5 notable buy/sell deals, CDK expects surge of car buyers to go electric, Ford takes steps to address quality

Hey everyone. The amazing Car Dealership Guy Community is hosting the first live CDG ReactionCast tomorrow on Zoom!

Join smart dealers and industry pros for a discussion on:

• Vertical integration in automotive

• Carvana and dealership margins

• Digital retailing

• Ways dealerships can compete differently

Tune in this morning, Friday, Dec 20, at 10 AM EST: https://cdglive.carrd.co.

— CDG

New car inventory has reached its highest point in 2024:

Supply levels are now only 11% lower than they were in 2019.

— Demand for Toyota and Lexus is still hotter than ever.
— Honda, BMW and Subaru are not far behind.
— Lincoln, Jaguar (ahem), MINI, and Jeep are oversupplied and some of the worst offenders.

Here’s new car availability (days’ supply) from least available to most:

(via Cox Auto)

1. Matt Bowers acquires Hyundai/Genesis store in Louisiana, Corwin Auto Group picks up Colorado Honda location

Dealership mergers and acquisitions are heating up as 2024 heads into its final stretch.

While profits have cooled from pandemic peaks, the buy-sell market remains robust, with this year on track to be the fourth busiest on record.

From a major Audi acquisition in New Orleans to the sale of a prime Buick GMC location in booming Northern Virginia — here’s a look at five notable deals shaping the future of automotive retail … (Go deeper: 5 min. read)

2. Car buyers warming up to EVs, but confusion is holding back sales

Consumer interest in electric vehicles is steadily growing, even as adoption rates lag behind expectations.

New data from CDK Global reveals a surge in buyers planning to go fully electric, particularly among hybrid and plug-in hybrid owners.

Yet, misconceptions about maintenance costs, depreciation, and leasing terms continue to hold EV sales back.

But according to CDK, with most EV buyers still preferring the in-store, there’s a clear chance for dealers to reshape the narrative and drive sales … (Go deeper: 3 min. read)

Outdated payment systems are draining dealership profits.

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Dealer Pay isn’t just another terminal; it’s the smarter way to manage payments across your entire operation.

3. Ford to appoint new head of quality to rein in warranty costs

Ford is shaking up its leadership to tackle ongoing quality issues that have cost the company billions in recalls and warranty expenses.

The automaker plans to appoint a new head of quality while restructuring roles to streamline production and improve vehicle standards.

With 62 recalls in 2024 and rising warranty costs, Ford’s CEO Jim Farley is doubling down on efforts to turn the tide — pointing to a modest 10% improvement in initial quality this past year as a step in the right direction … (Go deeper: 3 min. read)

• Senators rip into automakers for selling customer data and blocking right to repair.

• New vehicle inventory at start of December higher month-over-month and year-over-year.

• Tesla recalls nearly 700,000 vehicles in U.S. over tire pressure monitoring system issue.

• Toyota gets $4.5M DOE grant to boost EV battery sustainability.

• Best 0% APR car deals: December 2024.

Thanks for reading everyone.

— CDG