CBT automotive newscast: April 5, 2021

Featured Interview:

PA Dealer Pres. Peter Cooper on the takeaways from a better-than-expected Q1
The first quarter of 2021 outperformed dealer expectations and market predictions. Today on CBT News, we’re pleased to welcome Peter Cooper, President and CEO of Lexus of Lehigh Valley, to discuss the first quarter for his Lexus store and his thoughts on the EV revolution. Cooper begins the conversation by reflecting on the first quarter of 2021. He says that Q1 was much better than what most dealers were expecting. Despite challenges with inventory and inclement weather in big markets such as Texas and midwestern states, 2021 got off to a record-breaking start. Watch the full segment here.

Top Headlines:

Automakers are reporting strong vehicle sales driven by consumer demand in the first quarter despite ongoing shortcomings with semiconductor inventory.

• General Motors posted a retail sales jump of 19% in Q1
• FCA’s two biggest brands, Jeep and Ram, posted gains of 8% and 16%, while Stellantis retail deliveries were up 25%
• Toyota saw a surge in March, powered by an 84% jump in its Toyota division and 113% gain at Lexus
• Honda USA posted strong numbers with March volume rebounding 86% at the Honda division and 153% at Acura
• Subaru set a March sales record of 65,726 units, up 102%
• Hyundai also experienced a dramatic jump, soaring 115% to 75,403, including a monthly record for retail deliveries. Sales for Hyundai rose 28% for the quarter

CarMax said that first-quarter sales were heavily impacted by severe weather and a surge in new COVID-19 cases, as the used-retailer posted higher sales and lower profits. CarMax’s net sales and operating revenue grew 4.1% to $5.16 billion, while net earnings fell 2.3% to $209.9 million. Total used-vehicle sales slightly dropped 0.9%, while same-store sales fell 2.3%.

Yark Automotive Group has acquired Kistler Ford in Toledo, Ohio. Terms of the deal were not disclosed though it was announced that the dealership’s name would be changed to Yark Ford. The transaction brings Yark’s rooftop total to six in the Toledo market and eight overall.

News & Opinion:

Manage customer’s F&I time expectations with 3 simple strategies
One of the most delicate balancing acts in the sales process is dealing with the amount of time it takes to actually deliver the car to the buyer. Dealership personnel often don’t realize how laborious this part is for the buyers, from coming to the store, choosing the car or truck, dealing with add-on’s, the time in F&I to execute paperwork, and more. Unless you have recently done this yourself as a buyer, you have no clue what it feels like. Read more

National Car Care Month brings focus back around to safe driving
April is National Car Care Month, an initiative organized and funded by the Auto Care Association. The campaign is very timely this year, coinciding with loosening of restrictions that find more drivers on the road than the same time last year, during the throes of the COVID pandemic. The Car Care Council aims to provide expert advice and encourage car owners to treat their cars properly to increase safety and efficiency. Hankook Tire’s most recent Gauge Index discovered that two-thirds of Americans now drive their vehicles “at least a few times per week”, more than doubling the 31% from April 2020. Read more