F&I and Showroom, November 2020

www fi magazine com 6 F I and Showroom DONE DEAL It has been nothing short of a tumultuous year for F I managers the dealerships they serve and the automakers needed to keep the wheels turning When the pandemic took its hold on the United States back in March automakers were forced to slow or halt production and the ripple effect was felt for months to come Fast forward to November and recovery is in full swing with sales and profits rebounding more and more each day According to a study by J D Power and LMC Automotive auto sales in the U S are forecasted to rise 3 in October aided by continued recovery in consumer demand and smaller inventories at dealerships In the month of October retail sales of new vehicles are expected to reach about 12 million units which is a 3 increase from a year ago factoring in adjustments for selling days Used vehicle prices are also climbing from October 2019 as are new car prices Average incentive spending per unit in October fell 425 to 3678 from a year ago due in part to tight inventories which have allowed retailers to further reduce discounts they generally offer on sales of new vehicles FORD MOTOR CO On Oct 1 Ford Motor Co ushered in a new chief executive officer Jim Farley Since the newly elected executive took office shares have increased nearly 21 a sign of an improving economy after a long time rut stretching back farther than the start of the pandemic The manufacturer is seeing gains in its stock earnings after months of low numbers November 2020 I Automotive Sales On the Rise F I checks in with a handful of leading auto manufacturers on their continued recovery efforts following a year of roadblocks BY KATE SPATAFORA and much of this positive sentiment stems from optimism directed at Farleys appointment He enters the scene to a stacked deck with three new models entering the market a redesigned F 150 a revived Bronco SUV and the electric Mustang Mach E Ford is producing overtime at its pickup factories to keep up with consumer demand a decision that has helped improve free cash flow Although business in the U S is on the upswing Ford is still facing hardships overseas Currently losing profits in China Europe and South America a turnaround will be difficult especially with the looming disruption of the U K s exit from the European Union TOYOTA MOTOR CO Worldwide sales for Toyota Motor Corp increased 2 in the month of September compared to a year earlier This is a long awaited indicator that demand for vehicles is continuing to recover In September global sales increased to 837049 units marking the first month of year over year growth in nine months Supported by demand for Lexus models and the RAV4 sales jumped 16 in the U S In China propelled by the recent auto show in Beijing sales rose 25 Toyotas president has stated the company expects to remain profitable amidst the lasting affects of COVID 19 on consumer spending Toyota reported an operating profit of 133 million in the quarter that ended on June 30 and is maintaining its estimates for a full year profit JAGUAR LAND ROVER AUTO In select markets sales for Jaguar Land Rover have rebounded to pre pandemic levels with the car manufacturer reporting gains for the first time in three quarters The companys stock increased nearly 56 at the end of October Jaguar Land Rover posted profits of 85 million for the third quarter and expects cash flow to remain positive for the second half of the year In India production has remained difficult as car manufacturers were already facing a slow down even before the pandemic reached the country While sales elsewhere in the world are helping to support their Indian counterpart during this trying time the company still reported a quarterly loss of 43 million overseas Jaguar is looking to the future as the company expects the release of new products in the Chinese market where demand is improving as the pandemic has been largely contained WHEN THE PANDEMIC TOOK ITS HOLD ON THE UNITED STATES BACK IN MARCH AUTOMAKERS WERE FORCED TO SLOW OR HALT PRODUCTION AND THE RIPPLE EFFECT WAS FELT FOR MONTHS TO COME