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Cox Automotive Leads the Way to NADA 2023 with New Solutions for Retail, Inventory and EV Readiness

Cox Automotive Leads the Way to NADA 2023 with New Solutions for Retail, Inventory and EV Readiness
  • Cox Automotive will be the largest exhibitor at the annual dealer convention.
  • Team will showcase new products and solutions focused on improving retail transactions, solving inventory issues, and preparing for EV growth.
  • Dealerships deploying multiple Cox Automotive solutions are averaging 23{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} higher close rates, 63{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} more leads, and $187,000 per month more in profit. 

ATLANTA, Jan. 18, 2023 /PRNewswire/ — When the National Automobile Dealers Association’s annual gathering gets underway later this month, Cox Automotive will be showcasing a collection of new services and solutions to help the industry cope with a slowing market and consumers increasingly expecting a more digital, connected vehicle-buying experience. Cox Automotive, the world’s largest automotive services and solutions provider, will be the largest exhibitor at the show, held for the first time at the Kay Bailey Hutchison Convention Center in Dallas, Texas.

The Cox Automotive display will cover more than 27,000 square feet of expo space and include the Power Up live stage, more than 200 demonstration stations, and 30 private meeting rooms. Lined up end-to-end, the LED display screens throughout the space would stretch across half a football field. The stand at NADA 2023 is Cox Automotive’s largest ever.

“With a challenging market ahead, we think it is more important than ever to be showcasing the many smart solutions we offer that can help dealers successfully grow their profitability and deliver the omnichannel experience consumers expect,” said Cox Automotive President Steve Rowley. “Now is the time for our industry partners to invest in the solutions that help make car buying more efficient for everyone.”

Smart Solutions to Make Car Buying Better

Recent research from Cox Automotive indicates that satisfaction with the car buying process declined in 2022 for the second straight year. Satisfaction with the car buying process peaked in 2020, due in part to widespread adoption of digital and remote car buying tools. High prices and limited inventory, however, have resulted in more frustration with both the market and the process.

“Cox Automotive continues to pursue new and innovative ways to help clients and consumers thrive in the age of digital transformation,” said Cox Automotive’s Chief Product Officer Marianne Johnson. “And our portfolio of smart solutions is backed by the industry’s most powerful consumer intelligence, vehicle intelligence and market intelligence.”

In 2023, Cox Automotive will be launching more than 20 new products and will improve existing products with more than 70 integrations to help provide better outcomes for clients who utilize multiple Cox Automotive solutions. Through the pursuit of continual improvement, the engineering teams at Cox Automotive plan to deploy more than 12,000 new features and product enhancements in the coming year.

At the center of the company’s broad portfolio of new and improved products is an expansive data intelligence engine that powers Cox Automotive’s broad ability to deliver valuable business insights, services and solutions to the company’s many clients and to the auto industry as a whole. DRiVEQ is the Cox Automotive data intelligence capability that is fueled by the largest breadth of first-party data in the automotive ecosystem – more than 2.3 billion online interactions a year. Working with 80 million leads and 20 million transactions annually, Cox Automotive works to build better products and actionable intelligence that drives better business outcomes.

At NADA, Cox Automotive will be showcasing new products and capabilities across three operational disciplines that are critical to client success. Those three focus areas are: 

  1. Transforming the Transaction 
  2. Optimizing Inventory Channels
  3. Building EV Readiness

“With 200 demonstration stations available across our display space at NADA this year,” added Chief Product Officer Marianne Johnson, “I think we are more than ready to showcase how Cox Automotive products and solutions can help our clients thrive in any business environment.”

Transforming the Transaction

At NADA 2023, Cox Automotive will be showcasing an industry-first solution that will help make retail transactions faster, more personalized, more accurate and more consistent for everyone involved. Retail360 is rooted in the concept of the Power of One—one view of the consumer and car deal from one partner, creating more satisfying experiences for both car buyers and dealership personnel.

Retail360 provides a complete, personalized view of the car buyer’s journey and one deal workflow.  It is a premium, upgraded retail experience that includes Autotrader, Dealer.com, Dealertrack, Kelley Blue Book and VinSolutions, guided by Cox Automotive’s first-party data insights and industry-leading capabilities. Dealerships who deploy multiple Cox Automotive solutions are averaging 23{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} higher close rates, 63{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} more leads, and $187,000 per month more in profit. 

“Today’s automotive marketplace is more competitive than ever, where dealers are faced with scarce inventory, increasing rates, and buyers or trade-ins that are harder than ever to find,” said Lori Wittman, president of retail solutions at Cox Automotive. “Retail360 transcends this disruption so dealers can predict, reach, and convert potential buyers ahead of their competition and deliver less frustrating and more satisfying car buying experiences.”

