CBT automotive newscast: January 6, 2021

Today’s Featured Interview:

How dealership teams can come together and thrive under difficult circumstances – Mike Robbins
As business leaders, dealers are constantly looking for ways to build strong cultures of high performance, trust, and belonging. Mike Robbins, speaker, coach, and former professional baseball player, addresses these concepts in his latest book, We’re All in this Together. Robbins joins us on today’s show, to discuss what automotive leaders can do to set goals for themselves and their teams in 2021. Watch the full segment here.

Top Headlines:

The recovery of the auto market will be largely aided by the demand for higher-priced vehicles. According to Bloomberg, car buyers are continuing to trade up for more expensive rides. Sports utility vehicles and pickup trucks are on track to make up 79% of total sales in 2020. The rise in average transactions has come at a much-needed time for the auto industry as dealers have been strapped by scarce inventories and fluctuating customer sentiment. Analysts believe average transaction prices rose in December by 9% and could continue to stay high as the market shifts to higher-priced vehicles.

A federal judge in California is moving the case against former Reynolds & Reynolds CEO Bob Brockman to his home in Houston, Texas. Brockman is currently facing charges of tax evasion, wire fraud, money laundering, and evidence tampering. U.S. District Judge William Alsup granted the motion to move the case originally filed by Brockman’s attorneys back in November based on factors such as Brockman’s residence and current medical conditions.

Jobless claims surprisingly declined by 19,000 last week. According to the Labor Department, the number of people filing for unemployment benefits dropped for the second week in a row. While these numbers show improvement in the job market, over 19.6 million Americans are still receiving some form of benefits across all unemployment programs. Many analysts believe the data will improve once the rollout of the COVID-19 vaccine gains momentum. The U.S. is currently recording at least 181,998 new cases each day based on Johns Hopkins University data.

Much like the auto industry, the combination of strong demand and limited supply have pushed home prices up by 7.9% compared to a year ago, marking it the largest annual increase in over six years. The pandemic has played a major role in consumer activity as many new home buyers have entered the market looking for homes with space to workout and room for a home office. While the pandemic has caused many consumers anxiety, it hasn’t prevented them from making major purchases such as homes or vehicles.

News & Opinion:

J.D. Power finds sales satisfaction increases due to pandemic tools
The technology and tools that dealers were forced to quickly adopt in the spring due to the COVID-19 pandemic are largely responsible for an uptick in customer satisfaction during the sales process. That’s what the J.D. Power 2020 US Sales Satisfaction Index (SSI) Study determined. For the 35th annual edition of the study, J.D. Power has revamped it to focus more on modern techniques like digital retail tools and remote buying capabilities. Those touchpoints include the ability to choose a vehicle from a dealer’s online inventory, obtain financing approval and review R&I products online, remote negotiations and paperwork. Read More

Get them fired up for the game!
When football coach Tom Allen was hired as the Indiana University defensive coordinator in 2016, he inherited a mess. The defensive squad was ranked No. 120 in the nation in total defense and No. 106 in opponent points scored. One season later, the Hoosiers were rated as the most improved team nationally in total defense and passing defense. When head coach Kevin Wilson unexpectedly quit, Allen was tapped to take over. In the four seasons he’s led IU, the program went from being aggressively average (in good years) to being nationally ranked in 2020 — the first time that has happened in more than 50 years. Read More