Automotive dealers across the country saw gross profits rise in 2020, as new vehicle demand remained high and inventories dwindled off the lot. Recently, we spoke with Liza Borches, President and CEO of Carter Myers Automotive, to hear her take on the overall health of the automotive industry, and where gross profits are headed in 2021.
CMA had a great year of business in 2020, and Borches expresses her gratitude while also lamenting the Americans who faced hardships and struggles over the past year. The 700 associates at Carter Myers were able to provide exceptional service for customers throughout 2020, and the group is set up to serve even more people in 2021.
While many dealers thought new car inventory would start to ramp up again, the recent global shortage of semi-conductors has halted production once again. Borches says that although inventory started to gain momentum in Q4, CMA still did not have enough inventory to feel comfortable, especially when it came to trucks.
Borches says, “I think we’re going to be in a new car inventory, somewhat of a shortage, for quite a bit of 2021. That’s going to bode well for gross profit numbers. It’s going to bode for used car values.”
In this segment, Borches and anchor Jim Fitzpatrick also discuss the rise of digital retailing, the effects of climate change policy and electrification, as well as the need for more diversity and inclusion in auto retail.
Liza Borches is a fourth-generation President and CEO at Carter Myers Automotive, which operates 16 dealerships and 17 brands across the state of Virginia. Borches is also the recipient of the 2020 Barbara Cox Woman of the Year Award presented by Cox Automotive and a member of the Board Of Directors for the Virginia Auto Dealers Association.
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