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Saturday, July 25, 2020

How Many Consumers Are Yet Aware of Vehicle Subscriptions?

Vehicle Subscriptions: How Many Consumers Are Yet Aware?

Vehicle Subscriptions: Are Consumers Aware of This Alternative to Conventional Car Loans and Leasing?

How Many Consumers Are Yet Aware of Vehicle Subscriptions?

Vehicle Subscriptions: How Many Consumers Are Yet Aware?

Vehicle Subscriptions: Are Consumers Aware of This Alternative to Conventional   Vehicle Financing and Leasing?

 Netflix for Cars?

Most Consumers Unaware of Subscriptions

With the growing availability of subscriptions for new and used vehicles in the auto industry, Autolist.com wanted to see how aware consumers are of this new ownership model... As it turns out, not very many at all!

According to an Autolist survey of 1,428 current car shoppers, 70 percent of consumers have no idea that automakers and retailers offer or have announced subscriptions for new or used vehicles. 
Highlights:
  • Seventy percent of car shoppers are not aware that automakers and retailers currently offer or have announced subscription services for their vehicles.
      
  • Just 16 percent of consumers could name a brand offering a subscription.
     
  • Consumers are less open to a subscription for their next vehicle, but they’re more open to it as a long-term solution.
     
  • Sixty-nine percent of those polled indicated that the potential convenience of a subscription plan would supercede the emotional connection of owning/leasing your own vehicle.


Full Story:
Despite numerous automakers and retailers rolling out subscription services for new and used vehicles, a vast majority of car shoppers remain unaware of this new ownership option, Autolist found.
 
With subscription services, as with leasing, consumers don’t own the car they are driving. However, where subscription services differ from leasing is in terms of pricing and car model optionality. In terms of pricing, subscription services usually bundle insurance and maintenance into the monthly fee. As far as optionality, many subscription services allow consumers to switch the car they use, giving more choice to consumers.
  
Seventy percent of consumers said they were unaware of any kind of subscription services for vehicles, according to the latest Autolist survey.
  
Of the remaining 30 percent who said they were aware that vehicle subscriptions exist, only about half could name a brand that offered such a service.
  
subscription awareness
Automakers that currently offer a subscription service for their vehicles (or have announced plans to do so) include BMW, Cadillac, Volvo, Polestar, Lincoln, Porsche, Hyundai, Mercedes and Lexus (including the upcoming Lexus UX, seen above).
 
The specifics of vehicle type, subscription duration, cost and location vary widely among the various brands, with most automakers using pilot programs only in select cities. Other brands, including Jaguar and Land Rover, don’t currently have plans to launch a subscription service but are closely monitoring the brands that have.
 
A handful of individual dealer groups have also introduced their own subscription plans; companies like Canvas (affiliated with Ford) and Fair also offer subscription services for used vehicles.
 
While the idea of a subscription plan isn’t something most consumers would consider for their next vehicle, there is an openness to the idea as a long-term option, Autolist’s survey found.
 
Just 33 percent of respondents said they would consider a subscription plan for their next vehicle. But when asked about any vehicle in the future, the number of people who would consider a subscription jumped up to 45 percent.
 
Twenty-three percent of respondents said they would not consider a subscription for their next vehicle; 43 percent were undecided.

When asked about any vehicle in the future, 18 percent said “no,” and 36 percent were undecided.
The results of the survey also suggest that perhaps owners’ emotional attachment to their vehicles isn’t as entrenched as is commonly assumed, opening the door for car-sharing and subscription-based ownership models.
 


When asked what the biggest appeal of a subscription service would be, 37 percent of respondents said that the ability to switch between different types of vehicles easily (something that some, but not all, subscription services allow). Another 32 percent of consumers said that the biggest draw is the lack of a long-term commitment typically required in a traditional lease or car loan.
subscription benefit
Taken together, that suggests 69 percent of consumers have less of a long-term emotional attachment to their vehicle and view it as more of a commodity.
Another 22 percent said the biggest draw to a subscription model would be the more straightforward pricing, since these services typically roll the vehicle, insurance, maintenance and roadside assistance into a single monthly payment.
The final nine percent of respondents said that the biggest draw would be the ability to quickly gain access to a vehicle via a smartphone app or online with less time and paperwork than a lease or a loan.
Autolist surveyed 1,428 car shoppers in the second half of April for this survey.

Saturday, July 11, 2020

The Importance of SEO for Car Dealers

The Importance of SEO for Car Dealers

The Importance of SEO for Car Dealers

 
Search Engine Optimization (SEO) involves creating relevant, keyword-focused content that helps improve your website’s visibility in organic search results for – purposefully – the things you sell. Keyword stuffing for the cities you service is somewhat old school.

