As the pandemic rages on, retailers often find themselves in conflict with consumers who expect more social distancing and mask-wearing or who resent being told to follow protocols. The tension has caused some of the most negative — and positive — online reviews and social media posts that reputation experts have seen.
CarLotz is the latest online used-vehicle outlet to go public in the past few months, following Vroom and Shift. How will it differentiate itself? "We are consolidating all the middlemen into one middleman."
The dealership group said net income more than tripled to $126.4 million even though revenue fell 2.5 percent to $3 billion.
Last week, analysts at Brokerage RBC noted that Tesla's investment in service and quality has not been enough to keep up with its increasing sales and has the potential to damage the brand.
The automaker's adjusted earnings before interest and taxes more than doubled from the same period a year ago to $3.6 billion, and margins jumped to 9.7 percent.
Three factors will be pivotal in shaping the automotive industry's trajectory, according to Cox Automotive Chief Economist Jonathan Smoke: the spread of COVID-19 and a potential vaccine; the size and timing of an additional round of government stimulus; and the outcome of the 2020 election. But perhaps the most important is who will be president, because it will likely influence the continuing efforts to abate the deadly virus and provide financial support to impacted Americans.
In a Tuesday blog post that posits former Vice President Joe Biden will win the presidential race next week, Smoke outlined several ways that a new leader would impact the auto finance landscape.
Here are some key takeaways:
Lithia Motors executives said last week that in-store F&I managers provide the best behind-the-scenes support for virtual car deals.
The last few months have pushed forward the adoption of digital selling, lending and servicing solutions at breakneck speed — and consumers are happy with the changes. However, with great digital services comes great responsibility to ensure that fraud doesn't grow to an even bigger problem.
The shift to digital allowed car dealers and lenders to keep employees and customers safe while maintaining a semblance of business continuity amidst the crisis. At the same time, the rapid, urgent shift to digitization has meant auto fraud — a perennial problem — had a chance to proliferate. Indeed, in the digital world, bad actors can learn the digital fraud measures that are put into place and beat the system.
According to TransUnion research, the percentage of high-risk global financial interactions has jumped by 11 percent since March. Auto finance has been hit particularly hard with fraud spiking by 30 percent each week since March, despite a drop-off in originations.
Given the potentially greater risk of remote auto transactions, dealers and lenders may be tempted to bring customers back to the dealership as soon as possible. But digital is here to stay.
Here are some of the measures dealers and lenders can take to maintain or expand their digital offerings while preventing fraudsters from entering the system:
While the movement toward more digital auto lending and selling has been largely positive, it does present unique challenges when it comes to fraud. Yet digital channels also open up possibilities to catch fraud through automated, sophisticated technology that can rival or even beat the accuracy of in-person verification.
— Zviki Ben Ishay is CEO of Lightico, which provides digital solutions for customer interactions.
Sonic Automotive CEO David Smith faces a felony assault by strangulation charge and other misdemeanor charges relating to his arrest in Charlotte on Oct. 5.
The supply-and-demand disparity favored per-vehicle profit for auto retailers this quarter, though the megadealers that gave reports last week warned short supply would strain earnings in the long term.
Ray Mikiciuk left American Honda in 2019 and worked for Victory Automotive Group before joining Volkswagen of America on Oct. 26 as senior vice president of sales.
Tesla ranked third from last among luxury brands, followed only by Cadillac and Genesis. Tesla scored a 520, 29 points lower than its score of 549 in 2019.
Recalls, EVs, safety technologies are focal points.
Volkswagen's proposed purchase of Navistar International would bring with it the International Harvester brand, which has a strong following among SUV fans.
Dealers featured this week include Denny Murphy, dealer principal of Murphy Chevrolet in Foley, Minn.; Steve Serra, dealer principal of Serra Toyota of Decatur in Alabama; and Tom, Paul and Brittany Barberino, owners of Barberino Nissan in Wallingford, Conn.
Mike Stanton, 52, said his main goal will be to "further unlock the greatness" of NADA's 160 employees and 16,000-plus dealer members.
The company aims to have 100 or more standalone AutoNation USA stores by 2030, up from five today. It expects to open five of those new stores by the end of next year.
The new dealership management system provider has raised money from automakers and dealers as it seeks to bring more retailers onto its platform.
In its bid to become a major public dealership group, vehicle subscription provider LMP Automotive Holdings Inc. has agreed to purchase a 70 percent stake in Atlantic Auto Group, a large chunk of Staluppi Auto Group.
The Alabama-built Mercedes-Maybach GLS is the most expensive passenger vehicle made in America.
