CBT automotive newscast: September 24, 2021

Featured Interview:

The aftermath of Hurricane Ida: NJ Car Pres. Jim Appleton talks recovery efforts
It has been some time since Hurricane Ida bombarded the Gulfcoast and Northeast with severe flooding. According to Carfax, 212,000 vehicles were potentially damaged by the storm. On today’s show, we’re pleased to welcome the President of New Jersey Coalition of Automotive Retailers (NJ Car), Jim Appleton, to give us a glance at recovery efforts still happening in his state and we’ll also get into the coalition’s agenda as we enter the final quarter of 2021. Watch the complete segment here.

Headlines:

According to AlixPartners, the chip crisis is now expected to cost the global automotive industry $210 billion in revenue in 2021. The forecast is almost double its previous projection of $110 billion in May. The initial forecast was of $60.6 billion in late January, when parts issues starting causing plants to become idle. AlixPartners is now forecasting that 7.7 million units of production will be lost in 2021, up from 3.9 million in its May forecast. Automakers including Ford and GM, have warned of massive earnings cuts this year due to the chip shortage. But, some of those losses have been offset by consumer demand and higher profits from record vehicle prices.

Stellantis brands, Ram, Jeep, and Fiat are all teaming up with RED, to raise money to fight the global COVID pandemic and AIDS. Red is a brand licensing company that raises money to fight global health emergencies. All three brands will release special ‘red’ edition vehicles. Stellantis pledge to donate at least $4 million between 2021 and 2023. The 2022 Ram 1500 limited Red edition will be based on the Ram 1500 limited night. It will be available in late 2021. A Red edition of the 2022 Jeep compass will be launched in Q1 of 2022. Red has raised close to $700 million for the global fund to date.

Electric Lastmile Solutions, a commercial EV startup focused on redefining productivity has received a binding purchase order for 1,000 units of its urban delivery vehicle from its strategic distribution partner, Randy Marion Automotive Group. The start of production took place this week and the company plans to ship its first units from its Mishawaka Indiana plant on September 28. Elms’ first vehicle, the urban delivery is anticipated to be the first-class 1 commercial EV in the U.S. market. It has a range of about 125 miles and the starting price is $25,000 after an available federal rebate.

According to Hugh Martin of Lacuna Technologies, flying cars could be commercially available in 2024. He says, “There’s a difference between when cars can fly and when they will be safe and reliable for navigating the skies.” A number of auto retailers, including Fiat Chrysler and Chinese electric car maker, Xpeng have been developing aerial vehicles. Rules for flying vehicles could include where the vehicles will be allowed to take off, land, or travel and whether they can fly at any time or only during allocated hours. In the U.S., the Federal Aviation Administration and NASA are working with drone and air taxi providers to consider what air traffic will look like in the future.

CDK Global, a leading automotive retail technology company plans to acquire Salty Dot, Inc. Salty’s technology works with dealerships to allow consumers to receive a personalized auto insurance quote within the car-buying process. The company said it can give retailers more opportunities to connect with their customers after they have purchased a vehicle. The terms of the agreement were not disclosed. The deal is expected to close next month and won’t affect the company’s 2022 fiscal-year financial guidance.

News & Opinion:

Motor Bella kicks off this week—Here’s a look into this new type of car show
This week, the M1 Concourse in Pontiac, Michigan is abuzz with activity as the first-ever Motor Bella outdoor event kicks off, with the highly anticipated auto show featuring 350 vehicles made by over 30 brands. Some of the exciting new vehicles to be included in the exhibition are Ford’s compact Maverick truck, new Jeep Cherokee models, and the lesser-known Lucid Air. The show has promised this will be one of the most interactive yet, offering the public test drives in electric cars, and high-speed rides with professional drivers. Read more

How reducing friction in the customer experience benefits car dealers
Earlier this year, the eleventh Cox Automotive Car Buyer Journey Study was released in the midst of the pandemic. It doesn’t come as a shock to anyone that both new and used car buyers found the pared-down shopping process more efficient and less time-consuming. At the core for many shoppers who left the dealership satisfied are digital retailing tools. Cox Auto separated buyers into two camps: Heavy Digital who performed more than half of the steps online, and Light Digital buyers who performed less than 20% of the steps online. Read more