OBITUARY: Royce Reynolds

Dealership group owner Royce Reynolds died May 6 at age 88.

source https://www.autonews.com/dealers/obituary-royce-reynolds

Trying times in China for would-be U.S. players

Plans to bring the Zotye brand to the U.S. have been iced, leaving money-losing Chery as the only Chinese automaker with any near-term prospects.

source https://www.autonews.com/sales/trying-times-china-would-be-us-players

Michigan flood snuffs out Fieros

The owner of Fieros Forever, which was washed away after two dams failed in Michigan, planned to retire and auction off the cars in April but had pushed back the timing because of the coronavirus pandemic.

source https://www.autonews.com/retail/michigan-flood-snuffs-out-fieros

Dealers welcome Nissan's strategy shift for U.S.

The plan formalizes the pivot away from rental-fleet sales toward a richer retail foundation.

source https://www.autonews.com/dealers/dealers-welcome-nissans-strategy-shift-us

Rental struggles expected to take a big bite out of fleet demand

A key source of sales for some big automakers is disappearing. ALG projected a 78 percent drop in U.S. fleet sales for May. 

source https://www.autonews.com/sales/rental-struggles-expected-take-big-bite-out-fleet-demand

Service business shows improvement

Signs are emerging that the worst is over for U.S. dealerships' parts and service business amid the coronavirus pandemic. Still, there's a lot of stress out there.

source https://www.autonews.com/service/service-business-shows-improvement

Parts and service in a pandemic

Snapshots of dealership service department activity amid disruptions caused by the coronavirus.

source https://www.autonews.com/service/parts-and-service-pandemic

Dealers laud GM's Engle for retail skill

In a little more than a year heading GM's North American operations, Barry Engle has earned the respect of dealers by offering solutions to help their businesses and involving them in GM's plans for the future.

source https://www.autonews.com/dealers/dealers-laud-gms-engle-retail-skill

Dealers help out with vehicle sanitizing

A free vehicle-sanitizing event at Sellers Auto Group dealerships in southeast Michigan left some first responders and medical personnel in tears.

source https://www.autonews.com/best-practices/dealers-help-out-vehicle-sanitizing

Kentucky dealership fires lockdown protester

Neil Huffman Auto Group said it would not allow "hate or intolerance" after its employee hung an effigy of Gov. Andy Beshear outside the state Capitol.

source https://www.autonews.com/dealers/kentucky-dealership-fires-lockdown-protester

TrueCar to eliminate 219 jobs in restructuring

The cuts, prompted by the coronavirus outbreak and the end of a key partnership with USAA Federal Savings Bank, amount to more than 30 percent of the vehicle listings company's work force.

source https://www.autonews.com/retail/truecar-eliminate-219-jobs-restructuring

N.Y. Honda store to pay $1.5 million for racial discrimination, deceptive practices

Bronx Honda settled with the Federal Trade Commission and agreed to establish a fair lending program that includes a cap on dealer markup on indirect financing contracts.

source https://www.autonews.com/finance-insurance/ny-honda-store-pay-15-million-racial-discrimination-deceptive-practices

GM accused of discrimination by 2 Mich. dealerships

A federal lawsuit says the automaker unfairly terminated financing agreements and demanded stricter documentation from customers about their eligibility for a family discount than buyers at other stores had to provide.

source https://www.autonews.com/dealers/gm-accused-discrimination-2-mich-dealerships

Tesla's price cuts signal demand is weaker than shares suggest, analysts say

Tesla said overnight that it would cut the list price of the Model S and X by $5,000. The Model 3 is getting a $2,000 price cut.

source https://www.autonews.com/retail/teslas-price-cuts-signal-demand-weaker-shares-suggest-analysts-say

NADA, AIADA join groups asking for liability protections during pandemic

A fast-growing number of trade associations and other groups are urging members of Congress to "enact temporary liability protections for businesses, nonprofit organizations and educational institutions that work to follow applicable public health guidelines against COVID-19 exposure claims."

source https://www.autonews.com/dealers/nada-aiada-join-groups-asking-liability-protections-during-pandemic

Dealers see access to auto loans tightening

As lenders tighten credit access to mitigate risk from the coronavirus pandemic, dealerships are anecdotally reporting difficulty getting customers approved for auto loans.

source https://www.autonews.com/finance-insurance/dealers-see-access-auto-loans-tightening

F&I companies plan to resume in-person training

Many finance-and-insurance training companies are looking to resume dealership visits and reopen classrooms in the coming weeks, though some are holding off.

source https://www.autonews.com/finance-insurance/fi-companies-plan-resume-person-training

Tighter credit could hinder auto recovery long-term

As lenders tighten credit access to mitigate risk from the coronavirus pandemic, dealerships are anecdotally reporting difficulty getting customers approved for auto loans.