Beta tests of the new Retail360 solution reveal dealers now can:

  • Know their customers better with real-time exclusive insights and deal intelligence  
  • Get one view of the consumer, their past purchases, service history, lifetime spend, and current stage in their buying journey  
  • See one view of the deal to manage profitability and streamline deal workflows to enhance the car buying experience 
  • Stay on the same page with consumers with to-the-penny pricing, and one consistent experience 

“Our individual brands have been delivering exceptional results for dealers for decades,” added Tracy Fred, senior vice president of dealer solutions at Cox Automotive. “Retail360 packages the power of these brands in a whole new way and comes to dealerships just in time to ease the business headwinds they face, as part of Cox Automotive’s promise to transform the retail transaction.”

Optimizing Inventory Channels

For much of the past year, ‘limited Inventory’ was identified as the top factor holding back business by auto dealers across the U.S. In the face of this challenge, Cox Automotive has been particularly focused on developing innovative solutions to help make inventory acquisition more efficient, especially as digital transactions continue to rise.

“First and foremost, our top priority continues to be making certain that the digital buying experience is as good as being there in person, as 75{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of Manheim’s transactions went to a digital buyer in 2022,” said Grace Huang, president of Cox Automotive Inventory Solutions. “Our journey toward the industry’s best vehicle information accelerated with the acquisition of Fyusion and continues with even more enhancements that deliver clients the most comprehensive view of the vehicle in the industry.”

At NADA 2023, Cox Automotive and Manheim will showcase more advanced imaging capability with new Fyusion-powered fixed imaging tunnels (formerly known as gantries), as well as undercarriage imaging, which Manheim deployed at 39 locations in 2022. The undercarriage images are unmatched in quality, enabling clients to zoom in and pan across to visually inspect even the tiniest of details like the serial number on a muffler or even a small oil leak. Together, these imaging technologies will continue to elevate trust and transparency in the wholesale marketplace for each and every buyer.

At NADA, Cox Automotive will also be confirming new markets for the company’s Upside Direct sales model. Upside, a new approach to wholesale, has delivered more than $3 million in profit sharing back to clients since it launched in 2022. The new approach continues to demonstrate that dealers can generate revenue on every vehicle by leaning into the Kelley Blue Book Instant Cash Offer and Upside process.

Recognizing that dealers will need a new playbook in 2023, vAuto will also be demonstrating at NADA fresh enhancements to the company’s flagship solution, ProfitTime GPS. The new features and capabilities will help dealers evaluate and price inventory more effectively and ultimately help them execute a “Variable Inventory Management” strategy to ensure profitability. 

The goal of vAuto’s Variable Inventory Management is to use Cox Automotive’s vast data to help strategically price each vehicle in inventory to optimize its ROI. Ultimately, by executing the strategy, dealers can make better inventory acquisition and pricing decisions and keep their inventory levels in check, which is particularly important in this unpredictable market. Using vAuto’s Variable Inventory Management strategy, dealers are able to understand each vehicle’s inherent investment value at the point of acquisition and ensure they are capturing all the profits they can, and should, with each vehicle sale.

“We’ve come to realize that a one-size-fits-all approach to a dealer’s used-vehicle inventory is not the ideal approach in today’s market; dealers are selling some cars too fast and too cheap, and holding on to other vehicles for profits that will never come,” noted Dale Pollak, founder of vAuto. “Thanks to better data science and market insights, we can now recognize each vehicle in a dealer’s inventory for its unique, individual potential to create a return on investment. That’s the core of the Variable Inventory Management strategy.” 

Building EV Readiness

In 2022, battery-powered electric vehicles (EVs) sales were a highlight in a mostly down market, growing year over year by more than 65{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. In the year ahead, Cox Automotive is forecasting a milestone for the U.S. auto industry: One million EVs sold. New models with more range, faster charging times, and more appeal than ever are fueling EV sales growth in the U.S.

As the vehicle market shifts and evolves with more EVs on road, Cox Automotive will continue to invest in EV readiness. At NADA, Cox Automotive will be showcasing the next phase of its pioneering approach to EV Battery Health scoring and diagnostics that will set the foundation for the industry standard in EV battery inspection and valuation with the company’s VIN-specific battery grading system, built in partnership with Spiers New Technologies (SNT). The pilot of Cox Automotive’s new EV Battery Health mobile app and Bluetooth® dongle will launch at 10 Manheim locations across the U.S. in 2023.

“We take pride in our EV battery diagnostic tool and grading system,” said Lea Malloy, AVP of EV Battery Solutions, Cox Automotive Mobility. “Our independent, third-party standard for EV battery health diagnostics is unmatched in the industry.”

