Featured Interview:
The automotive M&A market is reporting impressive activity, will this fast pace continue? – George Karolis, The Presidio Group
The second quarter of the year just kicked off and reports have shown there are no signs of sales slowing down in the retail automotive industry. This is driving more dealers to sell their stores and more buyers to enter the market. On today’s show, we’re pleased to welcome George Karolis, President of The Presidio Group, to discuss the latest trends in automotive acquisitions. Watch the full segment here.
Top Headlines:
General Motors is preparing to launch an all-electric Chevrolet Silverado. On Tuesday, GM confirmed that production of the electric pickup truck will begin late next year at the automaker’s Michigan plant known as factory zero. The announcement sent GM shares soaring to a record $62.42. Production of the Silverado EV is part of GM’s plan to invest more than $7 billion into electric vehicles and autonomous vehicle technology.
Michael Regan, administrator of the U.S. Environmental Protection Agency is looking to implement tougher greenhouse emission rules as early as July. The EPA and Biden administration are currently rewriting regulations from the Trump administration that loosened restrictions through the 2026 model year. In an exclusive interview with Bloomberg, Regan said, “we need to go as far as we can to meet the demands of the day. The science indicates we have a short window in time to reverse the path that we’re on and mitigate against certain climate impacts.”
The automotive buy/sell market is staying hot through the first quarter of 2021. Recently, Chief Automotive Group doubled its dealership count with the acquisition of Bay Cars in Panama City, Florida. The group bought the stores from Florida state Senator George Gainer.
Stoler Automotive Group added two Lexus dealerships, both located in New York. The stores were purchased from John Staluppi’s Atlantic Automotive Group. Terms of the deal were not disclosed from either transaction. Staluppi Auto Group, which includes Atlantic Automotive, ranks number 12 on Automotive News’ list of the top 150 dealership groups in the U.S., retailing 41,669 new vehicles in 2020.
The used-vehicle sar continues to rise as franchise dealers continue to manage tight new-vehicle inventory. According to Cox Automotive estimates, total used-vehicle sales were up 117% year-over-year in March. Cox Automotive’s used retail SAAR, which only looks at used vehicles sold by franchise or independent dealers, is up to 22.2 million, up from 9.8 million last year. Jonathan Smoke, Chief Economist for Cox Automotive, tweeted that wholesale used vehicle prices based on the — index increased 5.9% in March, leaving the index up 26.% year-over-year.
News & Opinion:
General Motors adds Silverado to list of electrified pickups
On Tuesday, General Motors president Mark Reuss announced that an all-electric Chevrolet Silverado will be added to the model lineup. The pickup truck is expected to have a range of more than 400 miles on a full charge and could be the first entrant into the EV pickup segment at an enticing price for mainstream buyers. The announcement comes sparse on details for the Silverado EV, but it is confirmed that the truck will be built on the Ultium battery system. It will not be an electrified powertrain fitted into a chassis intended for a gas-fueled or diesel-powered model and will be engineered as a standalone model. Read more
Study finds interesting correlations between in-car tech and demographics
Years ago, in an OEM new product launch focus group, a manufacturer found out that 80% of the consumers were more interested in the SUV’s interior appointments – especially the touch screen – than they were the vehicle’s exterior. When asked why, the answers were all along the same line: “I spend lots of time inside my car driving, and I want it to be as nice as it can be. I don’t look at the outside. The inside reflects me.” So, it comes as no surprise that a recent study funded by entertainment and device maker Xperi showing how consumers place a high value on in-dash infotainment. It’s even more interesting because of the type of consumer. Read more
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