Category: Auto News Today

Posted on

Bollinger B1, B2 slow rollout is frustratingly normal

Bollinger is still a privately financed company as 2021 closes. However, when I visited the company in suburban Detroit last week, Robert Bollinger hinted that that and other things could change in the new year.

“When we were looking into SPACs last summer, we realized it was way too early for that,” Bollinger told me. “We’ve built the next round of prototypes since then. And we’ve developed so much more on the commercial side, under the radar.” Now, he says, “A SPAC and an IPO is never off the table.”

Last week Bollinger took a major step in the pivot from startup to revenue-generating company with the announcement that its commercial Chass-E electric chassis will be available to one of the nation’s largest upfitters. Bollinger is working with EAVX, a unit of JB Poindexter, to ensure that the Chass-E is compatible for a variety of fleet vehicles that one of Poindexter’s upfitters could use.

A revenue stream from commercial sales has been viewed as a major advantage for Rivian, which is building 100,000 electric delivery vans for Amazon. Such a deal could help Bollinger as well.

Last week, during a visit to Bollinger’s engineering center, three engineers were seen pushing a partially assembled B1 from one bay to another. It’s a more production-intent version than the engineering mules the company has developed, Bollinger told me.

While engineers toil away getting the B1 ready for production, Bollinger has been making progress on other fronts. The company, Bollinger said, has letters of intent with a number of dealership groups and will have nationwide distribution when output begins.

Bollinger also said the company expects to end its quiet period in the first quarter of 2022 with manufacturing and financing news that will show a path to production.

But that path can and likely will have some unexpected detours. During a recent drive in a Rivian R1T, a company official pointed to a chrome accent trim piece on the steering wheel. “That cost us three weeks,” he said, explaining that the original supplier went out of business. It took Rivian almost a month to find a new company to make the replacement part, he said, and to ensure that quality and fit met the company’s specifications and standards.

Bollinger says his electric, four-wheel-drive truck remains the only Class 3, or medium-duty, EV and that he’s not worried about competitors.

“Even if you have a Ford F-150 electric for your day-to-day driver,” he said, “our vehicle might still be your crazy-ass toy that you play with on weekends.”

Posted on

Keys to Developing Foundations for Dealership Growth

As long as inventory shortages persist, dealers can’t rely on a steady stream of new vehicle customers in the service department. This means that focusing on service retention is more critical than ever. Providing customers with new ways to build trust and long-term loyalty through online digital tools and pricing transparency can mean the difference in keeping or losing your customer.

Online service scheduling. If you are still making customers call you and put them on hold, they are likely defecting to another service provider. Use a tool that allows customers to keep track of their vehicle maintenance and history, and to choose which services they want for their vehicle. Making prices available online and using a scheduling system that automatically sends out confirmation details and reminder texts provides the customer with a sense of security knowing their dealer has their best interest in hand. 

Mobile write-up process. This process allows service advisors to greet customers in the service lane. The advisor can conduct a thorough walk around inspection of their vehicle, provide recommended maintenance through menu selling and deliver on the spot pricing for recommended repairs. You will also be able to capture the customer’s signatures for approval of any needed maintenance or repairs on the service drive. 

Connected technology. Eliminate service technician downtime and improve the overall repair process with a system that allows them to digitally punch in and out, perform digital multipoint inspections, send images of needed repairs to customers, and communicate needed parts and repairs to parts counter people and service advisors.

Online payment options should be at your customers fingertips at any time day or night If your service department closes at 6:00 p.m., don’t make your customers wait another day to pick up their vehicle. Provide remote payment options so your customers can pick up their vehicles at their convenience, not yours. 

When implementing new processes and technology, don’t skimp on the training. Train your staff and hold them accountable for using the new technologies. Use reporting tools in your DMS and CRM to track and monitor progress. 

The more you can digitize your processes, the faster you will be able to scale and grow your dealership.

 

Find lasting success with Solera | DealerSocket
 
Connecting your systems is a win for your teams, customers, and business objectives. With integration capabilities, you can:
 
•    Eliminate double entry
•    Reduce data entry errors
•    Input a faster, smoother sales process
•    Save time correcting inaccuracies
•    Improve employee productivity
•    Increase customer satisfaction
 
Save your dealership ample time, ensure accuracy, and reduce manual errors throughout your dealership with Solera | DealerSocket. Visit dealersocket.com or give us a call at 855-928-2151 to get started today!

