Trade News

The average number of new vehicles sold by U.S. dealers fell last year to its lowest level since 2012 as the COVID-19 pandemic strained consumer demand and the dealership population dropped slightly.

The figure, known as throughput, declined in 2020 by 133 vehicles to 807, according to Urban Science's annual Automotive Franchise Activity Report. Eight years earlier, the number was 812. From 2013 to 2019, throughput rose as high as 966 and as low as 874, according to the report. In 2009, the final year of the Great Recession, throughput was 564.

Last February, before the coronavirus was declared a pandemic, Urban Science had forecast a throughput decline for 2020, but only by 14 vehicles.

U.S. light-vehicle sales fell 14 percent to 14.6 million in 2020, according to the Automotive News Research & Data Center. It was the lowest volume since 2012.

"With this current stable dealer count, the throughput statistic is controlled primarily by the sale…

Cadillac moved the needle on Super Bowl Sunday.

All it took was a pair of scissor hands and a friendly joust with Norway over electric vehicles.

Judging by shopping activity on third-party sites and search traffic across the Web, Cadillac was a big winner thanks to two Super Bowl spots that showcased the upcoming electric Lyriq crossover.

The luxury brand revived the Edward Scissorhands universe for a brand spot that centered on his son, Edgar, and highlighted Cadillac's Super Cruise driver-assist technology. In a corporate spot for General Motors, the Lyriq grabbed screen time as actor Will Ferrell took on Norway after learning the country sells more EVs per capita than the U.S.

"The [Scissorhands] concept really worked for the vehicle and the features they were promoting," Kevin Krim, CEO of analytics firm EDO Inc., told Automotive News. Brands can have success if they "promote the right kind of vehicle or the right kind of product, more genera…

Subaru of America's 2020 U.S. sales result was an outcome the automaker was not used to in recent times. It wasn't a record.

For Subaru, the COVID-19 pandemic's impact first felt in March and April of 2020 lingered throughout the first half of the year and later snapped two streaks for the automaker: 11 years of U.S. sales records — which began in 2009 — and 12 years of annual increases, which began in 2008.

But despite sales dropping 13 percent to 611,942 for the year, some bright spots appeared for Subaru and its retailers toward the end of 2020.

Subaru's monthly sales increased in September, October and December. The brand's sales also rose in the fourth quarter, albeit slightly, 0.3 percent to 175,382, while Subaru's U.S. market share also rose, 0.1 percent, to 4.2 percent, according to the Automotive News Research & Data Center.

On the product side, the freshened Crosstrek subcompact crossover, with an available…

Fiat Chrysler Automobiles is no more.

After the merger with PSA Group of France closed last month, FCA is now part of Stellantis, the latest in a long string of name and ownership changes that North American dealers have endured.

Although dealers have many unanswered questions, David Kelleher, chairman of the Stellantis National Dealer Council, says he's optimistic about the leadership team that Stellantis CEO Carlos Tavares has kept on board to oversee operations in the U.S. It's largely the same team that helped dealers ramp up digital sales in a month's time after the coronavirus pandemic struck, an accomplishment that Kelleher called "astounding."

Kelleher, 54, spoke with Staff Reporter Vince Bond Jr. about the possibilities for Stellantis, changes to stair-step programs and other topics. Here are edited excerpts.

Q: What are your viewpoints on your leadership team? Is it well organized?

A: I was nervou…

Hyundai dealers weathered a difficult year for the U.S. auto market with a 9.7 percent sales drop, which outperformed the market overall, and surprising gains in retail market share and dealer profitability.

That came from quick and decisive action from the factory in terms of financial support to dealers and generous vehicle incentives but also from a growing product portfolio that has created significant momentum at the Korean brand.

For 2021, that game plan will help retailers continue to notch market gains, with a new generation of the Tucson compact crossover coming to the biggest nonpickup segment in the U.S., along with a compact pickup and a new electric vehicle subbrand.

"You can never have too much of a good thing. It's great product, and the dealers are just like, 'Keep it coming,' " said Kevin Reilly, 51, the new chairman of the Hyundai National Dealer Council and owner of Alexandria Hyundai in Virginia.

