Requiring customers to wear masks ‘easier said than done'

Requiring customers to wear masks ‘easier said than done' https://ift.tt/3hZQtFJ

With upset consumers on either side of the mask debate, dealers are grappling with whether to put their own mandates in place and how to handle any resulting customer protest.

Pandemic takes toll on Cars.com Q2 revenue, profit

Pandemic takes toll on Cars.com Q2 revenue, profit https://ift.tt/2Pa6rk1

Cars.com reported that its operating expenses were 19 percent below the same quarter in 2019. The company took a series of cost-cutting steps as the pandemic spread across the U.S. this spring. Cars.com shares surged higher despite a down day on Wall Street.

Sonic Q2 net income rises; EchoPark rollout accelerated

Sonic Q2 net income rises; EchoPark rollout accelerated https://ift.tt/310RMND

Aided by lower expenses and strong used-vehicle demand, Sonic Automotive's net income rose 16 percent in the second quarter despite the pandemic. The retailer is expanding a rollout of standalone EchoPark stores with new delivery and buy centers.

Cox Automotive cuts 1,600 jobs in North America

Cox Automotive cuts 1,600 jobs in North America https://ift.tt/30cxVf2

About 1,100 of the 1,500 positions eliminated in the U.S are part of Cox's Manheim wholesale auction unit. Another 130 posts were cut in Canada.

Auto loan forbearance levels off in June, TransUnion says

Auto loan forbearance levels off in June, TransUnion says https://ift.tt/2X7TgV3

Flattening forbearance figures could be a subtle sign of improvement, but it likely represents a shuffling of impacted consumers.

Compliance offers dealerships best shield against regulatory scrutiny

Compliance offers dealerships best shield against regulatory scrutiny https://ift.tt/30XuKau

Dealerships should work particularly hard in this environment to ensure customers are being treated fairly inside their dealerships and that discriminatory behavior is not tolerated in the finance and insurance office.

N.Y. dealership case could prompt further FTC action

N.Y. dealership case could prompt further FTC action https://ift.tt/30Xhpil

Compliance experts believe the Federal Trade Commission's handling of a New York dealership case, in which the store agreed to pay $1.5 million for a slew of illegal and unethical practices in the finance and insurance office, may have far-reaching implications. Federal regulators in particular cited dealership-arranged financing, also called indirect financing, as a business practice considered deceptive by nature.

In May, Bronx Honda settled FTC charges that it discriminated against African American and Hispanic car buyers. The store was accused of charging well above the legal cap on document fees and adding fees and markups. The FTC also alleged Bronx Honda management instructed employees to target these groups "due to their limited education" but not attempt the same practices with white customers.

FTC Commissioners Rebecca Kelly Slaughter and Rohit Chopra argued that the commission should exercise its rule-making authority to crack down on dealerships for what they considered discriminatory algorithms and practices.

The commissioners say the difference between the amount lenders offer to dealerships to buy auto loan contracts and the rate negotiated between the dealer and car buyers exposes the customer to pricing disparities, which could lead to higher markups for Black or Hispanic customers.

"Although this matter involves extreme conduct that may make it seem like an outlier, the tricks and traps that Bronx Honda used against consumers are all too prevalent at auto dealerships across the country," Slaughter wrote in a statement. "In my view, far-reaching structural reform to the automobile-financing and -salesmarkets is long overdue and urgently needed: First and foremost, the Commission can start by initiating a rulemaking, under the Dodd-Frank Act, to regulate dealer markup."

Disparate impact — referred to as a business practice resulting in unintentional discrimination — was among the concerns addressed in the case. Regulators postulate that lending algorithms can be calibrated against consumers, charging customers more based on their skin color.

Hudson Cook lawyer Jean Noonan argued in a blog post that the discrimination outlined in the complaint appeared intentional and not the result of accidental overcharges involved in cases of disparate impact.

"The allegation was that the dealership charged some consumers more specifically because of their race or ethnicity. This is discriminatory treatment, pure and simple, not disparate impact," Noonan said.

Dave Robertson, executive director of the Association of Finance & Insurance Professionals, said no matter where a consumer acquires financing, there are three expenses associated with an auto loan: loan origination expense, or the cost of soliciting qualified buyers and arranging terms; loan servicing expense, the cost of collecting monthly payments and providing customer service; and finally, lending expense. When banks shoulder all three expenses, cost is passed onto the customer in the form of a less desirable finance rate. If the dealership arranges the financing, the dealership incurs that expense and has to be reimbursed by whomever buys the contract.

