Column: Many wheels of change in auto retail

There's been a lot going on in auto retail, as you'll see in this week's Automotive News.

Bryan DeBoer's ambitious growth plans for Lithia Motors Inc. have the company, based in Medford, Ore., (pop. 86,000) finding its way to London (pop. 9 million) about 5,1000 miles away. That's a long road trip!

Last week's purchase of Jardine Motors Group, Jack Walsworth and Julie Walker report, adds more than 40 new-vehicle dealerships in the U.K. to Lithia's portfolio, including stores selling luxury brands Aston Martin, Porsche, Mercedes-Benz and BMW. And by entering the U.K., Lithia gains direct exposure to the agency model of retail, in which each brand’s dealers sell new vehicles at factory-set prices with a more fixed profit schedule.

It also gets Lithia more than $2 billion dollars closer to goal of $50 billion in annual revenue. In 2022, it booked $28.2 billion.

Lithia isn't the only one looking for big growth. Ford aims to dramatically grow its elect…

Read more
  • 0

Alan Amici on why advanced tech lacks widespread adoption (Episode 190)

The president and CEO of the Center for Automotive Research (CAR), discusses a recent report on the state of advanced driver-assistance systems, autonomous vehicles and connectivity. Among the barriers to more widespread adoption, he says, is consumer skepticism.

How do I subscribe?

Apple Podcasts: “Shift: A podcast about mobility” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe.

Spotify: "Shift: A podcast about mobility" can be streamed through Spotify on your desktop, tablet or mobile device. Click here to subscribe.

Google Play: "Shift: A podcast about mobility" is available on Android devices through the Google Play store. Click here to subscribe.

Read more
  • 0

Pittsburgh body shop generates revenue for Diehl Auto Group

Several years ago, Corina Diehl — owner of Diehl Automotive Group — decided to roll the dice and build a 26,000-square-foot standalone collision center in Pittsburgh.

The final cost: About $2.5 million.

The calculated gamble has turned into a smashing success. Since the Diehl Collision Center opened in October 2019, annual revenue has increased by double-digit percentages, despite the pandemic, which hit full force soon after its opening, Diehl said.

In 2020, the first full year of operation, the center generated an average of $243,000 in sales per month. In 2021, average monthly revenue rose to $326,000 — a 34 percent increase compared with 2020. In 2022, average monthly revenue increased to $412,000 — about a 26 percent jump over the 2021 figure, Diehl said.

The center already is booked out for repairs through midsummer, she added, as are six other collision-repair facilities owned by the auto group, which operates 21 stores in Pennsylvania an…

Read more
  • 0

Fuel cells left behind by rapid EV sales, infrastructure growth

Long the next big advancement in green transportation, hydrogen may have missed its chance to become a major fuel for light vehicles.

Even as technology advances, battery-electric vehicles have quickly become the green vehicle of choice for most U.S. consumers.

Tesla, which offers only electric vehicles, sold nearly 187,000 cars in California last year, trailing only Toyota's gasoline autos in market share in the state. During that same period, Toyota sold just 2,094 of its Mirai hydrogen fuel cell cars nationally.

Automakers offer just two hydrogen fuel cell options, the Mirai and the Hyundai NEXO Fuel Cell. Honda said it will sell a hydrogen fuel cell CR-V crossover starting in 2024. It would replace the poorly selling hydrogen Honda Clarity discontinued in 2021.

Contrast that with more than 50 EV models Automotive News estimates are for sale or will come on the market this year. That represents a staggering gap in…

Read more
  • 0

Highlights from the latest ‘Daily Drive’ podcasts, March 13-16

Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, March 13-16, hosted by Jamie Butters with Kellen Walker.

“The advantage here now is that the automaker is able to plan this and avoid having to rebuild things or rework things or do change orders, which is usually what happens.” - Danny Shapiro, vice president of automotive at Nvidia, explaining how the company uses “digital twin” technology to design and build cars

“Thirty percent of all new cars and trucks are purchased by minorities, but yet we have 6 percent representation. So, the scales of parity aren’t equal.” - Damon Lester, owner of Nissan of Bowie in Maryland and former president of the National Association of Minority Automobile Dealers, who said more work needs to be done to make the number of minority-owned dealerships representative of the U.S. car-buying market

“For automakers to be sure that their supply chain vendors have vulnerabil…

Read more
  • 0

Mercedes-Benz tunes up its 2024 entry-level GLA crossover

Mercedes-Benz is giving its entry-level GLA compact crossover a light makeover for the 2024 model year. While there are no major sheet metal changes, the interior, exterior and equipment have all been revised. A mild-hybrid system is now standard.

The more SUV-like GLB compact crossover also receives refined front and rear styling for 2024, with new LED high-performance headlights, dual 10.25-inch displays and the brand's latest-generation MBUX infotainment system. It will be available late this year.

The 2024 GLA, scheduled to arrive at dealerships this year, will have a new grille with vertical louvers and a redesigned front bumper. The headlights and taillights have been changed to LED, and three new wheel designs are available. Inside, two screens with a total viewing area of more than 20 inches are standard. Also now standard are a parking assist and mirror package as well as a keyless package. Mercedes redesigned the MBUX system, which can be configured…

Read more
  • 0

Subaru’s Doll was transformational

TO THE EDITOR:

Tom Doll's tenure as leader of Subaru of America was nothing short of transformational ("Subaru exec shuffle: New CEO pledges electrification flexibility; Doll to step down as U.S. chief," autonews.com, March 3). It is a feat most likely never to be repeated at any car company.

