Record-breaking car prices, GM recall, Stellantis factory closure

Inside Automotive

How to better drive customer engagement with DriveCentric’s Steve Roessler
On today’s show we’re pleased to welcome back Steve Roessler, DriveCentric’s Chief Evangelist Officer, to walk us through data management and engagement management. Watch full segment here.

Headlines

New-car prices have skyrocketed to an all time high of $48,681 after a tumultuous year for the auto industry. Automakers are charging more than ever to cover staggering production costs, however the increased price tags have seemingly failed to plug losses. According to November’s Cox Automotive reports, automaker’s sales numbers are down across the board from 2021, while retailers are expecting the market to perform even worse in the coming months. Although dealerships have tried to lure buyers with low markups and generous after-sale benefits, most consumers are simply choosing to wait for better deals. Although there are some signs of a market normalization, it remains unclear when the industry will return to pre-COVID levels. Read More

General Motors is recalling over 825,000 units after discovering a software issue causing headlights to malfunction. According to the National Highway Traffic Safety Administration, daytime bulbs on certain models may remain on when switching to the main headlights, making them much brighter than intended. The intense glare can obscure the vision of other nighttime drivers, running the risk of accidents. Included in the recall are Cadillacs, Chevrolets, Buicks and GMC SUVs. Owners will be able to fix the issue with a software update either at home or at a dealership, once GM contacts the affected drivers in January. Read More

Citigroup has given Carvana a neutral stock rating, despite disagreement among investment firms on the auto-retailer’s future. 2022 has been an increasingly difficult year for the company as consumer interest in used-vehicles has waned, leaving the company with high-debt and low revenue. While its shareholders are worried, analysts from banks such as Morgan & Stanley and Bank of America have refused to predict a collapse, believing that it still has recovery options. Citigroup noted that a “normalized” market, without supply chain issues or financially struggling consumers, could help Carvana return to its original status as a major car seller. Regardless, if its financial troubles aren’t addressed soon, experts warn the company could be bankrupt by late 2023. Read More

Stellantis is shutting down its sole Jeep Cherokee plant, although it claims to be researching alternative uses to reopen its doors in the future. The factory, located in Illinois, has struggled to maintain production of the SUV for several years due to labor shortages and supply issues, even after the automaker reduced production as a result of poor sales. While the United Auto Workers Union and Stellantis are debating the 2023 closure, if it resumes production the plant will likely return as an EV facility, thanks to new tax credits from the state incentivizing electric car manufacturing. For now, however, the factory is scheduled to close in February, laying off roughly 1,350 workers. Read More

News & Opinion

5 SEO strategies to boost your dealership’s web engagement
About 53% of mobile and desktop users click on organic search results rather than paid ads, according to BrightEdge Research. Since we know this, car dealership owners and marketing specialists should focus on providing SEO-based content to increase website views and engagement organically. Read More

5 creative social media content ideas for your dealership
Are you looking for creative ways to market your automotive dealership on social media? If you have a social media presence, it’s easy to run out of content ideas. So, let’s look at five social media content ideas to get your customers talking. From fun giveaways to stories from the showroom floor, read on for inspiration to help regenerate your car dealership’s social media presence. Read More

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