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Chevrolet Volt

New Chevrolet Volt to Make Debut Next January

JKRAdvertising / Uncategorized /

August 11, 2014

The new Chevrolet Volt plugin hybrid car is today’s topic. It follows up on an electric vehicle story from last week, and it’s going to make its debut very soon at the 2015 Detroit Auto Show, happening next January.

This much-anticipated new Chevrolet Volt will be completely redesigned in nearly every way. While the theme is the same – using battery power for day-to-day driving – the methodology will be greatly improved.

About the New Chevrolet Volt

For starters, it will get a complete makeover both inside and outside. Next, improvements to the battery are being implemented. Finally GM is focusing its aim on reducing the price of the Volt in an effort to make it a more mainstream car.

As of right now, there aren’t a whole lot of specifics on the new Chevrolet Volt, but here’s what we do know: current-model Volt sales are down 8.7% for 2014’s first seven months, with sales at 10,635. This is much lower than expectations for the car that was the first mainstream product to marry a gas engine with a big lithium-ion battery pack and electric motor.

Additionally, the current Volt is, indeed, a bit pricey at just over $40,000 (though there is a federal $7,500 tax credit for those who purchase a new Volt). That’s a little more than twice as much as the gas-powered Chevrolet Cruze, a similar-sized model by the same company!

While the ability to go 35 miles in battery-only mode is a wonderful thing, the current Volt has been chastised for its lack of power. When it takes almost 10 seconds to accelerate from 0-60, the criticism is understandable.

General Motors and its battery maker LG Chem of South Korea have been experimenting with a new formula in the new lithium-ion battery. Their hope is to get the new Chevrolet Volt up to about 50 miles in battery-only mode. This alone would make it a far more appealing car to the general public looking to keep their fuel expenses down.

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Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

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