As U.S. CPO Sales Fall to 8-Year Low, Some Brands Make Older Cars Eligible
Sales of certified used vehicles in the U.S. fell in 2022 to their lowest level in eight years as dealers grappled with a stunted supply of certifiable used vehicles returning to market and some customers switched back to purchasing new vehicles as production improved. Last year, sales of certified pre-owned vehicles dropped to 2.49 million, down 9.4 percent from 2.75 million in 2021, according to the Automotive News Research & Data Center. It was the lowest annual volume since 2014, when 2.34 million certified sales were recorded. Certified pre-owned vehicle sales rose to that robust level in 2021 as more customers exited their leases, realized they couldn't get a new vehicle because of tight supply and instead chose to buy out their old lease and get it certified, said Brian Danahy, director of variable operations in Florida for Ed Morse Automotive Group of Delray Beach, Fla. "As to why [sales] dropped in 2022, I think you did have some [new-vehicle] inventory situations get better for some manufacturers," said Danahy, whose group has more than 30 stores that delivered 15,566 used vehicles last year — 4,404 of which were certified. Click here for the full story.
Hyundai Promises to Keep Buttons in Cars Because Touchscreen Controls Are Dangerous
Sang Yup Lee, Hyundai's head of design, reiterated the company's commitment to buttons at the introduction of the new Hyundai Kona. The Drive reports, for the Korean automaker, it's a decision rooted in safety concerns. “We have used the physical buttons quite significantly the last few years. For me, the safety-related buttons have to be a hard key,” said Lee. It's a design call that makes a lot of sense. In some modern vehicles, adjusting things like the volume or climate control settings can require diving into menus on a touch screen, or using your eyes to find a touch control on the dash. In comparison, the tactile feedback of real buttons, dials, and switches lets drivers keep their eyes on the road instead. “When you’re driving, it’s hard to control it. This is why when it’s a hard key it’s easy to sense and feel it,” said Lee. As far as he is concerned, physical controls are a necessity for anything that could impact safety. Hence the physical buttons and dials for items like the HVAC system and volume control. Click here for the full story.
Falling Metal Values in Early 2023 Could Bring EV Prices Down
Against analyst predictions, metal values have steadily declined in early 2023, possibly setting the scene for more affordable electric vehicles. According to data from Benchmark Minerals, prices of metals used in electric vehicle batteries have been falling month-over-month since January. Costs of Lithium have dropped by roughly 13 percent since January, and 1.8 percent year-over-year. Other metals, such as copper and cobalt, have also decreased significantly in 2023, reports CBT News. The car market is already starting to reflect these changes, with brands such as Tesla offering more and more discounts. These changes contradict the forecasts of market analysts, who expected metal values to remain inflated for the foreseeable future. Many reasoned that the sudden interest in electrification would strain the world’s diminutive lithium mining and processing infrastructure. This prediction is also supported by the previous two years of data, which showed prices rising steadily since 2020, with only a quickly recuperated fall observed in mid-2022. Click here for the full story.
Subaru Names Longtime Exec Troy Poston to Top Sales Job
Subaru of America has promoted one of its regional vice presidents to lead its U.S. sales operations effective April 1, succeeding Jeff Walters, who will transition to the brand's top U.S. role. Walters will become president and COO as regional CEO Tom Doll steps down from day-to-day management and assumes an advisory role. Troy Poston, eastern regional vice president of Subaru's U.S. sales operations, is a 26-year veteran of the brand's field and regional sales operations. He'll take over the job from Walters, who has headed Subaru's U.S. sales operations since 2014 and was named to the brand's top U.S. role, reports Automotive News. "Troy brings a passion for our customers, excellent relationships with our Subaru retailers and a deep knowledge of the Subaru sales network," Doll said in a written statement. "His leadership will be critical moving forward as we look to grow our sales and move past the production constraints of the past few years and begin the launch of a new and more electrified product line-up." Poston assumes his new role as Subaru works to recover from the industrywide production problems caused by COVID-19 and the global semiconductor shortage. Click here for the full story.
One-Third of Americans Would Consider EV Purchase
Just over one-third of Americans would consider buying an electric vehicle for their next model, a new Reuters/Ipsos poll found. The seven-day poll completed on Monday found 34 percent of all respondents would consider an EV, while 31 percent said no. There are now more than 80 EV models for sale in the United States. EVs represented nearly 6 percent of all U.S. sales in 2022, with EV sales up by more than 60 percent last year. President Joe Biden wants 50 percent of all new vehicles sold in 2030 to be EV or plug-in hybrid models. The poll found 56 percent of respondents would be willing to pay no more than $49,999 for an EV. In August, the Biden administration won a significant expansion of $7,500 electric vehicle tax credits and other battery and EV manufacturing incentives to shift the industry toward electric models but EVs are still often significantly above $50,000. In the coming weeks, the U.S. Environmental Protection Agency plans to propose new, more stringent vehicle emissions rules through at least the 2030 model year. Click here of the full story.
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