Hyundai plans software defined vehicles, Tesla Q3 earnings preview, Mercedes-Benz and Microsoft partner up

Inside Automotive:

Dealer principal Joe Serra on vehicle inventory, the economy, and OEM EV investments
To compete with the likes of Tesla, many OEMs are taking significant measures to accelerate the adoption of electric vehicles (EVs). In the last month alone, Ford sent a notice to nearly 3,000 of its dealers, allowing them to enroll in one of two “EV-certified” programs before the end of October. Additionally, all of the nearly 2,000 Buick franchise dealers in the US will have the option to take a buyout should they not want to sell EVs. Today on Inside Automotive, Joe Serra, president of Serra Automotive, which includes three Ford stores and six Buick stores, shares his perspective on the announcements. Watch the complete segment here. 

Headlines:

Hyundai Motor Group announced that it will transform its entire lineup of vehicles, including both gas-powered and electric models, into software defined vehicles (SVDs). The upgrades will allow Hyundai to use over-the-air updates to constantly evolve its lineup, upgrade performance and functionality, and allow drivers to take advantage of featured on-demand services. The company has already committed to spending the equivalent of $12.5 billion to accelerate development and establish a new Global Software Center. Hyundai said it expects to have 20 million vehicles registered to its connected car services worldwide by 2025. Read More

Mercedes-Benz and Microsoft announced their new partnership this week that will use Microsoft Cloud to improve production efficiency at over 30 passenger car plants across the globe. According to a release from the automaker, the data platform called MO360 is already available in Europe, the Middle East, and Africa. It is expected to launch in the United States and China as well. The platform will gather data from the entirety of the production process to create a virtual replica that allows teams to identify potential supply chain bottlenecks more quickly. The statement said the collaboration should lead to a 20% increase in vehicle production efficiency by 2025. Read More

Tesla is expected to release its Q3 earnings on October 19, and Trefis analysts predict the EV maker will hit a record quarterly high of $22.3 billion, a 62% increase over last year. Earnings are likely to be around $1.02 per share, up from about $0.76 in the second quarter. The company said it had delivered 343,830 vehicles for the quarter ending in September, showing growth of about 42% year-over-year. Despite slowed production in the second quarter relating to Tesla’s factories in china and third-quarter delivery numbers below estimates, analysts believe Tesla could see stronger price realizations and margins for the quarter. Average vehicle prices for the company rose about 14% year-over-year. Read More

Honda and LG Energy Solutions announced plans to build a new plant to produce batteries for electric vehicles near Columbus, Ohio. The battery plant is expected to cost $3.5 billion, with total investments for the joint venture reaching $4.4 billion. Construction is planned to begin early next year, with mass production of lithium-ion batteries beginning by the end of 2025. Honda also said it plans to invest $700 million to retool several existing auto and powertrain plants for electric vehicle production. The Japanese automaker expects to begin producing and selling EVs in North America by 2026. Read More

News & Opinion

Is automotive sales right for you? Your guide to starting a career as a car salesperson
52% of American employees are considering making a career change this year, with 44% already planning to make the switch. For those who enjoy customer interaction on a daily basis and who are passionate about the automotive industry, looking into becoming a car salesperson can be a great career choice, especially if your goal is to one day hold a management position. From the overview of the job itself to what you should expect during the hiring and onboarding process, here’s what you should know before applying. Read More

6 tips to help you become an outstanding car salesperson
Learning to become a successful car salesperson can seem like a daunting task. But in reality, keeping a few essential tips in mind will help you exceed your customer’s expectations and your own. Remember, a vehicle is the second most expensive purchase that a person will make in their lifetime. These machines are designed to allow people to live their life while keeping their families and friends safe in the process. Selling a vehicle the right way means that you must be keenly aware of these simple facts when a customer first steps foot on your lot, calls you on the phone, or sends an online inquiry. Read More

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