BMW Joins Daimler Getting Boost From Speedy Auto-Sales Recovery
BMW AG said its auto business generated much more cash than expected last quarter, joining rival Daimler AG in posting surprisingly positive preliminary earnings. The Detroit News reports that automotive free cash flow in the three months ended in September was 3.07 billion euros ($3.6 billion), the Munich-based manufacturer said in a statement Monday. That’s up from 714 million euros a year ago and exceeds market expectations. Several markets recovered faster than anticipated, leading to sales growth, and BMW also cut costs during the quarter. Its initial results and commentary mirror the situation at Mercedes-Benz maker Daimler AG, which reported better-than-expected preliminary earnings and cash flow last week. Truckmaker Volvo Group had also posted profit that exceeded analysts’ estimates, and car sales across Europe unexpectedly rose in September for the first time this year. BMW said its earnings forecasts remain unchanged. The company will release complete details on its third-quarter results Nov. 4. Read more here (Source: The Detroit News).
How the Paris Auto Show is Going On Without Visitors
After the Geneva show was canceled at the end of February, exhibitors scrambled to put together webcasts of their new models and show cars, with varying degrees of success and slickness, given that they had only a few days’ warning. The Paris auto show, scheduled for the last two weeks in October, was called off on March 30, and automakers have had a lot more time to think about how to make up for its absence. Two of them, Peugeot and Renault, have put together elaborate, multi-day virtual events timed to what would have been the dates of this year’s show. Peugeot’s virtual auto show is focused, logically, on French buyers who would normally have flocked to the Paris Expo halls by the hundreds of thousands. The PSA Group brand created a digital facsimile of a spacious stand, with an interface that lets tire-kickers zoom in to a particular model, take a 360-degree tour of the styling and check out the interior. The goals of Peugeot’s online "stand" remain the same as a real one: Create excitement and sell cars. To that end, just two clicks get you to a live chat with a salesperson, who can pitch special auto show offers. Read more here (Source: Automotive News).
Buyers Traveling Across the Country, Paying Record Prices for Used Pickups
Welcome to the hottest market in the auto business right now. There is so much demand for used vehicles, especially full-size pickup trucks, some buyers are traveling hundreds of miles to get what they want, regardless of the price, reports CNBC. Two factors tied to the coronavirus pandemic are driving the trend. First, when the virus surged across North America in March and April, automakers shut down plants from Canada to Mexico, severely restricting the supply of new models, including full-size pickups. Then, as America emerged from the initial surge of the pandemic, many people who did not own a vehicle in the past decided it was time to buy a car, truck, or SUV so they could drive themselves and not have to rely on mass transportation or ride-sharing. The result: a run on certain types of used vehicles, like full-size pickups. Tom Kontos, chief economist for KAR Global Analytics Research, who has tracked wholesale used vehicle prices for more than 20 years, calls this is the hottest market he’s ever seen. Read more here (Source: CNBC).
Sonic Expands EchoPark Program to Tennessee
Sonic Automotive has expanded its EchoPark Automotive used-car standalone store program to Tennessee, reports Auto Remarketing. The retailer said Monday it has opened an EchoPark retail hub in Nashville, which is the first EchoPark location in the state and 13th overall. Sonic is aiming for a 140-point nationwide distribution network for EchoPark by 2025. The retailer is eyeing additional EchoPark stores in Arizona, Georgia, Nevada, South Carolina, and Texas in coming months. As for the newest location, the Nashville EchoPark facility is a redesigned former Sonic franchised dealership. “An increasing amount of customers who had only purchased new vehicles in the past are making the switch to nearly new pre-owned vehicles, which really illustrates the power of the EchoPark brand,” Sonic and EchoPark president Jeff Dyke said in a news release. “We have differentiated ourselves through the best-in-class experience and convenience we provide our guests, driving tremendous opportunity for our business and shareholders as we continue to introduce the EchoPark brand to new markets,” Dyke said. Read more here (Source: Auto Remarketing).
A Company You Never Heard of Just Set a Production Car Land Speed Record
Unless you’re a true performance junkie you might never have heard of SSC but the little company, based in the Seattle suburbs, just landed an impressive spot in Guinness World Records latest book, its Tuatara hypercar posting an average speed of 316.11 mph on a stretch of blacktop outside Las Vegas last week. According to The Detroit Bureau, that positions SSC ahead of such formidable competitors as Bugatti and Koenigsegg, both of which had previously set land speed records – and which are expected to protest SSC’s claim to the title. It’s actually the second time since the company nabbed the speed record a first time with its original model, the Ultimate Aero, noted Jerod Shelby, SSC’s CEO — a one-time medical equipment inventor who is not related to that other legendary speed junkie, the late Carroll Shelby. Read more here (Source: The Detroit Bureau).
Webinar: Used Car Super Session
Join the next AutoTalk on October 27 at 2 p.m., where a panel will cover wholesale pricing and volume outlooks, as well as some best practices to stay ahead of the curve. Tune in to hear what some of the most successful dealer groups are doing to meet the shortage of used cars.
Guests will include:
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Tom Kontos, Chief Economist, KAR Global: To provide real-time wholesale pricing and volumes through the various auction channels, and outlook for the remainder of the year.
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Bob Grill, Senior Partner Development Manager at Carfax and Mike Rossman, Automotive Consultant: Will share some innovative and contemporary best practices to address the current used car sourcing challenges.
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Refreshed Genesis G70 Gets Drift Mode Among Powertrain Tweaks [Automotive News]
Some of the World's Most Famous Concept Cars Are Up for Auction [Autoblog]