Unlike the grading systems of other EV battery diagnostic tools, which provide a general battery estimate based on make and model, Cox Automotive’s mobile Battery Health tool directly evaluates each car and provides VIN-specific information, which is vital in capturing accurate information around the health of the battery. The easy-to-use tool measures current battery condition, historical data (times, temperatures and types of charges) and performance, which the company’s patented health algorithm then uses to produce a VIN-specific battery score ranging from 1-5. That score, along with information on the battery’s current estimated range, is all included in the EV Battery Health Report.

“To meet the future growth of EVs at our Manheim locations, we’ve been investing in infrastructure and technology to service and support our clients’ future EV battery needs,” said Huang. “Creating a trusted battery health score supports our efforts to build an industry standard for battery health while delivering the type of vehicle information clients require.” 

Cox Automotive is committed to being the world’s best battery health innovator and end-to-end EV battery lifecycle services provider, offering efficient and sustainable solutions that enable the extension of battery first lives and end-of-life reuse and pre-treatment recycling. The company’s global EV battery service network, operated in collaboration with Spiers New Technologies, has dedicated locations across the U.S. and Europe. 

Cox Automotive and SNT’s breadth of experience and depth of knowledge is second to none in the advanced automotive battery pack services industry. Current clients include Ford Motor Company, General Motors, Jaguar Land Rover, Nissan North America, Porsche Cars North America, Stellantis, Subaru of America, Toyota Motors North America, Volkswagen Group of America and others. SNT currently works with more than 25 different vehicle battery types, which encompasses most global battery manufacturers, including LG, Panasonic, Samsung, Bosch, CATL, A123, Johnson Controls, and Automotive Energy Supply Corporation (AESC). 

For more information about Cox Automotive at the NADA Show 2023, or to speak to anyone on the Cox Automotive team, reach out to the Cox Automotive Public Relations team. The NADA Show 2023 will be held in Dallas from January 26 – 29.

About Cox Automotive

Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders and fleet owners. The company has 25,000+ employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™ and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with $21 billion in revenue. Visit coxautoinc.com or connect via @CoxAutomotive on Twitter, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn. 

SOURCE Cox Automotive

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As the Clock Winds Down on a Year Steered by Tight Inventory and Rising Loan Rates, Cox Automotive Offers 10 Predictions for 2023

As the Clock Winds Down on a Year Steered by Tight Inventory and Rising Loan Rates, Cox Automotive Offers 10 Predictions for 2023

ATLANTA, Dec. 19, 2022 – With the start of the New Calendar year just months absent, the Cox Automotive Market Insights workforce delivers its expectations for the U.S. automotive marketplace in 2023. By practically all measures, 2022 was a tricky yr for each the business and the purchaser, marked by traditionally small new-auto inventories, large price ranges, and stubborn inflation chipping away at monthly budgets. A rather robust work sector was a tailwind, but all the whilst, a hawkish Federal Reserve pushed rates better, basically using the brakes as the vehicle marketplace struggled to attain momentum.

“This previous year was hard not only to forecast but for the industry to regulate,” said Cox Automotive Main Economist Jonathan Smoke. “As we appear forward into 2023, we see a person set of worries becoming replaced by a further. We hope the year forward to be a single of changeover, as equally the purchaser and the marketplace move past the remnants of a world wide pandemic and established a new class for mid-decade development.”

Guided by new analysis, intelligence abilities powered by DRiVEQ, the greatest breadth of first-occasion information in the automotive ecosystem, and an unmatched workforce of analysts and authorities, Cox Automotive posits 10 trends that will form the automobile small business in 2023.

#1: A Sluggish-Increasing Financial state Will Spot Pressure on the Automotive Marketplace.

Though the possibility of recession in 2023 stays, Cox Automotive expects the financial system to see at the very least slowing or really weak growth as the Federal Reserve tightens financial disorders and consumers continue to wrestle with significant curiosity charges. A career-wrecking economic downturn is a worst-case scenario for the automobile field, but hope for an financial smooth landing continues to be. Possibly way, a sputtering overall economy will maintain again the vehicle market place in the year ahead.

#2 New-Motor vehicle Stock Stages Will Continue to Increase.

New-motor vehicle creation worries are beginning to ebb, and stock concentrations are measurably strengthening. Whilst lingering supply chain and labor challenges will keep on being, and ability will not return wholly to pre-pandemic levels in the foreseeable future, more robust creation stages and softer demand will direct to greater days’ source and, in the long run, much more car or truck selections for shoppers in 2023.

#3: Full Retail Vehicle Sales Will Fall in 2023, as New-Automobile Profits Mature, Used Sales Drop.

