Car Dealership Guy

[NEWS] California is fighting to keep EV credits alive: The federal tax credits — part of the Inflation Reduction Act — currently offer $7,500 for new EVs and $4,000 for used EVs. But Trump’s plans to eliminate them could shake up EV adoption nationwide. California’s response? Replace the federal credits with state one though a new version of its Clean Vehicle Rebate Program. First launched in 2010 — The program helped fund over 594,000 EVs and saved 456 million gallons of fuel before being phased out in 2023 — according to Governor Gavin Newsom. And a potential revamp could be coming at a critical time. In Q3 2024 alone, Californians bought 115,000 zero-emission vehicles — representing over 26% of new car sales statewide… Big picture — with plans for all new cars and light trucks sold in the state to be zero-emissions by 2035 — California is making sure its progress doesn’t stall. Read today’s top automotive stories, presented by Anyline: https://lnkd.in/eSFJgBUa (Data source: Reuters)

Some dealerships are feeling the squeeze as net profits take a hit. Dustin Collins, Director of Operations at Bill Kay Ford Inc, points to growing inventory and rising interest rates as key culprits. Here’s what’s driving this market shift. ? Stream the latest episode of the Car Dealership Guy Podcast now on your favorite platform—brought to you by Dealer Pay, LLC, Impel, and CDG News

This is correct -- I have been talking about Fixed Ops a lot more because you all shared feedback ... Keep it coming!

[NEWS] Regulators aren't budging on automatic emergency braking (AEB): Back in April — the NHTSA laid out plans to require AEB systems in all vehicles starting in 2029. But auto industry lobbyists pushed back — Saying it would drive up costs for companies and consumers. Yet — this week — regulators put their foot down. Arguing the law will save lives, they rejected most of the proposed changes to the mandate and kept their 2029 schedule the same. And consumer advocacy groups are praising the move — But that’s not all… As a last ditch effort — lobbyists are calling on President-elect Trump to re-visit the mandate while in office. If his administration dismisses the policy — automakers will likely go back to a 2016 arrangement — allowing them to implement AEB voluntarily. Bottom line: While we might be done hearing about this for now — I have a feeling the issue will crop back up again in the next few months. Read today’s top automotive stories, presented by Anyline: https://lnkd.in/eUzGghwD (Data source: NHTSA)

[NEWS] Dealership M&A activity is heating up despite falling profits: 92 rooftops sold in Q3 — a 10% bump from the previous quarter but still down year-to-date from 2023. Even so — 2024 is shaping up to be the fourth-busiest year for buy-sells ever. But here’s where it gets interesting… The big winner last quarter was Mazda — the only franchise to see blue sky values rise as industry averages trend downward. The reason? Higher throughput from fewer overall stores is safeguarding profitability at a time when earnings are down almost everywhere — Especially at brands like Nissan and Stellantis, whose dealers are back to 2019-level profits. Bottom line: industry averages don't always show the whole picture — you can always bet on some brands standing out from the crowd and right now — I’m liking Mazda’s formula. Read today’s top automotive stories, presented by Anyline: https://lnkd.in/gAUW2Ma5 (Data source: Haig Partners)

Car buyers haven’t had this many choices in years: And it's making it tougher for small groups to stay competitive. I recently spoke to Dustin Collins, Vice President at Bill Kay Auto Group, to find out how an "old-school car dog" thrives with an unlikely mix of tech and EQ, why $500 might be the key to increasing car sales, the traits that define a great service director — and much more. Top lessons learned from Dustin: 1. What makes a good service director? — Detail oriented directors are a must for successful fixed ops. — Monitoring labor rates and keeping expenses in line with industry standards are also key. — Good service directors know which parts to stock and which ones won’t sell. 2. Auto market outlook. —?Profits are on the decline and are likely to continue falling. — Sales growth has stagnated under high interest rates and financing costs. — Increases in inventory suggest volumes will pick back up, provided dealers stay aggressive. 3. It all starts with inventory. — With profits sliding, good inventory management is vital. —?Managers may not see the importance of quick turnaround since they don’t usually see floorplan expenses. — Inventory credits can pay for floorplan expenses if the cars sell quickly enough. 4. The power of the service department. —?Incentivize service writers to bring more service clients onto the showroom floor. —?Since they’re usually returning customers, service clients are cheaper/easier to set up with a new purchase/trade-in. — With the right strategies, dealers can convert their service drive into a new sales/acquisition center. 5. Marketing benefits the most from data. —?Data helps dealers prioritize which leads/initiatives to focus on and which to ignore. —?Retailers need to concentrate their marketing efforts on what works rather than trying a variety of strategies. The full episode is live! Stream it now - YouTube:?https://lnkd.in/g_BxSP-j Apple:?https://lnkd.in/g2msZhEG Spotify:?https://lnkd.in/gGKyZdqu

Auto loan ‘modifications’ are shooting up (don’t know what that means? Read on): Take Exeter Finance as an example… 35% (!) of all of their currently active loans have been extended (at one time or another). The reason? Extending loans allows lenders to avoid repossessions and charge-offs. Good news for investors, but for consumers? It’s complicated… Extensions might help some catch up, but accruing unpaid interest could leave others buried in debt for months. (Data source: SEC via Bill Ploog)

Wow — Trump tariffs officially announced Could have big implications for automotive. My bet: these tariffs will either be short-lived or won’t take effect at all after negotiations with each country. The last column in the image below is percent content US/Canada for each brand listed:

[NEWS] Honda is fast-tracking solid-state batteries: At its 27,000-square-meter demo facility in Japan, Honda is tackling a big challenge with EVs — scaling solid-state tech. The goal? Mass-produce batteries with more range and faster charging times for lower costs. But producing this tech is no small feat. Honda’s plan is to speed things up with a continuous “inline mixer” that's three times faster than traditional battery making methods. Big picture — Solid-state batteries could solidify Honda as a leader in electrification and make it a lot easier to lure car buyers to EVs. Read today’s top automotive stories, presented by Anyline: https://lnkd.in/eZ2-fFEb (Data source: Honda)

Manufacturers install GPS tracking into every car they sell. The problem? Car theives know where they hide it. Detective Josh Valles explains how car thieves have evolved to outsmart factory GPS systems. Here's how secondary tracking like LoJack by Solera helps law enforcement recover stolen vehicles. ? Stream the latest episode of the Car Dealership Guy Podcast now on your favorite platform—brought to you by LoJack by Solera.