Toyota Lowers 2022 U.S. Industry Sales Estimate to 15.5M as Supply Chain Woes Persist
Toyota Motor Corp. revised its annual sales forecast for the industry downward by about 6 percent as supply constraints are expected to limit the industry's ability to meet high consumer demand. Bob Carter, head of sales for Toyota Motor North America, said the automaker anticipates 15.5 million light-vehicle sales in the U.S. this year, down from the 16.5 million it estimated in October. "That is an adjustment that is, quite frankly, not based on consumer demand," Carter told journalists on Wednesday during a media roundtable. "It's based solely on our projections of what the supply environment is going to be in 2022." Automotive News the downward revision reflects the continued constraints resulting from the global semiconductor shortage, higher raw materials prices and the war in Ukraine's ripple effects on the supply chain. Those issues have led to tight new-vehicle inventory, which resulted in a year-over-year U.S. new-vehicle sales decline of 16 percent industrywide during the first quarter. According to Motor Intelligence, the seasonally adjusted, annualized selling rate came in at 13.4 million in March, down sharply from 17.79 million a year earlier. Click here for the full story.
Volvo Makes its Entire Range Compatible with Over-The-Air Software Updates
Every new Volvo can now receive over-the-air (OTA) software updates following the latest trend in the automotive industry which allows companies to add new features and improve functionality to the operating system. Carscoops reports the XC40, XC60, S90, V90, and C40 already had this feature, with the XC90, S60, and V60 now joining the pack. The Swedish automaker will roll out the latest version of Android Automotive OS 11 this week, reaching more than 190,000 owners in 34 markets. This will be the eighth update in Volvo’s operating system, and the first one in several new markets including India, Taiwan, and New Zealand. Mind you, the OTA capability was recently expanded in South Korea, Australia, Thailand, and Singapore. The update will bring new app categories to Google Play (navigation, charging, and parking) with video streaming capability following later this year. It will also improve energy management thanks to new climate timers for maintaining battery temperatures, leading to a slightly increased range and faster charging times. The latter will be more precisely documented thanks to more frequent updates on the Volvo Cars application in terms of the charging percentage. Click here for to learn more.
5 Auto Retail Trends That Could Impact Long-Term Dealership Growth
As the first quarter of the year comes to a close, how are car dealers balancing consumer demands, recruitment, and their overall daily operations? Adam Arens, President of Patriot Automotive Group joins CBT News’ Inside Automotive, to share his perspective on how business is faring today. We are now in year three of limited production new vehicles, says Arens. There is not one car that was made in ample supply to service the market. This limited production scenario will extend multiple years after production gets at or near capacity. However, the demand for independent transportation continues to grow in the marketplace. For consumers that are holding out on buying a 2022 model because of price, Arens says 2023 will unlikely be any better. Prices across the board have risen a minimum of 10 percent, even higher in some cases like car prices and gasoline, says Arens. He believes that the auto industry is in for a steep price increase on 2023 models paired with severely limited incentives. Despite this, consumers are willing to spend the money. Click here for the full story.
Gas Prices Dip as Releases from Oil Reserves Hit Market
The price of gasoline across the nation remains stuck above $4 per gallon but the Biden administration’s decision to release 1 million barrels of oil per day for six months appears to have halted, for now, the upward pressure on the cost of gasoline at the pump, according to analysts. The Detroit Bureau reports the 180 million barrels from the SPR helped send the global oil price drop to near $100 per barrel. The national average for a gallon of gas is $4.18, which is six cents less than a week ago. However, it is 35 cents more than a month ago, and $1.31 more than a year ago. The executive order signed by President Joe Biden came as OPEC and its allies announced they would maintain a plan to gradually ramp up production with 400,000 barrels per day monthly increases, which will likely further drop the price of gas. OPEC’s plans to increase production come as the deal agreed to in 2020 with the Trump administration to cut production for two years comes to an end this month. Click here for the full story.
Biden's Fuel Rules Leave Room for Internal Combustion
The aggressive fuel-economy regulations the Biden administration rolled out last week are intended to spur faster development of electric cars, but they rely on a credit program that some environmentalists say undercuts the program's pollution-fighting purpose. Automotive News reports the system allows carmakers to claim an equivalent of more than 100 miles per gallon for each EV in their lineup, potentially allowing them to meet the 49 mpg fleetwide mandate by 2026 even if the rest of the lineup is crowded with internal combustion vehicles. "Automakers have delighted in a system that allows them to evade the rules with generous credits they can buy from other companies or create themselves that allows them to avoid meeting stricter requirements," said Dan Becker, director of the Center for Biological Diversity's Safe Under the updated regulations, carmakers will be required to raise the average fuel efficiency of their fleets 8 percent annually for the 2024 and 2025 model years, and 10 percent for 2026. By the 2026 model year, the average will have to be 49 mpg under the agency's testing regime, though actual results for motorists will likely be closer to 39 or 40 mpg. Click here to learn more.
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