Rebounding Mitsubishi Swings Back to Profitability on Hot New Outlander
Rebounding Mitsubishi Motors Corp. bounced back to profitability in the latest quarter and lifted its full-year outlook on a better sales outlook as business picks up in the U.S., reports Automotive News. The redesigned Outlander crossover fueled a U.S. sales surge, while the global microchip shortage had the positive side effect of crimping production, helping Mitsubishi clear inventories. As a result, Mitsubishi was able to pull in new, higher-level customers with the Outlander while boosting profitability, CFO Koji Ikeya said Tuesday while announcing financial results. The Japanese automaker swung to an operating profit of 10.6 billion yen ($95.9 million) in the fiscal first quarter ended June 30, reversing an operating loss of 53.3 billion yen ($482.1 million). Mitsubishi also reported net income of 6.1 billion yen ($55.2 million), compared with a net loss of 176.2 billion yen ($1.59 billion) the same quarter the year before. Read more here (Source: Automotive News).
Polestar Eyes Doubling Retail Locations in '21 and '22
Polestar says it's on track to double its global retail locations to 100 this year and the Volvo Cars subsidiary believes having 200 locations in 2022 is within reach, reports Automotive News. "It's highly possible with the market expansion we are looking at," Polestar global sales boss Mike Whittington told Automotive News Europe. The Tesla challenger, which has positioned the Polestar 2 as a direct rival to the Model 3, has a flexible definition of a location. It includes Polestar Spaces, which are the brand's flagship stores typically located in city centers such as downtown Munich. It also has a temporary version of this model that can be setup prior to a fixed location's opening or erected at a major event. A new edition to the retail mix are so-called Polestar Destinations, which will be located at large, easy-to-access out-of-town sites, where the brand will also perform vehicle handovers to customers. Read more here (Source: Automotive News).
Electrified Vehicle Sales Take Off in Q2 as Gas Prices Rise
The Detroit Bureau reports that according to Kelley Blue Book, pure EV purchases exceeded 100,000 for the quarter, marking the first time that’s happened. Additionally, hybrids — including plug-in hybrids — added another 250,000-plus units to the electrified vehicle tally for the quarter. The demand for these vehicles is increasing as gas prices remain above the $3 mark. AAA reported prices at the pump are 40% higher now than they were at this time last year when COVID-19-related travel restrictions were in place. More sales means a larger market share, Cox Automotive analysts noted. Electrified vehicle sales accounted for 8.5% of total sales in Q2, up from 7.8% in Q1 and 4.2% in Q2 2020. Read more here (Source: The Detroit Bureau).
Retailer Lithia Motors Sees New-Vehicle Shortage Ending
Lithia Motors reports the new-vehicle inventory shortage, resulting from high demand and low supplies of computer chips, could start to improve this month or next, based on allocations it’s got coming in the pipeline, reports WardsAuto. “Generally speaking, we expect inventories to continue to normalize throughout the back half of 2021 and in the first part of 2022,” Chris Holzshu, Lithia chief operating officer, says in an earnings conference call July 21. “By indications of what we’re getting and what we’re seeing in allocations, I think July and August should be the low-water mark and we should see improvement after that, just based on the increasing allocations that we’re seeing (from) certain OEMs already,” says Holzshu. Read more here (Source: WardsAuto).
Zeigler Auto Group Enters Wisconsin with Latest Purchase
Auto Remarketing reports that continuing a buzz of M&A activity among auto retailers, Zeigler Auto Group said Monday it has purchased four stores in Wisconsin from Home Run Auto Group, a move that marks its first acquisition in the state. The four acquired stores include Honda of Racine, Toyota of Racine, Kenosha Subaru, and Racine Hyundai, which have been renamed Zeigler Honda of Racine, Zeigler Toyota of Racine, Zeigler Subaru of Kenosha, and Zeigler Hyundai of Racine, respectively. In addition to its first presence in Wisconsin, the acquisition adds Toyota and Hyundai to Zeigler’s brand portfolio. The group now has 78 dealership franchises and 35 locations throughout Wisconsin, Illinois, Indiana, and Michigan, in addition to other business endeavors. Read more here (Source: Auto Remarketing).
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