"There's no logic to the argument that there's some kind of extra expense," Robertson said. "We've got to remember regulators deal in worst-case scenarios."

Penske Automotive Q2 net income plunges 62% amid virus shutdowns

Penske Automotive Q2 net income plunges 62% amid virus shutdowns https://ift.tt/3fcjKuV

New-vehicle unit sales plummeted 44 percent to 30,687. Used-vehicle sales dove 41 percent to 42,606 units. But the dealership group said June results in both the U.S. and abroad strongly improved from March and April.

Asbury says net income slipped 10% in Q2 as vehicle sales slump

Asbury says net income slipped 10% in Q2 as vehicle sales slump https://ift.tt/2DaWCzM

After adjustments for special items, net income rose 6.1 percent to $48.7 million. Asbury also said it has reinstated executive compensation to pre-virus levels.

Schwartz to leave Cox Automotive for new role with parent company

Schwartz to leave Cox Automotive for new role with parent company https://ift.tt/2X2ydTU

Steve Rowley, executive vice president of the Cox Business commercial unit, will succeed Sandy Schwartz as president of the dealership services giant starting Monday. Rowley and Schwartz will work together on the leadership transition at Cox Automotive.

Average age of U.S. vehicles approaches 12 years

Average age of U.S. vehicles approaches 12 years https://ift.tt/3f0Iqqc

IHS Markit said the number of light vehicles in operation in the U.S. exceeded 280 million this year. That's an increase of 2 million, or roughly 1 percent, from last year.

Lithia rolls out online brand Driveway after strong 2nd quarter

Lithia rolls out online brand Driveway after strong 2nd quarter https://ift.tt/3f2KttR

The dealership group's strategy underscores emerging consumer trends expedited by the pandemic.

Strong grosses great, but they shouldn't be rare

Strong grosses great, but they shouldn't be rare https://ift.tt/2P02zlG

Pent-up consumer demand and shrunken inventories have given franchised auto dealers pricing power that they haven't felt in more than a dozen years. But it shouldn't take a pandemic for dealers to make money selling new vehicles.

Repair parts shortages stymie Ford dealers

Repair parts shortages stymie Ford dealers https://ift.tt/3eWKfV6

Ford dealers say parts they need for a common repair are taking weeks to arrive as vehicles pile up in their service centers. One service manager called the situation a "nightmare."

A seller's market for those with cars to sell

A seller's market for those with cars to sell https://ift.tt/32Y7yLK

Dealers are seeing average grosses dramatically higher than year-earlier levels, and they are trending up since the height of coronavirus-related shutdown period. But it's temporary.

Loaners help medical workers stay on the job

Loaners help medical workers stay on the job https://ift.tt/2CPm0uZ

As Canadians began to socially distance and businesses shut down to prevent the spread of COVID-19, Tony Del Gobbo, dealer principal at Newmarket Hyundai in Ontario, had an idea.

Dealership takes oil change service to hospital workers

Dealership takes oil change service to hospital workers https://ift.tt/3f4VD1b

As medical workers at two Illinois hospitals served on the front lines during the onset of the pandemic this spring, Taylor Chrysler-Dodge-Jeep-Ram decided to serve them.

Texas Toyota dealership offers to get the goods

Texas Toyota dealership offers to get the goods https://ift.tt/3gfQUeF

Amid the coronavirus pandemic, Jay Richards didn't want his 80-year-old mother out shopping for groceries. And that led the Kinsel Toyota general manager to start a free service for seniors in Beaumont, Texas.

Donated vehicles keep Conn. students learning

Donated vehicles keep Conn. students learning https://ift.tt/2BBwjSS

Schaller Auto Group in Connecticut used furloughed employees and its vehicles to deploy mobile Internet hot spots to help students complete online school this spring.

VW's service loaners are enlisted in COVID fight

VW's service loaners are enlisted in COVID fight https://ift.tt/3hvZ1DY

When COVID-19 dramatically curtailed activity at Volkswagen dealerships across much of the nation, it also curtailed the use of thousands of service loaner Atlas crossovers. Dealers nationwide repurposed those vehicles to help out in their local communities.