Bob Carter, head of sales for Toyota and Lexus in North America, said dealer profitability in the U.S. is up 32 percent year-over-year on higher transaction prices and strong retail demand, while production is almost back to pre-COVID levels.
The pandemic forced Tom Masano Auto Group, which had plenty of positions to fill, to try out a virtual job fair.
The 2021 nominees are recognized for their extraordinary leadership in navigating business challenges and supporting their local communities during the COVID-19 crisis.
The 2021 nominees are recognized for their extraordinary leadership in navigating business challenges and supporting their local communities during the COVID-19 crisis.
Judy Wheeler, 58, will oversee U.S. sales and be tasked with shoring up the brand's retail operations.
Thanks to control of the coronavirus outbreak in China and government policies to revive the domestic economy, incomes of the public are increasing and their confidence in consumption has improved, a ministry spokesman said.
Thanks to control of the coronavirus outbreak in China and government policies to revive the domestic economy, incomes of the public are increasing and their confidence in consumption has improved, a ministry spokesman said.
Thanks to control of the coronavirus outbreak in China and government policies to revive the domestic economy, incomes of the public are increasing and their confidence in consumption has improved, a ministry spokesman said.
Penske Automotive Group reported large jumps in gross profits per vehicle for both new and used vehicles and finance and insurance, helping lead to all-time quarterly record net income for the company.
The deal would make CarLotz the third major U.S. online car seller to go public this year, following in the trails of Vroom and Shift Technologies as online vehicle sales boom during the coronavirus pandemic.
Penske Automotive Group reported large jumps in gross profits per vehicle for both new and used vehicles and finance and insurance, helping lead to all-time quarterly record net income for the company.
The deal would make CarLotz the third major U.S. online car seller to go public this year, following in the trails of Vroom and Shift Technologies as online vehicle sales boom during the coronavirus pandemic.
The price customers see on GMC’s website will be the price they pay, said Duncan Aldred, vice president of global Buick and GMC. All reservations available for the 2022 GMC Hummer Edition 1 were claimed within 10 minutes of Tuesday night's reveal.
The newly named E-Shop will improve consumer capability to purchase Chrysler, Dodge, Jeep, Ram, Fiat and Alfa Romeo vehicles from start to finish at home.
Chase Auto has powered Subaru's financing arm for 19 years, making it the lender's oldest exclusive automaker agreement.
Chase Auto has powered Subaru's financing arm for 19 years, making it the lender's oldest exclusive automaker agreement.
GMC wouldn't say how many reservations it accepted but added that "several thousand" customers are on a waitlist for the first-edition trim due out next fall.
The retailer attributed the profit surge to used-vehicle sales and growth in its service, body and parts business.
AutoNation said Q3 net income soared 84 percent to $182.6 million. Revenue slipped 1 percent to $5.4 billion.
Tekion began enrolling franchised retailers on its dealership management system in late 2019 and has stores in 28 states using its platform.
The National Automobile Dealers Association announced the election results Tuesday during the group's board meeting, held virtually this year because of the coronavirus pandemic.
Volkswagen announced pricing of its freshened 2021 Arteon sedan, increasing the base price but cutting the sticker of the top trim level.
After five months and at least 100 job applicants, the dealers association is promoting from within as it contends with the COVID-19 pandemic and switches gears to put on a virtual convention next year.
Dealerships are doing more business than ever outside dealership walls. Dealers are talking about how to make the online-to-in-store transition even smoother once the pandemic is over. All of that raises new questions about the fate of brick-and-mortar stores.
That strategy lets automakers avoid offending their most crucial audience: truck buyers. GM, Ford and FCA sell nearly three-quarters of their pickups -- their most-profitable, best-selling models -- in states President Trump won in 2016.
Mercedes' 2021 Maybach GLS tops out at nearly $200,000, making it the most expensive passenger vehicle made in America. The SUV will be produced at Mercedes' factory in Vance, Ala.
Bob Brockman, longtime chairman and CEO of Reynolds and Reynolds Co., remained in charge of the dealership management system giant while he faces U.S. tax evasion, money laundering and other charges tied to an alleged two-decade scheme to dodge paying taxes on $2 billion in income.
The brand's streak of consecutive U.S. sales records ended with the COVID crisis. But the CEO thinks the return of the retail industry will favor his company.
Markus Duesmann became CEO this year, just as the industry was shutting down because of the pandemic. He's eager to get the automaker moving forward again.
The Ohio startup has hired Joe Burrow, the Cincinnati Bengals' rookie quarterback, to be the star of its "Work for it" marketing campaign.
