Here’s at least one place in the automotive landscape that’s currently stable.
On Thursday, Urban Science announced highlights from its 2022 midyear Franchise Activity Report (FAR), which shows continued stability for the U.S. automotive retail franchised dealership network despite continued inventory shortages during the first six months of the year.
As of July 1, Urban Science said there were five more dealerships (rooftops) in the country compared to the same date in 2021 (18,235 this year compared to 18,230 last year).
Experts said the number of franchises — brands a dealership sells — decreased slightly from 31,646 last year to 31,579 during the same period.
According to the Urban Science report, a record-high 99% of core-based statistical areas (CBSAs) in the U.S. had virtually no net change (plus or minus one store) in dealerships.
Experts said 91% of CBSAs had no actual net change in dealerships, while 4% of CBSAs (net) lost at least one store and 5% (net) gained at least one store.
Urban Science discovered the most significant state-level changes were net increases in California (up 12) and Texas (up 7) and net decreases in Michigan (down 5), Florida (down 4) and Indiana (down 4).
Since the current range of industry sales forecasts for 2022 is slightly less than last year and dealer count remained stable throughout Q1/Q2 2022, Urban Science projected average throughput — the number of vehicles a dealership sells — to fall slightly from 826 units per store last year to 821 units in 2022.
But while average throughput is expected to dip, experts said dealers have significant opportunity to gain momentum and competitive advantage by positioning themselves to meet rapidly evolving consumer needs, including heightening demand for electric vehicles (EVs).
While industry sales declined slightly during Q1/Q2 2022, experts said EV sales in the U.S. continued to grow.
Urban Science reported EV sales in the U.S. increased 41% in the first half of 2022 compared to the same timeframe in 2021; the share of EV sales also increased from 3.6% of all U.S. new-vehicle sales in the first half of 2021 to 6.2% during the same period in 2022 — a 72% year-over-year increase.
According to the Urban Science DataHub | New Sales, two states are the primary drivers of EV sales in the U.S.:
—One-third of all EVs sold in the U.S. were sold in California during Q1/Q2 2022.
—Florida is home to the nation’s second-highest EV sales volume but expanded its margin in Q1/Q2 2022 compared to last year.
—While Florida also ranked second in EV sales volume during Q1/Q2 2021, it edged out New York by a margin of about 1,000 units.
—Florida’s lead over New York widened to over 10,000 units during Q1/Q2 2022.
—Led by Florida’s 64% year-over-year increase in EV sales during Q1/Q2 2022, the southeast region has become the fastest-growing region for EV sales in the U.S. during the same period with a 52% uptick in EV sales overall.
“As EV adoption continues its sharp ascent nationwide, Urban Science continues to lead the auto industry forward by helping manufacturers and dealerships adopt science-driven approaches to EV forecasting, network planning and dealership infrastructure that position them to meet — and capitalize on — the groundswell of consumer interest that continues to build,” Urban Science global director of data Mitch Phillips said in a news release.
“We tap the power of our near-real-time industry sales data to give our clients an instantaneous view of EV adoption — down to the narrowest geographic levels — that empowers OEMs and dealers to ensure their stores are prepared to meet test-drive, charging and service demands effectively and efficiently, and in a way that sets them up to thrive in the short- and long-term EV future,” Phillips went on to say.
On Monday, Universal Technical Institute (UTI) launched the first session of its new BMW FastTrack technician training program at the Exton, Pa. campus, making it the fifth UTI location to begin offering the 12-week advanced training program.
A collaboration between the German automaker and UTI, a leading provider of automotive technician training, BMW FastTrack provides state-of-the-industry training on the latest models in production, utilizing the tools, technology and procedures that are specific and proprietary to BMW vehicles.
According to a news release, any student who completes UTI’s core automotive program is eligible to apply for the additional BMW-specific training, which includes four technologies:
— Workshop
— Electrical
— Chassis
— Drivetrain
The development is welcomed by Kevin Ciccariello, who is service manager at BMW of Devon
“BMW of Devon is excited to have the BMW FastTrack program close to our center,” Ciccariello said in the news release. “The need for qualified technicians who are properly educated and trained to diagnose and repair BMW vehicles is consistent, and this program will help ensure the availability of candidates to support our clients’ repair needs with the proper level of training.”
Once the BMW FastTrack curriculum is complete, UTI graduates can earn seven BMW factory credentials and a BMW Associate Level III Certification — after passing BMW-specific ASE testing and assessments.
The school said graduates may also apply for additional, advanced training in the BMW STEP program, which is offered at BMW locations.