The SEO process includes new landing pages, updating meta titles and descriptions, modifying content, creating videos, and keyword analysis.

But writing for the bots and technology only serves a portion of the purpose. You must write for the people.

Search engines follow specific guidelines when ranking websites, and SEO for car dealers helps improve the relevance and quality of their website.

Automobile dealership SEO best practices focus on the target keyword’s structure for generating the necessary algorithm signals for improving search rankings.

However, if it’s not entertaining or trustworthy, it won’t engage with consumers.

Algorithms used by search engines are mathematical equations that sort and rank vehicle dealerships. The algorithms utilize numerous factors, which are categorized into off-page and on-page automotive SEO.

Yet, this sophistication may not move buyers down the funnel and turn shoppers into buyers of the things you sell.

Today, the best SEO practices a blend of technology AND humanity.

Wednesday, July 8, 2020

How Bad Have Car Sales Been Hit By The Corona Pandemic?

Have Car Sales Been Hit By Corona

How Bad Have Car Sales Been Hit By The Corona Pandemic?

How Auto Sales Fared in Q2 2020 Amid Pandemic
Virtually nobody doubted that the coronavirus pandemic would hit the auto industry hard and lead to supply chain delays, parts shortages, and a sharp decline in sales, so it doesn’t really come as a surprise that sales numbers were rather bleak this past quarter. GoodCarBadCar has released its report on Q2 2020 sales, and while some automakers were impacted more than others, none of them had good news to report.

The auto industry was hoping that the stimulus package would help sales at least a little, and many dealers and automakers also decided to offer great discounts, warranties, and return options. Despite these measures, numbers still suffered. Some of the steepest decreases in Q2 were seen by Dodge (-62.8%), Mitsubishi (-58.0%), and Nissan (-50.0%), whereas others weren’t nearly as bad including Mazda (-9.6%) and Volvo (-15.3%). Not only did the previous dealership and factory closures hurt, but many consumers also lost their jobs and are rigorously limiting their spending habits.
  
 
Overall, automakers reported a sales decline of more than 30 percent for Q2, which is detrimental but perhaps not as bad as it could have been, according to many experts.
Nora Naughton of The Wall Street Journal noted that even though numbers did decline, “the drop wasn’t as steep as feared” due to the incentives and extra cash in consumers’ pockets. Some of the offers were reminiscent of those offered during the Great Recession and undoubtedly helped sales at least a little. Jessica Caldwell of Edmunds referred to the incentives as “once in a lifetime” and stated, “thinking back to where we were in mid-March, this result wasn’t as bad as we thought it would be, fearing the worst.”
Naughton surmised that these deals “bolstered sales of profit-rich pickup trucks and sped a rebound in retail sales as dealers got better at selling cars online.” Of course, dealerships have had to ramp up their Internet sales efforts as many of them were forced to close for a period of time and some consumers are still leery of venturing out to a car lot. We have quickly learned that many people, including employees in various departments within dealerships, can still succeed if not working onsite, and car sales might just be included in that.
Despite feeling positive and optimistic, Caldwell didn’t shy away from the fact that there is still a lot of uncertainty, stating “current sales paint an optimistic picture given the circumstances, but between Covid-19 and today’s politically charged climate, the industry needs to prepare for uncertainties ahead.”
Regardless, although Q2 definitely did not end up how automakers wanted it to, there is hope for a brighter future ahead as the rest of the industry (and the world) gradually recovers from the pandemic. The U.S. is taking serious measures to make sure their facilities are safe and can remain operational without having to shut down again. Many other countries that automakers rely on for parts and vehicles have also restarted operations and are working hard to regulate and normalize supply chains.
Sweta Killa of Zacks reported that several factors will likely help out the auto industry, too, including “lower interest rates coupled with lucrative discounts from automakers desperate to boost sales volume” as well as the Federal Reserve keeping rates extremely low and promising to continue its attempts to get the economy in better shape. If things go as planned, lending will go up along with consumers’ spending, aiding in the recovery from the drastic effects the pandemic has had on the industry.
Reposted and Edited from an Article Written By Kimberly Hurley

Did you enjoy this article from Kimberly Hurley? Read other articles from her here.
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andemic?

Sunday, July 5, 2020

More Social Media Marketing Ideas for Car Dealers

More Social Media Marketing Ideas for Car Dealers

More Social Media Marketing Ideas for Car Dealers

With the recent corona outbreak, everything has come to a halt – except social media marketing. 
The global economy has been thrown into recession, but fortunately, working from home through online channels is saving businesses from a complete shutdown and major losses.

