CBT automotive newscast: December 8, 2021

Inside Automotive:

3 essential questions business owners need to ask about their marketing plans
Are you struggling to effectively market your business? If so, Mike Michalowicz, serial entrepreneur, leader of two new multi-million-dollar ventures, and author, recommends asking yourself three critical questions which can be found in his latest book titled, Get Different: Marketing that Can’t Be Ignored. Mike joins us now to reveal what these questions are and how you can best market yourself to stand out amongst your competition. Watch the complete segment here.

Headlines:

BMW has sold its one-millionth EV, including purely electric and hybrid vehicles. The German automaker aims to reach two million purely electric vehicles by 2025. Board Member Peter Nota states that around 70% of EVs sold so far were hybrids. The automaker forecasts at least 50% of its global sales to be fully electric by 2030.

LG Energy Solution aims to raise almost $10.7 billion, in what is considered South Korea’s biggest-ever initial public offering, amid concerns over fires involving its batteries that led to a mass recall of Chevrolet Bolt EVs. The company will issue 34 million new shares. Parent company LG Chem Ltd. Will sell 850,000 shares, bringing the total to 42.5 million. The offering could give LG Energy a market value of $59 billion. Trading will begin on January 27.

Stellantis and manufacturer Foxconn plan to partner together to design purpose-built semiconductors that will eventually cover 80% of Stellantis’ needs. The automaker is forecasted to earn $22.5 billion in profits from software-enabled product offerings and subscriptions by 2030. CEO Carlos Taveres said, “Stellantis aims to create four new families of chips and modernize its components, reduce complexity and simplify the supply chain.” The microchips are expected to be installed in vehicles starting in 2024.

Ford is pushing its return-to-office date to march for salaried employees due to concerns over new COVID-19 cases. This decision affects around 30,000 employees. The automaker says it will begin with a pilot phase for select employees in February and will expand in March so all non-site-dependent team members can begin working between Ford campuses and remote options.

News & Opinion:

Asbury Automotive Group adds eight more storefronts in Stevinson acquisition
The M&A activity continues at a feverish pace in the automotive sector, and Asbury Automotive Group is making yet another acquisition. They’ve completed the purchase of Stevinson Automotive, a group of eight dealerships in the Denver, Colorado area. The acquisition adds another $715 million in expected annual revenue for Asbury. Stevinson is a family-owned and operated dealer group with six franchises, Toyota, Lexus, Porsche, Chevrolet, Hyundai, and Jaguar. They currently have two Toyota and Lexus storefronts each in the Denver area, and all the dealerships are included in the sale. Also included is an open point for a Land Rover dealership. Read more

Data analytics in F&I – Remember, humans are behind the numbers
When dealerships use data to take a more granular look at how the different departments are performing, it can uncover a lot – positive and negative. How much of a margin is held in sales? What is the average RO in service? Are parts personnel pricing for proper margins vs. local suppliers? Data is critical to getting a snapshot of what’s working and what’s not. But there is one department where you must temper the objective and cold effect of data with the real-world expectations of human behavior…F&I. Your F&I staff has arguably the most intense level of pressure to deliver every day for the dealership. Read more