Posted on

EV transition could cost 500,000 jobs, supplier group says

PARIS — The transition to electric vehicles from internal combustion powertrains could mean the loss of up to 500,000 jobs at automotive suppliers in the EU by 2040, according to a new study by the industry trade group CLEPA.

Those job losses will not be fully offset by a corresponding growth in EV components, which the group said would generate only 226,000 new positions, for a net loss of 275,000 jobs.

That scenario could play out if the EU enacts a proposal in its “Fit for 55” package to allow only zero-emissions vehicles to be sold after 2035. Along the way, emissions would fall by 55 percent from 2021 levels by 2030. The package of proposals was released this summer.

The suppliers’ group is calling for a mixed-technology approach to emissions reductions, including hybrid technologies, so-called green hydrogen and renewable fuels. That approach would still cut emissions by 50 percent and maintain current employment levels, CLEPA said.

“The study highlights the risks of an EV-only approach for the livelihood of hundreds of thousands of people working hard to deliver the technological solutions for sustainable mobility,” CLEPA Secretary General Sigrid de Vries said in a news release Monday. 

According to the report, prepared by PwC for CLEPA, 1.7 million people work at automotive suppliers in Europe, with an additional 1.2 million jobs at automakers. There are also about 1.21 million jobs in activities such as tires, body manufacturing, chemicals, batteries and electrical equipment, and 3.2 million in support services.

The study considered three questions:

  1. What is the impact of different powertrain technologies on the value that suppliers can add?
  2. What is the corresponding effect on jobs?
  3. What is the effect on climate targets?

The majority, 70 percent, of the electric vehicle “value add” would come from batteries, from raw materials to cells to pack assembly to recycling. However, that industry is just ramping up in Europe, with many gigafactories planned but few currently in operation.

As that industry develops, jobs at internal-combustion suppliers will drop off sharply, especially after 2030, the study found. There are 599,000 positions in the sector today, but that figure will fall to 513,000 in 2030 — and just 153,000 in 2035.

The study envisions three powertrain scenarios:

  1. Mixed technology, which would still cut CO2 emissions from the current 95 gram per km to 20 g/km in 2040, and would add about 200,000 jobs by that year
  2. EV-only, which would cut emissions to zero by 2040, but with a corresponding loss of 275,000 positions
  3. A “radical” situation, in which emissions are cut to zero by 2030, but job losses would top 360,000.

“Society’s needs are far too diverse for a one-fits-all approach,” de Vries said in the release. “A regulatory framework that is open to all available solutions, like the use of hybrid technologies, green hydrogen and renewable sustainable fuels will enable innovation as we redefine mobility in the coming decades.”

The biggest job losses would be in Germany (121,000), Italy (74,000), Spain (72,000) and Romania (56,000).

Posted on

Battery degradation may not drain EV residual values

Cox Automotive has been scoring battery health as part of an initiative for its Manheim auction subsidiary. While it’s early in the testing program, initial results also suggest battery capacity reductions might not be as big of an issue for residuals as previously thought.

“The EV values are aging well,” Jim Heffner, Cox associate vice president of mobility product, said in an interview.

The mere act of having tested batteries seems to help. Cox so far has found vehicles with a battery health score get five times more bids and sell for 1 to 4.5 percent more at auction.

Cox’s initial results show “mileage is not a clear indication of health,” Heffner said.

Factors such as rapid charging and discharging can be more significant, he said.

Heffner said that if he had to assign a grade to the auto industry for the health of its used-vehicle batteries, it would be “well above average.” And newer generations of EVs seem to be preserving their capacity more than older vehicles, he said.

Drotman acknowledged with smaller “compliance vehicles” such as the electric Ford Focus, the automaker “got on the wrong side” of residuals. But Ford and others are producing quality EVs today, he said.

Battery range does matter to residuals. But the discussion during an Auto Finance Summit residual panel suggested the battery’s original range could be the true factor to watch, rather than diminished range from an aged battery.

Vehicles that originally delivered less than 200 miles of range on a charge will see a negative effect on their value, Lanzavecchia said during the panel. Those with 200 miles or more of charge will see more favorable residuals.

At about 350 to 400 miles of range, the EV begins to see diminishing returns in resale value, though “there still is some positivity there,” she said.

