Suzana Cizmic chased her 'dreams' and is now a commercial plant manager for supplier Robert Bosch. Cizmic says it is crucial for women in the auto sector to exude confidence, share experiences with each other and mentor young females all while challenging the industry to avoid 'blind' spots
Toyota says retail demand bouncing back, inventory remains ‘lumpy’
Toyota's U.S. dealers are coming off their best weekend since the coronavirus pandemic hit in late March in a continuing display that buyers are once again ready to purchase new vehicles, executives said Monday.
But while retail demand is still down about 15 percent from the same point a year ago, the industry is likely to go through several "lumpy" months this summer as automakers continue to ramp up plants after extended shutdowns and reconfigure output in the face of anemic fleet demand, said Bob Carter, head of sales for Toyota Motor North America.
Speaking to reporters on a conference call, Carter said the automaker is seeing several signs that retail demand is strong, including a more than 50 percent jump in quality Internet leads from the automaker's Tier One Website.
"We're seeing the retail consumer be very, very resilient," Carter said. "We're running about 82 to 85 percent of the same retail level that we did last year.…
Tesla negotiating incentives for possible Texas assembly plant, report says
Tesla Inc. is negotiating possible incentives with a Texas county that could bring a new auto assembly plant to the area near Austin, the state capital, the Austin American-Statesman reported on Monday.
Travis County Commissioners Court is scheduled to discuss terms of the deal on Tuesday, the paper reported, citing people with knowledge of the situation. A vote is expected in the coming weeks.
The paper said it was unclear whether negotiations with Travis County show that Tesla has picked the Austin region as the site for the plant, which would build the company's electric pickup truck and Model Y crossover and employ thousands of people, or if the company is also negotiating with officials in Tulsa, Okla.
Tesla officials could not immediately be reached to comment. The company's CEO, Elon Musk, has tweeted previously about the possibility of bringing a plant to Texas. Oklahoma also has been mentioned as a possible site.
Travis County offici…
CDK Global finance chief to take new COO position
CDK Global Inc. plans to promote its CFO into a newly created COO position, with oversight of the company's products, sales and customer experience.
Joe Tautges, who also is an executive vice president, will move into the COO job once a new CFO has been hired, the company said Monday.
The Hoffman Estates, Ill., dealership technology company said the COO role is intended to make its North American business more effective, including its dealership management system and customer relationship management software, other product lines and sales and customer service employees.
"Adding this critical role will help us drive further our strategy for growth and continue our commitments to delivering the best support to our customers," CEO Brian Krzanich said in a statement.
"In his more than three years at CDK, Joe has made tremendous contributions both inside and outside the finance area, which makes him the ideal leader to ass…
U.S. trade officials sought consulting work on rules they wrote, report says
WASHINGTON -- Two U.S. officials who helped negotiate an overhaul of North American trade rules have offered their services as private-sector advisers to future clients -- making solicitations for post-government work while still on the federal payroll.
Jason Bernstein and Fred Fischer were key negotiators in U.S. Trade Representative Robert Lighthizer’s office responsible for the so-called rules-of-origin that dictate how much of a car must be made in North America to avoid tariffs under President Donald Trump’s renegotiated trade deal with Canada and Mexico.
They have reached out to companies in the auto industry to offer help implementing the U.S.-Mexico-Canada Agreement after they leave government service, according to documents reviewed by Bloomberg News and three people familiar with the communications who requested anonymity to discuss the private exchanges.
“As you know, Jason and I are looking to leave USTR, and we would like to assist companies…
DAILY DRIVE PODCAST: June 15, 2020 | The hidden threats to a full recovery
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.
Cox Automotive Chief Economist Jonathan Smoke says inventory shortages, fewer incentives, weaker demand and tightening auto loan standards could slow the industry's sales momentum in the second half of the year.
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 subsc…
Tesla registrations rebound after pandemic eases
Registrations of Tesla Inc. vehicles rebounded last month in China, suggesting demand is picking up for the U.S. carmaker’s electric vehicles as the world’s largest auto market recovers from the coronavirus pandemic.
In May, 11,364 China-built Teslas were registered in the country, according to data from state-backed China Automotive Information Net. That’s the highest monthly tally so far for the carmaker, which is ramping up output after starting deliveries from its first Chinese plant around the beginning of the year.
