NY Auto Forum 2024: Anthony Brownlee | Chairman of AIADA
At this year’s New York Auto Forum, CBT News anchor Jim Fitzpatrick joined Anthony Brownlee, chairman of AIADA and owner of Brownlee Automotive, to gain a deeper understanding of why car dealers are so optimistic in 2024. Brownlee emphasizes the importance of consumer choice in the automotive market, especially regarding electric vehicles. He stresses the need for common-sense approaches in the transition to electrification, taking the stance that transportation should not be politicized. Despite challenges like higher interest rates and past inventory shortages, there is a sense of optimism in the automotive industry, with low unemployment and enthusiastic buyers. Brownlee notes the shift in market dynamics, with dealers leveraging improved inventory levels and re-energizing sales teams to provide the best customer experience possible. Brownlee reiterates the view that transportation is a nonpartisan issue. He expresses concern over the potential for heightened emotions and political polarization to affect the industry and advocates for sensible, cooperative discussions that transcend political affiliations. Click here for the full interview.
Expect Dip in Off-Lease Availability, Rise in Wholesale CPO Prices
Relatively scarce, 3-year-old off-lease used vehicles — the primary source of profitable, certified pre-owned (CPO) vehicles for dealers — are about to become even more scarce as the third anniversary of a sharp and long-lasting drop in lease penetration approaches, in second-half 2024. “We are on the cusp of a cliff in lease maturities,” says Jonathan Smoke, chief economist for Cox Automotive, during the recent Q1 2024 Cox Automotive Industry Insights and Sales Forecast Call. Scarcity is likely to drive up the price of CPO units for dealers at wholesale and for customers at retail, reports Wards. One result of the scarcity of late model used cars is that some manufacturers have made older used vehicles eligible for their CPO programs. The “certified” part of CPO means vehicles are reconditioned to check all the boxes on a multi-point inspection. The buyer receives whatever remains of the original owner’s new-car warranty, plus a factory-backed, used-car warranty. That “cliff” Smoke mentions above about lease returns is a result of the calendar. The acute shortage of new vehicles during the recent past began to affect new-product availability around May 2021. Click here for the full story.
The Biggest Winners and Losers in Auto Sales in Q1 2024
The first three months of 2024 have flown by. With the first quarter of the year coming to a close, we are taking a deep dive into the numbers to see which car models and automakers came out on top, reports Car and Driver. We will update our list of the 25 bestselling cars, trucks, and SUVs when all of the information is available, but here we are pulling out a few of the most interesting details we found when combing through the sales reports, presenting the biggest winners of Q1, along with a few models and brands that need to turn it around in the second quarter of 2024. The smallest crossovers proved popular over the first few months of 2024. After bursting onto the scene last year, the second-generation Chevrolet Trax continued its rejuvenation with 37,588 sales in the first quarter of 2024, while the Honda HR-V saw a 44 percent jump year over year with 38,062 units sold. The Mazda CX-30 and Toyota Corolla Cross also impressed with 28,496 and 19,028 sales, respectively, increases of 43 and 31 percent. Click here for the full story.
VW Eyes 2028 Debut for Software-Defined Vehicles, CEO Says
Volkswagen Group aims to have software-defined vehicles on the road within the next four years. "We are gearing toward 2028," VW Group CEO Oliver Blume said. "That's when [software-defined vehicles] are going to be developed hopefully for Audi and Volkswagen." That is two years later than Renault Group, which has said its software-defined vehicle will be ready by 2026. Automakers hope that shifting emphasis to software from hardware will cut development costs, strengthen customer loyalty, and increase revenue. By 2030, digital services could generate as much as $1.5 trillion in additional revenue for the global industry, rising to $3.5 trillion and amounting to 40 percent of total automotive industry revenue by 2040, according to research by consultancy Accenture. However, creating a smartphone-on-wheels requires a complete rethink of vehicle development, supplier relationships and corporate culture, reports Automotive News. Blume said VW and Audi are working with VW Group's software arm, Cariad. "We have already defined particular products, the project team has been appointed, and we also have [a software-defined vehicle] hub," Blume said during the automaker's financial results conference in March. Click here for the full story.
Redesigned 2025 Subaru Forester Starts at $31,090, Up 9.3%
When it arrives at dealerships this spring, the redesigned 2025 Subaru Forester will start at $31,090, including shipping, a 9.3 percent jump from the outgoing 2024 base model, Subaru of America said Thursday. The sixth-generation Forester compact crossover will keep its hallmark shape and greenhouse, but it will have a smoother exterior design, including wider wheel arches. Inside, the Forester will feature a new 11.6-inch touchscreen infotainment system on all but the base trim, a quieter cabin, and more supportive seats. Subaru's EyeSight driver-assistance system comes standard on all trims, reports Automotive News. Subaru will initially offer the 2025 Forester in five trims: base, Premium, Sport, Limited and Touring. A 2024 model of the Forester will continue, with the Wilderness trim, which the automaker launched in 2021 as an overlanding subbrand. Starting prices for the higher trim levels, including shipping, are: Premium, $33,390; Sport, $35,890; Limited, $37,390; and Touring, $41,390. An optional hybrid powertrain, sourced from Toyota, won't be available until next year. Click here to learn more about the 2025 Subaru Forester.
Around the Web
Best Sports Cars Under $50,000 for 2024 [Autoblog]
2025 Toyota 4Runner Gets a Huge Tablet Display, Debuts April 9 [Carscoops]
At Long Last, the BMW M5 Touring Is Officially Coming to the U.S. [The Drive]
Kia to Expand EV Line-up; Goal to Sell 1.6 Million EVs Annually by 2030 [autofutures]