With new-auto inventory levels increasing as need slows, Cox Automotive forecasts 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} 12 months-more than-yr new-automobile profits growth in 2023, with the market place hitting 14.1 million units. Raising fleet gross sales will help the absolute number. A lack of just about new source, declining affordability, and a shrinking pool of consumers will obstacle the used-vehicle market. Total retail income will drop in 2023, adding competitive pressures to the industry, especially in used.  

#4: Income of Electric powered Motor vehicles in the U.S. Will Surpass 1 Million Units for the To start with Time.  

The battery-electrical auto market proceeds to outpace the all round sector in product sales, and a new milestone is on the horizon: 1 million EVs sold in the U.S. in 2023. With expanded product or service availability coming and a fresh new spherical of govt-backed incentives to motivate potential buyers, the Cox Automotive group is forecasting continued great news in the electrified motor vehicle current market.  

#5: Utilized-Car or truck Values Will See Over-Typical Depreciation for a Second-Straight 12 months. 

What the market offers, the market normally takes: After historic price increases in 2020 and 2021, followed by above-normal depreciation for most of 2022, used-motor vehicle values are very likely to see a further 12 months of earlier mentioned-standard depreciation, particularly in the to start with fifty percent of 2023. Price tag trends really should normalize in the second 50 {cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the year as constrained wholesale source supports used values and used retail prices tumble into a regular marriage with new costs. 

#6: Motor vehicle Affordability Will Be the Finest Obstacle Dealing with Motor vehicle Consumers. 

Elevated retail price ranges and superior vehicle bank loan fascination charges merged to create report monthly payments in 2022, degrees that progressively pushed reduced cash flow and reduce credit quality individuals out of the market place. Far more of the exact same is expected in 2023, as the automakers increasingly cater to the new-motor vehicle sector with additional high-priced solutions for larger-money buyers, leaving a lot less-affluent and subprime prospective buyers battling to discover economical motor vehicle payments that satisfy monthly budgets.

#7: All-Cash Offers Will Increase to Concentrations Not Viewed in Decades.    

With auto mortgage interest costs hitting 20-year highs, the rise in all-funds bargains will continue on. Extra rich shoppers will get with cash somewhat than finance in 2023, positioning downward force on dealership F&I earnings. This improve will be felt extra acutely in the new-vehicle marketplace and will probable have lingering impacts on field revenue swimming pools and upcoming buying behaviors. 

#8: Dealership Services Functions Quantity and Revenue Climb.

As affordability troubles direct a lot more owners to retain latest motor vehicles, 2023 should see ongoing strong dynamics in the assistance lanes, with or devoid of a economic downturn. Set functions observed solid income development in 2022 as pricing power and sturdy demand from customers led to huge raises in average ticket dimension inspite of full assistance volumes not however recovering to 2019 amounts. With retail revenue envisioned to be flat or down, fastened operations as a earnings centre will be much more essential than ever in 2023.

#9: Fifty percent of Motor vehicle Customers Will Interact With Digital Retailing Resources.

The shift to eCommerce was accelerated by the pandemic and exhibits no indication of fading. In the 12 months ahead, Cox Automotive forecasts that 50 percent of all auto purchasers will have interaction with at minimum a single electronic resource for the duration of the purchase course of action. Importantly, thoroughly electronic automobile buys will carry on to be only a little percentage of the organization, as most consumers will go after an omnichannel auto shopping for experience.

#10: Federal Incentives Will Really encourage Much more Fleet Purchasers to Take into account Electrified Methods. 

A crucial factor of the Inflation Reduction Act of 2022 was the reshaping of EV tax credits in the U.S. Inside of the new regulations are incentives intended to entice fleet operators to consider electrified cars in the coming yr. Fleets have historically revealed sluggish adoption of EVs, but modern exploration indicates 66{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of fleet buyers are thinking about EVs, up from 43{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in 2021. New incentives and investments in charging infrastructure will possible amplify the development.

About Cox Automotive
Cox Automotive Inc. will make getting, marketing, owning, and working with autos less complicated for absolutely everyone. The global company’s a lot more than 27,000 staff users and loved ones of manufacturers, including Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Guide®, Manheim®, NextGear Funds®, VinSolutions®, vAuto® and Xtime®,are passionate about aiding millions of vehicle purchasers, 40,000 car seller shoppers across 5 continents and a lot of many others all over the automotive market prosper for generations to occur. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-primarily based firm with yearly revenues of virtually $20 billion. www.coxautoinc.com

Media Contacts:
Mark Schirmer                                                                                                             
734-883-6346
mark.schirmer@coxautoinc.com                      

