Star Auto Group Founder John Koufakis Dies at 94
John "Senior" Koufakis, founder of Star Auto Group in Queens, N.Y., died July 8, according to his family. He was 94. Koufakis made his foray into the auto retail business in the 1970s, when he opened a used-car lot with one mechanic, an auto body specialist and himself as a sales specialist. Star Auto Group now represents automotive brands Chrysler, Jeep, Dodge, Fiat, Toyota, Hyundai, Genesis, Nissan, and Subaru. From 1988 to 2009, Koufakis was on the Greater New York Automobile Dealers Association board of directors. He was chairman of the organization's membership committee from 1996 to 2001. Read more here (Source: Automotive News).
Why Cars Are Driving Inflation
Axios reports that inflation is at its highest level since 2008, thanks in very large part to a single item whose price has been going through the roof: Cars. What goes up must generally come down, and there are strong indications — like data last week from Manheim — that the unprecedented rise in auto prices is peaking. In the second half of this year, cars might well be a force making inflation numbers look artificially low. The rise and rise of car prices has been one of the dominant inflation narratives of 2021. The cause has been a shortage of new cars, which in turn has been caused by a shortage of the computer chips needed to make any modern car run. Wholesale auto prices seem to have peaked, which means that retail prices are likely to follow them down. Cox Automotive chief economist Jonathan Smoke says that retail prices have been lagging wholesale prices by about 4 weeks this year — and that the decline in wholesale prices started 5 weeks ago. Read more here (Source: Axios).
Britain to Ban All New Diesel and Petrol Heavy Goods Vehicles From 2040
Britain will ban the sale of new petrol and diesel heavy good vehicles from 2040 as part of a broader package of green initiatives aimed at achieving net zero emissions from all forms of transport ten years later, reports Reuters. Prime Minister Boris Johnson's government is seeking to elevate Britain's environmental credentials as he prepares to hold the United Nations' Climate Change Conference, known as COP26, in Scotland later this year. The government said that it would ban the sale of smaller diesel trucks from 2035, and larger ones weighing more than 26 tonnes from 2040, or earlier if feasible. It also set out plans to create a net zero rail network by 2050 and ensure net zero domestic aviation emissions by 2040. Read more here (Source: Reuters).
Volkswagen Wants Half of Its Vehicle Sales to be Electric by 2030
Half of Volkswagen’s sales are expected to be battery-electric vehicles by 2030, the German carmaker said Tuesday. CNBC reports that by 2040, the company said almost 100% of its new vehicles in major markets should be zero-emission vehicles. Those objectives are part of Volkswagen’s wider aim to be fully carbon neutral by 2050. The firm said it would work on developing software to help boost profits as it focused on transitioning its vehicles from internal combustion engines to operating on batteries. Volkswagen has earmarked 73 billion euros ($86.4 billion) for the development of future technologies between 2021 and 2025, which makes up 50% of the company’s total investments. Read more here (Source: CNBC).
Chip Shortage Hits Young Vehicle Consumers Hardest, Study Shows
Young consumers have been the most affected by the current shortage of available vehicles when looking to make a purchase, according to a study by GfK AutoMobility released Tuesday. Automotive News reports that consumers in the 65-plus age group were the most aware of the inventory constraints brought on by the chip shortage, at 59 percent, according to the firm's research, conducted June 1-28. Those in the 18-to-29 age group were the most likely to change their purchase plans or opt for a different vehicle. Older consumers were more likely to wait for their first-choice vehicle: While 45 percent of those under 45 said they changed their purchase plans, just 11 percent of those 65-plus did so. The older group was either waiting until existing orders are fulfilled, placing future orders or delaying their purchases altogether, according to a news release. Read more here (Source: Automotive News).
Vote for CNA National in the Dealers' Choice Awards
Since its founding in 1982, CNA National has been providing automobile dealerships with unparalleled program offerings and award-winning service. As a result, the company has earned 28 accolades in the Dealers’ Choice Awards, far more than any competitor. “As an industry leader, CNA National has set a high standard for products, claims administration, participation program management and overall customer service,” says Jeff Weston, chief revenue officer. “In response, dealers have named us their number-one provider for 16 years in a row!” Help AIADA’s longest-standing affinity partner continue its winning streak by voting for CNA National in the 2021 Dealers’ Choice Awards. Visit vote.cnanational.com to access the survey.
* Best Service Contract Provider 2005-2010, 2012-2020; Best Reinsurance Provider 2011-2013, 2017, 2020.
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