Fear and hoping with EVs

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Fear and hoping with EVs

EVs are coming

Electric vehicles are on the minds of auto dealers, and understandably so. After all, they’re the ones who will be caught between automakers’ aggressive product schedules and U.S. consumers who so far have shown scant interest.

So it was fascinating to see the opinions on EVs expressed in many of our 26 recent conversations with dealer council leaders. Ten stories from those interviews appeared in our Feb. 1 edition, and the balance run in Monday’s issue.

If there’s a pattern, it’s the apparent higher degree of enthusiasm among luxury dealers, who face EV-maker Tesla as a direct threat.

A sampling:

◾ Nissan dealer advisory board chief Scott Smith calls the Ariya, an electric crossover set to arrive late this year, a potential game changer.

But he’s not sure if Americans are ready for EVs. “It remains to be seen what the appetite for the U.S. consumer is for a volume electric vehicle,” he said.

◾ Mercedes-Benz can’t afford to stay out of the game. Tesla, after all, is now clawing its way toward the top of the luxury sales standings while bypassing franchised dealers.

“We can’t ignore the fact that Tesla’s made significant strides in the U.S. and globally selling electric cars and that appetite exists,” said dealer board chair Jeff Swickard. “Tesla is a threat.”

He’s eager for Mercedes’ planned 2022 onslaught of EVs, which he believes will hold an edge over Tesla models in fit and finish and benefit from a long history of engineering excellence.

◾ Porsche had a rough launch with its new EV, the Taycan. It arrived just as the pandemic hit. But Porsche still managed 4,414 U.S. Taycan sales by year end.

“I think the numbers will double next year, or close to it,” said dealer board chief Mike Sullivan. “The car is being really well-received.”

◾ Chevrolet council chair Mike Bowsher sees the crossover version of the Bolt, the EUV, as a chance to get the Chevy dealer network prepared for all the EVs General Motors has on tap. The Bolt EUV will be unveiled Feb. 14.

“These EVs no longer look like science experiments,” Bowsher said. “These are beautiful vehicles.”

◾ Lexus dealer council chief John Iacono has gotten “a glimpse” of what a Lexus EV might look like when it arrives.

“We’re going to have a player in a market,” Iacono said. “That’s very important to me, personally, in New York City. I can’t tell you how happy I am that we have something coming.”

Dave Versical

Ford F-150 Raptor

Coming Monday in Automotive News:

Nissan rebound?

Rebuilding amid a crisis: As it juggles slumping sales, a financial crisis, dealer dissatisfaction and the pandemic, Nissan is orchestrating an ambitious portfolio reboot — 10 new or updated models in 20 months. Automotive News spoke with Mike Colleran, Nissan U.S. marketing and sales boss, about how the brand will pull it off, despite the odds.

Weekend headlines

Jeep Super Bowl ad enlists Springsteen in call for unity: Olivier Francois’ inclusion of Bruce Springsteen marks the latest in a string of big-ticket celebrity appearances that have made Super Bowl ads for Fiat Chrysler Automobiles — and now Stellantis — sizzle during the Frenchman’s tenure.

Cadillac ad banks on nostalgia to sell future: For its first Super Bowl ad since 2012, Cadillac plays off the movie Edward Scissorhands to promote the upcoming Lyriq EV and its hands-free driving technology.

U.S. January sales

Light trucks fuel recovery: Toyota Motor, Hyundai, Subaru, Kia and Mazda posted higher U.S. sales in January behind strong crossover and SUV demand. The latest sales pace — a seasonally adjusted, annualized rate of 16.9 million — is down slightly from the 17.05 million rate in January 2020 and well above December’s 16.38 million tally. It’s the fourth month in the past five that the SAAR has topped 16 million, indicating a sustained rebound.

Google Android in-car operating system

Ford goes with Android: The automaker will install Google’s Android operating system on all new vehicles starting in 2023 as part of a six-year partnership with the technology giant. Ford will be able to tap into Google’s cloud system and utilize its artificial intelligence systems in factories, dealerships and vehicles.

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Top Five U.S. Lease Deals  
MarketScan
What are the best deals nationally this week across the U.S.? Market Scan’s Payment Value Index (PVI) analyzes the relationship between MSRP* and the monthly payment to determine which lease deal delivers the best “bang for the buck.” For more information, visit www.marketscan.com.
Crossover/SUV  
PVI Year Make Model Average MSRP*   Average Best Payment
88.92 2021 TOYOTA 4RUNNER $44,096.79   $489.50
88.81 2021 HYUNDAI KONA EV $42,783.33   $480.37
88.68 2021 HONDA PASSPORT $39,311.43   $446.87
88.48 2021 LEXUS LX $90,375.00   $1,042.86
88.46 2021 TOYOTA HIGHLANDER $43,754.00   $506.64

 

PVI Year Make Model Average MSRP*   Average Best Payment
86.75 2021 TOYOTA SIENNA $44,128.64   $589.50
86.17 2021 HONDA ODYSSEY $40,272.00   $560.24
85.58 2021 FORD TRANSIT CONNECT WAGON $29,907.86   $430.82
85.48 2022 HONDA ODYSSEY $40,567.00   $588.45
84.90 2021 KIA SEDONA $36,320.00   $542.21

 

PVI Year Make Model Average MSRP*   Average Best Payment
87.68 2021 VOLVO V60 $51,257.50   $624.01
87.56 2021 MINI CLUBMAN $34,950.00   $434.80
87.55 2021 VOLVO V60 CROSS COUNTRY $46,445.00   $578.36
87.41 2021 SUBARU OUTBACK $35,337.86   $445.14
85.84 2021 VOLVO V90 $55,795.00   $790.61
* Average MSRP is the average of the MSRP of all the individual trim levels for each model, and includes all taxes, registration and average dealership fees. Based on 36-month lease, 12,000 miles per year, 720 credit score, customer cash = 5% of MSRP, Selling Price = MSRP

Source: Payment Value Index (PVI) ™, a trademark of Market Scan Information Systems, Inc.

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A selection from Shift and Daily Drive:

Feb. 12, 1932: Date of birth of Bob Lutz, the product development whiz who changed the fortunes of virtually every automaker he worked for — BMW, Ford, Chrysler, General Motors — in a nearly six-decade career.