As we bid farewell to 2023, a year marked by significant events and industry shifts, let’s look back on some of the major news events that impacted dealerships and the auto industry.
Major Auto News Events of 2023
UAW Strike - A Six-Week Saga:
The automotive industry faced a six-week UAW strike that sent ripples through the sector, impacting production and supply chains in both the US and Canada. As the dust settled, the aftermath brought about significant changes, including raises for non-unionized employees in non-union plants, showcasing the far-reaching effects of the UAW deal.
EV Landscape Dynamics: The electric vehicle (EV) market experienced a pullback, with OEMs unable to meet the initially forecasted production volumes. This shift forced manufacturers to scale back production plans and restructure in response to the evolving EV tax credit availability.
Cruise Crisis and the Autonomous Road Ahead:
GM's self-driving car initiative faced setbacks due to an incident with a pedestrian, leading to a scaled-back approach. This ongoing lawsuit raises questions about the future of self-driving cars and underscores the importance of navigating autonomous roads cautiously.
Inventory Rebound:
A sigh of relief for the industry as the microchip shortage eased, leading to the highest rate of new car production in three years. Dealerships can anticipate a more robust inventory, providing customers with a wider range of choices. This change has put pressure on the showroom floor, with salespeople needing to make the adjustment back to negotiating deals with more options available and more competition driving people to look at alternative options.
Lithia's Rise:
Lithia emerged as the largest dealership group, surpassing AutoNation and expanding its reach into the UK. With a bold revenue goal set for 2025, Lithia's strategic moves reshape the competitive landscape.
EV Charging Standardization:
A significant shift in the EV ecosystem as major OEMs, including Ford and GM, adopted Tesla's charging port standard across the US. This move signifies a shift in attitude and promises to offer more collaboration for enhancing the accessibility of charging stations in the future.
Hyundai's Online Sales Push:
Hyundai made waves by partnering with Amazon, enabling direct car sales through the e-commerce giant. This collaboration opens new avenues for automotive retail and customer engagement and has made shockwaves across dealerships as they grapple with what the next steps could be for traditional car sales.
Canada's EV Deadline: Canada set a bold deadline for the automotive industry, mandating that all new vehicles must be electric by 2035. This regulatory push matches that of Europe, reinforcing the government push for commitment to sustainable and eco-friendly practices.
Looking Forward to 2024 with Quorum
As we step into 2024, the automotive industry continues to evolve, and Quorum is here to provide innovative tools and technology to help dealers adapt and move with these changes. Quorum stands at the forefront providing value creation and a steadfast commitment to customer experiences. As dealerships navigate the road ahead, Quorum's suite of products promises to help every step of the way, offering solutions tailored to enhance operations, drive revenue, and optimize efficiency.
The automotive industry's resilience and adaptability were put to the test in 2023, setting the stage for a transformative 2024. With Quorum's commitment to innovation and customer-centric solutions, dealerships can embrace the future with confidence, knowing they have a trusted partner to navigate the challenges and opportunities that lie ahead.
