CBT automotive newscast: February 1, 2021

Today’s Featured Interview:

Has Vroom taken its Super Bowl commercial too far this year? – Joe Chura, Andy Guelcher, & Doug Miller
Online retailer Vroom has released its new Super Bowl ad and has created a lot of controversy among auto dealers across the country. Recently, Dealer Inspire CEO, Joe Chura, spoke out against the ad’s condescending message towards auto dealers. On today’s show, we’re tackling this hot button issue further with Chura, Andy Guelcher, Dealer Principal at Mohawk Chevrolet and Mohawk Honda, and Doug Miller, CRO of Cars.com. Watch the full segment here.

Top Headlines:

General Motors has officially set its date of ending production of gasoline-powered vehicles. Last week, the automaker announced that it would only offer electric vehicles by 2035. Plans to only sell EVs is a major step in GM’s goal of becoming completely carbon neutral by 2040. The company’s announcement comes only a day after president Joe Biden signed a series of executive orders that prioritize climate change across all levels of government. In a message on LinkedIn, CEO Mary Barra said, “for General Motors, our most significant carbon impact comes from tailpipe emissions of the vehicles we sell – in our case, it’s 75%. That is why it’s so important that we accelerate towards a future in which every vehicle we sell is a zero-emissions vehicle.”

Washington State lawmakers are considering a shift that would make all new vehicle sales electric-only by 2030. State Representative Nicole Macri is a big advocate of the proposed plan. Last week Macri said it was important to set an ambitious date that would accelerate the transition to EVs and reduce tailpipe pollution. The pending bill was assigned to the Statehouse transportation committee where it awaits a public hearing on February 1.

Hyundai is hesitant to become the manufacturer of the new Apple car. Company executives have been divided for weeks over the potential partnership with the tech giant, leading many to believe the deal could completely fall through. Apple has never acknowledged talks with Hyundai about building vehicles, and it’s been unclear whether serious negotiations are still taking place. According to sources close to the situation, the two sides started discussing a potential partnership in 2018, when Apple was working on a vehicle design called, “Project Titan”.

The North American International Auto Show is targeting September 2022 for reviving the Detroit Auto Show. The June 2020 show was originally canceled due to the ongoing coronavirus pandemic. The show was then rescheduled for September of 2021. However, the show was moved once more after Rod Alberts, executive director of the Detroit Auto Dealers Association and NAIAS, told the governing board of the TCF Center in Detroit that the event had to be canceled due to the financial risk of the virus affecting the show. NAIAS will now target 2022, hoping that vaccine distribution this year will help return a sense of normalcy to the automotive event schedule.

News & Opinion:

General Motors pledges to be electric only by 2035, carbon neutral by 2040
On Thursday, General Motors announced their pledge to become a carbon neutral company across their global operations by the year 2040. To that end, the North American carmaker also plans to sell EV-only models by 2035, ditching the oil-dependent gasoline and diesel-powered vehicles that dominate their lineup. The pledge for carbon neutrality over the next two decades fits hand-in-hand with the Business Ambition Pledge for 1.5⁰C, a United Nations-backed initiative to “reduce emissions in line with the Paris Agreement goals”. General Motors has signed onto the Business Ambition Pledge as of January 2021. Read More

Lithia Motors set to acquire Detroit-based Suburban Collection
A source close to the situation told CBT News that Lithia Motors, one of the nation’s fastest-growing public automotive companies, is in talks to acquire Michigan-based Suburban Collection, pending board and stakeholder approval. Sources say they expect the acquisition could be completed by the Summer of this year. Currently, Lithia Motors boasts 206 locations, nationwide and an acquisition of this size could bring that total to 258 stores. The Suburban Collection is comprised of 35 automobile brands in 52 locations throughout Michigan, California, and South Florida. Read More