Automotive Industry News

Below is a summary of recent news in the industry, put together by ODC. 

Automotive Update, News, & Resources – December 2nd, 2020

Key Industry Stat(s) of the Week

• November New Vehicle Sales – sales numbers are being reported for November, and although projections are for a double-digit decrease in year over year November sales, this November had 3 fewer selling days, and once that is factored in, November sales are only projected to decrease around 3.5% YoY.  (Source: CarAndDriver, November New-Vehicle Sales Dip amid Fewer Selling Days, but Recovery Goes on)
• Toyota’s sales were up 12.6% YoY in November and Hyundai saw a 4% YoY increase (when adjusted for selling days).
• The total SAAR for new vehicles has been adjusted to 15.8 million units for 2020. (Source: J.D. Power, Vehicle Retail Sales Decline due to Quirky Sales Calendar)
• Average new-vehicle transaction price remained high in November, hovering around $37,000. (Source: same as above).
• A new study by Effectv and TV Squared analyzing the “halo effect” TV advertising has on driving digital traffic found that automotive advertisers that ran COVID-19 TV spots with consistent airing schedules saw an average of +153% increase in immediate website visitors compared to a -14% decrease in visitors for advertisers who ran inconsistent airing schedules. (Source: TVSquared, The Halo Effect: TV Drives Digital). The study also found that consumers are spending an average of 8% more total time consuming TV content during COVID-19.
• ODC Tip: This is yet another reason why TV, especially OTT/CTV that allows advertisers to have greater targeting controls vs. linear TV, should be used to both drive and complement online/digital engagement with consumers.

COVID-19’s Resurgence in the U.S. Already Impacting the Auto Industry

• Many states, including California, New York, New Mexico, Michigan, and Minnesota have already issued orders restricting businesses due to a rush in new COVID cases, meaning showrooms for dealers will be closed in many parts of the country. The good news is that most dealers are much better prepared now than back in April during the first wave of shutdowns, and their efforts to beef up their digital retailing should pay off. (Source: Automotive News, Dealers brace for shutdowns, absences as cases surge).
• Manufacturing plans are also temporarily shutting down again, with Reuters reporting manufacturing activity slowed down in November and could continue to the next wave of COVID spread continues. (Source: Reuters, U.S. factory activity slows; COVID-19 resurgence hits workers).
• New vehicle inventories at dealers were already low too, with there being around 1 million fewer cars at U.S. dealers in October compared to October 2019, a 25% decrease. (Source: Car And Driver, Fewer Cars on Dealer Lots Is a 2020 Thing That May Endure beyond the Year).

FCA Issues Recall for 30,000 2014-2019 model Jeep Grand Cherokee 3.0 liter EcoDiesel Vehicles

• Although FCA said it is unaware of any injuries or accidents as a result of the issue with the exhaust-gas recirculation cooler, it did indicate that component could crack and start a fire. FCA will be notifying owners at the end of December. (Source: Car And Driver, FCA Recalls 2014-2019 Jeep Grand Cherokee with EcoDiesel Engine).
• ODC Tip: If you’re are running any Jeep campaigns programmatically on the open web, especially Grand Cherokee campaigns, brand safety segments via our Grapeshot contextual targeting platform should absolutely be employed to avoid your ad from running around any articles discussing this recall.

Ford To Launch Their Own Online Platform for Used Vehicles

• Ford plans to launch this platform in 2021 that would link all Ford dealer’s used vehicle inventory and also feature guaranteed pricing and delivery. (Source: Automotive News, Ford to launch new online used-vehicle sales platform).
• One of the reasons Ford is launching this platform is they reported that only about one-third of the 3 million used Fords sold each year actually occur at Ford dealers. This move should help Ford dealers increase that percentage.

GM Revises Deal with Nikola to No Longer Build Nikola’s Badger Pickup, Focusing Instead on Fuel Cells

• The report that accused Nikola of fraud back in September has caused GM to rethink their partnership with Nikola, and will now only focus on supplying fuel cells for Nikola’s semi-trucks. (Source: Reuters, GM, Nikola announce reworked agreement; Nikola shares tumble 25%).

Electric Vehicle Central – Several OEM’s Announce Plans to Expand their EV Platforms

• Hyundai is aiming to have 23 global electric vehicles by 2025, with rollout beginning in 2021. (Source: Car And Driver, Hyundai Unveils EV Platform, will Have 23 Global Electric Vehicles by 2025).
• Volvo’s CEO announced plans for Volvo to be electric only by 2030, and half of all global sales to be EV’s by 2025. (Source: Automotive News, Volvo Could be electric-only by 2030, CEO says).