Toyota, Honda, Hyundai, Subaru Post Lower Volume
U.S. light-vehicle sales fell at Toyota, Honda, Hyundai, Subaru, and Kia last month, matching forecasts for a weaker February with fewer selling days and inclement weather dampening demand, even as the industry slowly recovers from the pandemic, reports Automotive News. In addition to sharply lower car sales, lower fleet shipments, reflecting depressed business and leisure travel, also appeared to hurt several automakers last month, analysts said. Volvo, one of the hottest brands, with 2020 sales rising 1.8 percent, bucked the broad downturn and racked up a 17 percent gain last month. Toyota Motor Corp. volume dropped 5.7 percent, with deliveries down 6.6 percent at the Toyota division but up 1.4 percent at Lexus. American Honda's volume dropped 11 percent, with sales off 12 percent at the Honda division and 5.8 percent at Acura. Deliveries dropped 8.8 percent at Hyundai and 7.9 percent at Kia in February, the companies said Tuesday. Hyundai, which has enjoyed strong consumer demand for an expanded crossover lineup, said retail volume slipped 2 percent last month, with fleet off 47 percent. Read more here (Source: Automotive News).
Top U.S. Utilities Collaborate to Build Electric Vehicle Charging Stations
Six major utilities unveiled a plan Tuesday to add electric vehicle fast chargers to connect major highway systems across the U.S., reports Automotive News. The Electric Highway Coalition – made up of American Electric Power, Dominion Energy Inc., Duke Energy Corp., Entergy Corp., Southern Co. and the Tennessee Valley Authority -- is looking to provide charging stations within the utilities' service territories, stretching from the South and Gulf regions to the Midwest and Central Plains. The initiative comes as President Joe Biden has made boosting electric vehicles a top priority and pledged to build 550,000 new EV charging stations. Automakers including Tesla Inc., BMW, and General Motors plan major expansions in EV production. Read more here (Source: Automotive News).
Volvo to Sell All Its Cars Online, in Latest Example of How the Pandemic Has Reshaped the Auto Industry
Volvo is the latest automaker to radically reshape its marketing and retail operations, moving all its vehicle sales online and going all-electric by 2030 — a process accelerated by the coronavirus pandemic, reports NBC News. On Tuesday, Volvo rolled out the C40 Recharge, its second long-range battery-electric vehicle. The automaker plans to offer only battery-electric vehicles and plug-in hybrids by 2025, then pare down to pure electric vehicles by 2030. Volvo also will automate the buying process. Dealers will largely just offer test drives, and handle service and repairs. Virtually everything else will go online. The internet revolutionized the retail sector, but the transformation has been slow to take hold in the auto industry. That began changing when the pandemic struck. With showrooms closed much of last spring, the shift to virtual car buying accelerated “by at least two to three years from where I thought we would be,” Mark LaNeve, Ford’s recently retired head of sales, service and marketing, told NBC News. Read more here (Source: NBC News).
Stellantis Sees Rebound in 2021, But Chip Shortages a Worry
Low global car inventories and cost cuts should boost Stellantis’s profit margins this year, though a shortage of semiconductors and investments in electric vehicles could weigh on results, the newly-formed automaker said on Wednesday. According to Reuters, the forecast came as Stellantis, created by the January merger of Peugeot-maker PSA and Fiat Chrysler (FCA), reported better-than-expected results for 2020 that sent its shares up around 3% in morning trading. “Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies (from the merger),” Chief Executive Carlos Tavares said in a statement. Stellantis is the world’s fourth largest carmaker, with 14 brands including Fiat, Peugeot, Opel, Jeep, Ram, and Maserati. It said 2021 results should be helped by three new high-margin Jeep vehicles in North America and a strong pricing environment there. The U.S. market has driven profits for years at FCA and starts off as the strongest part of Stellantis. Read more here (Source: Reuters).
Lithia Continues Southeast Expansion with Fink Auto Group Purchase
Lithia Motors & Driveway announced Tuesday the retailer has acquired Fink Automotive Group, a move that continues to bolster Lithia’s presence in the Southeast. According to Auto Remarketing, the group, based in the Tampa, Fla., area, is led by president Scott Fink and includes Hyundai of New Port Richey among its dealerships. That store, which was featured as Auto Remarketing’s CPO Dealer of the Year in 2014, has been Hyundai’s largest U.S. volume dealer for eight straight years. Lithia anticipates the addition of the Fink Auto Group stores will likely add annualized revenues of $430 million. It also brings the retailer’s Southeast Region revenue above $1 billion. The purchase includes five locations and seven franchises (two Hyundai, two Genesis and one each of Chevrolet, Volkswagen, and Mazda). Read more here (Source: Auto Remarketing).
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