales declines of 15 percent or more. “It’s going to look awful — like things have gone backwards pretty terribly — and that’s not the case,” said Tyson Jominy, vice president of data and analytics at J.D. Power. Not as bad as it looks, but not great. Based on the first 17 days of the month, J.D. Power and LMC Automotive projected a 15 percent plunge in total light-vehicle sales. Adjusted for the number of selling days – three fewer than in November 2019 – the drop is more like 3.5 percent, with the more lucrative retail sales slipping only 0.7 percent. With supply limited, pricing is up. The average new-vehicle retail transaction price last month was expected to reach a record $37,099, J.D. Power and LMC projected. That’s 0.9 percent higher than the previous record, set in October. Read more here (Source: Automotive News).
Survey: Car Retailers Expect Dealership Values to Rise
Going into 2021 and despite the pandemic, a greater share of auto dealers expect the value of their franchises to increase in the next 12 months, according to a dealer survey from Kerrigan Advisors. In addition, dealers responding to the survey and dealership brokers in interviews say they expect heavy traffic in buy-sell agreements in the coming year, after a high-volume year in 2020, as well. “The results of the survey found that dealers remain largely optimistic about the valuation of their dealerships over the next 12 months, despite the economic turmoil associated with COVID-19,” according to the 2020 Kerrigan Dealer Survey report, published Nov. 24. The survey found 33% of 680 dealer respondents expect the value of their dealerships to increase, up from 26% a year ago. Another 53% of respondents say they expect their dealerships to remain the same in value, vs. 60% a year ago. And 14% say they expect a decrease in valuation, the same as last year. Read more here (Source: WardsAuto).
Ford Says Automakers Should Consider Backing California Emissions Deal
Ford Motor Co is urging major automakers to consider backing a framework deal with California on vehicle emissions in a bid to reach industry consensus before President-elect Joe Biden takes office, according to a letter seen by Reuters on Monday. Major automakers are set to discuss next steps at a virtual meeting of their auto trade association Tuesday, which comes a week after General Motors Co abruptly announced it would no longer back the Trump administration’s ongoing effort to bar California from setting its own vehicle emissions rules. Ford, Honda Motor Co, Volkswagen AG, and BMW in July 2019 struck a voluntary agreement with California on reducing vehicle emissions through the 2026 model years that would allow them to meet a single nationwide standard. In a previously unreported letter, Ford Americas President Kumar Galhotra on Wednesday said with Biden’s win, the fight over Trump’s effort to preempt California on vehicle emissions “is now, at least for the next set of years, essentially moot. The more relevant issue is thus the question of the standards.” Read more here (Source: Reuters).
General Motors Will No Longer Take a Stake in Nikola
General Motors Co. will no longer take an equity stake in electric-truck maker Nikola Corp., reports The Wall Street Journal. The development comes under a stripped-down agreement revealed Monday, a significant retrenchment from an earlier pact that fueled investor enthusiasm for both companies. Under the revised deal, GM still intends to provide Nikola with fuel-cell technology but it has nixed plans to take an 11% stake in the Phoenix-based startup in exchange for supplying engineering work and other services. The original agreement bolstered Nikola’s status as one of several highflying green-vehicle startups drawing attention from Wall Street. GM’s lending of its engineering and manufacturing expertise, and being granted a spot on Nikola’s board as part of the now-scrapped tie-up, had been seen as a validation of Nikola’s business model and growth prospects. Read more here (Source: The Wall Street Journal).
California and Texas Have More of the Worst American Cities to Drive In
Prior to the COVID-19 pandemic, nearly 85% of American workers drove to work on a daily basis. This commute, which for some takes the better part of an hour each way, can be stressful. While traffic problems can occur anywhere, there are certain major American cities where gridlock, accidents, long commutes, and high gas prices make driving especially frustrating. 24/7 Wall St. created an index composed of several driving-related measures from the U.S. Census Bureau, the National Insurance Crime Bureau, Texas A&M’s Transportation Institute, and more, to identify the worst metropolitan statistical areas for drivers. The components of the index – which include average commute time, regional gas prices, drunk driving death rates, overall driving fatality rates, time and money lost due to congestion, and auto theft rates – were selected to capture an area’s safety, convenience, and cost of driving. Read more here (Source: USA Today).
CNA National Surpasses $4 Billion Mark in Claims Paid
Earlier this year, CNA National reached a milestone—over $4 billion paid in customer claims since its founding in 1982. This achievement is a testament to the company’s long-standing philosophy of doing right by its dealers and contract holders by paying all covered claims as quickly and efficiently as possible. Paired with two first-place wins in the 2020 Dealers’ Choice Awards, dealers can be confident in choosing CNA National. There are many providers vying for space in the automotive industry, but CNAN’s solid reputation for exemplary service and premium products makes it the company dealers keep. Start next year with the best! Contact CNAN at (800) 345-0191 x450 or connect online.
Around the Web
Will Mazda Transform the CX-5 Into a Full-Fledged Luxury Car? [Autoblog]
All the Best Cars in The Crown, Season 4 [Car and Driver]
Self-Driving Cars Take a Significant Step Towards Reality [CarBuzz]
Tesla's Stock Will Be Added to the S&P 500 Before the Open on Dec. 21 [CNBC]
