Breakthrough or Yet Another Long-Dated Production Target?
In early July, Financial Times reported Toyota’s solid-state battery breakthrough. According to Keiji Kaita, president of Toyota’s research and development center for carbon neutrality, the goal is to cut the size, weight, and cost of both liquid and solid-state batteries in half. In this post, we get into the details of this report, what auto dealers should know about solid-state batteries, and provide some context for realistic expectations.
Discussing Levels of Charging to OEM Requirements of Dealers
There are exciting developments in the electric vehicle (EV) market, where sales momentum continues to build as EVs make up an increasing share of new light-duty vehicle sales. Learn about the different charging levels, the various requirements automakers have for their dealers, and the expanding presence of charging stations at various retailers and restaurants. As major auto manufacturers are investing in and adapting to the EV revolution, sustainable transportation appears to be the way forward in this rapidly growing industry.
January is a month to review statistics from the prior year and to make predictions for the new year. The automobile industry is no different. In this post, we tackle a potpourri of trends to monitor in 2023, including new and used vehicle prices, electric vehicles, connected cars, and SAAR predictions for 2023.
Musings From Mercer Capital’s Music City Office
Last week we attended the Annual Tri-State Convention for the Automotive Associations of Tennessee, Mississippi, and Alabama. The event provided a great opportunity to discuss trends in the automotive industry with industry participants and dealers from different manufacturers and geographic areas. In this blog, we discuss some of the trends discussed last week, including a variety of topics that we have covered before in this space. We also incorporate highlights of a presentation from noted industry analyst Glenn Mercer (no affiliation with Mercer Capital) regarding the “Dealership of Tomorrow.”
The Future of Automobiles
Connected cars are an undiscussed subplot in the current inventory crunch as more tech-enabled vehicles require more microchips, which as everyone knows by now are in short supply. In this post, we examine the size and growth of the connected car segment and discuss the struggle between auto manufacturers/OEMs and auto dealers over servicing these features.
How Inventory Shortages and Electric Vehicles May Shape the Future of Automotive Retail
Just as December is a good time to look back and reflect, January is a good time to look forward, to 2022 and beyond. When we value auto dealerships, we look back at performance in prior years because this helps to inform reasonable expectations for future performance. Prior to the pandemic, the directly preceding twelve months of performance may have been a reasonable proxy for ongoing expectations. However, throughout 2020 and 2021, discussions about when things will return to “normal” or whether we’re in the “new normal” have taken center stage.
In order to look forward, we must also consider the past, or as Shakespeare’s Antonio would say, “What is past is prologue.” In this post, we look at two key trends in 2021 (inventory shortages and electric vehicles/direct selling) and how they may inform how automotive retailing will look in the future.
The December SAAR totaled just 12.44 million units, down 3.5% from last month and 23.7% from December 2020. Inventory shortages, supply chain issues, and consistently high demand have been commonplace in the auto industry since the summer. That being the case, December’s low SAAR should not surprise many. In this week’s post, we discuss inventories, transaction prices, electric pickup trucks, and the outlook for January 2022.
What It Means for Ford, Other OEMs, and Auto Dealers
Rivian Automotive has been in the news a lot recently given its eye-popping IPO. Ford has invested in Rivian and until recently was planning to jointly develop an EV. In this week’s post, we feature a recently published piece from our Family Business Director blog about Ford’s decision to invest in Rivian from Ford’s perspective.