Dealers enforce new safety measures

Dealers enforce new safety measures https://ift.tt/3jCTYU3

Dealership groups say stores must have plans for how to handle situations in which an employee tests positive for the coronavirus, among a slew of safety protocols for staff and customers.

Judge denies CDK, Reynolds request to block Ariz. data law

Judge denies CDK, Reynolds request to block Ariz. data law https://ift.tt/2COiKjx

An Arizona state data law can be enforced after a federal judge denied a request for a preliminary injunction from the DMS giants.

Genesis pushes GV80, G80 launches to fall

Genesis pushes GV80, G80 launches to fall https://ift.tt/3g0GLlJ

The reason for the delay was the shutdown of much of Michigan during the COVID-19 outbreak, including EPA offices and laboratories that certify vehicle emissions, a Genesis spokesman said.

AutoNation to add at least 20 used-only stores

AutoNation to add at least 20 used-only stores https://ift.tt/2WQdcvD

The retail giant is resuming growth of its AutoNation USA outlets as second-quarter net income soared on expense reduction, broader use of digital tools and an investment in Vroom, which went public.

Vehicle market faces short-term challenges, surveys show

Vehicle market faces short-term challenges, surveys show https://ift.tt/2ZVJp6V

A new consumer survey found that fewer customers plan to delay a vehicle purchase than did earlier this year, but affordability is a concern.

Updated e-sign guidance could propel digital retailing

Updated e-sign guidance could propel digital retailing https://ift.tt/32LJn3k

New legislation has the potential to update an older law regarding digital signatures in financial transactions and bring the statute into the 21st century.

High alert for identity fraud in COVID-19 era

High alert for identity fraud in COVID-19 era https://ift.tt/2Cwa9C2

Identity theft is the leading cause of concern for auto lenders today, fraud experts say.

Employment verification key priority for lenders, Ally CFO says

Employment verification key priority for lenders, Ally CFO says https://ift.tt/2ZObxbP

A perfect storm of rising unemployment, uncertainty over consumer credit metrics and spiking infection rates in many areas of the country point to rougher waters ahead for lenders.

Lithia Q2 profits up despite new-vehicle sales drop

Lithia Q2 profits up despite new-vehicle sales drop https://ift.tt/30Dgeoc

The retailer managed a decline in new-vehicle sales by boosting its profit per vehicle and increasing sales of used vehicles. Lithia also rolled out plans for a new digital retail and service strategy under a national brand, Driveway.

Ally CFO: Employment verification key priority for lenders

Ally CFO: Employment verification key priority for lenders https://ift.tt/32QaZ74

A perfect storm of rising unemployment, uncertainty over consumer credit metrics and spiking infection rates in many areas of the country point to rougher waters ahead for lenders.

Dealer adds mental health resources to help with strain of pandemic

Dealer adds mental health resources to help with strain of pandemic https://ift.tt/30rm8Zn

When the coronavirus hit in March and dealer Jeff Elhart had to temporarily lay off 72 staffers, he made it his mission to try to alleviate any anxiety or mental distress those employees — or any community members — might be feeling.

Auto options need a rethink

Auto options need a rethink https://ift.tt/30yNblM

As the economy works through the process of returning to a semblance of normalcy, strategic planners in the automotive industry will be expected to better target vehicle content to meet specific consumer demands more efficiently to addressing affordability and industry profitability.

Changes made quickly during pandemic will have lasting effect on retail

Changes made quickly during pandemic will have lasting effect on retail https://ift.tt/2WzlbgE

Dealerships learned and evolved rapidly amid the challenges brought by the coronavirus pandemic, panelists said during Automotive News' first Retail Forum: Dealer Discussions event.

Take three for Jackson succession at AutoNation

Take three for Jackson succession at AutoNation https://ift.tt/2DUEavn

AutoNation Inc. is for the third time in two years looking for a new CEO, though the next leader will be working without Mike Jackson who will retire by April 12, 2022.

Arnold leaves AutoNation for health reasons

Arnold leaves AutoNation for health reasons https://ift.tt/399U5BN

AutoNation confirmed last week to that Scott Arnold, a nearly 20-year company veteran, retired May 31 to focus on his health after stepping back from some responsibilities this year.