This just proves what an important part of our lives social media is – as consumers, its something we cannot live without and as marketers, we need to take advantage of that.
  
2020 is the year of social media– with Twitter, LinkedIn, Facebook, Instagram and so many others aggressively competing to come out on top. 
                                                                                         
However, you need to invest in the right social media marketing ideas for your business.

Check out these social media marketing ideas to incorporate into your strategy:
 

#1. Know which platforms your target audience is active on

The first thing you need to do is pick out the top 3 platforms your target audience uses.

For this, you need to team up with your R&D department. An older target market over the age of 40 is most likely active on Facebook.
Busy, working individuals of all ages are active on LinkedIn and Generation Y is most active on Instagram.

Once you have this information on hand, use the STP model:
 
Every target market has multiple segments that businesses can focus on. 
A shoe manufacturer like Nike can target business individuals, athletes, school kids and many more segments.

Use your research to find out which segment requires your product or offering and then target those segments.

To effectively convince customers to try out your brand, position yourself by establishing a unique selling point.

Coca Cola and Pepsi sell carbonated beverages that are almost exactly the same in taste with similar pricing, yet Coca Cola shares a much larger market share globally.

Why? Because Coke sells happiness.  

Check out these 10 social media marketing statistics to help you make a decision about which platforms to opt for. 

#2. Hold Engaging Social Media contests 

If you normally look up social media marketing ideas, contests are one of the most common suggestions.

However, it’s time to move away from the typical like and win a free item contest.

If you want your brand to be noticed, come up with a unique and engaging idea. The best way to do that is to incorporate user-generated content.

Kelloggs recently held the ‘Great Eggo Waffle Off’, a two-part Facebook contest.

In the first part, participants were required to submit their best waffle recipe and in the second, fans voted for their favourite recipe.

Not only was this extremely fun and engaging but there was a great prize for motivating participants to make the effort – a $5000 prize bond!


Similarly, Colman’s Mustard also got creative with their contest on Instagram.
We all know how hard it can be for customers to leave positive reviews after an experience.
Many of them only make the effort if they get something in return and that’s what Colman’s Mustard did.

Not only did they motivate customers to leave reviews by offering free products, but they also created the hashtag #HotMessSquad which participants were required to add in their reviews.
 
Instagram’s algorithm is curated in a way that hashtags categorise content and make it more discoverable:

That’s why using hashtags improves engagement on posts and help in making your content go viral faster.
 
To create your own engaging social media contest, complete the following steps:
  1. Decide on a prize or a giveaway: This could be your brand’s product, a free service, cash or even a chance to meet and greet with a famous celebrity
  2. Set up a list of terms and conditions: There are a lot of followers willing to play dirty, for example, creating fake profiles to participate multiple times in order to increase their chances of winning – so
    make sure you draft up a set of rules to minimise any loopholes
  3. A point of contact: A lot of the times, contests can be complicated and difficult to understand for participants. Offer a point of contact such as a phone number, email address or website chatbot where interested participants can leave queries
  4. A creative way to enter: You need both logic and art to be successful as a business. If you play by the book, you’ll be good at what you do but you won’t be the best until you get creative, so brainstorm an come up with the most unique ideas that you can think of! 

#3. Interact with your followers 

Because there is so much competition in every industry, customers expect the best of service from businesses – whether small or big.
That is why one of the most trending social media marketing ideas is increased communication with customers.

Smaller businesses, especially startups, have the advantage of direct communication with their customers.

Due to limited employee personnel, business owners deal with the major aspects of the business which is why it is easier for them to address customer concerns.

However, as I said, customers expect the same attitude from all businesses so even larger businesses need to appoint PR heads and customer representatives than do more than just customer support:
  • Host an AMA 

As you probably already know, AMA stands for ‘Ask me anything’.
It’s a great social media marketing idea and a very popular feature on Instagram that a lot of celebrities use for interacting with their fans.
As a business, you can take advantage of as well.

For business profiles, the feature is also referred to as AUA i.e. ‘Ask Us Anything’:



AUAs could be used by the head chef of a restaurant to offer tips and hacks to customers on how to cook better.

A lot of freelancer makeup artists also host AMAs to give tips for glowy skin, using the right brushes and other makeup tips to look great.
  • Go Live 
Live videos are one of the biggest marketing trends of 2020 as interactive content is replacing text and traditional marketing channels.
Even if you’re the CEO of a multinational firm, interact with all of your customers once in a while.

