New Cars to Remain Scarce Well into Next Year as Semiconductor Shortage Wears On
The semiconductor shortage has disrupted the auto industry throughout 2021, halting production, reducing inventory and raising prices, a formula that has left some frustrated buyers searching for any tires to kick. The Chicago Tribune reports that for some Chicago-area dealers, the scarcity of new cars has made for a surprisingly good year, as demand outstrips supply, and profits soar. “The nice thing is that we’re selling cars before they hit ground,” said Greg Mauro, 61, owner of Gregory Auto Group, which has three north suburban dealerships including Hyundai, Mitsubishi and Infiniti. “We’ve had people literally follow transport trucks to our locations and say ‘I want that 2022 Tucson on the truck, and I hope it’s not spoken for.’ It’s kind of crazy, but we try to make it work.” The auto industry seemed to be recovering after surviving plant shutdowns at the onset of the pandemic in 2020. But a dearth of semiconductors, which control everything from collision-avoidance sensors to infotainment systems, has stalled auto production again this year, with plants shutting down for weeks, and in some cases, months at a time, for want of the crucial chips. For more on how dealers are handling shortages, click here.
EV Tax Credit Proposal Shows International Dealers Have Few Friends in Washington
Steve Gates, chairman of the American International Automobile Dealers Association, writes in Automotive News that these days, international brand dealers don’t have a lot of friends in Washington. That’s because dealers are seeking protection against an un-American provision being shoehorned into the Build Back Better Act to benefit the UAW. The provision would offer consumers a $4,500 tax credit for buying an electric vehicle, but only if that vehicle was assembled in a union-represented plant. Only a handful of brave lawmakers have stood up against the union-only tax credit. But dealers can rest assured that no matter what happens in the next few months, you will always have one steadfast friend in Washington: the American International Automobile Dealers Association. We will never waver, obfuscate or hesitate when it comes to protecting your interests on Capitol Hill. We can't be bought off by the UAW, and we're not going to stay silent to protect our political influence. We're not afraid of any fight, and we won't be sitting this one out. Click here to read the full opinion piece.
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 and to contact your legislators.
Car Dealers Speak Out on Staying Relevant
About 20 years ago, Ford tried running its own car dealerships in certain test markets through a setup that bypassed dealer franchise laws. According to Wards, the Ford experiment bombed. In ending it, Ford acknowledged it was ill-advised. “OEMs who set up running their own dealerships found out it wasn’t easy,” says dealer veteran Bill Cariss, president and CEO of Holman Strategic Ventures and who once ran the Holman Automotive Group of dealerships. “A lot of people don’t realize how hard auto retailing can be.” Every U.S. state has dealer franchise laws. Some are stronger than others, but the basic intent of all of them is to protect dealers from an automaker taking away their franchise without just cause or due process. Dealers should continue to fight on the side of franchise laws but not become fixated on the process, Cariss says. Some customers thoroughly enjoy spending time at Holman dealerships, while others prefer doing most of their car buying online, Cariss says. “Our task is to do it the way they want to do it. And add value.” For more on how dealers can stay relevant, click here.
12 New Cars That Will Never Go Out of Style
Some cars never go out of style. It’s rare, but it happens. They get old. They get depreciated. But they never stop looking cool. Some might call them modern or instant classics. These are the cars you end up shopping on eBay late at night 10 years later because you can’t get them out of your head. There are plenty of recent examples over the past couple of decades that could count as instant design classics. But what 2021 models will be forever cool to stare at? Auto Blog has compiled a list. They ended up with 12 total cars. Who’s number one? The Lexus LC. There isn’t another car design out there that can stir our emotions the way an LC can when it’s just standing still. This car is a concept design come true in the most beautiful of ways, and it’s a shoo-in winner for Concours events decades into the future. Click here to see it, and 11 other instant classics.
Diess' Future at VW Still Uncertain, With Board Talks 'On A Knife Edge,' Report Says
Volkswagen Group's top committee did not make a decision on the future of CEO Herbert Diess at a meeting on Tuesday, two sources with knowledge of the matter said on Wednesday, with one describing talks as "on a knife-edge." Automotive News reports that Diess and VW's powerful union representatives have clashed in recent weeks over his management style and electrification strategy, after he warned jobs could be lost if the process was not managed well. Sources said the supervisory board's eight-person executive committee would likely need more time to find a compromise that would satisfy all parties. An agreement on the committee -- which includes works council head Daniela Cavallo and representatives for the majority shareholder Porsche and Piech families -- could depend on whether Diess agrees to change his management style, the sources said. For more on Diess’ future at VW, click here.
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A Bigger Porsche Crossover Is Coming [Jalopnik]
Volvo Concept Recharge Rethinks Interior Materials [Auto Week]
Saab Was The Tesla Of Their Day, And Here’s Why [Car Scoops]
2022 Hyundai Kona N First Drive Review: Wild Child [Road Show]