Dara Hailes
470-658-0656
dara.hailes@coxautoinc.com

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Cox Automotive Lowers Full-Year New-Vehicle Sales Forecast as September Volumes Hold Steady at Low Level; Q3 Sales Nearly Equal to 2021 Levels

Cox Automotive Lowers Full-Year New-Vehicle Sales Forecast as September Volumes Hold Steady at Low Level; Q3 Sales Nearly Equal to 2021 Levels

Up-to-date, Oct. 3, 2022 – With the books closing on 3rd-quarter new-car or truck income, the market indeed—as forecast—is trapped in a very low equipment. At a model level, product sales results are markedly inconsistent. Hyundai and Kia are confirming file results General Motors and Toyota concluded the quarter with sturdy figures. Others, such as Buick, Nissan and Honda, go on to struggle. At an marketplace degree, just the reverse is real. New-car or truck product sales volumes have been on a remarkably dependable streak, averaging about 1.1 million units a thirty day period for extra than a 12 months now. Yr to day, new-auto profits are down more than 10{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} vs . 2021 and are on study course to finish at the lowest stage in a ten years.

Past week, during the Cox Automotive Q3 Forecast simply call, our workforce reduced its comprehensive-calendar year gross sales forecast to 13.7 million models and confirmed anticipations that new-motor vehicle profits in Q4 would continue on to reside in the 1.1 million neighborhood, held in look at by substantial rates, limited stock and softening desire. Greater curiosity charges are starting to right impression the new-motor vehicle market place, knocking some prospective buyers to the sidelines. As Main Economist Jonathan Smoke mentioned on the call, subprime purchasers accounted for about 14{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the new-vehicle marketplace in 2019. Now, subprime potential buyers account for just 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and deep subprime prospective buyers have all but disappeared. Bigger loan charges are impacting brand name-degree gross sales inconsistently. The bigger premiums will also probable tilt the U.S. marketplace even more into luxury territory, as substantial-profits vehicle consumers are typically in a position to spend income or secure much better mortgage costs. 

There are indications that some automakers in Q3 started leaning far more heavily into fleet revenue to offset slowing retail need, but that is the exception, not the norm. For the most component, new-car stock is superior than it was 1 year back, but it continues to be relatively limited. A huge the vast majority of sellers are equipped to offer autos before they get there at the dealership, trying to keep accessible stock amounts quite low. We count on business-vast incentive stages to remain traditionally lower as very well, despite the fact that the Market Insights workforce will be thoroughly looking at sure automakers with high degrees of stock. 

Total, in overall, September and Q3 new-automobile sales appear to have landed about exactly where we experienced forecast—roughly equal to yr-back amounts. Brace for a lot more of the exact same in Q4.  

ATLANTA, Sept. 28, 2022 – September U.S. vehicle revenue, when verified upcoming week, are anticipated to show a new-motor vehicle sector primarily unchanged from past months and nevertheless trapped in minimal equipment. In accordance to the Cox Automotive forecast produced nowadays, September U.S. new-motor vehicle income are expected to finish in close proximity to 1.10 million models, with a gross sales rate, or seasonally modified once-a-year fee (SAAR), of 13.3 million. Revenue volume in September is anticipated to display an increase of practically 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} over final yr but end down pretty much 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in contrast to very last month. The decline in comparison to last thirty day period is largely attributed to 1 much less promoting day.

In accordance to Charlie Chesbrough, senior economist at Cox Automotive: “New-auto sales have been remarkably dependable by means of the 3rd quarter, with profits of somewhere around 1.1 million units every single thirty day period in July, August, and September. New-car stock has been keeping steady, with days’ offer close to 40.”

With the September final result, complete new-automobile gross sales in the third quarter are forecast at 3.4 million units, down fewer than 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from Q3 2021 and down only modestly from the 3.5 million units marketed in Q2 2022. For comparison, income in Q3 2019 achieved 4.3 million. Normal Motors, Ford and Tesla will be amongst the major gainers yr about 12 months in Q3, with numerous Japanese brands, still battling with inventory challenges, scheduling the most sizeable declines, notably Honda and Nissan.

One particular calendar year in the past, the new-auto marketplace began suffering a considerable deficiency of inventory, and the gross sales rate fell to 12.3 million in September 2021. Stock has improved given that but stays effectively under pre-pandemic levels. Additional Chesbrough, “The offer shortage has likely designed some pent-up demand—folks who have been in essence waiting in line for stock to return. But the modern improvements in the financial outlook from soaring curiosity rates is beginning to chip away at demand, and the waiting line for new autos is probable getting substantially shorter.”