Pet project: Store promo items used for masks

Pet project: Store promo items used for masks https://ift.tt/2DQiDE7

One Charlotte, N.C., Subaru dealership turned an unused inventory of promotional dog bandanas into much-needed face masks for its community.

He wanted to keep his people employed

He wanted to keep his people employed https://ift.tt/2ZI5WDL

Joe Agresti, CEO of Dream Motor Group in Spring, Texas, took to selling personal protective equipment to help keep the 480 employees at his six-location dealership group paid.

GM No. 1 in growth of minority dealerships

GM No. 1 in growth of minority dealerships https://ift.tt/2OQB3XT

GM, which already had the most minority-owned dealerships in the U.S., added nine more in 2019, while Toyota added seven and FCA added four. Minority ownership declined among Ford and Hyundai retailers.

Panel: Post-crisis, dealerships need to improve efficiency

Panel: Post-crisis, dealerships need to improve efficiency https://ift.tt/32xVZL4

Creating efficiency in staffing, technology, processes and the customer experience will be critical for dealerships going forward, panelists said during Automotive News' first Retail Forum: Dealer Discussions event.

Honda discontinues Fit, Civic coupe, Accord manual

Honda discontinues Fit, Civic coupe, Accord manual https://ift.tt/2OzHRJ5

Honda is committed to its core car models but says it can no longer make an economic case, amid falling demand across the market, for the Fit subcompact, Civic coupe and six-speed manual version of the Accord sedan.

Honda discontinues Fit, Civic coupe, Accord manual

Honda discontinues Fit, Civic coupe, Accord manual https://ift.tt/2ZAT9TG

Honda is committed to its core car models but says it can no longer make an economic case, amid falling demand across the market, for the Fit subcompact, Civic coupe and six-speed manual version of the Accord sedan.

Penske Automotive expects Q2 profit as business improves

Penske Automotive expects Q2 profit as business improves https://ift.tt/309V1li

The second-largest U.S.new-vehicle retailer said improved June franchise business in the U.S. and the United Kingdom, expense management and robust sales upon reopening used-vehicle supercenters last month aided results.

F&I product sales success owed in part to online visibility

F&I product sales success owed in part to online visibility https://ift.tt/2CyCKGm

Vehicle sales took a dive in the early weeks of the coronavirus outbreak, but for several finance and insurance product companies, sales have never been better. And each month, those sales keep improving.

Subaru, Lexus defend top spots in J.D. Power brand loyalty study

Subaru, Lexus defend top spots in J.D. Power brand loyalty study https://ift.tt/3j9dKpR

In J.D. Power's brand loyalty study, Subaru and Toyota ran neck and neck with Subaru retaining 60.5 percent of its owners and Toyota following close behind at 60.3 percent.

N.Y. Honda dealership sued by 2 former employees for discrimination

N.Y. Honda dealership sued by 2 former employees for discrimination https://ift.tt/2B1ej3T

The suit claims the two salesmen -- one Black and one Hispanic -- had greater seniority and more experience than many of the white employees brought back to the Honda store after the coronavirus shutdown.

Volvo readies subscription reboot to satisfy California

Volvo readies subscription reboot to satisfy California https://ift.tt/3janpwH

Volvo will replace a controversial subscription service in California, following dealer protest. The automaker will introduce a revised program that is running in 15 states.

Cheryl Miller leaves AutoNation; Jackson's contract extended

Cheryl Miller leaves AutoNation; Jackson's contract extended https://ift.tt/38VhaI5

Following a medical leave, Cheryl Miller has resigned after leading the largest U.S. dealership group for less than a year. Mike Jackson's contract as CEO and chairman has been extended through April 12, 2022.

Pickup, light-truck supplies get skimpy

Pickup, light-truck supplies get skimpy https://ift.tt/2WiIPxB

Inventory levels industrywide have dropped to an estimated 2.55 million, with the steepest declines among pickups and other light trucks.

88% of dealerships took PPP loans; now they wait for forgiveness

88% of dealerships took PPP loans; now they wait for forgiveness https://ift.tt/2OmNB96

Paycheck Protection Program records show a massive cash infusion into U.S. dealerships retained at least 761,000 jobs.

Retailers' big need for loans is met

Retailers' big need for loans is met https://ift.tt/2BVgBSQ

Paycheck Protection Program records show a massive cash infusion into U.S. dealerships retained at least 761,000 jobs.