Weekly roundup: Carvana aims to trim debt under new agreement, Fords slashes price for F-150 Lightning

Earlier this week: Carvana, the used-car mega-retailer, revealed its second-quarter earnings and also announced a significant agreement to reduce its total debt by over $1.2 billion. Meanwhile, Ford made a bold move by lowering the price of its electric F-150 Lightning truck, attributing the decision to successful manufacturing improvements and cost reductions in battery materials. Furthermore, Cox Automotive conducted an analysis of vAuto Available Inventory data and reported that the used-vehicle market has shown signs of stability, and more headlines to stay on top of this week in automotive industry news.

1. Ford reveals significant price cuts for all of its electric F-150 pickup variants

On July 17, Ford lowered the price of its electric F-150 Lightning truck, claiming that its efforts to increase manufacturing and reduce the cost of battery materials had been successful. Ford claims to be nearing completion of a significant update to its Rouge Electric Vehicle Center in Michigan, which will soon allow the factory to increase its output of the F-150 Lightning. Ford can now lower the price of all F-150 Lightning variants thanks to this level of scale and declining raw material costs, bringing MSRPs closer to the figures initially predicted when the electric pickup first appeared. Read More

2. Lithia sells 3 dealerships, Young Auto Group expands into Montana

The summer heat has ignited a wave of merger and acquisition (M&A) activity in the automotive industry. As the temperature rises, so does the excitement surrounding notable deals that unfolded in June and July. Get ready to explore the dynamics of key industry players as they forge strategic partnerships and accelerate the growth and success of their dealerships. John Elway Dealerships purchased Bentley of Denver-Lotus from Lithia on June 8 and has reportedly moved the dealership from Highlands Ranch, Colorado to Lone Tree, Colorado. Read More

3. Carvana announces Q2 earnings, reaches debt restructuring agreement

On July 19, used-car retailing giant Carvana released its second-quarter earnings and announced an agreement to reduce the company’s total debt by over $1.2 billion. In a statement, Carvana said the agreement will “eliminate more than 83% of Carvana’s 2025 and 2027 unsecured note maturities and lower required cash interest expense by over $430 million per year for the next two years.” In a separate public filing on Wednesday, Carvana revealed its plans to raise capital and restructure operations by selling up to $1 billion in shares. Read More

4. Used vehicle inventory: prices stabilize as sales rise

According to a Cox Automotive analysis of vAuto Available Inventory data, the used-vehicle market has lost some volatility during the pandemic and chip shortage, with inventory and prices remaining relatively stable. By the end of June, there were 2.22 million unsold used cars and trucks on licensed and independent dealer lots around the U.S. Compared to last year, sales were down 10%, or 241,000 units, but were up from the revised 2.12 million at the end of May. Read More

5. Tesla sees stagnating profits in Q2 even as electric vehicle revenues rise

Tesla once again beat earnings forecasts in the second quarter but struggled to sustain profitability on its increasingly discounted electric vehicle lineup. The electric vehicle brand reported $24.93 billion in revenue for Q2, slightly over the maximum $24.22 billion expected by analysts. The amount represents a 47% increase over the year before and a 6.8% increase compared to the first quarter. Tesla has now seen earnings improve on a quarterly basis for more than a year. Read More

6. The 2023 auto market: a look back at the first six months — Patrick Manzi | NADA

The U.S. auto market saw an uptick in sales and inventory over the course of 2023, as dealers and car manufacturers made progress in clearing post-pandemic hurdles. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Patrick Manzi, the chief economist for the National Automobile Dealers Association, to offer more insights into the car industry’s performance and where this may lead in the coming months. Watch now

7. Understanding the sales process: how to close more deals — Sean Gardner | Joe Verde Group

Closing is a critical step in the sales process, and having a technique that works almost every time can make things much easier on the floor. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Sean Gardner, instructor and sales trainer at the Joe Verde Group, to discuss the best methods for winning over hesitant customers. Watch now

8. How to successfully recruit the best people for your dealership — Anthony Santangelo | Auto Max

Securing the right talent is crucial to the success of a dealership. So on this edition of CBT Now, we will spend some time exploring the interview process and how to make an offer to a candidate. We’re pleased to welcome back Anthony Santangelo, National Sales Recruiter and Trainer with Auto Max, to provide his insight and tips on recruiting in today’s market. Watch now

9. Enhancing fixed ops performance with BDC software — Ujj Nath | myKaarma (Sponsored Content)

It is important to partner with the right vendors, especially when it comes to entrusting your dealership’s fixed operations to a business development company or BDC. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Ujj Nath, the chief executive officer for myKaarma, an industry-leading communication and payments operating system, to discuss the efficiency-boosting effects of technology on BDCs. Watch now

10. Optimizing GA4 to improve the overall client experience — Kevin Frye | Jeff Wyler Automotive Family

The shift to Google Analytics 4, or GA4, is at the forefront of many marketers’ minds. On today’s Inside Automotive, we’re joined once again by the Marketing Director of Jeff Wyler Automotive Family, Kevin Frye, to tell us what we need to know, and we’ll also get his take on some of the unique ideas he’s seen thus far. Watch now