Volvo Dealers on Edge Over Digital Retail Plan for EVs
As Volvo Cars transforms into an EV-only brand in less than a decade, it is reinventing the way it will sell the next-generation vehicles, reports Automotive News. The automaker last week announced plans to move to an online-only, fixed-price sales model for its expanding fleet of battery-powered models. Volvo's all-digital strategy will have ramifications for the brand's 281 U.S. dealers. Retailers are "concerned and fearful" about where they stand, Volvo Retail Advisory Board Chairman Ernie Norcross told Automotive News last week. "Dealers always want to control the consumer experience from start to finish," said Norcross, owner of Volvo Cars Memphis in Tennessee. "If we don't control the buying experience, how are we anything but a delivery and service center?" Volvo Car USA CEO Anders Gustafsson was quick to attempt to calm dealers' nerves. Dealers will continue to sell the vehicles and maintain the customer relationship, Gustafsson said. "We have been very clear with that," he said. "We will, of course, push things a little bit and see if we can develop this industry, especially related to digitalization." Read more here (Source: Automotive News).
Kia Adopts 'EV' Nomenclature as it Teases EV6
Kia, in teasing its first next-generation electric vehicle, is adopting a new nomenclature for the upcoming series that leaves little doubt about its lineage. The names of the new battery-powered vehicles will start with the prefix EV, followed by a number. And the first entry riding on Kia’s new dedicated all-electric platform will be the EV6. “All of Kia’s new dedicated BEVs will start with the prefix ‘EV’ which makes it easy for consumers to understand which of Kia’s products are fully electric,” Kia Corp. announced Tuesday in South Korea. The EV6 electric crossover will make its world premiere in the first quarter, Kia added. Ahead of that unveiling, Kia teased silhouette shots of the EV6, showing a low-riding crossover with a short hood, elongated cabin and steeply raked rear window. Sporty rear fender flares provide a robust, planted look, while funky wrap-around taillights project a high-tech, digital feel. The pincher-like accent lighting around the front headlamps is also a new design cue for Kia. Read more here (Source: Automotive News).
Stellantis Scraps Plan to Launch Peugeot in U.S. Market
Reuters reports that Stellantis NV has scrapped a plan to launch the Peugeot brand in the United States and will focus instead on the RAM pickup trucks, high-margin Jeeps, and Fiat Chrysler’s (FCA) other brands – Dodge, Chrysler and Alfa Romeo - in the world’s second-largest auto market, it said on Tuesday. Stellantis, the world’s fourth-largest carmaker, was created by merger of FCA and Peugeot maker PSA in January. It was widely expected by analysts and industry experts that PSA’s plans to launch the brand in the U.S. market would be abandoned by Stellantis given the strength of FCA’s most profitable models there. Read more here (Source: Reuters).
VW Takes Aim at the Holy Trinity: Long Range, Fast Charging, and Autonomous Driving
It’s not quite the Holy Grail but Volkswagen wants to achieve something of a holy trinity when it comes to its $86 billion battery-car program, reports The Detroit Bureau. The automaker plans to have at least 50 EVs set to be on sale by mid-decade. If anything, it has to ramp up its game if its first wave of products, including the VW ID.4, Audi e-tron, and Porsche Taycan are any indication. That’s where “Project Trinity” comes in. The program is meant to “set new standards,” according to VW officials, especially when it comes to two big obstacles to more widespread BEV adoption: range and charging time. To that add a goal of bringing significantly advanced levels of autonomy to the cars that will be developed under Trinity. In a statement, VW said the target is a sedan delivering “high range, extremely short charging times, and revolutionary production.” It offered few details beyond a target date of around 2026. Volkswagen is looking make a big shift forward in its electric vehicle program with Project Trinity. Read more here (Source: The Detroit Bureau).
Digital Auto Retailing Wonderful, Not Magical
A mystery-shopping survey says car dealers are offering consumers more and more digital retailing tools – and 25% of their websites include the likes of “buy now” buttons. But, reports WardsAuto, it’s questionable as to whether those serve merely as window dressing. Moreover, the 11th annual study indicates dealers whose websites feature “buy now” buttons failed to quickly respond to customer attempts to “chat” 44% of the time on average. Consultancy Pied Piper’s 2021 Internet Lead Effectiveness Study recommends car dealers use the growing number of digital tools in a supplementary way to sell, but not rely too heavily on them. The survey ranks Infiniti dealers No.1 for effectiveness in responding to online shoppers. Subaru and Acura placed second and third, respectively. Those three brands, in addition to BMW and Land Rover, showed the greatest improvement from 2020 to 2021. Conversely, the performance of 18 brands – and the industry overall – declined. Read more here (Source: WardsAuto).
Webinar: Charlie's Real Time Quarterly Market Update
Cox Automotive Senior Economist Charlie Chesbrough is back on the AutoTalk webinar on March 11 at 2:00 p.m. EST to present the most up-to-date, real time data. Topics to be reviewed include:
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U.S. economic outlook: Is inflation on the horizon?
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What’s expected in 2021 for new and used vehicle markets
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New market trends in the post-COVID market
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Obstacles for market recovery – affordability and inventory
To register for this and other upcoming AutoTalk webinars, click here.
Around the Web
The 20 Women Who've Changed the Automotive World [The Detroit Bureau]
China's Car Sales More Than Quadrupled in February [WSJ]
What's the Car That Got Away? [Jalopnik]
Kia's New Car Could Outgun Porsche, and It Could Debut March 15 [Gear Patrol]
