Q&A with 2021 AIADA Chair Steve Gates

First Up 01/05/21

Q&A with 2021 AIADA Chair Steve Gates

As part of its association leadership series in the January edition of Auto Remarketing, the publication connects with the American International Automobile Dealers Association for a Q&A with its 2021 chairman, Steve Gates, who will formally begin that role in February. Gates is the owner of Gates Auto Family, with locations in Kentucky, Indiana and Tennessee. “For 51 years, AIADA has been focused on automotive trade policy in Washington, D.C. We will continue that mission into 2021 and beyond,” Gates tells Auto Remarketing. In regard to the most pressing issues he sees dealers contending with this year, he says, “While we know we will have our hands full in 2021 with a new administration and a new Congress, the main issue on dealers’ minds this new year will be the COVID recovery. Dealers are still handling PPP loans and supply chain issues, and working night and day to keep their employees and customers safe. That’s going to be the focus for at least the first quarter of 2021.” Read more here (Source: Auto Remarketing – subscription required). 

Pricier Vehicles Seen Driving Rebound in U.S. Auto Market

Demand for higher-priced vehicles from retail buyers at the end of 2020 helped lift U.S. auto sales out of a springtime slump and buffered the impact of a sharp drop in fleet sales to rental-car companies, reports Bloomberg. Automakers likely sold about 15.9 million new vehicles on a seasonally adjusted annualized rate basis in December, down 4.7% from a year ago, according to an average of five market researcher forecasts. Unexpectedly strong retail sales in the third and fourth quarters are likely to have bolstered the market despite an uncertain economic outlook and the lingering pandemic. Most automakers, including General Motors Co. and Toyota Motors Corp., are expected to report their fourth-quarter U.S. sales tallies Tuesday. The resilience of the U.S. market – which saw annualized sales plunge to more than 40-year lows in April as automakers temporarily closed factories and showrooms – has buoyed profits at automakers and kept dealer inventories tight. Read more here (Source: Bloomberg). 

Crossovers Lift Hyundai to 2% Dec. Gain 

Hyundai’s U.S. sales rose 2 percent to 66,278 in December, the automaker's fourth increase in six months, behind a 12 percent jump in retail volume, reports Automotive News. The gain, aided by three extra selling days, came as the company dialed back on incentives in December and the fourth quarter. Hyundai said retail deliveries totaled 57,777 in December, with an expanded crossover lineup representing 70 percent of retail mix. Fleet shipments dropped 34 percent. Fleet deliveries remain the biggest drag on volume and are not expected to begin recovering until the second half of the year, some analysts say. Read more here (Source: Automotive News). 

Mitsubishi Offers Cheaper Outlander Sport for 2021 Model Year

Mitsubishi is looking to grow its U.S. sales, especially with its most-popular vehicle in 2021 by cutting the price on the new model by $1,600, reports The Detroit Bureau. Pricing on the new Outlander Sport now begins at $22,090, which includes the $1,095 destination charge. That’s a break from the $23,690 buyers of the base model Outlander Sport paid for the 2020 model-year version. The new model, which goes on sale in February, benefits from revised packaging and trim levels to give potential buyers more options for “increased values.” The new model also gets new standard advanced safety features for the new model year. Read more here (Source: The Detroit Bureau). 

Fiat Chrysler, PSA Aim to Complete Trans-Atlantic Merger in Mid-January

Fiat Chrysler Automobiles NV and Peugeot maker PSA Group are accelerating plans to complete their trans-Atlantic merger, saying Monday that the biggest automotive merger this century should be complete mid-January. According to The Wall Street Journal, the new timeline follows both automakers winning approval from shareholders for the deal Monday, a critical step needed to move the merger into its final stages. Executives had previously been aiming for completion by the end of the first quarter 2021. They now expect it to be done on Jan. 16. For more than a year, the two automakers have been working through the details of the combination, which when completed would create a global auto-making colossus, selling 8.7 million vehicles annually—more than General Motors Co. Read more here (Source: The Wall Street Journal). 

Webinar: Tax Planning for an Uncertain Year End

Join the next AutoTalk webinar on Thursday, January 7, 2021 at 2:00 p.m. EST to understand the best tax planning strategies for your business. 

Topics will include: 

  • Explore tax opportunities under CARES act

  • Updates on PPP loan taxability

  • How inventory levels could impact your taxable income

Click here to register. 

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