The House of Representatives is expected to vote on the discriminatory $4,500 union-built EV tax credit soon.
Dealers and their employees should contact their Members of Congress and urge them to oppose this proposal that will divide American workers and play politics with car sales. Click here to learn more about the issue.
Why Volvo Believes Its IPO Will Make the Company 'Stronger, Better, Quicker'
Volvo Cars aims to raise 25 billion crowns ($2.9 billion dollars) in the first of two planned issuances of shares before year-end as part of its initial public offering on the Nasdaq Stockholm stock exchange, reports Automotive News. Volvo CEO Hakan Samuelsson says the automaker could have covered the cost of its transition into an electric-only brand by 2030 without an IPO, but he believes the timing of the move is ideal given investors' interest in EV-focused brands. Volvo CFO Bjorn Annwall says the pressure to satisfy global investors will make the company "stronger, better, and quicker." Both men spoke with Automotive News Europe Managing Editor Douglas A. Bolduc. Read the interview here (Source: Automotive News).
Battery Giants Face Skills Gap That Could Jam Electric Highway
The South Korean battery giants powering many of the world's electric vehicles face a skills shortage that could drag on the global race towards zero-emissions transport, reports Reuters. The country's three major players, which command a third of the global electric vehicle (EV) battery market, told Reuters they were all grappling with a shortage of research and engineering specialists as demand for the technology balloons. LG Energy Solution, SK On, and Samsung SDI Co Ltd all rank in the top-six global battery makers, and supply the likes of Tesla Inc, Volkswagen and Ford Motor Co, among others. Yet they are facing growing demands from big automakers and can't find enough technicians with the training needed to keep advancing cutting-edge tech such as solid-state batteries. "Although we are seeing such a growth in the industry, it appears that we are facing a shortage of talent," an official at LGES said. "It is crucial to recruit external talents as well as nurturing our own talent." Read more here (Source: Reuters).
GM to Detail Significant Revenue Expansion Plans During Highly Anticipated Investor Day
General Motors CEO Mary Barra and other executives will detail plans to significantly expand and diversify the company’s revenue and earnings during a highly anticipated investor event this week in Detroit, reports CNBC. Future growth is a main focus of the event where executives will disclose specific targets regarding revenue, profit margins and the outlook on total market size for early expansion businesses, like self-driving taxis, according to people familiar with the matter, who asked not to be named because the plans haven’t been made public. GM’s revenue last year was nearly $122.5 billion, down 10.8% compared with 2019 thanks largely to factory shutdowns at the beginning of the coronavirus pandemic. It still made $6.4 billion in net income for the year while its adjusted operating profit was $9.7 billion, or $4.90 a share, in 2020. Read more here (Source: CNBC).
Record Vehicle Prices Mean One Thing – Record Monthly Payments for New and Used Cars
It’s said that consumers looking to buy a car aren’t shopping for a price, but a payment. Average prices for new and used vehicles are at all-time highs, forcing those monthly payments to cross new thresholds, reports The Detroit Bureau. The average transaction prices for new and used vehicles are at all-time highs meaning that monthly payments are too. New vehicle monthly payments passed $600 during the third quarter of this year, climbing to $614 a month, according to experts at car shopping website Edmunds. That’s nearly $30 a month compared with Q2’s average payment of $586 and $578 in the first quarter. The average monthly payment on a used car is now $500, up from $473 in the previous quarter and from $420 in the first period of the year. Read more here (Source: The Detroit Bureau).
Group 1 Buys Stellantis, Mazda Stores in Texas
Group 1 Automotive Inc. on Monday purchased two dealerships in Denton, Texas, that the public auto retailer says will add a combined about $150 million in annual revenues, reports Automotive News. Group 1 said it bought Classic Chrysler-Dodge-Jeep-Ram of Denton and Classic Mazda of Denton. Denton is a city north of Dallas and Fort Worth, a market where Group 1 already has 10 dealerships.A purchase price wasn't immediately disclosed. "We are excited to expand our presence in the fast-growing Dallas-Fort Worth metro market with these strong brands," Daryl Kenningham, Group 1's president of U.S. and Brazilian operations, said in a statement Monday. The dealerships were owned by Richard Allen, according to the stores' websites. Read more here (Source: Automotive News).
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