Customers trust brands that are transparent, honest and make an effort to show that they care. The cosmetics manufacturer MAC often hosts live videos of their makeup artists teaching followers makeup hacks, tips and full looks:
 

Host a live video once in a while to share the reasons behind your success, how you can build a business from the ground up or just answer general questions from your customers in the comments section.

A live video is great because it allows for instant, two-way communication between businesses and customers; thus, making it the most interact channel of communication currently.



You can also live-stream exclusive events to share updates with your followers and make them feel more included:
This is a great tactic to improve customer loyalty.

  • Don’t miss out on the smallest contact points 

There are so many different communication channels now and businesses are expected to be responsive and active on each which is why I advised you to pick only the top 3 social media platforms that your customers use for effective communication.

Even the biggest corporations like Macy’s, HandM, Pepsi and others are making the most of customer interaction.

You’ll notice that these businesses are now responding separately to thousands of customers in the comments section of social media posts:



By paying attention to each and every customer’s concern, brands can manage to improve customer retention, loyalty and avoid negative reviews and word of mouth.

However, this is not an easy task especially for larger businesses with a huge fan following on social media.
                                                                     
With over millions of subscribers, it can be difficult to respond to each and every customer which is why you need to incorporate automation into your strategy.

Check out these tools for online marketing that not only allow you to respond with pre-written messages to deal with customer queries but also provide you with detailed analytics to help you improve your social media marketing performance.

You can also check out ManyChat, a platform that provides you automated chatbots integrated with platforms like Messenger so that your customer representatives are relieved of some of their job’s burden:


#4. Take Advantage of Your Partnerships and Alliances

There’s a business term called ‘co-opetition’ which refers to brands co-operating with their direct or indirect competition.

It may seem unusual but partnerships benefit both parties – it reduces competition as customers double up and it offers a stronger position in the market.

A very famous example of this is Taco Bell and Doritos co-branding campaign, ‘Doritos Locos Tacos’. Frito-Lay used Taco Bell’s crunchy taco recipe to create the Locos Taco – a taco with a Doritos shell.
The campaign was a huge success: it sold an estimated 1 billion tacos within a year:

Similarly, the podcast industry is a hit with millennials and one of the most popular shows is Impact Theory.

The host Tom Bilyeu recently invited Marie Forleo, an entrepreneur who hosts a similar podcast, to tell the audience the secret behind her success.

The point is, none of these co-opetitions would have been successful without the use of social media marketing to create awareness and promote the campaign.

You can also partner with brands in the industry that sell complementary offerings.

Sprout Social, the social media management platform that provides analytical tools to help businesses measure performance, recently partnered with Moz, a platform that provides link metrics, to conduct a webinar.

The result? The two allies were able to sign up with over 40 new companies and a spokesperson from Sprout Social said that the partnership boosted webinar reach more than the two companies could have managed on their own.
 

#5. Do Social Media Takeovers 

Often, during an event, you’ll see firms giving control of their social media accounts over to influencers, celebrities, experts and other personnel.
This is similar to a partnership except the brand compensates the individual and the period of time for a takeover is usually 24 hours.
So how does it help your brand?

Your influencer’s followers will automatically be following you – keeping up to date with events, offers and your brand’s offerings in general.
This means awareness and potential clients, but that’s not it.
Another very important reason why you should opt for social media takeovers is exposure, or as Sprout Social puts it, ‘a new way to inject life into your business’.

It’s a change away from the normal routine so you should go for it when you need to improve engagement and reach for your posts.
 

Conclusion 

So that wraps up what we believe to be the top social media marketing ideas of 2020. However, it’s important to understand that different ideas work for every business... One thing experience has taught us, is that following your competition will not help you come out on top!

Even if you utilize the same ideas, make sure you put a creative and unique spin on them to ensure success and ROI. Did you enjoy this article? if so here are another 5 ways your business can benefit from social media.