source https://www.autonews.com/finance-insurance/tighter-credit-could-hinder-auto-recovery-long-term

F&I classrooms changing under COVID-19

Limited class sizes, social distancing and a focus on digital can be expected from F&I training companies looking to resume in-person instruction.

source https://www.autonews.com/fi-blog/fi-classrooms-changing-under-covid-19

U.S. distributor suspends plans to import Zotye vehicles

Zotye's financial struggles have been compounded by the coronavirus pandemic. Would-be distributor HAAH Automotive Holdings will now focus on efforts to bring another Chinese automaker, Chery, to the U.S.

source https://www.autonews.com/retail/us-distributor-suspends-plans-import-zotye-vehicles

Trade groups ask for changes to small-business loan program

They called for "emergency legislative and administrative action" to repeal the program's requirement that 75 percent of the loan be used to cover payroll costs and 25 percent be used to cover mortgage, rent and utilities during an eight-week period.

source https://www.autonews.com/manufacturing/trade-groups-ask-changes-small-business-loan-program

ADESA's digital push to be supported by $550M stock offering

The ADESA parent company said capital raised by the transaction will go toward general operations and sustaining technology platforms amid the wholesale sector's recovery from the coronavirus pandemic.

source https://www.autonews.com/dealers/adesas-digital-push-be-supported-550m-stock-offering

KAR announces $550 million preferred stock offering

Capital raised by the transaction will go toward general operations and sustaining technology platforms amid the wholesale sector's recovery from the coronavirus pandemic.

source https://www.autonews.com/dealers/kar-announces-550-million-preferred-stock-offering

GPB could be forced to sell dealerships

The future ownership of five Toyota dealerships remains in question after the automaker demanded that majority owner GPB Capital Holdings sell the stores. It's the latest in a string of blows to the firm that owns most of Prime Automotive Group.

source https://www.autonews.com/dealers/gpb-could-be-forced-sell-dealerships

Sonic moves ahead with used-vehicle stores

The nation's sixth-largest new-vehicle retailer opened its 10th EchoPark store in April in Tampa, Fla., and plans to open two more by the end of the year, with plans for another three or four in 2021.

source https://www.autonews.com/used-cars/sonic-moves-ahead-used-vehicle-stores

Fair's new CEO eyes big market expansion

Brad Stewart says the company needs to be in more markets and should consider giving consumers more options beyond a month-to-month commitment.

source https://www.autonews.com/used-cars/fairs-new-ceo-eyes-big-market-expansion

How one Ford dealer navigated a COVID-19 outbreak

Five confirmed cases of COVID-19 were connected to Mel Hambelton Ford in Wichita, Kan. The dealership increased distancing and cleaning, and it informed employees.

source https://www.autonews.com/dealers/how-one-ford-dealer-navigated-covid-19-outbreak

Changes in auto retail, wholesale to stick around

The coronavirus pandemic will continue to accelerate the shift to digital for auto retail and wholesale. That's about the only certainty in the months ahead.

source https://www.autonews.com/retail/changes-auto-retail-wholesale-stick-around

Calif. store manager files COVID suit alleging he was fired for complaining

Part of the former general sales manager's suit alleges that he was terminated because he complained that Rusnak/Audi Pasadena wasn't taking COVID-19 seriously and was advocating "business as usual" practices, in violation of government guidelines. The auto group denies the allegations and says it has closely followed health and safety protocols.

source https://www.autonews.com/dealers/calif-store-manager-files-covid-suit-alleging-he-was-fired-complaining

Michigan floods continue to impact Northwood, Dow

Chemical giant Dow Inc., in Midland, Mich., said "business continuity plans are in place to ensure customer needs are met."

source https://www.autonews.com/dealers/michigan-floods-continue-impact-northwood-dow

Park Place expands 2 months after Asbury deal collapse

Park Place Dealerships will acquire Aston Martin Dallas from the John Eagle Auto Group, the company said Thursday. The deal is expected to close within the next 90 days.

source https://www.autonews.com/dealers/park-place-expands-2-months-after-asbury-deal-collapse

Hyundai, L.A.-area dealer separate after customers' cars towed

Nissani Bros. Hyundai in Culver City and the automaker were already having problems with their business relationship before the March incidents in which customers who had dropped off cars for service complained that their vehicles were towed away and they were hit with large fees.

source https://www.autonews.com/dealers/hyundai-la-area-dealer-separate-after-customers-cars-towed

Michigan auto dealerships to resume in-person sales

The change continues a trend of states relaxing policies on auto dealerships in a national push to reopen key factions of the economy. Michigan has the fourth-highest COIVD-19-related death toll after New York, New Jersey and Massachusetts.

