Trade News

The EU reaches a deal to ban new internal combustion cars in 2035. Ford CEO Jim Farley talks up the benefits of new EV tax incentive. GM and Stellantis say they can’t comply with Massachusetts’ right-to-repair law. Plus, KPA’s Robert Ebin shares tips on how procrastinating dealers can comply with the updated Safeguards Rule before the December deadline.

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

“Daily Drive” is available on the iTunes Store and through the ‘Podcast’ app pre-installed on all iOS devices. Click here to subscribe to "Daily Drive"

Android

“Daily Drive” is available on the Google Play store. Click here to subscribe to "Daily Drive"

Spotify

"Daily Drive" is available on Spotify. Click here to s…

A company extended into the next generation Aug. 1 when Mike Shannon sold Holiday Automotive in Fond du Lac, Wis., to his son, Michael Shannon Jr., according to Scott Mackie of buy-sell firm National Business Brokers.

The younger Michael Shannon bought three franchised dealerships: Holiday Chevrolet-Buick-GMC-Cadillac, Holiday Mazda and Holiday Ford. A used-car store and collision shop were included in the deal.

Fond du Lac is on the south end of Lake Winnebago, the state's largest inland lake, and is northwest of Milwaukee.

Mackie, senior vice president of the Midwest for National Business Brokers of Irvine, Calif., brokered the transaction. Mackie said the businesses are in a great location and the Shannon family "knocks it out of the park."

Shannon Jr. is dealer principal of the stores and Thor Gilbertson is CEO. As part of the transaction, Shannon Jr.'s three sisters also received an increase in their minority shares of the business, Mackie to…

Mining companies are going to great lengths to source the raw materials needed for electric vehicle batteries, even miles below the ocean's surface.

They are racing to tap into these seabed stockpiles, striking deals, developing mining processes and equipment and striving to be eco-friendly.

Meanwhile, environmental groups want to slow the rush until more is known about the impact on this largely untouched area of the Earth. Several automakers have joined a moratorium on sourcing metals from seabed mining.

Vast fields of rocks containing high concentrations of nickel, cobalt, copper and manganese needed for EV batteries cover what's known as the abyssal plains. According to the National Oceanic and Atmospheric Administration, the area makes up 70 percent of the ocean floor and is located at depths of over 10,000 feet. It is the largest habitat on Earth.

The pebble- to potato-size rocks coating the seabed, called polym…

<!--*/ */ /*-->*/ Ford says full self-driving ‘is a long way off’ as Argo AI shuts down

DETROIT — Ford Motor Co. posted a third-quarter loss of $827 million that it largely blames on newly revealed plans to shut down Argo AI, a self-driving vehicle development company the automaker had invested in heavily.

CEO Jim Farley said the company now believes mass deployment of fully self-driving vehicles is "a long way off," while CFO John Lawler added it could be "five-plus years away." Ford originally had planned to begin commercializing Level 4 vehicles in 2021 before pushing back that timeline due to the coronavirus pandemic.

"But things have changed, and there's a huge opportunity right now for Ford to give time — the most valuable commodity in modern life — back to millions of customers while they're in their vehicles," Farley said in a statement. "We're optimistic about a future for L4 ADAS, but profitable, fully autonomous vehicles at scale are …

CHICAGO — After a robust couple of years when retailers of all sizes and their frenzied dealership acquisitions helped create a seller's market, what's to come? A few industry experts shared their thoughts on why and more during the Let's Make a Deal panel at the Automotive News Retail Forum: Chicago last week.

A shift may already have begun, according to Jeff Rosen, CEO of Rosen Automotive Group. Rosen Automotive in April expanded to five stores with its purchase of the former Francois Ford in Belleville, Wis.

Rosen said the cost of capital may nudge dealers who have held off on selling during times of big profits.

"I think they're probably gonna come off the sidelines, and get off that fence, and make the decision to sell," Rosen said.

Mark LaNeve, chairman of Franchise Equity Partners, agreed, saying as business normalizes, more sellers will enter the market. Profits in 2021 and 2022 gave dealers a pause on selling…

The coronavirus pandemic forced a reexamination of workplace culture both broadly and within automotive retailing, and many dealerships — particularly those honored through the 2022 Best Dealerships To Work For program — are still exploring ways to improve their work environments for the long term.

Stores up and down the Best Dealerships To Work For list have kept in place at least some of the strategies they added or strengthened in the last two and a half years to accommodate the work-life challenges employees were facing. Some dealership leaders stressed to Automotive News the importance of continuing to offer flexible schedules, improved pay and benefits and hybrid or remote work options. Others reported that efforts to create more inclusive environments for women and minorities, including placement in key store operating roles, have boosted their retention rates and their dealership groups' desirability among would-be hires.

