Featured Interview:
Experian’s Melissa Zabritski shares key insights into the state of automotive finance
Total open loan balances are on the rise, according to Experian’s Q1 2021 State of the Automotive Finance Market Report. So what does this mean for car dealers? Joining us today, is Melinda Zabritski, senior director of automotive financial solutions for Experian. She discusses key findings from the Q1 2021 State of the Automotive Finance Market Report, and the outlook for Q2. Watch the complete segment here.
Top Headlines:
Ford Motor Company announced that it will be shutting down some of its North American factories for a few weeks this month due to the global chip shortage. Experts estimate that this will cut Ford’s vehicle production in half and cost about $2.5 billion dollars in Q1. The Detroit-automaker will also temporarily shut down its Michigan assembly plant which is currently shipping the new Bronco SUV, due to a short supply of certain auto parts unrelated to the chip shortage.
Several automakers including Hyundai, Toyota, and General Motors have released their sales numbers for Q2. For Hyundai, June sales rose 45%, setting a new monthly record. General Motors reported a 40% gain and 688,236 deliveries for the quarter. Toyota saw a big jump in sales, up 57%, and deliveries for Kia hit a June high of 68,486. Other automakers are expected to release their second-quarter or June numbers later on today.
Volvo cars is considering plans to make an initial public offering by the end of the year, Reuters reports. The Swedish carmaker has laid out a plan to become a fully electric brand by 2030, and that plan includes selling 600,000 battery electric vehicles by mid-decade and building a European gigafactory in 2026. Next year, the automaker will unveil the first of its new-generation EVs.
General Motors is creating a $25 million climate equity fund that focuses on shrinking disparity gaps as the auto industry moves to an all-electric future. GM says it has four areas of focus for equitable climate actions including, the future of work, EV access, infrastructure equity, and climate equity. The Detroit automaker is looking for opportunities in clean energy, job skills, and community solar projects to help increase awareness.
News & Opinion:
Average transaction price for used cars hits an all-time high
For the first time, the quarterly used Average Transaction Price (ATP) has reached $25,410 in the US, according to Edmunds data. It’s no surprise to anyone in the auto retail industry that used vehicles are selling for more than ever, but the increase is likely more than any analysts saw coming. Comparatively, ATP for used cars in Q1 2021 came in at $22,977. Q2 2021’s figures mark a quarterly increase of more than 10%, and more than 21% higher than Q2 2020’s $20,942. Read more
This is a MUST DO list for maximum fixed ops performance
Everyone needs a job description of their job that outlines what is expected and the actions you will need to execute to succeed in that job. That said, what are the MUST DOs for maximum performance? Along with the list below, as a consultant, trainer, and coach, I also have detailed daily, weekly, and monthly lists that outline all of the activities expected for a job function in fixed ops. Below, are the basic things I feel must be done regarding coaching your retail process by service and parts leadership each and every day. Read more
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