Edited and Reposted from an Article Written by

Saturday, July 4, 2020

Car Dealers: 5 Tips to Train and Retain Your Salespeople

5 Tips to Train and Retain Salespeople

Five Best Practices to Train and Retain Automotive Sales Professionals

How well do you retain sales staff?  The average annual turnover rate for salespeople in our business is 67 percent, according to Automotive News.
That’s an alarming statistic when you consider it can cost upwards of $10,000 to replace one salesperson. This figure accounts for recruiting fees, on-boarding costs and potential lost revenue from missed deals.
The good news is that there are proactive steps you can take to stop, or at least slow down, the revolving door of sales employee turnover. These five tips will help reduce the likelihood that your sales team and your profits will disappear.  
Invest in digital training
Training isn’t an expense. It’s an investment. And it pays off in a number of ways, including lower turnover, better customer relationships and more sales.
Poorly trained sales staff can’t succeed in volume selling. When you set your team up to fail, it leads to frustration and often means they quit before they reach their full potential.
An efficient and cost-effective way to help train your employees is by utilizing online courses in addition to your in-person training efforts. Online courses can be taken at the employees’ own pace and schedule and is a great remote option for dealers. You should provide at least a couple of weeks of additional online training before allowing new salespeople to greet prospects on their own.
Training should focus on soft skills (such as problem-solving) and technical skills like CRM training and certification programs. Your CRM partner should have remote and in-person training and certification resources available.
Get serious about phone handling skills
Don’t skimp on phone training. A single 30-minute session or a one-time visit from an outside trainer just won’t cut it in today’s market.
Up to 61 percent of vehicle shoppers make initial contact with dealerships over the phone, according to the Local Search Association. You only get one chance to impress those callers. That first impression could mean the difference between a buyer visiting your dealership or choosing your competitor down the street.
Phone training should be on-going, managed and monitored. Practice effective voicemail messages and appointment closing techniques with your team every day.
Invest in a call recording and analysis solution and listen to a couple of calls every day with your team. Identify the most challenging phone calls and make those the focus of your meetings, using peer collaboration and feedback to brainstorm what could be improved. This will create a thriving culture of continuous improvement make your team feel more connected and boost morale.
Create a Collaborative Culture
It doesn’t help anyone when you pit salespeople against each other. Everyone needs to work together to reach the common goal of a thriving dealership – and that’s not going to happen if your team is competing with each other.
Create a collaborative culture by encouraging salespeople to share techniques that work for them. Include winning strategies for converting customers over the phone, via text, and on the floor. 
Promote mentoring. Pair a newbie with a seasoned veteran for at least 30 days and encourage collaboration by compensating the veteran with a bonus or a percentage of the mentee’s sales. This helps build relationships within your team by giving your veterans a way to earn more and refine their skills while giving newbies a mentor who can provide guidance and advice.
Encourage your managers to prioritize staff development and team cooperation by tying a portion of your sales managers’ compensation to sales staff productivity. That way, when the team wins, everyone wins.
Let Data Drive Your Sales Goals
Having specific goals increases motivation and drives better results. Salespeople who stick to a goal-orientated plan perform 30 percent better than those who don’t, according to a Harvard Business study. 
Lean on trend and tracking reports in your CRM to set precise and attainable goals for every salesperson. A good rule of thumb is to have a 90-day sales plan based on each individual’s 90-day rolling average.
For example, a salesperson who sells 10 cars in January, eight in February and five in March has sold a total of 23 cars, divided by three months, for a rolling average of 7.6 cars. Thus, it’s reasonable and fair to set a monthly goal of seven cars for this salesperson.
When you forecast goal attainment you can identify and flag those salespeople at risk for attrition. This allows you to offer more training before they throw in the towel and cost you money as a result.
Commit to Helping Employees Grow
Not all salespeople want to remain in the same role forever.  Some may want to climb the corporate ladder, and it behooves you to encourage their ambition.
When these high-achievers don’t have a clear advancement path, they start to question their place in your dealership and may set their sights on new opportunities.
Be a “scale-up” dealership. Help employees grow and find advancement. It’s important to encourage your sales and human resources leaders to work together to develop career advancement paths. Share these paths with salespeople to demonstrate that a career at your dealership can be long-lasting and fulfilling.
You can also share success stories with your team. If someone has taken the path of advancement a salesperson wants for him- or herself, connect the two employees so the junior can learn what the senior did to get there.
Your dealership can buck the trend of high sales staff turnover by taking the proactive steps outlined above. You have the ability to make changes that encourage employees to stick around for the long haul and reward them for doing so. When you invest in training and execute retention strategies, you’ll reap the benefits of a thriving dealership today and far into the future.
   

