CBT automotive newscast: June 25, 2021

Featured Interview:

How Serra Automotive is positioning itself for an even more profitable future
Serra Automotive ranks among the top 10 privately-held retail automotive groups in the nation. With 51 car dealerships, representing 63 auto franchises, our guest today certainly has his finger on the pulse when it comes to popular emerging trends in the car business. Joining us now is the President of Serra Automotive, Joe Serra. Watch the complete segment here.

Top Headlines:

According to recent data from Cox Automotive, used-vehicle list prices have reached all-time highs. Factors include stimulus checks and inventory shortages. Dealers are now challenged with finding older model vehicles with low mileage, and in good condition. Due to ongoing supply shortages, Cox predicts that these issues won’t noticeably change for another three to four years, as more vehicles go into the used-vehicle market.

General Motors and Shell are joining forces to provide free or reduced energy rates to EV owners. With low costs, owners will be able to charge their electric vehicles overnight. The automaker plans to invest $35 billion in its EV programs, which is a surge of 75% over GM’s pre-pandemic target. According to CEO Mary Barra, the goal is to have at least 40 BEVs in production by mid-decade with gm going completely electric by 2035. While Shell profits come from petroleum, General Motors is shifting into renewable alternatives and has plans to become a net-zero emissions energy business by 2050.

While companies are transitioning from gas-powered vehicles to EVs, global electric vehicle sales are predicted to outpace ICEs by 2033. This comes five years earlier than previously expected. The U.S. currently trails behind other countries in EV sales due to rollbacks in fuel-economy regulations during former President Trump’s administration. Since President Biden has taken office, his proposed $174 billion investment in EVs is already started to impact the market. Gas and diesel vehicles are still forecasted to make up around two-thirds of vehicle registration in 2025. By 2030, Ernst & Young predicts that non-EV cars will account for less than half of the overall light-vehicle registrations.

According to a new study by CarGurus, 34% of new car shoppers expect to own an autonomous vehicle within the next decade. While some consumers are optimistic about autonomous technology, others are more focused on helpful technology, while still maintaining some control. Ongoing testing by several companies aims to help raise customers’ comfort levels.

Toyota Motor Company is doing away with mask requirements for some U.S. workers start next month. Employees who don’t wear masks will be required to provide proof of vaccination. Company executives said, “during the pandemic the company achieved equal or increase efficiencies while employees worked remotely.” Toyota plans to continue to offer remote work to improve its recruiting and retention strategies. The automaker is still offering a $100 incentive to all U.S. employees who provide proof of vaccination.

News & Opinion:

Americans spend nearly $5k per year on car payments. Here’s why it matters.
In the US, the average household carrying an auto loan spends $412 per month on payments, according to a doxoINSIGHTS US Auto Loans Market Size and Household Spending Report issued Thursday. For the year, the mean auto loan spend is $4,944. That data might not be much of a surprise for dealerships and salespeople, yet it gives a glimpse into real-world spending habits for the general population. In addition to loan payment amounts, the doxoINSIGHTS report indicates that nearly three-quarters of American households (73%) pay auto loans. For clarity, ‘auto loans‘ refers to monthly payments including financing and leasing agreements. Read more

7 ways to stop managing your time and start maximizing it
Have you ever felt like there wasn’t enough time in a day? Of course, we all have! What if we maximized every minute of our day versus trying to manage it? The difference? View time maximization as outcome-oriented and time management as an activity. Time management is often about fitting more things in a certain time frame whereas time maximization is about getting the most out of the activities we do in a day. There are multiple ways to maximize the time we have in a day.  Here are seven effective strategies that will help you get more out of your time. Read more