Car dealerships are getting bigger and bigger

Screenshot from the Asbury Automotive Group ad.  It's hard to find any pictures of Asbury's dealerships, part of the largest dealership buying spree in the country.

Commercial agencies in America are getting bigger and bigger, with more and more mergers. All that and more in morning shift On 4 April 2022.

First gear: Unification is ready

The industry trade that represents auto news reports a lot on the auto dealership business, and this year’s report indicates that consolidation continues unabated. The largest 10 and 150 dealer groups have nearly doubled their share of all dealerships in the country, according to Car News Data:

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Draw: Car News

AN says it expects more consolidation, so it appears the era of the massive dealer pool continues unabated. I wouldn’t say I’d miss any kind of mom and little auto dealer, but you can’t say the trend feels good.

Second gear: Hertz doubled on electric vehicles

I’m not quite sure how this news was taken. On the one hand, you could say it’s a big fleet sales deal for Polestar. On the other hand, you could say that the main news is that we have a major car rental company that is buying more electric cars. Anyway, here are the main details from Car News:

Swedish electric car manufacturer Pole Star signed a deal with rental giant Hertz to supply up to 65,000 battery-powered cars, a source said the five-year global deal would represent more than $3 billion in potential revenue for electric start-ups. Car News.

While car rental companies typically ask for deep discounts from automakers, Hertz is said to be paying a price closer to the sticker price.

In general, this is probably bad news for electric cars in general. I’m not sure anyone has a good impression of a car from their rental.

Third gear: Car sales may drop, but demand isn’t

According to another, what constrains sales is supply, not demand Car News Transfer:

With factory problems on three continents continuing to disappoint efforts to capture what analysts say is pent-up hot consumer demand, US auto sales fell 16 percent in the first quarter for the 11 automakers reported last week.

[…]

But it is hardly a stagnant market. Many retailers were selling vehicles on a one-on-one basis. Once the vehicle arrives at a dealer’s location, the customer appears to deliver it.

In this market, Tyson Jomini, vice president of data and analytics at J.D. Power, told Automotive News, “Our production pace equals our sales pace.”

The compressed sales tally led forecasting firms to revise their full-year sales forecasts. LMC Auto and JD Power We expect US light vehicle sales to total 15.3 million for 2022, down from the previous forecast of 15.9 million. Cox Automotive It also cut its 2022 forecast to 15.3 million from 16 million.

I think it’s still a bad time to buy a new car, just as it’s still a bad time to buy a used car. The right thing to do, of course, is to use the last days of cold weather in most parts of the country to rush out and buy a bike.

In unrelated news, I will soon be repairing and selling some of my used bikes! Please enjoy buying it.

Fourth gear: Not just for Tesla

The evidence for low supply and still high demand is that when automakers have the supply, sales go up. Here’s Tesla in Q1, like The New York Times Reports:

Tesla, the world’s leading electric vehicle maker, on Saturday reported a sharp increase in global sales in the first three months of the year as Overcome supply chain problems It approached production levels on par with luxury carmakers such as BMW and Mercedes-Benz.

Tesla said it 310,000 vehicles delivered From January to March, up from 185,000 vehicles during the same period in 2021, roughly in line with Wall Street expectations. The increase of nearly 70 percent was in contrast to major automakers such as General Motors and Toyotawhich recorded a significant drop in sales on Friday due to a shortage of key components.

Fifth gear: I love this article that explains that making cars is hard

Our publishing platform is no longer focused on tags and pages, so I will say that I miss a couple of our platforms used to highlight all our coverage of the world of electric car startups. there was Shechu or scam? We wondered whether the new car companies were intentionally misleading investors about how much they could make with a few hundred million dollars or whether they themselves were deluded. Much of Faraday’s Future coverage ended up here. Then there was Making cars is hardWe put all the trials and tribulations of Silicon Valley startups confident they could quickly defeat the industry’s veterans and ended up suing. A lot of Tesla coverage ended up here.

Anyway, the UK is now getting some of its own electric start-ups, and that means the British publication of financial times It is catching up with our perspective. Please enjoy this article about making cars tough:

Outside the English city of Bicester, 15 miles from Oxford, lies the structure of a factory that is at the forefront of the UK’s electric car revolution. Under the roof of a cavernous warehouse, dozens of giant black robotic arms sit atop vacant assembly hatches, waiting for massive electric trucks to make their way to the electric car startup.

By the fall, this original axle should begin production of electric trucks for UPS, the US parcel-delivery group. But the work is already behind schedule. The sister plant in the US will not be ready in time, so the UK plant will have to handle the bulk of this year’s production. Reach now expects to make just 600 trucks this year, less than half the number analysts have promised through 2021.

The company is not alone. A large number of electric car industry veterans – some plants that opened for the first time, many with sharp valuations – are facing their biggest challenge yet: the auto industry. From new China to Amazon-backed Wall Street, Rivian’s once darling, every one of the auto world’s feisty newcomers has stumbled upon this point.

Maybe it’s time Updated our betting guide for startups.

Rear: MLK Jr. Assassination

I’m still fascinated by how focused the civil rights movement is on transportation—from bus boycotts to rallies, all framed against Great Immigration. Anyway, after years of being stalked by the FBI, someone He certainly didn’t work for the FBI Martin Luther King, Jr. was murdered.

Neutral: Where are the dealers?

Without them, who would sponsor our nation’s minor league teams?