CBT automotive newscast: May 11, 2022

Inside Automotive:

Car Guy Coffee Podcast’s Lou Ramirez & Fred Lennartz on their mission to uplift the auto industry
If you are in the retail automotive industry and haven’t tuned into the Car Guy Coffee Podcast, you’re missing out! Lou Ramirez and Fred Lennartz, who happen to be best friends, are the sales and finance strategists behind the podcast. Today on Inside Automotive, we’re pleased to welcome them both to the show to discuss how they got started and their takes on hot button industry issues. Watch the complete segment here.

Headlines:

At a conference yesterday, Stellantis Chief Executive Officer Carlos Tavares said the auto industry will likely see shortages of raw materials and electric vehicle batteries into 2025 or 2026. Tavares noted that electric vehicles are heavier than internal combustion vehicles and therefore require more raw materials, of which the industry is facing critical shortages. He added that the U.S. and Europe may have to rely on Asian countries until EV battery production plants in the West are completed.

The revamped DeLorean Motor Company announced this week it will be revealing its new “evolved” electric sports car earlier than anticipated. Now, the vehicle will be revealed on May 31 instead of in August. The company posted an obscured photo of the vehicle, which will reportedly look more different than initially expected compared to the 1980s DMC Model that was featured in back to the future.

Vroom released its first-quarter results this week, which showed that the eCommerce platform outdid expectations for total sales, profit, and revenue. Sales reached over 19,000 for Q1, while revenue grew to over $675 million, and gross profit ended up at over $34 million. Vroom also announced a so-called business realignment plan, which includes the appointment of Tom Shortt as the new Chief Executive Officer of the company.

Tesla has announced its latest recall, which includes almost 130,000 vehicles that may be affected by an issue with the central processing unit that can cause the center display to overheat and operate slowly. The automaker said this can affect the rear camera, windshield visibility, and warning lights, which may lead to an accident. Tesla’s notice yesterday said the issue affects various vehicles from model years 2021 and 2022 and can be solved with an over-the-air update.

News & Opinion:

3 ways car dealers can prepare for Memorial Day Weekend this year
The unofficial start to summer is Memorial Day weekend, and it tends to be one of the busiest weekends in the US for vehicle sales. Before vacationing begins, prospective buyers seek out an upgrade to haul their family and their toys, and it often coincides with model year-end incentives. But 2022 is different than your typical year, and Memorial Day car sales events dealers are used to putting on aren’t likely to work the same. Vehicle inventory is meager, and mostly empty car lots are still a common sight. New and used car prices are nearly the highest they’ve ever been, and there’s minimal incentive spending coming from the manufacturers. There’s no such thing as blowout pricing for year-end models, and salespeople don’t have to chase leads for weeks to convert them to sales. Read More

The importance of attracting fleet customers to service and parts
The sales department at your dealership knows how valuable it is to have fleet customers. After all, how much more profit is achieved when four cars are sold versus one? Yet, the importance of attracting fleet customers to the service and parts department often goes overlooked. With some simple steps, you can learn how to attract these customers and keep them for skyrocketing profits. In this guide, we cover the meaning of a fleet. We also look at three simple changes you can make today to get more of these commercial customers to visit your service and parts department. Read More