With no noteworthy inventory enhancement forecast in the fourth quarter and waning new-automobile need, Cox Automotive has decreased its whole-yr forecast to 13.7 million units, down from 14.4 million. Gross sales in 2022 are projected to finish down a lot more than 9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} compared to 2021 and at the lowest stage in a ten years.

September 2022 Income Forecast Highlights

  • New-automobile gross sales volume is forecast to rise 7.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from September 2021 but decline 3.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from final month. 
  • The SAAR in September 2022 is believed to be 13.3 million, higher than final year’s 12.3 million level and up .1 million from previous month’s tempo.
  • September 2022 had 25 offering days, just one a lot less than August but equal to September 2021.

September 2022 Product sales Forecast Highlights

  • Complete product sales keep regular through Q3, consistently at 1.13 million models a month. Calendar year-to-date income at the finish of Q3 are predicted to be down virtually 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.
  • Common Motors retains the top location as the best-advertising automaker in the U.S. market in Q3, thanks partly to stock improvements versus 2021.
  • Tesla is forecast to achieve share again in Q3 and maintain the top rated location as the ideal-advertising luxurious automaker in the U.S.

All percentages are dependent on uncooked quantity, not each day advertising price.

About Cox Automotive
Cox Automotive Inc. can make obtaining, offering, owning and employing vehicles less complicated for every person. The world company’s a lot more than 27,000 staff associates and relatives of makes, including Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping hundreds of thousands of auto buyers, 40,000 automobile seller consumers across five continents and lots of other people all over the automotive industry thrive for generations to occur. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based enterprise with annual revenues of nearly $20 billion. www.coxautoinc.com

Media Contacts:
Mark Schirmer
734 883 6346
mark.schirmer@coxautoinc.com

Dara Hailes
470 658 0656
dara.hailes@coxautoinc.com

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Cox Automotive Lowers Full-Year New-Vehicle Sales Forecast as Persistent Supply Problems Continue to Hold Back Auto Industry

Cox Automotive Lowers Full-Year New-Vehicle Sales Forecast as Persistent Supply Problems Continue to Hold Back Auto Industry

UPDATED, July 5, 2022 – The Cox Automotive Industry Insights team had expected a year-over-year decline in June auto sales. The actual decline, however, was even greater than expected. Sales last month came in at approximately 1.125 million; the forecast was for 1.2 million. 

Some declines were particularly notable, with large year-over-year declines at Buick, Honda, Mazda, Nissan and others. The Honda drop was hard to ignore, with June sales being 54{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} lower than a year ago. The year-over-year decline last month was similar to Honda’s year-over-year drop in April 2020, when the global COVID pandemic had shut down much of the U.S. market. Honda has simply run out of inventory. In June 2021, Honda had nearly 130,000 new vehicles for sale on dealer lots across the U.S., according to our vAuto team’s estimates. Last month, the number was closer to 40,000, a drop of nearly 70{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Another significant decrease was Buick, down by more than 45{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} compared to June 2021. Mazda was off more than 50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Nissan fell 40{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year over year.

As Cox Automotive Senior Economist Charlie Chesbrough continues to note, without a material change in inventory levels, new-vehicle sales in the U.S. will continue to underperform expectations. Yes, the combination of high new-vehicle prices and ongoing inflationary concerns are slowing the market, but new-vehicle sales are primarily being held in check by low inventories.  

Our team had expected some improvements in new-vehicle inventory by summer, but the gains have not materialized. We continue to operate in a seller’s market, where good deals are hard to find. Inventory levels have improved in some corners of the market, mainly with the domestic nameplates: Dodge, Ram, Jeep, Ford and Chevrolet. But overall, inventory remains tight, particularly for small, fuel-efficient vehicles.

Cox Automotive last month lowered its full-year forecast for new-vehicle sales in the U.S. to 14.4 million units, down from 15.3 million. At current sales rates, new-vehicle sales volumes in 2022 will finish below the pandemic year of 2020, as inventory has become the industry’s long-haul problem.

ATLANTA, June 28, 2022 – June U.S. new-vehicle sales are expected to show a market still constrained by a lack of supply and one that is virtually unchanged since January. According to the Cox Automotive June sales forecast released today, the seasonally adjusted annual rate (SAAR) of new-vehicle sales this month is expected to hit 13.8 million, up from last month’s 12.7 million pace but well below last year’s 15.5 million level. 

The sales volume in June is expected to finish near 1.2 million units, down 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from last year’s volume of 1.3 million sales. However, this is an increase of 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from May’s volume of nearly 1.1 million units. There is one more selling day this June than last year and the same number as last month. 

