CBT automotive newscast: June 28, 2022

Inside Automotive:

How the auto industry can create more career paths for the LGBTQ+ community – Richard Herod III
Welcome to another edition of Diversity in Automotive. Ensuring a diverse and inclusive workplace is one of the wisest things you can do as a manager or car dealer. This June, as Pride is being recognized and celebrated around the country, we want to discuss LGBTQ+ representation, or the lack thereof, in retail automotive. We’re pleased to welcome Richard Herod III, General Manager and Owner of White Bear Mitsubishi and the Chairman of the Mitsubishi National Advisory Board, to share his perspective on LGBTQ+ representation in the industry. Watch the complete segment here.

Headlines:

At the end of last week, CarMax stock prices soared and exceeded analyst expectations due partly to strong used car values and decreasing supply. The used vehicle retailer reported $9.3 billion in sales earnings per share of $1.56. Average used car prices jumped 28.% by roughly $6,300, and gross profit per unit rose $134. In a recent earnings call, CEO Bill Nash stated, “While the used vehicle market environment was challenging in the first quarter, we continued to make progress on the key strategic priorities that enable CarMax to grow profitable market share.”

According to a proposed draft seen by Reuters, the country of Japan is expected to remove verbiage regarding zero-emission vehicles from a G7 communique this week. Japan is facing criticism for being too slow to go ‘green’ with zero-emission vehicles. The CEO of Toyota reportedly pressed the Japanese government last week to make it clear that it supported hybrid vehicles just as much as battery electric vehicles with zero emissions.

Electric vehicle users leasing the Ford Mustang Mach-E, F-150 Lightning, and e-Transit after June 15 will not be allowed to buy the vehicles after the leasing period is over. The news was given to dealers in a letter earlier this month and will impact 38 states immediately. A Ford spokesperson defended the company’s recent policy change by stating that they are hoping to keep more electric vehicles within their company to engage in recycling electric vehicle batteries.

General Motors luxury brand, Cadillac, is expected to release a new electric vehicle sedan that will be priced at an estimated $300,000. Cadillac will reveal the prototype of the Celestiq this summer. To generate buzz and interest, Cadillac will only produce 500 Celestiq vehicles annually. Part of the price is the included hands-free driving assistance program, Ultra Cruise.

News & Opinion:

4 useful ways auto dealerships can boost their SEO
Just like continued education on sales techniques and learning new service protocols for EVs, updating your SEO knowledge is essential. And before we look at some things you can do to educate yourself, it’s also important to consider bringing in an expert to help you. Search Engine Optimization isn’t something you can do once and leave it alone – it has to be maintained and evolve when necessary. Organic traffic doesn’t include paid search, pay per click, or any display ads you’re doing, and good SEO practices drive it. So, the higher you rank for competitive keywords, the better your traffic. Read More

What type of car shoppers prefer an online only buying experience?
During the pandemic, the topic of digital retailing became front and center as dealerships scrambled to keep providing cars for the customers who wanted them. Those tools and processes allow car shoppers to choose how they prefer to interact with the dealership – fully online, fully face to face, or a blend of the two means. Fully online retail adoption appears to be slow, although many of the applications within digital retailing are streamlining the customer’s visit including seamless transitions with data between the two and time-saving abilities for research and F&I options. Still, the fully online method doesn’t seem to be gaining traction as expected across the industry. Read More

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