Earlier this week: Average new car prices fell below MSRP for the first time since 2021, Tesla got slapped with a privacy lawsuit, the EPA revealed newly proposed tailpipe emissions rules to accelerate EV sales, and more headlines to stay on top of this week in automotive industry news.
1. The EPA introduces a new tailpipe emissions proposal to boost EV sales
The U.S. Environmental Protection Agency (EPA), on April 12, recommended substantial emission reductions for new vehicles and trucks through 2032. The agency claims that this proposal may result in two out of every three new cars sold by automakers would be electric. If adopted, the proposal would be the most aggressive strategy for reducing vehicle emissions in the U.S. to date. Read More
2. Average transaction price drops below MSRP for first time since 2021
New data from Cox Automotive reveals that the average transaction price (ATP) for new vehicles has fallen below MSRP for the first time in nearly two years. In March, customers paid an ATP of $48,008, down $550 or 1.1% from February’s average of $48,558. By the end of the month, new vehicles were retailing for $171 below MSRP, a significant improvement from last year when buyers were paying an additional $1,000 on their car purchases. While cars are still more expensive than they were a year ago, this change finally ends a 20-month-long period where customers paid above sticker price. Read More
3. GM seeks to create domestic lithium supply chain with EnergyX partnership
General Motors has deepened its partnership with mining technology venture Energy Exploration Technologies Inc. (EnergyX) as it looks to establish a reliable lithium supply chain in the U.S. EnergyX uses direct lithium extraction (DLE), a process both companies say is more cost-effective and sustainable. Under the revised partnership, GM will help the business continue developing its proprietary technology to grow the nation’s domestic supply. The automaker is also contributing towards the venture’s second round of investments, which it hopes will raise $50 million in additional funds. Read More
4. Tesla faces a class action lawsuit over alleged privacy invasion
A California Tesla owner filed a prospective class action lawsuit against the EV manufacturer, accusing it of violating its customers’ privacy. On April 6, 2023, the lawsuit in the U.S. District Court for the Northern District of California revealed that groups of Tesla employees occasionally communicated extremely intrusive videos and photos taken by customers’ car cameras between 2019 and 2022 over an internal messaging system. Henry Yeh, a resident of San Francisco and owner of a Model Y, filed the case. Read More
5. EV sales reach new heights in Q1, market share now at 7.2%
Electric vehicle sales accounted for 7.2% of all first-quarter car purchases, the segment’s best U.S. performance to date. According to a Cox Automotive report, Q1 EV sales hit 258,882 units, a year-over-year growth of 44.9%. After such a boost, Cox analysts are confident the segment will hit 1 million units by the end of the year. Behind the growth are the industry’s steadily improving production arm and growing model lineup. Cox Automotive notes that first-quarter inventory exploded by 70% compared to Q1 2022. Read More
6. How branding can help your dealership be more competitive – Lissette Gole | Google
Branding is an essential component of business growth, and as the car market becomes more competitive, it is more important than ever for dealers to understand this important marketing strategy. Lisette Gole is the Head of Automotive Retail at Google and has in-depth knowledge of brand practices and principles. On this episode of Inside Automotive, Gole joins host Jim Fitzpatrick to discuss branding and its relevance to retail automotive. Read More
7. Subaru of New England makes transformational donation to Northwood University — Ernie Boch Jr. & Justin Marshall
On this Inside Automotive segment, we’re joined by the man behind the incredible $500,000 donation to Northwood University, Ernie Boch Jr., renowned business leader, entrepreneur, and philanthropist. Boch serves as president and CEO of Subaru of New England, the exclusive distributor for Subaru vehicles and parts to the 65 Subaru retailers in the six states of New England. And we’re also pleased to have back Northwood University’s Chief Development Officer, Justin Marshall, to discuss the impact the donation will have on Northwood students. Read More
8. Creative dealership marketing strategies that appeal to young customers — Kevin Frye
It’s crucial to engage with young consumers today as they are tomorrow’s buyers. On this edition of Inside Automotive, we’re pleased to welcome back the Marketing Director at Jeff Wyler Automotive Family, Kevin Frye, to share his perspective on reaching young customers. Frye emphasizes how imperative it is to “meet the young consumer where they’re at.” He says that since younger people are today’s and tomorrow’s consumers, there needs to be a way for dealers to reach them. Read More
9. Playing the long-game with CDPs and unified data — Aaron Baldwin | automotiveMastermind
On the last episode of Auto Marketing Now, we discussed the differences between the most common CDP systems in the auto industry, along with their associated strengths and weaknesses. For this installment, host Brian Pasch is joined by special guest Aaron Baldwin, Chief Product Officer at AutomotiveMastermind, to discuss how dealers can use their CDP’s data activation tools to create a better customer experience. Read More
10. How lenders can more effectively guide F&I customers in a digital environment — Andy Mayers | Cox Automotive
Today’s car customers have more control over the auto financing process than ever before, but many are still struggling to navigate the post-pandemic car market. On this episode of Inside Automotive, Andy Mayers sits down with host Jim Fitzpatrick to discuss how lenders can better serve buyers in this new environment. Mayers is the Lender Strategist at Cox Automotive, where he has worked for more than 30 years to develop innovative solutions for automotive F&I. Read More
