Inside Automotive:
Chief Economist Jonathan Smoke breaks down findings from Cox Automotive’s Q2 Dealer Sentiment Index
Cox Automotive recently released its Q2 Dealer Sentiment Index, which provides a current view of dealer sentiment and looks ahead to the next 90 days. The study reveals that COVID concerns are mostly in the past, but inflation, high costs, and low inventory continue to challenge dealers. Today on Inside Automotive, we’re pleased to welcome Jonathan Smoke, Chief Economist at Cox Automotive, to further discuss the Q2 Dealer Sentiment Index. Watch the complete segment here.
Headlines:
Two companies so far, General Motors and Tesla, have exceeded the 200,000 electric car limit established by the federal government for tax incentives. More and more car companies are urging Congress to remove the cap to encourage consumers to purchase electric cars. With this cap, car companies are struggling to keep electric car prices low enough for the average consumer.
General Motors Chief Executive Officer Mary Barra is making headlines as she makes large moves in the automotive industry. Even with gas prices on the rise, General Motors is expanding its production of SUVs and pickup trucks with further investments in North America and China along with an increase in electric cars.
One next energy, a Michigan state-based startup, has produced a long-range battery. BMW is wasting no time and is currently in the process of testing the battery in their german iX SUV. The battery is expected to last up to 600 miles before its next charge. There are currently three sizes and price points for the long-range battery.
Inflation is not ending anytime soon. The rate of inflation jumped recently, sharply affecting the wholesale industry. On average, wholesale prices have increased 6.8% since this year’s beginning. As wholesale prices increase for both partially completed products and raw materials, inflation rates will only increase with it.
News & Opinion:
5 tips to outperform your competitors in the online marketplace
When buying a car, today’s consumers have more choices than ever. They can buy from a traditional dealership, an online-only marketplace, or even directly from a manufacturer. With so many options available, it’s no wonder dealerships are feeling the pressure to compete. Traditional dealerships can compete with online-only marketplaces by offering a better customer experience, financing, trade-in options, and a more comprehensive selection. These are just a few of the many ways that dealerships can outdo the competition. Read More
Study finds Americans are driving less as gas prices soar
California’s price for a gallon of regular unleaded gasoline hovered around $6.42 per gallon on Tuesday, the highest fuel price in the country. The national average has broken the $5 per gallon plane and is now the highest recorded average in the US, and there’s no expected break on the horizon for drivers. Initially, drivers were uninclined to change their habits in the face of rising fuel prices, but that now appears to be changing. According to the latest Hankook Tire Gauge Index, more than three in four motorists say that “rising gas prices are now impacting daily driving.” Following nearly two years of restrictions due to the pandemic and immense upward pressure on costs for new and pre-owned vehicles, the hope of returning to normalcy has been pushed further down the road. Read More
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