U.S. Car Business Vrooms Back From Pandemic Nadir
The U.S. auto industry, hobbled this spring by the Covid-19 crisis, has bounced back stronger and faster than many expected with some companies reporting record profits in the third quarter, reports The Wall Street Journal. Even for an industry accustomed to boom-and-bust cycles, the speed of the auto sector’s recovery from the pandemic-related shutdowns last spring has surprised executives and analysts, who just six months ago were calculating how many months companies could survive. The pace of new-vehicle sales over the past few months has rebounded to the strong levels seen before the crisis, despite slim pickings on dealer lots because of tight inventory. Car buyers are paying record prices for new wheels, with dealers citing strong demand for luxury vehicles and high-end pickup trucks. Read more here (Source: The Wall Street Journal).
Going Up: The Value of That Big, Used Pickup in the Driveway
Used large pickup trucks are appreciating amazingly in value, according to auto industry experts. That’s good news if you’ve got one to sell or trade in, but less good, if you want to buy one, reports Forbes. “The pickup truck has been the success story, I like to say, of this pandemic,” said Tom Kontos, chief economist for wholesale auto auction firm KAR Global. “Used-car prices for pickups are strong, and sales of pickups are strong,” Kontos said in a webinar on Oct. 27, hosted by the American International Automobile Dealers Association. Kontos said in a report earlier this month that compared with pre-pandemic prices, the average wholesale price of a used, full-sized pickup had increased more than $5,000, or more than 30%. That is, an average wholesale price of $21,551 in August, vs. $16,385 in February, Kontos said. The increase vs. August 2019 was about $4,500, or more than 25%. Read more here (Source: Forbes).
Rust in Peace: These Cars Aren't Returning for 2021
It's that time of year again: Halloween. It's a holiday that's centuries old, having started as the ancient Celtic festival of Samhain. It's a day when people thought that ghostly spirits returned to earth. After being conquered by the Romans, who co-opted the ancient Celt tradition as All Saints' Day, or Alholowmesse in Middle English, Samhain endured as All-Hallows Eve, and eventually, Halloween. All these centuries later, October is the time when automakers kill off unpopular cars, when their time as new models on this earth pass, never to return. So, let's remember the departed before they go on to rust in peace. Read more here (Source: The Detroit News).
Toyota Adds 1.5 Million Vehicles to Fuel Pump Recall
Toyota Motor North America said it added 1.5 million Toyota and Lexus vehicles to a large recall announced in January over a fuel pump that may stop operating, potentially causing a stall or risking a crash, reports Automotive News. In total, about 3.34 million vehicles are now included in the recall, covering model years 2013 to 2020. The most recent recall involves vehicles manufactured between 2017 and 2020, Toyota said in a Wednesday statement. As part of the recall, Toyota and Lexus dealers will replace the involved fuel pump with an improved one at no cost to customers, the automaker said. Toyota says that if the recalled fuel pump fails, warning lights and messages may be displayed on the instrument panel, and the engine may run rough or stall and may not be able to be restarted. Read more here (Source: Automotive News).
Ford Turns $2.4 Billion Net Profit for Q3 2020
New Ford CEO Jim Farley’s first earnings report in the top spot was a good one as the company came in with positive numbers for the third quarter, reports The Detroit Bureau. Ford Motor Co. reported $2.4 billion in net income and $3.6 billion in adjusted EBIT earnings for the third quarter, making new CEO Jim Farley’s first earnings report in the top spot a pleasant one. The strong numbers were largely generated by improved North American results as the region saw an uptick in sales during the period – compared with the previous quarter – despite the ongoing coronavirus pandemic. The positive numbers came on revenue of $37.5 billion, revealing margins of 6.4% on net income and 9.7% on an adjusted basis. Again, North America was the driver, reflected by its adjusted margin of 12.5%. Read more here (Source: The Detroit Bureau).
KAR Global Champions Customer Success with Strategic Operational Alignments
KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), announces an all-new customer experience center of operational excellence aligning core competencies from across the KAR portfolio of companies in the areas of customer support, logistics, assurance, and titles, payment and funding. The center will be led by KAR veteran Keith Crerar, SVP and head of customer experience, and will simplify how customers interact and transact with the company while providing a faster, more consistent and convenient experience.
“As a marketplace company, customers are at the center of everything we do at KAR,” said Peter Kelly, president of KAR Global. “Buyers and sellers expect a positive experience every time they transact or interact with us—and that’s what we aim to deliver. By unifying our operational teams and modernizing our customer-facing processes, we can mitigate some of the historical friction points in our industry while saving our customers valuable time and energy.” Read the press release here.
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Ford Has Nearly 190K Reservations for Upcoming Bronco SUV [CNBC]