“We are thrilled to be starting classes for students entering the BMW FastTrack training here in Exton,” said Robert Kessler, campus president at UTI-Exton. “Students will be learning from great instructors in their respective fields. This program prepares our graduates to enter the automotive workforce as BMW technicians immediately upon graduation.
“Graduates who go to work at a BMW dealership may also be eligible for tuition reimbursement and other incentives, so it’s a great opportunity for our students to increase their knowledge and prepare for a rewarding, lifelong career,” Kessler continued.
The BMW FastTrack program initially launched at UTI’s campus in Avondale, Ariz., in January. The program is also offered at its campuses in Houston, Long Beach, Calif., and Orlando, Fla.
“There is a need for more highly skilled BMW technicians across our dealer network, so our alliance with Universal Technical Institute is critical to ensuring our dealers have the staff they need, and our customers receive the exemplary service they’ve come to expect,” said Gary Uyematsu, national technical training manager for BMW of North America.
“Upon completion of the UTI program, technicians arrive at our dealers fully equipped to make an immediate contribution as maintenance level technicians,” Uyematsu went on to say.
This week’s update involving mergers and acquisitions of dealerships covers two unique parts of retailing — luxury sedans and SUVs as well as big rigs to move goods.
The Presidio Group said it advised Scott Biehl on the sale of the Jaguar Land Rover Los Angeles dealership franchises to US Auto Trust.
And Performance Brokerage Services announced the sale of Volvo Trucks of Palm Beach, Fla., from the DeSanti family to Nacarato Truck Centers.
According to the release from the Presidio Group, US Auto Trust also owns Jaguar Land Rover San Jose and Jaguar Land Rover Newport Beach and recently acquired Cadillac Pasadena and Land Rover Pasadena.
Jaguar Land Rover LA is the No. 1 volume Jaguar Land Rover store in the Los Angeles market. California is both the largest retail auto market in the U.S. and the leader in luxury sales. The luxury segment gained market share in first quarter of 2022 compared to the same period last year, according to the California New Car Dealers Association.
“We are excited to expand our Jaguar Land Rover holdings in California, a huge luxury brand market,” US Auto Trust President Matt Kaiser said in the release. “The Presidio Group understood this strategic acquisition fit perfectly with our growth strategy and it was a pleasure to once again work with them. We welcome the JLR LA team members to the US Auto Trust family and look forward to building on the foundation Scott and his team have built with this business and in the community.”
Biehl shared his perspectives about making this deal.
“After building a new state-of-the-art dealership and growing this business into one of the largest Jaguar Land Rover dealerships in the country, I wanted to find a buyer that would continue to support our employees and the local community,” Biehl said. “I have known George Karolis, president of The Presidio Group, for many years and had confidence that he and his team would fulfill all of our objectives. I could not be more pleased with the outcome.”
Richard Rasmussen, a partner with Lagerlof, LLP, served as legal counsel to the seller. Timothy Robinett, a partner with Manning, Leaver, Bruder & Berberich, LLP, served as legal counsel to the buyer.
“We were honored to work with Scott Biehl on the strategic sale of Jaguar Land Rover Los Angeles,” Karolis said. “Finding the ideal buyer for these franchises, one that allowed Scott to meet his financial and personal goals, was our aim, and with US Auto Trust we succeeded.”
Meanwhile on the opposite side of the country, Volvo Trucks of Palm Beach has been owned and operated by the DeSanti family for more than 62 years, according to news release from Performance Brokerage Services.
Established as a full-line GMC dealership in 1960, the business was awarded the Volvo Truck franchise in 1988, followed by AutoCar in 1998. The dealership moved to a newly built facility in 2002 where it resides today.
“After decades of operating as a family business, we started to look towards retirement, and wanted a new family to take over and grow the business,” Volvo Trucks of Palm Beach president Leonard DeSanti said in the news release.
“We chose Mike Nacarato and the Nacarato Truck Centers team because we felt like they were going to be the best fit for our employees and customers,” DeSanti continued. “My brothers and I met with Mike personally just as the process began. Mike and his team have built a great company, and we know our community will benefit from Nacarato Truck Centers as its newest business.
“Lloyd Baldridge, CFO of Nacarato Truck Centers, has been instrumental in working with our team to ensure a smooth transition. There are many good days ahead for the customers in our area,” DeSanti went on to say.
The dealership will remain at its current location at 360 South Military Trail in West Palm Beach, Fla.