Right now, customers are returning early-generation EVs with ranges below 100 miles, Lanzavecchia said. But J.D. Power expects longer-range vehicles to produce residuals closer to those of their gasoline-powered peers, though “still at a little bit of a deficit.”

Panelist Eric Ibara, Kelley Blue Book director of residual value consulting, agreed longer-range EVs are more likely to preserve value, and so his company expected residuals to improve in the future EV markets.

Ibara also highlighted Manheim’s method of assessing used-vehicle battery health. He said his company expected this would significantly alleviate customer concerns about the battery life, though batteries found to be in less than ideal condition would not hold their value as well.

According to Cox Automotive, consumers expect to drive a minimum of 217 miles on a battery charge, up from 184 miles two years ago. But the average range in the U.S. electric fleet had risen from 195 miles in 2019 to 257 miles this year.

Posted on

EV maker Polestar to develop own platform, boost number of showrooms

The company is increasing the size of its showroom network — operated in the U.S. by select Volvo dealers — as it looks to dramatically grow its global sales in the coming years. Polestar said it is “on target” to reach its plan for 29,000 vehicle deliveries this year and expects to sell 290,000 annually by 2025, operating in 30 markets by the end of 2023.

“This adoption from internal combustion to EV is going to grow at a startling rate in the coming years, so naturally, with the advent of the network growing and the brand awareness and product portfolio continuing to grow, we’re going to be there with an offer,” Gregor Hembrough, head of Polestar USA, told Automotive News. Hembrough, along with Ingenlath, spoke with investors and media Thursday in New York.

Polestar said it will launch a new model every year for the next three years, beginning with the Polestar 3. The company debuted a new teaser image of the crossover Thursday, featuring the vehicle wrapped in camouflage. The four-door crossover has a sporty look, with a sloping silhouette and a front end marked by thin headlights.

Polestar said it will equip the model with hardware and electronics that would enable autonomous highway driving by the middle of the decade, including lidar sensors from Luminar Technologies and computer electronics components from Nvidia Corp.

Ingenlath, speaking with Automotive News, said Polestar is hesitant to label the system as having either Level 3 or Level 4 autonomy, though he described it as a “big, great step into the autonomous age.”

“We very clearly describe what it can do: It is you letting go in an autonomous situation on the highway, with the driver out of the loop and having hands off the steering wheel and the car taking over on that stretch,” he said. “Some would call that Level 4. If you’re very strict on what the definitions are, it’s more of a Level 3-plus.”

Polestar is also developing its own “bespoke aluminum space frame platform architecture,” a departure for the company, which has until now shared platforms with Volvo. The company expects to debut the platform on the Polestar 5.

Ingenlath said developing its own platform is crucial for Polestar so that it does not have to make compromises to vehicle design as it rolls out new models. He pointed to last year’s Precept concept as an example of how building on a unique platform can enable different designs.

“If we were to put that onto an available mass-production platform that we find in the toolbox of the group, we definitely would have compromised on the result,” he said.

In the meantime, Polestar said it would soon roll out over-the-air updates for purchase for the Polestar 2, including one that would provide a performance boost of 68 hp. The upgrade, which Polestar aims to roll out in the U.S. in early 2022, will sell for about 1,000 euros ($1,130) in most markets, a company spokesman said.

Posted on

November U.S. auto sales: Toyota, Honda, Hyundai, Kia sales fall 4th straight month; Ford rises 5.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Supply-chain disruptions, driven by the ongoing shortage of microchips that has dented new-vehicle stockpiles, undercut U.S. sales at Toyota Motor Corp., American Honda, Hyundai and Kia for the fourth straight month in November.

But there was another clear sign that the U.S. market is bottoming out. The seasonally adjusted annualized rate of sales (or SAAR), came in at 13.1 million units — unchanged from October, according to Motor Intelligence. The SAAR was 16.1 million a year ago.

Among automakers that reported November results, sales slipped 14 percent, but LMC said overall sales fell 16 percent, which was worse than previous forecasts that called for a drop of 11-12 percent.

For the recent month, volume dropped 25 percent at Toyota Motor, 17 percent at American Honda, 20 percent at Hyundai — its biggest decline of the current slump — and 5.4 percent at Kia last month, the companies said Wednesday.

Deliveries at Subaru skidded for the sixth consecutive month, down 35 percent in November.

Volvo, the last major automaker to report November results, on Friday said deliveries plunged 34 percent to 7,667 units.

