VW America Chief Scott Keogh to Head New Scout Brand
Volkswagen AG is realigning its North American management as the company prepares to launch a new brand in its bid to increase electric-vehicle sales and boost its U.S. market share. The Wall Street Journal reports Scott Keogh, current head of Volkswagen Group of America Inc., has been appointed chief executive of Scout, the iconic American off-road vehicle brand that VW is reviving as an all-electric sport-utility vehicle and truck maker. The plan would see Scout operate as a subsidiary of VW in the U.S. alongside other VW brands — Volkswagen, Audi, Porsche, Lamborghini, and Bentley. Keogh made a name for himself at VW first as head of the Audi business in the U.S. At the helm of VW Group of America, Keogh managed a realignment of the company’s model portfolio and turned the business around, returning VW to profitability in the U.S. for the first time in years. At Scout he will oversee the creation of a new brand, the first time that VW has created an independent brand in the U.S., and try to carve out a share of the truck and SUV market. Click here for the full story.
Carvana License Suspended Again in Illinois
Carvana is again prohibited from selling used cars in Illinois after the Secretary of State Police reinstated a temporary suspension. Automotive News reports the online seller has been issuing car buyers temporary registration permits from outside Illinois, not using a licensed third-party to transfer titles and not processing the registration paperwork through the Secretary of State’s office. Illinois suspended Carvana’s dealer license May 10 after customer complaints. The Secretary of State issued a stay May 26, allowing the company to resume sales. The state says it suspended sales again because Carvana was not transferring titles within 20 days of sale nor issuing Illinois temporary registrations to Illinois buyers. It also says Carvana would issue temporary registrations up to four to five times from different states for the same vehicle. Carvana has faced similar scrutiny in other states over titling and registration issues. In February, the online retailer averted a suspension of its dealer license in Florida after it processed outstanding vehicle title applications before a key Jan. 31 deadline. The company's license to sell in a North Carolina county was blocked last August for 180 days over similar issues. Click here to learn more about Carvana’s troubles.
How is the Automotive Buy/Sell Market Performing in Light of Economic Headwinds?
On CBT News’ Inside Automotive, Ryan Kerrigan, Managing Director of Kerrigan Advisors gives an update on the latest buy/sell market news and trends. Over the past several months, the buy/sell market has shown incredible strength, and this summer is no different. Recently, Kerrigan Advisors represented Alan Jay Automotive Network in the sale of Sebring Toyota and St. Petersburg Maserati and Alfa Romeo dealerships located in Central Florida. However, Florida has the perfect combination of high-income residents, population growth, and favorable franchise laws, making it one of the most active markets. Despite the talk of rising interest rates and a potential recession, Kerrigan says profit levels are not falling. While no official data has been released yet, after many conversations with dealers, Kerrigan says that Q2 was a record quarter of profitability for car dealers. “We are at an interesting point where the pent-up demand for cars is outpacing some of these other headwinds, so for the moment, [the automotive retail industry] remains kind of the golden child as it relates to what is going on in the economy,” Kerrigan explains. Click here for the full story.
Aston Martin Updates Wings Logo, Launches New Brand Campaign
With competition increasing, electrification coming and Aston Martin moving into new segments, the British ultraluxury brand is rolling out a new global marketing campaign centered around the words "Intensity. Driven." And, for just the eighth time in Aston's 109-year history, the company's famous winged logo is slated for an update. It's all part of an effort to increase purchase consideration among younger buyers, Marek Reichman, Aston's chief creative officer, told Automotive News. "If you look at the traditional Aston Martin, it's a front, midengine GT car, 2+2 or 2+0. We now have an SUV. We now have three derivatives of that SUV. But we're also looking at expanding in the mid-engine segment because we have Valkyrie, and we've got Valhalla coming and the potential (derivatives) after that," Reichman said. "So, we are going from a relatively recognized form and shape for Aston Martin to a two brand new forms and shapes, so that will automatically attract brand new customers." Renato Bisignani, head of global marketing and communications, said the campaign is aimed at potential customers in their 30s to mid-40s. Click here to learn more about Aston Martin’s new brand campaign.
Mainstream BEV Sales Shake Up Auto Financing
The financial profiles of battery-electric-vehicle buyers are similar to those who purchase traditional luxury vehicles, but the mainstream BEV buyer approaches a purchase very differently. Although auto financing for BEVs represents only 5 percent of the market, that percentage has doubled in the past year and will continue to grow as more BEVs arrive, Satyan Merchant, TransUnion senior vice president and automotive business leader, tells Wards. That will shake up auto financing throughout the marketplace, he adds. “The profile in some ways looked a lot like a luxury ICE buyer, meaning their credit score range was roughly the same or in the same ballpark,” says Merchant. “The amount of down payment and the loan-to-value was around the same. Even the amount financed was relatively similar. “But the mainstream EV buyer, while they had the strengths of, say, a luxury ICE consumer, they were still aiming for monthly payments that were similar to those of a mainstream ICE vehicle.” TransUnion analyzed just under 1,500 survey respondents, evenly split between BEV owners and non-owners. Hybrids were not included. Click here for the full story.
Federated Insurance’s Claim of the Month — Could It Happen to You?
A dealership’s employee noticed several vehicles from their used vehicle inventory had sustained theft of the catalytic converters. Thieves target catalytic converters because of the value of the metals found inside the devices. The values of the metals have risen sharply in the last decade, making inventory and customer vehicles more susceptible to the theft, posing a risk to dealership owners. In addition to replacing stolen parts, damage caused to the vehicles during the theft can result in costly repairs.
CLAIM AMOUNT: $12,000.00
Prevention tactics to help make your lot safer can include:
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Installing adequate security lighting in your lot after hours.
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Adding perimeter fencing or barrier controls
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Hiring a reputable security guard service
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Reminding employees to park vehicles in well-lit areas, away from the perimeter, and to always lock equipment
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Closing and locking fences and gates when not in use.
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Installing motion sensor lights and video recording systems
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Installing monitoring alarms or security systems, and testing them monthly.
Visit federatedinsurance.com or contact your local marketing representative for resources you can use to create or enhance your own risk management program.
Around the Web
Car Companies Have Interesting Ways of Catering to Aging Drivers [Car and Driver]
Studies Find States, Cities, Car Brands with Safest, Worst Drivers [Autoblog]
Most Fuel-Efficient AWD Crossovers in America — No Plugs Required [autoNXT]
Alfa Romeo: Where It Came From, Where It’s Going [Autoweek]
