Perry Watson IV On Why NAMAD Is Driving the Future of Dealer Ownership
With market dynamics vastly changing, dealership leaders are looking for new ways to stay competitive. Perry Watson IV, President of the National Association of Minority Automobile Dealers (NAMAD), joins us on the latest episode of CBT Now to explain how the organization’s annual conference is helping dealers build relationships, gain industry insights, and prepare for what’s next. Taking place August 11 at the Fontainebleau Miami Beach, the NAMAD conference will bring together dealers, OEM executives and industry partners for discussions centered on growth, innovation and the future of automotive retail. According to Watson, minority consumers accounted for roughly one-third of new vehicle purchases in 2023, which creates a substantial opportunity for dealers who understand and serve diverse communities. He emphasized that consumers often choose businesses where they see themselves reflected, particularly at the ownership level. While minority dealers currently represent only about 6 percent to 7 percent of dealership operators nationwide, this gap Watson says presents an opportunity for manufacturers looking to expand their dealer networks. He adds that NAMAD’s annual conference serves as one of the few venues where OEM executives, prospective dealers and industry partners can meet face-to-face to explore ownership opportunities and strategic partnerships. Click here for the full interview.
Toyota to Move Tacoma Production to Texas in $3.6 Billion U.S. Expansion Plan
Toyota will spend $3.6 billion to bring production of its top-selling midsize pickup, the Tacoma, back to the U.S. by 2030, the Japanese automaker said Monday. The company plans to build a second assembly line for the Tacoma at the San Antonio plant where it currently assembles larger pickups and SUVs, adding 2,000 jobs, it said.Making more vehicles in the U.S. will help Toyota, the world’s top-selling automaker, defray a hefty tariff bill in its largest market, reports The Wall Street Journal. The company also needs more domestic capacity as it struggles to keep its U.S. dealers stocked with vehicles, said John Murphy, founder of advisory firm Murphy Automotive Partners. Toyota currently builds the Tacoma in roughly equal numbers at plants in Guanajuato and Baja California in Mexico. The Baja plant’s production will move to San Antonio when the expansion is complete in 2030, while the Guanajuato plant’s output will continue unaffected, the company said. Toyota declined to comment on its plans for the Baja plant following the Tacoma’s exit. The Tacoma, launched in the mid-1990s, has long been the dominant seller in the midsize truck space. Its sales consistently dwarf those of competitors like the Ford Ranger and Chevrolet Colorado. Click here for the full story.
New-Vehicle Payments, Financing Reaches New Heights Amid Affordability Concerns
Vehicle buyers are paying more than ever to finance their purchases with average monthly payments reaching a record $777 in the second quarter — the third consecutive quarter of increases, according to Edmunds. The rising cost of new vehicles — along with auto insurance and household goods — shows that affordability concerns remain for consumers and is an ongoing issue for dealers, reports Automotive News.“Because prices have increased so much in the new-car market over the past six years, this is the new reality of what’s happening,” said Jessica Caldwell, Edmunds’ head of insights.Consumers should consider the total cost of ownership, Caldwell said. The steep trends also make it more advantageous for dealers to bring up finances earlier in the buying process. It could prevent consumers from getting emotionally attached to vehicles they can’t afford, Caldwell said.“It works if the person can afford it and is approved for it … but if they’re not, then the experience is somewhat not as positive,” she said. The average amount financed for a new-vehicle purchase also reached a record: $44,156. Click here for the full story.
Defense Budgets Are Soaring. But Automakers’ March to Battle Comes with Risks
Automakers are exploring ways to support militaries around the globe as defense budgets surge, but they must contend with the muddy worlds of government contracting and strict certifications for tools of battle. “In the automotive sector, you’ve got standards and you get inspectors to make sure that your parts [and systems] are qualified. If you put that on steroids, you’d get the defense world,” said Jerry McGinn, director of the Center for the Industrial Base at the Center for Strategic and International Studies. “You’re dealing with lethal equipment; you’re dealing with people’s lives.”A pivot to defense makes sense for auto companies. The military sector is flush with cash and dealing with shrinking stockpiles. Automakers have deep experience with advanced manufacturing, and many have previously worked with defense departments. But today’s defense contracting and certification present new obstacles for automakers, including Ford Motor Co., General Motors, Mercedes-Benz, Renault and Volkswagen, that governments have tapped to help out with defense.Analysts told Automotive News the key to automakers’ success will be choosing manufacturing projects that require little departure from existing factory tooling and that will avoid extra compliance complexity. Click here for the full story.
U.S. Auto Theft Declines 23% Even as Smarter, Tech-Driven Schemes
Auto thefts in the U.S. have dropped by 23 percent in the last two decades, according to the National Insurance Crime Bureau. But thieves are increasingly using technology to find new ways to target vehicles through auto transport theft and VIN fraud, with dealers increasingly being victims, reports CDG.In June, the U.S. Attorney for the Southern District of New York, Homeland Security, and the New York City Police Department announced the indictment of 13 individuals for a crime ring involving approximately 100 stolen cars worth millions of dollars, which included creating fraudulent VINs. George Ripley, a veteran detective who is now first vice president of the Northeast Chapter of the International Association of Auto Theft Investigators, points out that this type of auto fraud for stealing vehicles is rising. Ripley said the VIN fraud likely will have multiple parties impacted, including some dealers. “So, you have five different people in play…but dealers up front have a lot of exposure,” Ripley said. Ripley understands the need for inventory on the used vehicle market. But he urges dealers to slow down and verify the VIN by checking the OBD-II port or alternative locations for VIN etching. Click here for the full story.
Around the Web
Subaru Isn’t Raising Prices on Any of Its Existing EV SUVs for 2027 [Car and Driver]
The NHTSA Just Deleted a 31-Year-Old Rule That Assumes Every Car Has a Driver [Carbuzz]
Drivers Shun Premium Gas in Favor of Regular as Prices Bite [Bloomberg]
Nissan Shifts Away from Fleet Sales to Rebuild Brand, Boost Dealer Profitability [CDG]