CBT automotive newscast: October 26, 2020

Today’s Featured Interview:

David Kain on adapting your dealership’s BDC to new consumer trends
It’s no secret that the retail automotive market is changing rapidly in the wake of COVID-19. This is the first time that many everyday practices are moving fully online. Digital retailers such as Vroom and Carvana are simplifying the vehicle appraisal and purchase process for car shoppers, making them popular options for many consumers. Digital retailing here, it’s happening, so are you prepared? Watch the full segment here.

Top Headlines:

In the last presidential debate before the election, the two presidential candidates clashed once again on the topic of energy. Former Vice President Joe Biden said that he would like to transition away from the oil industry by switching to other forms of clean energy. President Donald Trump continued to criticize Biden’s plan, stating that the democratic candidate intends to ban fracking entirely. Biden denied this claim, saying he would reduce the country’s dependence on oil. Meanwhile, Trump has ended subsidies for alternative energy such as wind and solar power. The president said that wind power creates its own pollution and questioned how large factories could run without oil.

A federal bill has been introduced to ban gas-powered vehicles in the next fifteen years. Last week, west coast democrats introduced federal legislation that would ban U.S. sales of new vehicles with internal combustion engines by 2035. The bill is being presented despite electric vehicles accounting for less than 5% of sales last year. The federal standard proposed by the legislation would require that in five years, 50% of new sales would be zero-emission vehicles, with the figure increasing by 5% each year until 2035. States like California and New Jersey have already sought to put the ban into place at the state level.

After the debut of the GMC Hummer EV, shares of General Motors closed at their highest price of the year, closing Thursday at $37.41 up 4.6%. The jump can be credited to the automaker receiving a popular reaction to the new electric super-truck, as well as GM’s announcement of receiving more than $2 billion in new U.S. investments to support the growth and development of U.S. vehicles. According to CNBC, GM is the only Detroit automaker to have shares up for the year.

Ford Motor Company continues its relief effort for those who have been impacted by the COVID-19 pandemic. Their most recent effort brought over 30,000 books and other critically needed school supplies for 1,500 educators and their students who have been hit hard by COVID-19 in Dallas, Houston, and Phoenix. The automaker kicked off the initiative with a live virtual reading party including more than 10,000 elementary students led by Elena Ford. Ford has invested $200,000 into the effort.

News Stories & Opinion:

ExxonMobil chairman provides updates and future of oil industry
On Wednesday, ExxonMobil Chairman and CEO Darren Woods held an employee forum to discuss the oil and gas industry’s position and the outlook for the future. A statement was released that summed up his comments to ExxonMobil staff that delved into the pain points experienced by the company as well as a forecast that maintains oil as a major source of energy for decades to come. Read More

Policaro Group on the use of innovation and technology in automotive retail
In Southern Ontario, COVID-19 affects customer sentiment just like the rest of the world. Google reports that 59% of car shoppers would complete their purchase online if the option existed. That’s driven dealers like Brampton-based Policaro Group to develop their online retail solution known as Policaro Access, giving customers the option to shop in person or through virtual means. Read More