China is a crucial market for Tesla’s growth plans as the company nears eclipsing Toyota Motor Corp. as the world’s most valuable automaker. Yet risks such as Tesla getting caught in U.S.-China trade tensions remain.
The registration tally signals that Tesla is faring better than other electric-vehicle makers in China. While the country’s car market as a whole is recovering — sales expanded last month for the first time in almost a year …
Facebook ads help dealership’s sales
A well-timed decision to shift from radio and TV ads to Facebook drove a surge in sales for Power Ford, helping the Albuquerque, N.M., dealership connect with homebound consumers as the coronavirus pandemic hit.
After a management change in mid-2017, the dealership moved thousands of advertising dollars to the social networking site. By partnering with Dealers United, a vendor that helps dealers with online data and advertising, Power Ford began paying for targeted ads showcasing its vehicles to nearby consumers who are in the market to buy. The ads pop up on their news feeds based off their recent online search history.
The results have been impressive.
In 2019, the dealership increased sales 8 percent year over year — vs. a 3.2 percent decline in its local market — and spent 21 percent less on advertising. It sold 1,576 new vehicles last year.
Once a bit player in its market, Power Ford has been the top-selling For…
COVID-19 moves pickup and delivery into mainstream brands
Thanks to COVID-19, the era of pickup and delivery is here.
Before the pandemic, a growing number of stores selling mainstream brands were slowly rolling out pickup and delivery options for their service customers.
But now it's pedal to the metal as pickup and delivery of customers' vehicles has emerged as one of the most effective ways fixed ops directors can keep their service bays busy while reducing the risk of exposing service advisers, techs and cashiers to the virus.
An added bonus: Pickup and delivery means fewer customers hanging out in lounges waiting for their vehicles to be fixed, further helping stores remain virus-free.
In late March, Ford began subsidizing dealerships that pick up and deliver customer vehicles. Customers are not charged for pickup and delivery. Ford covers dealers' costs by paying them $50 per repair ticket on cars picked up, serviced and returned. In May, more than 2,800 Ford stores …
Service customer denied award
The Texas Court of Appeals has refused to reinstate a $25,236 jury verdict in favor of a service customer whose 2006 Chevrolet Equinox was hit by another vehicle backing out of a service bay.
The three-judge panel unanimously found that Millicent Edwards failed to provide evidence that Lynn Smith Chevrolet, in the suburban Fort Worth city of Burleson, was responsible for her injuries from the January 2014 collision.
According to the April opinion, Edwards was at the dealership for an oil change. "As she left, she noticed that the oil light was still on so she flagged down an employee. While they were talking, another car backed out of the service bay and hit her car."
A jury found in favor of Edwards, but the trial judge overturned the award. The Court of Appeals also sided with the dealership, saying, "There is no evidence that a Lynn Smith employee ... was driving the car that struck Edwards's." In fact, it continued, Edwards t…
Dealerships will need technicians as pandemic subsides, business returns
Some technicians at franchised dealerships have been laid off, and those lucky enough to still be turning wrenches likely aren't getting the work they did before the pandemic.
Whether they're not working or barely working, techs still have bills to pay — rent, car and tools, for starters. And now, faced with the prospect of working on vehicles that might have traces of the virus, some might not be too eager to return to their service bay.
But concern over the auto retail industry's critical need for more service technicians has temporarily taken a back seat as dealership service business recovers from a steep decline as a result of the coronavirus shutdowns. Once that recovery occurs, the focus will return to the tech shortage, experts say.
"I think the shortage is still a shortage," Mike Campbell, vice president of service and quality for Subaru of America, told Fixed Ops Journal.
Through April, Subaru's 634 U.S. d…
Employees will find new processes and mindsets are required post-COVID
In the "new normal" world imposed by the COVID-19 pandemic, technicians at Patriot Subaru of Saco, near Portland, Maine, now work firefighter shifts — three 11-hour days a week. Plus they work only in every other bay to maintain social distancing.
And at Hansel Auto Group in California, technicians now diligently — not occasionally — video record their multipoint walkaround inspections to better communicate virtually with customers.
As these changes show, furloughed fixed ops employees who return will likely find their jobs are quite different from the ones they left. Furthermore, the work will demand new skills and mindsets, including more technical proficiency and an ability to adapt to change.
"Yesterday's normal is never coming back," says Adam Arens, CEO of Patriot Auto Group, which operates three rooftops in Maine, Massachusetts and New Hampshire. "That's why we're diligently looking way down the road trying to figure out …