Vehicle sales are now contributing less to dealership profit and fixed ops is contributing more. Today, fixed ops comprises 49% of dealership gross profit.1 The service department is also critical to retention and repeat sales. In fact, 74% of car buyers who had their vehicle serviced by the dealership of purchase said they were likely … Continued
The December 2018 Cox Automotive Industry Update Report shares Cox Automotive’s multifaceted insight into the automotive marketplace to provide an overview of economic indicators, supply, demand, credit and other vital topics and trends affecting the industry. ECONOMIC INDICATORS Inflation in November came in as expected. The core CPI, which excludes Food and Energy, increased again … Continued
Consumers are following several trends/current events that negatively impact their purchasing power, including rising gas prices, rising interest rates, and new proposed tariffs on imported vehicles and parts. Of those three, gas prices garner the most attention (87 percent), interest rates second (81 percent), but auto tariffs register a strong 71 percent. Consumers aren’t just … Continued
As widely expected, today in Washington D.C the Trump Administration and the EPA put forth a proposal to roll-back Obama-era fuel economy and emission standards for automobiles. The White House proposal essentially freezes fuel economy standards at 2020 levels and eliminates the stretch targets for fleet-average fuel economy in the U.S. to reach near 50 … Continued
This article was originally published in The Hill on July 20, 2018: https://thehill.com/blogs/pundits-blog/economy-budget/342969-a-dubious-doomsday-scenario-subprime-auto-lending-wont A persistent automotive doomsday thesis that continues to have favor with some in the media and on Wall Street is that subprime auto loans are booming and creating the next great financial crisis. Don’t believe it. As an economist who covered housing … Continued
Tomorrow in Washington D.C., the U.S. Department of Commerce is scheduled to hold public hearings as part of their Section 232 investigation into the effects of imported automobiles and automobile parts. A range of witnesses from across the automotive industry are expected to testify. With a backdrop of trade and tariff discussions in the news, … Continued
Autotrader and Kelley Blue Book analysts are providing their thoughts on Tesla’s 9 percent reduction of its workforce. Michelle Krebs, executive analyst for Autotrader: “Tesla has signaled organizational changes in recent weeks and here it is. It is clear that Tesla is under tremendous pressure to finally turn a profit and is attempting to address … Continued
Earlier today, senior leaders from a number of the global automakers met with President Trump and other officials at the White House to discuss fuel economy regulations and emission standards. As NHTSA and the EPA work to establish clear regulations for vehicle emissions going forward, gas prices in the USA continue to rise and the … Continued
This article was originally published in The Hill on May 9, 2018: https://thehill.com/opinion/finance/386893-many-americans-are-shrugging-off-higher-gas-prices As the U.S. economy has slowly improved during past years, so too have fuel prices increased. The average price for a gallon of unleaded according to AAA reached $2.82 this week, the highest level in more than three years, dating back to … Continued
The full extent of a recent fire at auto parts maker Meridian Magnesium Products of America in Eaton Rapids, Michigan, is beginning to come into view. The fire disrupted production at the plant and the ripple effect is now being felt by automakers across the country. Cox Automotive analysts offered the following insights and commentary. … Continued