Tight inventory continues to negatively impact new-vehicle sales. Since June 2021, monthly sales volume has been stuck in a tight window, with little deviation, averaging 1.1 million units a month and peaking only at 1.3 million in June 2021. With no clear timeline for any notable recovery in new-vehicle inventory levels, Cox Automotive is lowering its full-year 2022 U.S. auto sales forecast to 14.4 million units, down from its current forecast of 15.3 million. The current forecast now is for new-vehicle sales volumes to fall below the 14.6 million sold in 2020 when the market was initially ravaged by the global COVID pandemic.  

“Last June, I wrote that the concern about the supply situation could not be overstated, as we were in untested territory for the market,” said Charlie Chesbrough, senior economist, Cox Automotive. “That sentiment remains, as there has been no significant shift in the conditions on the ground since last fall. Even though economic conditions have worsened in the past months, the lack of supply is still the greatest headwind facing the auto industry today.”  

June 2022 SALES FORECAST HIGHLIGHTS
  • In June, light vehicle sales are forecast to reach 1.2 million units, down 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from June 2021. Sales volume in June is expected to rise by nearly 181,000 compared to May, or 7.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.
  • The SAAR in June 2022 is expected to be 13.8 million, below last year’s 15.5 million level and up from May’s 12.7 million pace.
  • Second-quarter 2022 sales are forecast to fall 19.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} compared to Q2 2021
  • First-half sales are forecast to be down 17.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from the same period in 2021.
  • General Motors is forecast to outsell Toyota in Q2, jumping back into the top-seller position.
  • Tesla is the only major brand to increase sales year over year in the first half. Honda, Nissan and VW all see first-half sales drops in excess of 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} year over year.
June 2022 SALES FORECAST
Q2 2022 SALES FORECAST
FIRST-HALF 2022 SALES FORECAST

All percentages are based on raw volume, not daily selling rate.

About Cox Automotive
Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com

Media Contacts:
Mark Schirmer
734 883 6346
mark.schirmer@coxautoinc.com

Dara Hailes
470 658 0656
dara.hailes@coxautoinc.com

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From the Cox Automotive Newsroom

From the Cox Automotive Newsroom

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Welcome to From the Newsroom, a roundup of news from Cox Automotive and perspectives from its analysts and experts on topics dominating the automotive industry.

Like Tiger Woods at the Masters, the retail vehicle market is showing some progress in April, with both new and used sales gaining momentum last week. According to Cox Automotive Chief Economist Jonathan Smoke in his Auto Market Report video published today, the used-vehicle market is seeing a stronger April performance. We are finally reaching critical mass of tax refunds, with the average tax refund at a new record and up 12{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from a year ago.
 
Wholesale used-vehicle pricing was reported last week in the March Manheim Used Vehicle Value Index (MUVVI), a leading indicator of pricing trends in the used-vehicle market. If you missed it, be sure to watch the replay of the quarterly MUVVI call.
 
New-vehicle transaction prices, reported by Kelley Blue Book yesterday, declined for the third straight month but remained above MSRP in March. Recent Cox Automotive research shows that consumers are pessimistic about the auto market, which is hobbled by inventory shortages and high vehicle prices.
 
During the recent Q1 Sales Forecast and Industry Insights Webcast, Smoke graded the 10 predictions for 2022 that he and his team made at the beginning of the year as a B+ through the first quarter.
 
Worth noting: Manheim announced today that it is expanding its LotVision capabilities to include vehicle diagnostic trouble code data, which will help clients make more informed and confident buying decisions.

We hope you find this selection of articles informative and useful. Visit the Cox Automotive Newsroom for the latest on the industry’s most important topics, and bookmark the Auto Market Snapshot, a one-stop dashboard for the data our team is tracking.


USED-VEHICLE SALES AND VALUES EXPECTED TO BE STRONGEST IN Q2

Cox Automotive Chief Economist Jonathan Smoke and Chris Frey, senior manager of economic and industry insights, hosted the Q1 2022 Manheim Used Vehicle Value Index Call on Thursday, April 7, along with Manheim Consulting’s Kevin Chartier and Manheim Digital’s Zach Hallowell. The team discussed the Manheim Used Vehicle Value Index in addition to major trends and metrics for the quarter.
 
“We anticipate the second quarter – and particularly April – will be the strongest part of the year for used-vehicle sales and values,” said Cox Automotive Chief Economist Jonathan Smoke. “Once we get through the spring, we expect demand to wane somewhat and should see closer to normal price depreciation patterns for the rest of the year. That said, we think our call for not expecting a price crash in 2022 – just depreciation – is still very likely given continued challenges with supply conditions.”
 
Watch the event replay, download the presentation and read the press release for additional details.