Tuesday, June 30, 2020

Corona Virus Data by State from CDC

Corona Virus

Centers for Disease Control (CDC)

<a href="https://data.cdc.gov/NCHS/Provisional-Death-Counts-for-Coronavirus-Disease-C/pj7m-y5uh" title="Provisional Death Counts for Coronavirus Disease (COVID-19): Weekly State-Specific Data Updates" target="_blank">Provisional Death Counts for Coronavirus Disease (COVID-19): Weekly State-Specific Data Updates</a>
Powered by Socrata

10 Steps You Can Take in 10 Minutes to Develop Stronger Google Campaigns

10 Steps You Can Take in 10 Minutes to Develop Stronger Google Campaigns


  1. Red Zone Foreign Countries--aka Negative them Out
  2. Eliminate Smart Bidding
  3. Move Settings for Display off of Recommended
  4. Turn off App Ads
  5. Use the same Google My Business login that you use for your My Client Center
  6. Establish In-Store Conversion Tracking for Service Purposes
  7. Ramp or reduce spending to $100 per car
  8. Upload Your Target Audiences--then choose to exclude OR include them from the Advertising. Either way, make the call.
  9. Amplify by 900% on Geography for Dealer Name Campaigns
  10. Extensions, Extensions, Extensions--All for One, One For All
All the best for the industry in its rapid recovery.
                     

Saturday, June 20, 2020

CDC Health Alert Network (HAN) Health Advisory: Detection of Drug-Resistant Meningitis


Health Alert Network (HAN) for Centers for Disease Control and Prevention (CDC).
This information has recently been updated, and is now available.





This is an official CDC Health Advisory








Meningococcal disease, which typically presents as meningitis or meningococcemia, is a life-threatening illness requiring prompt antibiotic treatment for patients and antibiotic prophylaxis for their close contacts. Neisseria meningitidis isolates in the United States have been largely susceptible to the antibiotics recommended for treatment and prophylaxis. However, 11 meningococcal disease cases reported in the United States during 2019–2020 had isolates containing a blaROB-1 β-lactamase gene associated with penicillin resistance, as well as mutations associated with ciprofloxacin resistance. An additional 22 cases reported during 2013–2020 contained a blaROB-1 β-lactamase gene but did not have mutations associated with ciprofloxacin resistance.


Learn More





Connect with emergency.cdc.gov: Follow emergency.cdc.gov on Facebook logo  Follow emergency.cdc.gov on Twitter logo   Follow emergency.cdc.gov on Linked In logo   Follow emergency.cdc.gov on RSS logo 


|

Centers for Disease Control and Prevention
1600 Clifton Rd   Atlanta, GA 30329   1-800-CDC-INFO (800-232-4636)   TTY: 888-232-6348


Thursday, June 18, 2020

Auto Industry Evolution ACES: Autonomy, Connectivity, Electrification and Shared Mobility.

Auto Industry Evolution ACES: Autonomy, Connectivity, Electrification and Shared Mobility.
 
You may have already heard of the acronym “ACES” or “CASE” to describe four areas in which technology and innovation are rapidly changing automotive.
                                                                                            
    
Those four areas being, in whichever order put them, autonomy, connectivity, electrification and shared mobility.

“The way we think about that is basically using IT to help large incumbent corporations to streamline their operations,” Garcia said in a phone interview.
That happens in two different ways, he said. The first is to streamline internal operations


“If you’re a manufacturing company or if you are a parts distribution company, you can use AI and IT to optimize your internal workflows. Industry 4.0 is a term that’s used for that,” Garcia said.

“Then the other way you could use IT to digitize your operations is your external relationship with the world, meaning the way that you interact with and communicate with your suppliers and your customers,” he said. “And that's also known as e-commerce.”
   
Garcia gives some examples of such “digitization of enterprise” companies within Autotech’s portfolio, which focuses on the “ground transportation” space and building bridges between startups and incumbents.
 
One of those companies is Frontier Car Group, a startup from Berlin that aims to “develop, launch, and operate used-automotive marketplaces within emerging market economies,” according to the Frontier website.

Frontier Car Group has primarily operated overseas but did recently acquire We Buy Any Car, a buyer of used vehicles from the public with locations in the U.S. and U.K.
 
“They’re essentially enabling e-commerce in the used-car wholesale and retail world,” Garcia said of Frontier.
Another is Work Truck Solutions.
Within Work Truck Solutions is an online marketplace for new and used work trucks called Comvoy.com, which Garcia said is, “the first real marketplace for those types of vehicles.”

Meanwhile, another company in the digitization space within Autotech’s portfolio is Cogniac, which uses AI to “automate visual inspections of vehicles and auto parts.”

Beyond digitization of enterprise, Autotech remains interested in and has made several investments on the “CASE” side of the equation.


Arguably the most notable of Autotech Ventures’ investments have been in ride-sharing company Lyft, which is now publicly traded. It also included DeepScale, which provides computer vision in autonomy. The firm recently sold that to Tesla.

Portfolio company XNOR.AI was recently purchased by Apple, to be used for both connectivity and autonomy purposes.

