Dealers Expect Acquisitions to Continue, Survey Finds
More than three-quarters of dealers said they plan to buy one or more dealerships in the next year — a sign that the hot buy-sell market is likely to continue into 2022, with next year's transaction totals likely to exceed 2021's record pace, according to a survey by AIADA partner Kerrigan Advisors. The third annual Kerrigan Dealer Survey of more than 825 dealers from June to October also found that just 3 percent of dealers plan to sell one or more stores in the next 12 months and 20 percent expect to remain the same size. Click here to read the full report. Despite concerns about electric vehicles and Tesla's growing market share, dealership profits and cash flow are high, boosting confidence in the future of retailing, Erin Kerrigan, managing director of Kerrigan Advisors, a sell-side firm in Irvine, Calif., told Automotive News. For more, including what brands dealers expect to increase and drop in value in the next year, click here.
The Build Back Better Bill Will Give You $12,000 for Buying an Electric Car. Unless It's a Tesla.
Earlier this month, the House of Representatives passed the Build Back Better Act, President Joe Biden's signature legislation. The bill is expected to face opposition, and likely some pruning, when it reaches the Senate. According to Reason, one proposal jumps out as an obvious contender for the chopping block. As part of Biden's plan to rein in carbon emissions, the bill contains a provision which would provide a $4,500 tax rebate to any consumer who purchases an electric vehicle manufactured in a unionized U.S. factory. In other words, a driver who wants to purchase a hybrid Toyota Camry, which U.S. News & World Report ranks as having "Great" reliability, does not qualify for the extra money, even though the car is manufactured in Kentucky. But if that same shopper elects to purchase a Chevrolet Bolt, which recently halted production because the batteries were catching fire, they would receive the extra rebate. For more on why this provision is bad for consumers and the environment, click here.
Dealers and their employees should contact their Members of Congress and urge them to oppose this proposal that will divide American workers and play politics with car sales. Click here to learn more about the issue and to contact your legislators.
Mazda's New Alabama Plant Sends a Message to U.S. Consumers
Mazda has a new "pride point" in the U.S. with its Huntsville, Ala., plant, which will start producing the made- for-America CX-50 crossover in January, Mazda North America CEO Jeff Guyton told Automotive News. After ending U.S. manufacturing nearly a decade ago as part of Mazda's breakup with Ford Motor Co., the Japanese automaker hopes to leverage its new joint-venture factory with Toyota as a brand message when communicating with consumers. A large U.S. factory communicates a permanence in this market, Guyton said. "We want to make clear to people that the [CX-50] product is designed primarily for North America and we employ a lot of people," Guyton said. "There is a pride point around that facility that goes beyond just building a new car." The Alabama plant will give Mazda 150,000 units of capacity to grow in the American market with a larger compact crossover that complements the existing CX-5, the automaker's bestselling vehicle in the U.S. and globally. For more on Mazda’s plans, for Alabama and the CX-50, click here.
Nissan Unveils $18 Bln Electrification Push in Bid to Draw Level with Rivals
Nissan Motor Co announced it will spend $17.59 billion over five years to accelerate vehicle electrification to catch up with competitors in one of the fastest growth areas for car makers. Reuters reports that this is the first time Japan's No.3 automaker, one of the world's first mass-market electric vehicle makers with its Leaf model more than a decade ago, is unveiling a comprehensive electrification plan. Nissan will be spending twice as much as it did in the previous decade for a share of the EV market as rivals, including Toyota and Tesla, move ahead with their electric-car plans. Nissan said on Monday it will launch 23 electrified vehicles by 2030, including 15 EVs, and wants to reduce lithium-ion battery costs by 65 percent within eight years. It also plans to introduce potentially game-changing all solid-state batteries by March 2029. For more on why Nissan is seeking to democratize electrification, click here.
Raimondo: U.S. at 'Inflection Point' of Semiconductor Chip Shortage
Commerce Secretary Gina Raimondo says it's time to get "serious" about reviving semiconductor chip production in the United States as the global auto industry pivots to electric vehicles. Raimondo will urge Congress to pass $52 billion in funding to boost domestic production of the crucial component and tout the administration's efforts to ease the supply chain strain. The Detroit News reports that the ongoing chip crunch has left dealerships bare, forced car prices up and cost automakers an estimated $210 billion globally in lost production this year — a strain expected to ease over time. "We're at an inflection point and we have to make choices," Raimondo told reporters. In September, the Commerce Department asked automakers, chip companies, and others in the semiconductor supply chain to submit data on their inventory, sales, and use of chips with the goal of identifying bottlenecks and increasing transparency. The request was voluntary, but Raimondo had warned that the administration might invoke the Defense Production Act to compel companies to comply if needed. For more, click here.
Around the Web
Saab’s Rebirth Envisioned With An Electric Grand Tourer By Independent Designer [Car Scoops]
Ford Trots Out New Ranger for Other Markets, Will Likely Appear in America Soon [TTAC]
BMW Brings Back Classic Logo, Historic Colors for M Division's 50th Anniversary [Car&Driver]