Under his leadership, the Subaru brand has not only become one of the strongest in automotive, but also in the nation. Subaru has a tremendous sense of what it is and what it isn't.

When we became a Subaru retailer in 2007, people continually asked, "Why do I need all-wheel drive in Southern California?" Frankly, we didn't have a good answer. Our sales numbers reflected that. Subaru then successfully tied its symmetrical awd to its outstanding safety ratings, and sales climbed.

Concurrent to that, Tom led the effort to make us more than a car company. That was defined by giving back to our communities in what has become the Subaru Love Promise. From nationa…

Read more
  • 0

New Toyota CEO Koji Sato will prioritize hydrogen, even as company steps up EVs

SUZUKA, Japan – Toyota's newly appointed CEO Koji Sato says hydrogen will be a top priority of his carbon neutral strategy, even as he redoubles his focus on electric vehicles.

Under his watch, through the end of the decade, the focus will be expanding the hydrogen infrastructure and the array of industries using the futuristic fuel, Sato said.

"We want to ensure that hydrogen stays a viable option," Sato said March 18 on the sidelines of a weekend endurance race where Toyota has planned to field a hydrogen-powered race car.

"We need a production and transport supply chain," Sato said. "Unless we see evolution there, we cannot expect a volume increase in the energy's use."

Sato, who takes over as CEO of Toyota Motor Corp. on April 1, said last month after being named to the top job that the world's biggest automaker "must drastically change" the way it does business and adopt an "EV-first" mindset. The company is now developing a new dedicated EV…

Read more
  • 0

Dealer Fred Beans finds a mutually beneficial partnership with driving school

Trying to get driver's license certifications for her children in Pennsylvania was an "unbelievable" experience for Beth Beans Gilbert, vice president of Fred Beans Automotive Group.

Road tests in Pennsylvania must be taken through the state's Department of Transportation or an approved third-party business. Gilbert described signing up for the test through PennDOT as a "terrible process" where she had to often wake up in the middle of the night to attempt to schedule an appointment through the online system.

It felt like a lottery system, Gilbert said, as the number of new drivers eager for a test outnumbered the available test spots. People often pay driving instructors to navigate the system for them to secure an appointment, she said.

Then Gilbert learned of Jason Fidishun, CEO of John's Driving School — one of the small number of businesses allowed to administer driving skills exams in the state — and sought his help for her children.

She s…

Read more
  • 0

Jardine deal opens U.K. opportunity for Lithia

Lithia Motors Inc.'s acquisition of Jardine Motors Group in the United Kingdom, similar in store count and revenue to its 2021 megadeal to buy Michigan's Suburban Collection, immediately gives the largest new-vehicle dealership group in the U.S. significant scale in an international market it long coveted.

The deal adds more than 40 new-vehicle dealerships in the U.K. to Lithia's portfolio, including stores selling luxury brands Aston Martin, Porsche, Mercedes-Benz and BMW. And by entering the U.K., Lithia gains direct exposure to the agency model of retail, in which dealers sell vehicles on behalf of some automakers, such as Mercedes, at factory-set prices.The deal, which closed Wednesday, March 15, will add more than $2 billion to Lithia's annual revenue, Lithia CEO Bryan DeBoer said.

"And more importantly, it gives us a foundation to grow more in the United Kingdom over time, which is helping us drive towards our $50 billion [annual revenue] target for 202…

Read more
  • 0

2024 Dodge Hornet injects attitude into luxury crossover base

ASHEVILLE, N.C. — With the upcoming Dodge Hornet compact crossover, designers had to instill the brand's signature attitude and character into an existing design.

The canvas was the Alfa Romeo Tonale, a model meant for luxury customers that incorporated visual cues such as the Italian brand's triangular "scudetto" grille.

Dodge's design unit took that foundation and added an aggressive spin with inspiration from the muscular Challenger, Charger and Durango. The hood boasts integrated heat extractors that separate it from the Tonale, along with a mail-slot grille opening in the fascia that's important for functionality and accentuates its performance- geared feel.

The end result was a vehicle sporting a meaner-looking front end than the Tonale that pushes the "Brotherhood of Muscle" into the compact utility space, the industry's largest segment.

The Hornet comes in two trims: the GT with a conventional powertrain that…

Read more
  • 0

Unifor considering negotiating for profit-sharing with Detroit 3

Unifor is considering the merits of negotiating a profit- sharing agreement for the first time in its history as it prepares for bargaining with the Detroit 3 automakers in August.

“We are asking our research department to do a deep dive into what that looks like,” said Dave Cassidy, president of Local 444, which represents hourly workers at Stellantis minivan assembly plant in Windsor, Ont. “There’s a lot of discussion around, ‘is it good? Is it bad? The devil is in the detail.”

Negotiations representing 22,000 hourly workers at Ford Motor Co., General Motors and Stellantis assembly and powertrain plants are expected to begin in August. Lana Payne, national Unifor president, is expected to select the union’s strike target on Labor Day weekend, said Cassidy.

The potential paradigm shift on profit-sharing follows news of unprecedented profit-sharing cheques Stellantis’ U.S. hourly workers are expected to receive this year.

“These are some of the l…

Read more
  • 0