Reill…

The 2021 Sorento, which had a starring role in New York's pandemic-altered New Year's Eve celebration in Times Square, is only the latest piece of a broad blitz of new product for Kia.

There's also the upcoming Carnival, which aims to blur the lines between a minivan and SUV, and the K5 sedan introduced last year. And all of those ride on the coattails of the Telluride's arrival in 2019.

The Telluride was "the most successful product launch I've ever seen in my 23 years in the car business," James Morrell, chairman of the Kia Dealer Advisory Council. He and other Kia dealers hope to have more reasons to celebrate after this year's debuts.

Morrell, 47, spoke with Staff Reporter Vince Bond Jr. about Kia's product offensive and how the brand has helped dealers get through the pandemic. Here are edited excerpts.

Q: How has Kia helped dealerships navigate the changes brought about by the pandemic?

A: When the pand…

Honda dealers managed solid profitability despite a difficult year caused by the coronavirus pandemic, with brand sales falling 17 percent and underperforming the U.S. auto market as a whole.

Now, as inventory recovers and the sales outlook moves toward some normalization this year, Honda retailers are looking for ways to maintain those profits in a climate where fixed operations are likely to remain weak.

"Profitability has been very, very strong for Honda dealers. It's been a very good year," said William Feinstein, 50, chairman of the Honda National Dealer Advisory Board and president of Planet Honda in Union, N.J.

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"As inventories and sales return to normal, what happens with gross profit per vehicle? I tend to think that the evaporation in gross profit will happen, but I think it will happen over time. I don't think it will be dramatic," he said.

There are positive signs for the Honda brand with a st…

As redesigned Buick Envisions trickle onto dealership lots and retailers begin preparing their facilities for the electric GMC Hummer, Buick-GMC dealers are hungry for more inventory.

"Demand is outstripping supply, which is a good and bad thing. It's a double-edged sword," Todd Ingersoll, chairman of the Buick-GMC National Dealer Council and CEO of Ingersoll Automotive. "We really need more vehicles, and they're very much aware of that."

Buick and GMC pickups, crossovers and SUVs are selling as soon as they reach dealers' lots and often before they arrive, said Ingersoll, 49. Ingersoll owns three dealerships selling General Motors brands — Ingersoll Auto of Pawling (Chevrolet-Cadillac) in New York and Ingersoll Auto of Danbury (Buick-GMC-Chevrolet-Cadillac) and Buick-GMC of Watertown, both in Connecticut.

"They are doing everything they can to maximize every single vehicle that they can in the build schedule," he said. "We just have…

DETROIT — The Jeep Cherokee assembly plant in Belvidere, Ill., is shutting down for a week because of the microchip shortage that is plaguing manufacturers around the world.

The Stellantis plant, which has about 3,800 workers on two daily shifts, began its downtime Monday. Work is scheduled to resume the morning of Feb. 15.

"We are working closely with our global supply chain network to manage the manufacturing impact caused by the global microchip shortage and will continue to make production adjustments as necessary," a Stellantis spokeswoman said in a statement.

The Jeep plant is the latest victim of the chip shortage that has derailed production schedules in the U.S. and elsewhere.

Stellantis also idled its minivan plant in Ontario for three weeks beginning Monday. Ford last week said it would curtail F-150 production at plants in Michigan and Missouri, while General Motors is slowing or halting production at four …

Triunity Automotive Group has purchased Hornburg Jaguar-Land Rover in West Hollywood, Calif., from Pendragon, a public dealership group in the United Kingdom that is selling its U.S. portfolio.

The acquisition, which was announced in September and closed Jan. 29, is the second franchised dealership for Triunity, of Fresno, Calif. It also owns Mercedes-Benz of Fresno and a truck fleet service center, also in Fresno.

"The Hornburg store is a heritage dealership with a 70-plus year history in Los Angeles and we intend on making a little history of our own," Triunity CEO and dealer principal Scott Biehl said in a statement.

The dealership, which operates from separate sales and service buildings, has been renamed Jaguar-Land Rover Los Angeles. Triunity said the store will relocate to a 100,000-square-foot location in Los Angeles as early as next month. The new operation will bring sales and service together into one facility.

"With those 70 years have…