Summer's Hottest New Trend? Human Connection
In an era when nearly everything that can be automated is, human connection is more valuable than ever. After a year spent in isolation, Americans are pushing back against the trend of automation and virtual connections, writes AIADA Chairman Steve Gates in his newest column. He was eager to get back in the saddle as AIADA’s chairman and fly to D.C. last week for a number of meetings on Capitol Hill. After a year at home, everyone in these meetings, dealers and legislators alike, was happy to be there. It was clear to me that we need to reopen lines of communication, not just in D.C., but around the country. That is why AIADA is making this the summer of Dealers Make an Impact. Take part by checking out our Dealer Visit Program and committing to letting AIADA invite your legislator to your store this summer. Join Chairman Gates, and let’s make an impact on Washington this summer. Read more here.
Sales Pace Slowing as Dealerships Run Dry
Cox Automotive expects total sales of 4.5 million in the second quarter, up 1.2 percent from 2019 and up 51 percent from the same period of 2020, in the early months of the pandemic, reports Automotive News. U.S. light-vehicle sales slowed in June from the booming pace of April and May, as shortages of many popular vehicles kept consumers on the sidelines, forecasters said. Second-quarter sales are still expected to reach the highest level since at least 2018, but analysts anticipate declining volume in the months ahead. Cox Automotive expects total sales of 4.5 million in the second quarter, up 1.2 percent from 2019 and up 51 percent from the same period of 2020, in the early months of the pandemic. For June, Cox estimates that the seasonally adjusted, annualized light-vehicle selling rate fell to 16.4 million from 17.1 million in May and more than 18 million in April. LMC Automotive and J.D. Power project a SAAR of 15.8 million. Read more here (Source: Automotive News).
Volvo Cars Aiming for an IPO by the end of 2021
Volvo Cars is "making good progress" toward a potential initial public offering by the end of this year, the chief executive of the Swedish premium auto brand told Reuters on Wednesday. "We are looking at the possibility of doing an IPO before the end of the year," listing shares on the Nasdaq Stockholm exchange, Volvo Cars CEO Hakan Samuelsson said in an interview. Samuelsson and other Volvo Cars executives on Wednesday laid out an extensive road map to becoming a fully electric car maker by 2030, including plans to sell 600,000 battery electric vehicles at mid-decade and build a European battery gigafactory in 2026. Read more here (Source: Reuters).
Global Light Vehicle Production to Grow 50% in Q2, Supply Woes Persist, Says IHS
Global light vehicle production is expected to grow 50% in the second-quarter as the industry recovers from the pandemic, but supply constraints remain a challenge, data firm IHS Markit said on Wednesday. According to Reuters, IHS estimates semiconductor capacity will be able keep up with demand starting only in the first quarter of 2022. "The rise of new (COVID-19) strains especially in regions with limited vaccines continues to threaten the availability of semiconductors due to workforce reductions," IHS said. Supply chains were hit hard in the first-quarter by the storms in Texas, the Fukushima earthquake in Japan and the fire at a Japanese semiconductor factory owned by Renesas Electronics Corp. IHS estimates the greatest impact of supply disruptions was felt in the second quarter. Read more here (Source: Reuters).
Chip Shortage Causes Ford to Slash Vehicle Production at Several Plants in July
Ford Motor is significantly cutting its North American vehicle production in July due to an ongoing shortage of semiconductor chips impacting the global automotive industry, reports CNBC. The automaker said Wednesday it will idle or reduce production at eight plants, including six in the U.S., for varying periods of time next month and into early August due to the problem. Affected products range from the Ford F-150 and Ford Bronco Sport to the Ford Mustang and Ford Explorer. Separately, the automaker said production of the Ford Ranger pickup and new Ford Bronco SUV, which recently started shipping to dealers, at its Michigan Assembly plant will be down the weeks of July 5 and July 26 due to “an unrelated part shortage.” The cuts are the latest for Ford, which earlier this year said it expected to lose about 50% of its vehicle production in the second quarter due to the chip issue. Read more here (Source: CNBC).
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Volvo Concept Recharge is the Electric Wagon of the Future [MotorAuthority]
Kevin Hart's Muscle Car Crew [MotorTrend]
16 Cars Now Cost More to Buy Used Than New [Autoblog]
LA's No Longer No. 1, At Least When It Comes to Traffic [The Detroit Bureau]