source https://www.autonews.com/dealers/michigan-auto-dealerships-resume-person-sales

States: Consumers must be able to return leased vehicles during outbreak

In a letter signed by 11 state attorneys general and distributed to leading automakers, California, New York, Pennsylvania and other states warned that preventing customers from returning leased vehicles during the outbreak violates state and federal laws.

source https://www.autonews.com/finance-insurance/states-consumers-must-be-able-return-leased-vehicles-during-outbreak

Michigan judge's ruling could permit auto lenders to keep PPP loans

U.S. District Judge Matthew Leitman in Flint, Mich., May 11 barring the SBA from excluding certain businesses from relief. The ruling may offer clarity for lenders about if returning the funds is required.

source https://www.autonews.com/finance-insurance/michigan-judges-ruling-could-permit-auto-lenders-keep-ppp-loans

Eye to eye in F&I

There's a level of respect generated by eye contact that focuses the buyer's attention on the F&I process.

source https://www.autonews.com/fi-blog/eye-eye-fi

Higher F&I profits, sales per person at stores with fewer employees in April

In the first joint study between the National Automobile Dealers Association and digital retailing provider Roadster, franchised dealerships said finance and insurance profits and sales per person rose for dealerships in April. Figures were even higher at stores that said they had digital retailing processes.

source https://www.autonews.com/finance-insurance/higher-fi-profits-sales-person-stores-fewer-employees-april

Advance Auto Parts boosted by bored Americans working on cars

Advance Auto’s do-it-yourself repair business is strong, replacement car-battery sales are brisk and consumers are taking breaks from streaming to scrub down their vehicles.

source https://www.autonews.com/service/advance-auto-parts-boosted-bored-americans-working-cars

N.J. dealerships to resume in-person sales

The governor's administrative order allows showrooms to reopen for appointment-only customers starting at 6 a.m. ET on Wednesday.

source https://www.autonews.com/dealers/nj-dealerships-resume-person-sales

Sonic: May better than expected, used vehicle outlook improves

The nation's sixth-largest new-vehicle retailer said new and used sales volumes and fixed operations gross profit have performed at or above expectations and are getting better by the week.

source https://www.autonews.com/dealers/sonic-may-better-expected-used-vehicle-outlook-improves

Sonic says May business improving, boosts forecast on used vehicles

The nation's sixth-largest new-vehicle retailer said new and used sales volumes and fixed operations gross profit have performed at or above expectations and are getting better by the week.

source https://www.autonews.com/dealers/sonic-says-may-business-improving-boosts-forecast-used-vehicles

Larry H. Miller

In the last week of March, as the coronavirus began to shut down the nation, Larry H. Miller Dealerships experienced a 60 percent plunge in sales among its 65 stores.

source https://www.autonews.com/dealers/larry-h-miller

OBITUARY: Ted Schluter

Ted Schluter, who spent more than 50 years as a dealer in Mansfield, Ohio, died May 1 at age 85.

source https://www.autonews.com/dealers/obituary-ted-schluter

Carvana

The online used-car retailer said it had a quicker recovery than its used-vehicle peers, with CEO Ernie Garcia telling investors this month that its sales had been up 20 to 30 percent in recent weeks.

source https://www.autonews.com/dealers/carvana

Hendrick Automotive Group

Hendrick Automotive Group's sales and service business has been impacted by the coronavirus pandemic, but the nation's fifth-largest new-vehicle retailer said it did not lay off or furlough any of its more than 10,000 employees.

source https://www.autonews.com/dealers/hendrick-automotive-group

Cars.com

From offering dealerships discounts to lobbying for auto sales as essential services, Cars.com acted quickly when the pandemic hit the U.S. in March.

source https://www.autonews.com/dealers/carscom

Mix of relief, concern as dealerships open doors

Yes, face masks and hand sanitizer are part of the new normal inside car dealerships. But that's just for starters.

source https://www.autonews.com/dealers/mix-relief-concern-dealerships-open-doors

CDK Global

The coronavirus pandemic is the main reason CDK Global lowered revenue and earnings forecasts for the rest of its 2020 fiscal year.

source https://www.autonews.com/dealers/cdk-global

Ken Garff Automotive Group

Ken Garff Automotive Group not only faced setbacks in two key markets during the past two months of the COVID-19 pandemic, it also lost its chairman, Robert Garff, 77, who died of complications from the coronavirus March 29.

source https://www.autonews.com/dealers/ken-garff-automotive-group

Sonic

Sonic terminated about 1,200 employees and furloughed about 1,700 as part of cost-cutting actions taken to mitigate the financial impacts from the coronavirus pandemic.

source https://www.autonews.com/dealers/sonic