Nacarato Truck Centers is a group of authorized Volvo Truck, Tico Terminal Tractor, Strick Trailers, Dorsey Trailer and used truck dealerships and service centers, serving Tennessee, Virginia, southern Kentucky, Maryland, Illinois and Georgia.
The company began as a single dealership in Nashville, Tenn., and has expanded to 12 locations. With 46 years in the trucking industry, the company has been led by three generations of the Nacarato family.
“The addition of the Palm Beach dealership is a great fit for our company,” Nacarato Centers president Mike Nacarato said. “We look forward to working with the excellent employees at the dealership and know that each of them will play a big part in its continued success. We want to support and enhance our relationships with existing customers and have every intention of introducing ourselves to as many new potential customers as possible in the days ahead. The Nacarato team looks forward to making a positive impact in the Palm Beach community for many years to come.”
Shortly after its purchase of Accu-Trade in February, Cars.com executives said bringing the company into the fold could help facilitate another inventory acquisition source for dealers: buying cars directly from the public.
That came to fruition this week with the official launch of Instant Offer, a new Accu-Trade-powered capability on Cars.com where consumers can sell their rides to the company’s network of some 20,000 dealers.
Instant Offer rolled out to select markets in May, and has generated more than 5,000 offers thus far, the company said. In expanding the solution across the country, Cars.com projects those numbers will “scale rapidly,” it said in a release.
“About 40% of the 27 million monthly shoppers on Cars.com have a car to trade in before purchasing a new one, and we wanted to offer a seamless experience for those consumers to connect with local dealers and have a convenient, safe and fast place to sell their car,” Cars.com president and chief commercial officer Doug Miller said in a news release
“Our new Instant Offer capability curates the best offer for a consumer and enables them to sell their used car to a qualified local retailer, collect a check and purchase a new vehicle all in the same day,” Miller said.
In a February interview with Auto Remarketing, Cars.com chief executive officer Alex Vetter alluded to the dealer benefits of going this route, particularly as inventory challenges persist.
“What we’re seeing dealerships do right now is, with the inventory shortage that every dealer is struggling with, they’re sourcing vehicles through new channels — buying cars directly from the public as a way to accelerate inventory turn and keep their operation humming. And Cars.com organically has close to 20,000 private sellers coming to our platform every month,” Vetter said.
“And if we can route those to dealers who are using the Accu-Trade tool to buy cars precisely and accurately and knowing what to pay, they can really solve a pain point for users, while at the same time, replenishing their own stock to buy cars that they can now retail directly,” Vetter said. “Again, that’s turning a cost-center into a profit-center. Progressive dealers are running buying operations today that are bypassing the traditional auction and literally sourcing cars direct from the public. Together with our dealer network, we want to activate that strategy for dealers all across the country.”
Shop Smart Autos founder and chief technology officer Richie Bello closed July by making a major strategy pivot, announcing that the company is taking its focus from dealer lead provider to strictly a consumer marketplace.
According to a news release, the company no longer will sell consumer leads to dealers. The company intends to offer the consumer everything needed from shopping to financing and allow them to reach out to a dealer of choice through ShopSmartAutos.com.
Bello founded Shop Smart Autos in 2019 to provide consumers a seamless solution for purchasing a vehicle. Consumers can visit shopsmartautos.com and find private sellers and dealers’ inventory that is updated daily.
Features such as model comparisons, financing and delivery are available to the shopper. Pre-owned buyers and sellers can find the history and maintenance information to make a calculated decision.
“I want to thank the dealers that have purchased our leads, but the consumer marketplace is proving a better model for our company,” Bello said in the news release. “The changes in consumer behavior call for a safe place where they can control and find what they are looking for and have a ‘soup to nuts’ experience.”
Bello added that the company ran both models, with the consumer model showing stronger performance. He added dealers will still receive direct inquiries from shoppers, but at no cost to the store.
City Auto Sales is a leader in the independent used-car dealer space.
In this episode of the Auto Remarketing Podcast, chief operating officer Stan Norton joins the show to talk about what sets the group of Tennessee dealerships apart from its peers, its efforts in the electric vehicle space, used-car acquisition strategies and much more.
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Foundation Automotive marked a couple of firsts with its latest acquisition.
The group, which has stores in both the U.S. and Canada, has entered Tennessee and purchased its first Nissan dealership, as the retailer said Friday it has acquired Jones Motor Company and its four dealerships.
The deal also brings the Jones group’s used-car platform into Foundation’s dealerships.
