Trade News

The American International Automobile Dealers Association has named Richmond, Ky.-based auto dealer Steve Gates as its 2021 chairman.

Gates, 69, was appointed to the position during the association's annual meeting Wednesday — held virtually this year because of the coronavirus pandemic. He succeeds Jason Courter, who is CEO of Honda Auto Center of Bellevue and Honda of Kirkland in Washington.

Gates is a third-generation dealer who owns Gates Auto Family, which operates dealerships in Kentucky, Tennessee and Indiana. The dealer group sells Audi, Ford, Lincoln, Honda, Hyundai, Kia, Lexus, Nissan and Toyota vehicles.

"Becoming chairman of AIADA is by far the biggest honor I've ever received," Gates said in a statement. "I can promise you that day in and day out I will do everything I can for this industry and AIADA. I'm excited and ready to go."

As chairman, Gates said he plans to focus on getting dealers more involved in AIADA — the main trade asso…

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

Damon Lester, president of the National Association of Minority Automobile Dealers, talks about the organization's efforts to increase the number of minority-owned dealerships across the states. He explains the challenges of keeping the ethnic dealer count up and the role automakers play in advancing racial diversity.

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"

…

Sonic Automotive Inc.'s record revenue, coupled with record finance and insurance gross profits, strong new-vehicle gross profits and more used-vehicle sales through its used-only EchoPark stores, helped boost its fourth-quarter earnings.

Revenue for the nation's sixth-largest new-vehicle retailer rose 1.8 percent to an all-time quarterly record $2.8 billion. Net income rose 24 percent to $57.34 million.

Net income from continuing operations also rose 24 percent to $57.5 million.

"Our fourth quarter and full year 2020 results reflect the continued strength and resilience of both our EchoPark and franchised dealership segments, a significant rebound in customer activity and increasing demand for both new and used vehicles during the second half of the year, as well as fundamental improvements in our operating cost structure," Sonic President Jeff Dyke said Wednesday in a statement. "These trends have continued into early 2021."

Sonic's EchoPark use…

In the 1967 film The Graduate, recent college grad Benjamin Braddock, played by Dustin Hoffman, is famously given a one-word description of the future: plastics.

North Carolina auto dealer John Hiester has a similar one-word suggestion for his peers as they prepare for a battery-electric vehicle future: rubber.

"I've done a lot of research on what this shop facility looks like 10 years from now," Hiester said of his fixed ops department. "So, tires. Tires aren't going to change. Cars are still going to be on rubber, and they're still going to use them like crazy.

"So if you're a dealer, you need to be in the tire business sooner rather than later."

Hiester, who was recently profiled in Automotive News for his idea to buy 19 classic cars in need of repair to keep his techs busy during the early days of the pandemic, said he realizes BEVs will not need as much maintenance as traditional gasoline vehicles. In fact, a recent McKinsey & Co. study …

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

Joe McCabe, president of AutoForecast Solutions, analyzes the global shortage of semiconductor components and its impact on automakers, suppliers and dealers. Plus, could a shortage of steel or raw materials be next?

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 subscribe to "Daily Drive"

AutoNation Inc.'s adjusted net income from continuing operations soared on higher finance and insurance and new-vehicle gross profits, as the auto retail giant said it has a new chairman and has exited its holdings in online retailer Vroom Inc.

The nation's largest new-vehicle retailer said it has elected Rick Burdick, 69, a board member since 1991 and lead independent director since late 2018, as chairman of the board. The company said as part of its succession planning and previously announced strategy to separate the chairman and CEO roles that Burdick succeeds Jackson in the chairman role, effective Feb. 15. Jackson, 72, remains CEO of AutoNation and a board member.

AutoNation said last year that it plans to name a new CEO in early 2022, at which point Jackson would retire.

AutoNation, which in October 2018 had invested $50 million in Vroom, disclosed on Tuesday as part of its fourth-quarter earnings that during the quarter it sold 3.1 million share…

Ford Motor Co said Monday it has joined the Initiative for Responsible Mining Assurance, which aims to promote use of third-party assessments of mining practices to protect human rights.

Ford said its planned investment in electric vehicles would increase the company's reliance on mined material, particularly related to production of EV batteries. As a part of the initiative, Ford would collaborate with brands across the industry to promote responsible mining.

IRMA provides third-party verification and certification of mining practices to protect human rights, communities and environment along the supply chain. Last year, German luxury automaker BMW joined the initiative.

AutoNation Inc. reported an 88 percent surge in quarterly adjusted profit on Tuesday as the largest U.S. auto dealership chain earned more per vehicle thanks to tight inventories and robust demand for SUVs, crossovers and trucks.

AutoNation CEO Mike Jackson said on Tuesday the shortage in supplies of semiconductors "is significant, and manufacturers can't give us too much visibility" on how vehicle shipments will be affected. For now, Jackson said, "retailers are managing the situation through price."

Meanwhile, the company said Jackson gave up his 18-year role as chairman. AutoNation named Rick Burdick as chair to succeed Jackson, who remains CEO -- a job he’s held for much of the past 20 years. Burdick has been a director since 1991 and served as a partner for law firm Akin, Gump, Strauss, Hauer and Feld until 2019.

Global auto sales have rebounded from the pandemic lows hit early last year as consumers increasingly prefer buying vehicles that pro…