Automotive Year in Review
As Fixed Ops 5 celebrates its first anniversary, we lookback on the last year in the automotive industry. Though a pandemic and part shortages threw a wrench in 2021 with shipment delays and closed showrooms, the last year has shown to be resilient to the ever-changing automotive world.
Corey Smith, host of Fixed Ops 5, recently spoke with various special guests who provide incredible insight to the last year of the automotive industry. Read on or listen to the full episode of Fixed Ops 5 to learn more!
2021 Part Shortages
As the pandemic continued through 2021, automotive parts were a precious commodity. Production plants continued to shut down, and the semi conductor chip shortage led to technological components, especially in vehicles, to be backordered.
Additionally, the part shortage in 2021 contributed to the lack of more common parts, like oil filters. Without access to these parts, repairs took longer to complete, leaving customers waiting for their vehicles to be road-ready again.
With demand for materials at an all-time-high, it was a matter of time before this led to the increase of the price of new and used vehicles.
In December 2021, the price of new cars went up 14 percent compared to December 2020. Used cars saw an even bigger price increase, with an average sale price of$29,969 in December 2021. This is a whopping 30% increase in price in just a year.
The Year of the Electronic Vehicle
The rise of EVs from 2021 to 2022 has changed the game for dealerships and manufacturers. In 2021, sales of plug-in vehicles soared to 6.6 million, compared to 3 million in 2020. With an 80 percent growth in just a year, EVs- continue to be at the forefront of industry discussions.
In 2021, Ford and GM committed to zero emissions by 2040.This huge pledge has lit up the EV market, and more manufacturers plan to develop various hybrid and electric models for US roads.
With more legislation and incentives promoting energy-efficient vehicles, dealerships and manufacturers are embracing EVs as the future. On the dealership side, service drives are implementing more technology and technicians that can accurately repair electric and hybrid vehicles.
Employee Training Enhanced
Due to stay-at-home orders and the closure of car showrooms,2020 planted the seed of digital retailing at dealerships. In 2021, digital retailing blossomed, and more dealerships adopted robust training and BDCs so their employees could accommodate customers virtually.
This last year showed the industry that digital retailing works. In a survey conducted by eLend, 87 percent of dealerships reported that digital retail-initiated transactions resulted in unchanged or higher gross income per vehicle retailed.
With this shift in operations, more dealerships are training their employees to utilize digital methods for their everyday workflows. Whether they’re making outbound calls or connecting with customers in virtual showrooms, more dealerships are training their personnel on digital retailing methods.
The last year in the automotive industry has been an unpredictable ride. Through the uncertainty, dealerships and manufacturers continue to adapt new ways of connecting with drivers. As we progress through 2022, there is sure to be more exciting industry shifts on the horizon.
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