The acquired dealerships are located in the Savannah and Humboldt-Jackson areas of Tennessee and include Jones Buick GMC, Jones Chrysler Dodge Jeep Ram, Jones Chevrolet Humboldt and Jones Nissan.
They will keep their names. Chad Jones, who owned the group before its sale to Foundation, will remain with Foundation as an executive with the used-car platform, which will now be utilized by all of the group’s 35 stores.
“Nissan is a very welcome addition to our growing group. They have built such a strong and consistent brand in the USA over the last 65 years,” Foundation chief executive officer and president Kevin Kutschinski said in a news release.
“We’re always eager to continue to build our relationship with Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep and Ram,” he said. “The used car platform they have built at Jones Motor Company is second-to-none, and we are fortunate to have Chad Jones on board to help expand it to all of our stores.”
Jones added: “Foundation Automotive was a great fit for us because they are very much like our family and what we believe in. They’re all about taking care of customers and building the community, which is what we have always strived for.”
Chicagoland’s franchised dealers have more in the works for Saturday than just retailing vehicles.
For the ninth year, the Chicago Automobile Trade Association (CATA) and its dealer members have partnered with USO Illinois to host Barbecue for the Troops grassroots community fundraising events throughout the area on Saturday.
To date, more than 60 dealerships have signed on to support the cause, and are planning to offer everything from patriotic ceremonies, classic car shows, live music, games for kids of all ages and — of course — barbecue.
According to a news release, CATA dealers have rallied to raise more than $950,000 during the past nine years to support USO Illinois programs and services with nearly 600 fundraisers taking place.
Officials said these funds enable USO Illinois to lend support to more than 300,000 service members and their families annually.
“This year is an especially exciting year as we are on the precipice of raising $1 million for USO Illinois over our nine-year partnership,” CATA chairman JC Phelan said in the news release.
“We weren’t able to fully execute this event the past two years due to the pandemic, but we are thrilled to bring back this amazing campaign in its full capacity this July to help the USO Illinois at a time when they desperately need funding for local troops and their families,” Phelan continued.
For individuals who can’t visit a dealer USO Barbecue for the Troops event on Saturday, there’s still an opportunity to get into the action via social media.
Through the end of the month, the CATA and USO Illinois are accepting contest entries for the Ultimate Backyard Barbecue, including a new grill and delicious BBQ fare from Mission BBQ.
To enter, complete the online contest entry form or visit DriveChicago.com for more details. The winner will be announced on or around Aug. 15.
“For the ninth year, USO Illinois is proud to partner with the Chicago Automobile Trade Association and local new-car dealers for the USO Barbecue for the Troops initiative,” USO Illinois executive director Chris Schmidt said.
“The USO Barbecue for the Troops program has raised more than $950,000 to support military service members and their families, right here in Illinois,” Schmidt continued. The support of service members’ hometown communities and local new-car dealerships has allowed USO Illinois to positively impact more than 300,000 service members and their families annually through hundreds of programs and services as well as our 10 USO Centers across Illinois.
“Neighbors helping neighbors through initiatives like Barbecue for the Troops makes communities even stronger and joining your local dealership for their BBQ in July is a great way to get involved! From USO Illinois and all those who serve our nation, we thank you for your generous support,” Schmidt went on to say.
To find the full listing of CATA dealer USO Barbecue for the Troops fundraisers, visit DriveChicago.com. For more information about USO Illinois, visit Illinois.USO.org.
I took delivery of a new work truck about a year-and-a-half ago, back when dealerships were knocking off $5,000 from MSRP, not adding $7,500.
Later on, I ordered new wheels, a drop-in bedliner and a tonneau cover to make it the way I wanted.
But that’s nothing compared to what John Cena has done.
Be it his outlandish comedic chops, pro wrestler’s physique or action movie prowess, Cena and his star power are massive.
And so, too, is the price tag and increased insurance costs associated with modifications to his Chevrolet Corvette, according to UK-based Confused.com.
A second-quarter study from Confused.com, utilizing valuations from CarSite car expert Charlie Howes, looked at the costs of modifications made to celebrities’ cars, along with the potential bump they would have on insurance costs.
The modifications to his Chevrolet Corvette, which Confused.com said included "custom moulded fibreglass body with open ceiling and custom headlights," had an estimated cost of $76,644, putting him at the top of their list.
The site estimates that this modification would increase his annual insurance costs by 62.5%.
In a tie for second were Justin Bieber and Kim Kardashian, whose modifications to their respective Cadillac CTV-V and Lamborghini Urus rides cost $73,595 apiece.