Certain elements of “CASE” tend to get the most media attention. Others may be more imminently practical. But which one is getting the most interest from the investment community?

“There continue to be investments in all of these areas,” said Joe Vitale, a global automotive leader at Deloitte. “I think the focus appears to be more around those technologies they can bring to market quickly.“What we’re seeing is a lot of focus around ADAS and those things that are providing technologies that make vehicles safer — collision avoidance and the like,” he said. “They will continue to invest in those things that have a near-term commercial buy-ability associated with them.”
  

Vitale also points to Deloitte’s 2020 Global Automotive Consumer Study, which shows an increasing interest in and needs for electric vehicles among consumers.

In the U.S., the percent of consumers “actively considering” buying an alternative-powertrain vehicle (including hybrid-electric, batter-electric and other options) during their next purchase has climbed from 29% in 2019 to 41% this year, according to the study.

The numbers are even higher elsewhere in the world. India is at 49% (up from 39% in 2019). Germany is at 51%, up from 37%.

China’s preference for alternative powertrains has dipped from 65% a year ago but is still at 57%. The Republic of Korea is at 58%, up from 43%. Meanwhile, Japan’s interest in these vehicles has climbed from 59% to 63%.

“I think there has been a significant shift in capital allocation towards electric vehicles, partly driven by the demands of consumers and interest in sustainable, safe vehicles and also to maintain compliance with regulations,” Vitale said.
  
What’s more, in places like Europe, he said, restrictions on the use of internal-combustion-engine vehicles could mean “we'll continue to see a significant focus on investments around electric vehicles.”
  
In a news release, Craig Giffi, who is vice chairman of Deloitte Insights and global managing principal, Deloitte LLP, said: “Technologies in the alternative powertrain domain appear to be advancing to a point where they have offset some of the concerns we have seen over the past decade.

“However, to encourage the consumer uptake of advanced vehicle technologies, the automotive ecosystem still has some work to do in terms of making EVs as easy and convenient as internal combustion engines, lowering the cost of EVs, and figuring out just who will build and pay for the charging infrastructure,” Giffi said.
 

On the autonomous side, the Deloitte study found that consumer viewpoints have “stalled” when it comes to the safety of these vehicles. Forty-eight percent of U.S. consumers believe fully autonomous vehicles would not be safe and 68% think fully autonomous commercial vehicles would not be safe enough on highways.

Similar results were found elsewhere in the world, with other countries having close to half of their respondents expressing concerns on AV technology’s safety.

“In fact, in India and China, the percentage of people that think autonomous vehicles will not be safe has increased to 58% and 35%, respectively,” Deloitte said in a news release. “This trend goes hand in hand with consumers' views on testing autonomous vehicles, with over half of consumers in India (57%) and the U.S. (51%) concerned by the idea of autonomous vehicles being tested in areas where they live.”

Over at Fraser McCombs Capital, an investment firm in the auto technology and mobility space, managing partner Chase Fraser said: “You’ve got to choose right with autonomy. It got a bit overheated. Evaluations went crazy for a lot of these autonomous businesses.”
  
The buzz in mainstream media around fully autonomous vehicles was perhaps a bit premature, if not overstated.

“Think about the big publications love to talk about these Level 4 and 5 cars going to be driving around tomorrow,” Fraser said. “Even when they were doing all that a year and two years ago … it wasn't accurate.

“You had big regulatory hurdles,” he said. “And the challenge at Level 4 and 5 is, it’s 95% there, but it’s that last 5% that’s the problem. And that last 5% takes a long time to get to a place that you’ll see these vehicles.”

FMC is looking at simulation companies that would play in that last 5%, using AI algorithms to simulate both computers and human-generated scenarios “where we can bridge that gap, that last 5% for autonomy,” Fraser said.

But going further back to the basics of autonomy, Fraser points out “you need a connected vehicle in order or it to be autonomous.”

Connectivity, a “baby step” in this process, is “very hot,” and FMC has made several investments in the space, two of which are GuardKnox, an Israel-based company in the vehicle cybersecurity space, and Aurora Labs, which provides over-the-air updates to vehicle computer systems.

Investors “can see a more immediate return” in connectivity, Fraser said.  

And then there is shared mobility, which would include — among other models — the ride-sharing services many of us use on a regular basis.
  


While the Lyft and Uber initial public offerings “were truly not great” and the stocks were challenged last year, Fraser said analyst reports indicate those companies have “cleaned up the mess a little bit” and perhaps there will be a rebound in their stocks this year.