Several dealer…

If it ain't broke, don't fix it. Last year, Asbury Automotive Group was mindful of that rule when it purchased Larry H. Miller Dealerships for $3.2 billion.

Following the acquisition, Asbury left Rick Trinkl — general manager of Larry H. Miller Hyundai Peoria in Arizona — in charge of his fast-growing dealership.

Which comes as no surprise. In 2021, the suburban Phoenix dealership sold a record 2,779 new vehicles, up from 2,005 the previous year. Last year, it also sold 993 used vehicles, up from 874 in 2020.

And now the store has topped Automotive News' annual list of the 100 Best Dealerships To Work For.

This is the third-straight year that the dealership has been recognized as the nation's best large dealership — a category that covers stores with more than 100 employees — and the first time it has been honored as the overall winner.

Trinkl is sticking with the personnel practices that have made his store such a success. Sales associat…

DCH Millburn Audi is part of Lithia Motors' growing empire, but it has the feel of a family-run business.

The Maplewood, N.J., dealership has had barbecues for staff, rewarded workers with Audi swag, held quarterly social gatherings and hired relatives of employees.

It's a well-honed recipe for DCH Millburn Audi, the top medium-sized store — a category of dealerships with 50 to 99 employees — on Automotive News' Best Dealerships To Work For list.

The luxury dealership was the overall winner in 2020, and it has been on the list every year since the Best Dealerships program began in 2012.

Employees seem to appreciate the attention. In 2021, staff turnover was 25 percent, less than the industry average of 34 percent that year.

Last year, the store sold 1,105 new and 855 used vehicles. New-vehicle volume declined slightly from 2020 amid a top-to-bottom renovation and the industry's supply chain woes. This year, DCH Millburn Audi's new-vehicle…

Stores up and down the 2022 Best Dealerships To Work For list have established ways to reward their employees for their hard work and build camaraderie in the process.

Hungry? Some opt for a food-based approach. Store leaders bring in food trucks to supply lunch or buy supplies for on-site picnics or barbecues.

"I'll roll out the flat top and cook breakfast for the dealership, call in food trucks to celebrate an achieved goal or set up an off-site event," said Nate Riesen, general manager of Lexus of Madison in Middleton, Wis.

Rewards can get more elaborate from there. Some store leaders plan off-site events, giving employees time to bond beyond the work environment.

BMW North Scottsdale in Phoenix, for instance, hosts workers at sporting events so they can accommodate more people, said Steven Khouri, the dealership's general manager. Jaguar-Land Rover North Dade in North Miami, Fla., offers free tickets to games and…

Nearly half of this year's Automotive News list of the 100 Best Dealerships To Work For is dominated by a single company: Penske Automotive Group Inc.

The nation's third-largest new-vehicle retailer has long had a strong standing in the annual ranking, which has honored top dealerships across the country for 11 straight years. Best Companies Group selects the winners based on surveys of U.S. dealership employees.

In 2021, 35 Penske dealerships made the list. This year, that figured swelled by 11 to 46 — a record for the number of stores by one company ever on the annual list.

Margaret Lane, Penske's talent and development officer, said the retailer over the past five years has increased its focus on expanding the number of its dealerships making the list.

Penske's store general managers are "naturally competitive" but also have adopted a long-term view that goes beyond doing well on a one-time survey, Lane said.

<…

Tim Boylan enjoys the best of both worlds.

As general manager of a small dealership — Acura Turnersville in Turnersville, N.J. — he is on a first-name basis with each of his 34 employees.

Yet his store also benefits from the expertise of its corporate owner, Penske Automotive Group.

With a state-of-the-art facility, motivated employees and little turnover, Acura Turnersville was the top small store on the 2022 Automotive News' list of the 100 Best Dealerships To Work For. Acura Turnersville also was the overall winner in 2018.

"We put our human capital above everything else," Boylan said. "I truly believe that if you treat employees well, the store will succeed and you will get more out of your employees."

The store's employee turnover rate tells the tale. This year, the store has lost only one worker — a porter who pursued career opportunities after getting a college degree. The store's managers have been there an average of 13 years. The…

As a car dealer, you’re a natural-born adapter. In the face of industry-wide supply chain challenges, you can modify your operational strategy to find success now. Our guide, Operational Solutions for Inventory Challenges, gives you five specific strategies to face downovercome industry obstacles and overcome supply chain challenges. Essential tips for overcoming communication roadblocks Process adjustments that improve inventory acquisition How to use reporting and analytics to increase profitability Identifying areas of hidden profit potential Synchronizing your marketing, sales, and service, and operations to reach your goals