The next closest was David Beckham, whose tweaks to his Maserati MC20 cost $39,054, according to Confused.com.
Another sports star, Von Miller, followed Beckham, with a $27,250 modification to a Chevrolet Camaro SS.
Kayne West and Zac Efron were next with $26,412 modifications to a Lamborghini Urus and 1965 Ford Mustang, respectively.
And for good measure, Bieber and Kardashian tied for another spot on the list; Justin with a $21,479 modification to a Ferrari 458 and Kim modifying her Mercedes-Benz Maybach.
Other celebrities on the list included Odell Beckham Jr., Lady Gaga, Lionel Messi, Kylie Jenner, Beckham (again), Flo Rida, Jason Statham, Jay-Z and Kendall Jenner.
Now, I didn’t spot his name on the list of high-priced vehicle modifications, but the celebrity I’ve been told is my doppleganger is Zach Galifinakis, a fellow North Carolinian hailing from NC State University.
And based on this 2018 interview with him on Jimmy Kimmel Live, his practicality in vehicle decision-making more closely resembles mine (and likely the rest of us normals) than his celebrity peers who made the Confused.com list.
In the interview, Galifinakis told Kimmel he had held on to a 1998 Subaru Outback as his only vehicle for some two decades, and added an electric vehicle only when his old ride started to fall apart.
Much like his character's blackjack success in "The Hangover," that's some good calculations and good luck.
Joe Overby is senior editor with Cherokee Media Group and can be reached at joverby@cherokeemediagroup.com.
A new study from Rapid Recon-certified partner iPacket identified the three most convincing documents utilize when used-vehicle buyers are evaluating their purchase decision.
The study results released on Tuesday pointed to authentic OEM MSRP data, new-vehicle brochures and reconditioning receipts
For the study, Rapid Recon and iPacket explained that click activity and time spent were measured on various modules or documents provided in participating dealers’ digital vehicle presentations on their websites.
Combined, according to a news release, authentic OEM MSRP data, the reconditioning receipts and the new-vehicle brochure accounted for 36.6% of all click activity (99,190 clicks) and 42.3% of total session duration minutes (448,398 minutes).
Rapid Recon founder and chief executive officer Dennis McGinn said the study’s results underscore the value provided in the sales process by reconditioning and proper vehicle documentation in the sales process, which may be surprising news to dealers.
“Buyers are looking for longer useful life from the used vehicles they buy. Information from vehicle reconditioning reports helps provide the information car shoppers crave,” said McGinn, who runs the dealership reconditioning and communications software company.
“Their interest and trust in how a dealership reconditions its used cars should command every dealer’s attention. Displaying proof of this recon-to-retail investment is a value-focused differentiator and proven by the data in this study,” he continued.
Seve Astorg, who is iPacket's founder and chief executive officer, said the study’s goal was to determine what content drives shopper engagement as they research used vehicles and what materials they look at that hold their attention most.
“The recon report lists the mechanical and cosmetic details the dealer invested in to make the used car safe, dependable, and appealing,” McGinn said. “This investment builds trust in the dealership and for the dealer value in the vehicle to hold margin.”
iPacket’s three-month study involved 500 iPacket dealers and 80,000-plus unique vehicle shoppers.
“The results concluded that shoppers recorded approximately half of their click activities and session duration on research data not traditionally found on dealer websites,” Astorg said.
Traditional dealer websites provide consumers photos of vehicles, a vehicle history report, and bullet data points specific to a vehicle, such as the model year, make, and miles.
iPacket solutions can improve dealers’ websites and one-to-one client communication. They do so by providing enhanced research material, such as the original OEM MSRP/build sheets, reconditioning receipts, new car brochures, warranty information, and more for every vehicle they offer for sale.
“Consumers want all the data, and when the data is not at their fingertips, they take it upon themselves to find the information via search engines,” the companies said. “By providing OEM verified data directly from the dealer’s website, consumers can review photos against the build sheets to understand the vehicle more specifically.
“When information also includes reconditioning receipts, consumers will have even greater confidence in knowing what was done to the vehicle they’re shopping for to prepare it correctly for sale,” the companies added.
Other documentation measured for this study included vehicle history reports, warranty information, images, vehicle videos, and dealer “about us” information.
Astorg said the study data suggests that dealers who use the iPacket-enhanced research material record 46.9% more consumer-click activity and shopper session duration than dealers who do not display enhanced research content.
“The data is astonishing, considering the time spent on the average iPacket display is more than 35 minutes by the consumer, further elaborating that they want the data and to be informed,” Astorg said.
