CBT automotive newscast: August 31, 2021

Featured Show:

Brian Pasch discusses surprising results from latest Google SEM Report
Are Google results inflated? That’s the question Brian Pasch Enterprises has explored with its new BPE Report: Exposing the Outcomes of Google SEM Campaigns. Pasch joins the show today to discuss some surprising findings and unexpected outcomes from this latest study. Watch the complete segment here.

Headlines:

Ford Motor Company’s strategy for its up-and-coming releases, has experts wondering if the Detroit automaker will become a leader in EVs. Ford’s plans include a combination of new and redesigned electric, gasoline, and hybrid models in 2023, with an expansion of the Fordpass App and over-the-air updates to improve vehicles after purchase. Along with the Explorer EV, ford will offer an electric Lincoln Aviator. The Expedition and Lincoln Navigator will get hybrid models within a few years as part of expected redesigns. CEO Jim Farley said, “The primary advantage we have right now is the strength of our product portfolio. And it’s about to get a lot stronger.”

Nvidia’s proposed purchase of British chip designer, Arm, has raised several eyebrows including Tesla CEO, Elon Musk. Nvidia, the world’s biggest maker of graphics and AI chips, announced a $54 billion purchase of Arm last year, which has since sparked backlash in the semiconductor industry. Tesla’s self-driving chip uses Arm processors. Samsung and Amazon have also protested against the deal with the U.S. authorities. Earlier this year, the U.S. Federal Trade Commission opened an in-depth probe into the takeover. Nvidia expects to close the Arm acquisition by march 2022, after striking a deal with Japan’s SoftBank Group in September 2020.

Electric truck maker Rivian has filed the paperwork to become a publicly-traded company. Bloomberg reports that Rivian is seeking a valuation of almost $70 billion and the IPO could happen around Thanksgiving. The EV company has reportedly been increasing production nationwide. Last month, the company closed a $2.5 billion funding round led by Amazon, Ford, and T. Rowe Price. Since 2019, Rivian has raised about $10.5 billion. The company will be building trucks at a plant in Normal, Illinois, which it purchased in 2017 for $16 million. They also plan to open about 40 new roles, with “more on the way.”

In other EV news, Daniel Ninivaggi, the new CEO of Lordstown Motors, is focusing on having a successful rollout of its pickup truck with strict regulatory scrutiny. Ninivaggi told Reuters, “Job number one is to make sure we stay on track from a production standpoint.” The Ohio-based startup is working to produce the endurance truck and raising more funds. The company said a hedge fund had committed to purchasing up to $400 million of the startup’s shares over a three-year period.

News & Opinion:

5 areas where dealers can communicate better with customers
About 90% of loyal dealership clients are still going to consider another brand when the time comes to get a new vehicle. Even if you are doing everything right, you might lose a customer. However, if you aren’t communicating with your audience, you have a much higher chance of them going elsewhere. That’s why you want to focus on these five areas where dealers can communicate better with customers. Read more

JD Power and LMC Auto release automotive forecast for August
Last Thursday, JD Power and LMC Automotive released their projections for August 2021. Their joint assessment showed that sales are likely to see a significant drop from August 2020 and even more so from August 2019. Specifically, when adjusting statistics to even outselling days, new vehicle sales are projected to drop 14.3% from August 2020 and 21.6% from August 2019. Overall, JD Power and LMC Auto expect total sales to be 987,100. Read more