SALES MOMENTUM PICKS UP AND SUPPLY IS TIGHTENING AGAIN

In his biweekly Auto Market Report video, Chief Economist Jonathan Smoke says Dealertrack data show retail vehicle sales momentum picking up, especially in the used market where supply is keeping up with demand. However, supply is tight and tightening again. Check the Cox Automotive Newsroom later this week for new and used inventory Data Points.

Auto credit availability improved again, according to the March Dealertrack Credit Availability Index, which was the highest recorded in the data series going back to January 2015.

Read the Auto Market Weekly Summary and watch the Auto Market Report video for more data and insights from Smoke that provide a holistic view of the auto industry.

ICYMI: Watch the replay of the Q1 2022 Cox Automotive Industry Insights and Sales Forecast Webcast. 


TEN PREDICTIONS FOR 2022 GET ‘B+’ GRADE IN Q1

At the end of the first quarter, we looked back at the 10 trends that the Cox Automotive Industry Insights team laid out in the early days of 2022 that are shaping the auto industry this year. Overall, the Cox Automotive team remains optimistic about the industry. The overall conditions are right for higher sales, but vehicle sales remain relatively weak due to the low inventory level and will not improve until more supply is available. In addition to the chip shortage and supply chain issues carried over from last year, the Russian invasion of Ukraine has created new supply challenges.

So, with three months behind us, we took out a red pen and assessed our 2022 predictions so far. Here’s a look at our Q1 grade.      


NEW-VEHICLE TRANSACTION PRICES DECLINE FOR THE THIRD STRAIGHT MONTH, BUT REMAIN ABOVE MSRP IN MARCH, ACCORDING TO KELLEY BLUE BOOK 

New-vehicle average transaction prices decreased to $45,927 in March 2022 after reaching a record high in December 2021, according to data released yesterday by Kelley Blue Book, a Cox Automotive company. Prices fell 0.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} ($156) month over month, remaining elevated compared to one year ago, up 12.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} ($5,247) from March 2021.
 
New-vehicle inventory days’ supply was in the low 30s in March while customer demand remained high. These conditions enabled dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP). In March, new vehicles from Kia, Honda and Mercedes-Benz were transacting on average between 7.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 9.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} over MSRP. On the other side of the spectrum, Volvo, Buick and Lincoln were selling around 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} below MSRP.
 
Find out more details, including price change percentage by automaker and the industry average incentive spend as a percentage of the average transaction price.


MANHEIM EXPANDS LOTVISION CAPABILITIES TO INCLUDE VEHICLE DIAGNOSTIC TROUBLE CODE DATA

In a move that will help clients make more informed and confident buying decisions, Manheim is deploying diagnostic trouble code vehicle information at all LotVision-enabled locations nationwide. The expanded capabilities will be available on roughly 80{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of Manheim’s vehicle inventory in Q2 following the success of a two-month pilot program at locations in Texas and California. Today, LotVision tracks approximately 98{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of Manheim’s vehicle inventory.
 
See the press release published today for more details on how Manheim offers its clients the most robust listing of generic diagnostic codes.


SIX TAKEAWAYS FROM LATEST CHIP SHORTAGE CONSUMER IMPACT STUDY

Consumers are pessimistic about today’s automotive market, which remains hobbled by inventory shortages due to the global computer chip shortage that has, in turn, led to high vehicle prices, according to the most recent survey by Cox Automotive.
 
Cox Automotive has been tracking consumer behavior and attitudes regarding the chip shortage and its consequences since it began in the summer of 2021. The latest survey, conducted in early March, shows more consumers than ever are aware of the situation. They expect shortages to last for six months or more and prices to continue to rise. To cope, some intend to postpone their purchases. Others plan to order and wait for their vehicles.
 
See the six key takeaways from the latest in the series of Cox Automotive consumer surveys.
Looking ahead: Mid-month is a busy time for fresh Cox Automotive data. Check back this week for new content on new-vehicle inventory and listing prices, used-vehicle sales, inventory and listing prices, and the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index.
 
Next week, we will publish 10 takeaways from the Q1 U.S. auto sales along with the Q1 Kelley Blue Book sales report including a look at EV and hybrid sales in the first quarter. Xtime metrics measuring service activity in March at franchised dealerships will be published as well.

As always, if you have questions or want to connect with the Cox Automotive PR team, feel free to contact us.
AUTO QUOTES

“As Manheim broadens its focus on creating a better, more connected client experience, we are committed to delivering the vital information they are looking for to make their buying and selling decisions. LotVision’s expanded capabilities are also an important next step in helping Manheim advance a more transparent marketplace.”

– Bob Grounds, Manheim AVP of Operational Excellent, commenting on deploying diagnostic trouble code vehicle information at all LotVision-enabled locations nationwide.

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