“We still like shared. I think that model is a little immature and you do need autonomy to make those businesses profitable,” Fraser said. “You can get profitable by cutting a lot of other expenses. But what that essentially means is the fares are more expensive and you pay the drivers less … I just don't know that that's a feasible path for Uber and Lyft.”

Within the shared mobility space, FMC is invested in a company called Via, which provides Software-as-a-Service for municipalities.
  
For example, a city might have a bus route. The city could use the Via system to streamline the operations and optimize passenger capacity, to where instead of a bus making the route, it is a minivan or small bus, managed by entrepreneurs, making the rounds. The city could, in essence, reduce or eliminate the need for buses, using smaller, less costly vehicles.

“You take a ton of cost out of the system for these cities,” Fraser said. “We think that's going to be a really interesting play. And Via’s doing quite well.”

Edited and Reposted from an article written by:
CARY, N.C.

ehicle Financing and Leasing?

 Netflix for Cars?

Most Consumers Unaware of Subscriptions

With the growing availability of subscriptions for new and used vehicles in the auto industry, Autolist.com wanted to see how aware consumers are of this new ownership model... As it turns out, not very many at all!

According to an Autolist survey of 1,428 current car shoppers, 70 percent of consumers have no idea that automakers and retailers offer or have announced subscriptions for new or used vehicles. 
Highlights:
  • Seventy percent of car shoppers are not aware that automakers and retailers currently offer or have announced subscription services for their vehicles.
      
  • Just 16 percent of consumers could name a brand offering a subscription.
     
  • Consumers are less open to a subscription for their next vehicle, but they’re more open to it as a long-term solution.
     
  • Sixty-nine percent of those polled indicated that the potential convenience of a subscription plan would supercede the emotional connection of owning/leasing your own vehicle.


Full Story:
Despite numerous automakers and retailers rolling out subscription services for new and used vehicles, a vast majority of car shoppers remain unaware of this new ownership option, Autolist found.
 
With subscription services, as with leasing, consumers don’t own the car they are driving. However, where subscription services differ from leasing is in terms of pricing and car model optionality. In terms of pricing, subscription services usually bundle insurance and maintenance into the monthly fee. As far as optionality, many subscription services allow consumers to switch the car they use, giving more choice to consumers.
  
Seventy percent of consumers said they were unaware of any kind of subscription services for vehicles, according to the latest Autolist survey.
  
Of the remaining 30 percent who said they were aware that vehicle subscriptions exist, only about half could name a brand that offered such a service.
  
subscription awareness
Automakers that currently offer a subscription service for their vehicles (or have announced plans to do so) include BMW, Cadillac, Volvo, Polestar, Lincoln, Porsche, Hyundai, Mercedes and Lexus (including the upcoming Lexus UX, seen above).
 
The specifics of vehicle type, subscription duration, cost and location vary widely among the various brands, with most automakers using pilot programs only in select cities. Other brands, including Jaguar and Land Rover, don’t currently have plans to launch a subscription service but are closely monitoring the brands that have.
 
A handful of individual dealer groups have also introduced their own subscription plans; companies like Canvas (affiliated with Ford) and Fair also offer subscription services for used vehicles.
 
While the idea of a subscription plan isn’t something most consumers would consider for their next vehicle, there is an openness to the idea as a long-term option, Autolist’s survey found.
 
Just 33 percent of respondents said they would consider a subscription plan for their next vehicle. But when asked about any vehicle in the future, the number of people who would consider a subscription jumped up to 45 percent.
 
Twenty-three percent of respondents said they would not consider a subscription for their next vehicle; 43 percent were undecided.

When asked about any vehicle in the future, 18 percent said “no,” and 36 percent were undecided.
The results of the survey also suggest that perhaps owners’ emotional attachment to their vehicles isn’t as entrenched as is commonly assumed, opening the door for car-sharing and subscription-based ownership models.
 


When asked what the biggest appeal of a subscription service would be, 37 percent of respondents said that the ability to switch between different types of vehicles easily (something that some, but not all, subscription services allow). Another 32 percent of consumers said that the biggest draw is the lack of a long-term commitment typically required in a traditional lease or car loan.
subscription benefit
Taken together, that suggests 69 percent of consumers have less of a long-term emotional attachment to their vehicle and view it as more of a commodity.
Another 22 percent said the biggest draw to a subscription model would be the more straightforward pricing, since these services typically roll the vehicle, insurance, maintenance and roadside assistance into a single monthly payment.
The final nine percent of respondents said that the biggest draw would be the ability to quickly gain access to a vehicle via a smartphone app or online with less time and paperwork than a lease or a loan.
Autolist surveyed 1,428 car shoppers in the second half of April for this survey.