Meanwhile, Ford Motor Co. said Thursday it was the top-selling automaker in the U.S. for a third consecutive month, posting a 5.8 percent increase in November light-vehicle sales that contrasted with declines for nearly all other companies that reported monthly results.

Ford’s utility vehicle sales jumped 21 percent from a year ago, and F-Series pickup sales rose 15 percent despite the ongoing microchip shortage that has thinned dealership inventories. The automaker said sales of its electrified vehicles grew at triple the rate of those from other manufacturers.

Ford said its total light-vehicle sales of 157,417 was enough to beat all other automakers, including General Motors and others that report on a quarterly basis, based on numbers those companies provide privately to analysts and industry data trackers. The last time Ford had such a streak at No. 1 was 1974, company officials said.

Toyota Motor, which has overtaken longtime U.S. market leader General Motors this year, has been forced to cut output in recent months because of tight chip supplies. It has now posted declines of 22 percent or more three consecutive months. Sales last month dropped 24 percent at the Toyota brand and 32 percent at Lexus.

The Toyota brand was hampered by a 47 percent drop in November car deliveries, with Corolla sales skidding 63 percent to 8,906 and Camry off 34 percent to 19,261 units. The brand’s top-selling light trucks also saw double-digit declines: RAV4, off 14 percent; Highlander, down 13 percent; and Tacoma, off 21 percent.

Toyota said it had 116,638 cars and light trucks in inventory — or an 18-day supply — at the end of November, down 67 percent from 349,639 units a year earlier.

Honda said volume dropped 17 percent at the Honda division and 21 percent at Acura, with American Honda car volume off 24 percent and light-truck deliveries down 13 percent. Honda Civic sales slid 26 percent and CR-V volume dropped 19 percent.

Hyundai said it ended November with just 17,096 units in stock, down from 19,894 at the end of October and 145,885 at the close of Nov. 2020. Some of the company’s top-sellers posted notable declines last month; Elantra, down 42 percent; Sonata, off 56 percent; Santa Fe, down 24 percent and Kona, off 37 percent.

Hyundai’s fleet shipments also dropped sharply last month — 97 percent, and represented less than 1 percent of overall volume.

Randy Parker, senior vice president for national sales at Hyundai Motor America, said “consumer demand remains exceptionally high” but “lingering availability issues persisted into November.”

At Kia, some of the brand’s key models — led by the Telluride, Seltos, Sportage and Soul — all posted declines. The company said it sold 77 percent of available U.S. inventory in November.

Three of Subaru top U.S. sellers — the Outback, down 19 percent; Crosstrek, off 51 percent and Forester, down 70 percent — suffered significant declines last month, leaving the company on pace to post back-to-back declines in annual U.S. volume for the first time since the 1990s.

Mazda said volume dropped 5.3 percent in November, its third straight decline.

Genesis, helped by an expanding product lineup, continued to rack up major gains, with November volume advancing 435 percent to 5,002 sedans and crossovers. 

General Motors, Stellantis, Nissan Motor Co., Volkswagen Group and the rest of the industry post U.S. sales quarterly.

Analysts had expected a more substantial finish to 2021 fueled by traditional year-end holiday discounts — after volume dropped 14 percent in 2020 at the onset of the pandemic.

The emergence of another COVID-19 variant also threatens to upend the spotty recovery to the extent supply chains and manpower are impacted by new travel and other possible operating restrictions.

Retail inventories remained below 1 million units in November for the fourth straight month, J.D. Power and LMC Automotive said.

“The typical Black Friday sales surge will be difficult to support,” this year, said J.D. Power analyst Thomas King. “The traditional year-end sales push will be somewhat non-traditional.”

Industry sales rose 13 percent through September behind a strong first quarter and a 4.96 percent rise in the second quarter, followed by a 13 percent decline in the third quarter.

Still, November sales are expected to increase slightly from October, rising less than a percent to reach an estimated 1.05 million, Cox Automotive said.

“The market is stuck in low gear,” said Cox Automotive Senior Economist Charlie Chesbrough. “There are potential buyers out there, but many are waiting on the sidelines, put off by limited selection and high prices.”

Even amid tight supplies, some automakers continue to pitch deals to keep consumers and buyers engaged.

Hyundai and Ford last month offered 0 percent financing and waived payments up to 90 days on select models, and BMW dangled up to $2,500 off on select new models through Nov. 30.