Volvo Teams with Costco Auto Program on Used-Vehicle Sales
Costco Auto Program aims to partner with automakers to offer more promotions on used vehicles as new-vehicle availability remains limited. For years, retailer Costco's auto program has worked with several automakers to offer incentives on new cars and trucks to Costco members through a network of more than 3,000 participating franchised dealerships. In August and September, Costco Auto Program offered a $1,250 discount with Volvo on that brand's certified preowned 2019, 2020 and 2021 XC60 and XC90 vehicles. It marks the "first time an OEM has participated and marketed their CPO offerings" through the program, said Jay Maxwell, the program's general manager of strategic partnerships. The Costco Auto Program has been trying to land such a CPO partnership for years. A Costco executive told Automotive News in 2019 that talks were ongoing with several automakers about using the program to drive sales of certified and incoming off-lease vehicles. Click here for the full story.
Strong New-Car Demand Collides with Rising Interest Rates
Auto executives for months have expressed confidence there will be eager buyers for all the vehicles they can build. A worsening economic picture is putting that theory to the test. The U.S. auto industry is expected to report flat new-car sales for the third-quarter, despite earlier predictions that this year’s depressed selling pace would accelerate in the second half, analysts predict. The Wall Street Journal reports most auto makers are scheduled to report third-quarter sales results Monday. Tight supplies continue to be the big problem, car executives and dealers say, as a shortage of computer chips and other supply-chain snags continue to dog vehicle output and curb sales. Still, there are signs the backlog of demand built up over the last 18 months could deteriorate as consumers feel the pinch of higher interest rates, analysts say. “It seems likely that much of the pent-up demand from limited supply is quickly disappearing as high interest rates eat away at vehicle buyers’ willingness and ability to purchase,” said Charlie Chesbrough, senior economist with research firm Cox Automotive. Click here for the full story.
CNCDA Pres. Brian Maas on California’s Bold Transition to 100% EVs by 2035
By 2035, all new cars sold in California must be electric vehicles (EVs), a significant change from the current landscape where gas-powered cars dominate. This shift will present substantial challenges for dealers, who will need to adapt their sales strategies, and for consumers, who will be dealing with a new type of personal transportation. Today, Brian Maas, President of the California New Car Dealers Association, joins CBT News’ Inside Automotive to discusses this important topic further. Maas says, “it will be as big of a transition as going from horse and buggy to automobile. “It’s going to be a challenge for many dealers.” Major automakers are in different phases of transitioning to electric vehicles, and many consumers still have questions about whether EVs are right for them. Most major manufacturers have gone along with the program, though some are further along than others. As EVs become more widely adopted, consumers will have more choices of vehicles. However, they may still have questions about the benefits and drawbacks of EVs compared to traditional gasoline-powered cars. Click here to watch the full interview.
Audi’s EV Range Will Include City Cars and Avant Models
Audi has provided a hint at some of the cars that will be found in its future range of electric vehicles. The car manufacturer has previously confirmed that it will only launch new all-electric models from 2026 before completely killing off combustion-powered vehicles by 2033. This plan will prompt it to release a bevy of EVs over the coming years reports Carscoops. During a recent interview with Top Gear, Audi research and development boss Oliver Huffmann said the brand will have electric cars in all of its core segments by 2027. That means EVs sized like the A3, A4, A6, A7, and A8, as well as a plethora of similarly-sized crossovers. While details about many of Audi’s planned EVs remain under wraps, Top Gear asked Huffmann whether the company’s range would continue to include Avants. He provided a very encouraging response. “Look at our A6 e-tron concept. It gives a very, very clear vision of our upcoming PPE cars,” he said. “I think Audi stands for Avant and Avant for Audi. And actually, the RS6 Avant is also a success in North America.” Click here for the full story.
Hyundai, Kia, Genesis Post Higher September Sales
U.S. sales at Hyundai, Kia and Genesis rose in September as the auto industry's inventory woes continued to ease, though growing economic challenges threaten what was supposed to be a more robust second half rebound as the industry enters the fourth quarter. Automotive News reports Hyundai volume rose 11 percent to 59,465 last month on what it said was record retail volume. The company has prioritized retail deliveries to maximize profits and leverage tight new car and light-truck stockpiles, forgoing fleet business nine consecutive months now. Hyundai said U.S. inventory stood at 24,919 units late last month, up from 19,209 as August closed but down slightly from 26,717 at the end of Sept. 2021. Randy Parker, CEO of Hyundai Motor America, said the company was generating month-over-month gains in part to a strong product lineup — utility vehicles represented 68 percent of September retail sales, a 1.4 percentage point increase — "with plenty of cars in the pipeline for the remainder of the year.” Volume last month rose 6.4 percent to 56,270 at Kia, setting a September record for the automaker. Click here for the full story.
Around the Web
BMW Builds Its Sixth Millionth Car in the United States [Autoblog]
Facebook Will No Longer Let Dealers List Cars, Suggests They Buy Ads Instead [Jalopnik]
Mazda and Ford to Offer a Helping Hand to Hurricane Ian Victims [Carscoops]
Here Are Nearly 150 Plug-In Vehicles Headed to U.S. Dealerships Through 2026 [Automotive News]
