U.S. Auto Sales Stumbled in First Quarter
Major automakers on Tuesday posted declines in U.S. sales for the first quarter, adding pressure on car companies already grappling with weaker conditions in important markets globally, reports The Wall Street Journal. Analysts expect the industry to report an overall decline of around 5 percent in sales for March, historically one of the biggest months for car sales as the unofficial start to the spring selling season. First-quarter sales are expected to decline 3 percent to 4 percent compared with a year earlier, according to analyst estimates. Several factors are contributing to the slowdown. A record run of car sales eased pent-up demand in the years following the 2007-09 recession, analysts say. Vehicle prices also have risen sharply, which, along with an uptick in interest rates, have put new wheels out of reach for some buyers. There also are more attractive used-car options as a record number of lightly used cars return from lease service, nudging more buyers toward the preowned lot, analysts say. Read more here.
Mexico Border Closure: The Whole Auto Industry Could Shut in Days
According to The Detroit Free Press, a U.S.-Mexico border shutdown would be “devastating” to American auto companies, their workers, parts suppliers, and regional economies throughout the Midwest, Texas, and California, industry experts said Tuesday. “I don’t know why we’re talking about avocados & strawberries (as much as I love both), when the whole flipping auto industry could be shut down in a matter of days if we close the US-Mexico border,” tweeted Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research in Ann Arbor. “Go back to what Michigan looked like in 2009," she told the Free Press on Tuesday. "It’s pretty dire. Everybody was laid off or idled and it was economically devastating to the state.” Not only do parts come into the United States from Mexico, but 37 percent of U.S.-made parts ship to Mexico for further steps in vehicle manufacturing, Dziczek emphasized. A disruption in the supply chain risks shutting down factories and bigger production operations that can’t simply restart. Read more here.
Dealers' Lawsuit Against TrueCar Could Head to Trial
Over the past four years, TrueCar has changed its business model and leadership team to improve its relationship with dealers, but 2015 litigation accusing the company of false advertising could head to trial this year, reports Automotive News. Car buyers were attracted to TrueCar based on the promise of no surprises at the dealership. In 2015, 108 dealers filed a lawsuit accusing TrueCar of falsely advertising haggle-free car-buying. The dealers argued that TrueCar's false advertising decreased their sales and hurt their reputations. The plaintiff dealers do not subscribe to TrueCar. TrueCar asked for a summary judgment in July. Kevin Castel, a judge in the U.S. District Court in the Southern District of New York, last week denied TrueCar’s motion for summary judgement regarding its potential violation of the Lanham Act, a federal false-advertising statute that prohibits businesses from deceptively advertising their products and services. Read more here.
California Dealers Renew Challenges to Tesla Ad Practices
Dealers in numerous states have long challenged Tesla's business practice of selling vehicles without a franchise system. According to Automotive News, for the fifth time in less than six years, the California New Car Dealers Association sent a letter of complaint to the state's Department of Motor Vehicles last week regarding Tesla's advertising practices. The association contends Tesla's advertisements violate state and federal advertising and consumer protection laws. Dealers in numerous states have long challenged Tesla's business practice of selling vehicles without a franchise system -- a grievance that intensified with Tesla's decision to primarily move to online sales. "Our end goal is to ensure compliance with the law so that consumers and ethical dealers have a level playing field," Brian Maas, president of California dealer association, told Automotive News. Read more here.
This is the No. 1 Car Among Millennials
Young people are often said to splurge on indulgences — avocado toast, for example, or daily coffee. When it comes to the cars they drive, however, that doesn't seem to hold true. According to CNBC, insurance comparison website QuoteWizard dug into its 2018 insurance quote data for drivers aged 22 to 37 "to find the most common vehicles driven by millennials." The answer: More affordable ones. The No. 1 car among millennials, they found, was the Honda Accord. The data did not make clear whether young people were buying these cars new or used, or getting them as gifts. Still, it was striking to QuoteWizard that the most popular choices among millennials were "among the cheaper cars on the road." Of the top 10, eight are small to mid-sized cars, says QuoteWizard, which tend to cost less. The data shows that millennials "tend to drive cheaper sedans" instead of the SUVs and trucks favored by older generations, the site concludes. Read more here.
Smart Technology Sets the Pace for Accelerating Sales
Your service drive is rife with profitable opportunities to sell customers cars, as long as you know how to find them and communicate them in the right way. AIADA’s April AutoTalk features Kendall Billman, AutoAlert Senior VP. Listen on Tuesday, April 16th at 2:00 p.m. EDT as Kendall discusses:
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Service drive sales and Smart Technology helps you predict, and even drive customer behavior
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Use the service drive to re-engage customers and convert new prospects
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Leverage geo-framing technology to deliver targeted ads at the right time
Around the Web
Gas Prices Are Rising [Autoblog]
April Fools' 2020: Automakers Use April 1 to Spread a Little Laughter [Fox56]
