Automotive News - September 23, 2024 - 44

44 * September 23, 2024
SHARP
continued from Page 4
Sony and Honda Motor Co. formed a joint venture
in 2022 called Sony Honda Mobility. The collaboration
between the two Japanese brands is
developing a new EV sedan under the Afeela
brand that will be produced in North America
with deliveries beginning as early as 2026.
Sharp, still one of Japan's top TV brands, aspires
to sell its own EVs someday, but not so
soon.
Sharp's Next Innovation division is tasked with
developing EVs and AI. The loose goal is to start
selling its own EVs by the end of the decade, Naito
said.
The initial target market will be Japan, and a
manufacturing base has yet to be decided. The
vehicles would be manufactured by Foxconn and
could be made locally or in China or elsewhere.
The LDK+ is based on the all-electric drivetrain
of the Foxconn Model C five-seat crossover,
RETAIL
continued from Page 4
The automaker has said the platform is a pillar
of its plan to reduce EV costs. The tool, along with
the use of regional fulfillment centers, will help
the automaker save $2,000 per electric vehicle,
GM President Mark Reuss said at the company's
most recent investor day, in 2022. Those savings
would come through increased efficiency resulting
in faster delivery times and decreased distribution
costs, he said. Incentives could also be reduced
because there would be less unpopular
inventory sitting on the lot.
A GM spokesperson told Automotive News that
the company is tracking toward that $2,000 target.
An update is expected at the company's next
investor day, Oct. 8.
Dealer feedback
The idea of selling all vehicles on the platform,
not just EVs, came from dealer feedback that the
tool would be most beneficial if stores could use it
for their full inventory, said Mark Sobczynski, director
of the Digital Retail Platform.
" There has been a lot of growth and evolution
of the program, which has ultimately affected the
timeline, as well, " he said. " But I would say in a
good way, based on the capabilities we're able to
deliver to the dealers and to our customers. "
Like GM, other automakers are working to exCARBRAVO
continued
from Page 4
The platform allows GM to leverage its retail network to
compete in the fragmented used-vehicle market, including
against digital used-only retailers such as Carvana.
Roughly 47 percent of vehicles sold through CarBravo
would not have been certified before, including older vehicles
and those from other brands, GM said.
The automaker has added GM-owned vehicles, including
those coming off leases, to the platform. They are
stored at regional distribution centers, allowing dealerships
to sell from a larger inventory.
Protection plans
The GM service protection plan that comes with each
vehicle - one perk of the CarBravo platform - is a selling
point for the staff at Shaheen Chevrolet, giving customers
more transparency about what they're buying,
said Matthew Platko, general sales manager.
On a recent afternoon, used Chevy Blazers, Trailblazers
and Traxes were parked at the Lansing, Mich., dealership
alongside Volkswagens, Nissans and Mazdas.
Through CarBravo, GM offers a six-month, 6,000-mile
bumper-to-bumper limited warranty on vehicles less
than 10 years old and with fewer than 100,000 miles. Vehicles
10 to 15 years old and those with 100,000 to 150,000
miles receive 30-day, 1,000-mile BravoBudget limited
powertrain coverage.
All CarBravo vehicles get up to a 126-point inspection,
and the report is posted on the vehicle detail page.
Since GM backs the warranty, CarBravo vehicles can be
serviced at any of its roughly 4,000 U.S. dealerships, including
Cadillac, which does not participate in CarBravo,
which was unveiled in 2021 and is on sale in Taiwan.
The Model C has a 172-kilowatt motor and a
range of 313 miles under the New European
Driving Cycle standard, which is considered
more lenient and optimistic than the U.S. EPA
testing method.
Foxconn drive
Foxconn has signed a slew of automotive
agreements in recent years as it builds inroads
into the industry. It has taken 50 percent stakes in
ZF Group's axle system assembly unit and in the
German supplier's chassis modules business. It
formed a 50-50 joint venture with Stellantis to design
and sell automotive semiconductors starting
in 2026.
Foxconn also has a deal with the German chipmaker
Infineon to co-develop advanced silicon
carbide semiconductors for EVs.
Last year, Foxconn hired former Nissan Motor
Co. COO Jun Seki as chief strategy officer for EVs.
Seki had left Nissan to become CEO of Nidec
pand their online sales capabilities. Toyota and
Lexus, for instance, are adding F&I options to
their respective SmartPath and Monogram platforms,
while Nissan is revamping its Nissan@
Home tool to make it simpler and more intuitive.
" Ultimately, the focus here is simple, convenient,
consistent, " said Michael Hayes, director of
GM's future retail strategy. " We want to make it so
it's 100 percent transaction-capable, either online
or in-store, and then all points in between. "
Automakers' work on digital sales tools has
raised concerns among dealers over the years
that factory tools would be mandatory and a
means to take more control of the sales process.
GM says its platform, developed in conjunction
with dealer boards that represent its roughly
4,000 U.S. retailers, is voluntary and has been
adapted in response to feedback.
GM has been " super attentive " to suggestions,
said Keith McCluskey, a Chevy retailer in Cincinnati
who co-chairs the automaker's advisory
Dealer Executive Board. Dealers have made recommendations
about call-to-action buttons and
the layout of search results pages and vehicle detail
pages, he said.
Longer term, he said, the platform could generate
more sales opportunities and reduce dealers'
costs by streamlining the number of third-party
vendors they use.
" There's no doubt that it'll continue to refine as
things evolve, " McCluskey said. " It's not over the
Corp., a producer of electric motors, before joining
the Taiwanese manufacturer.
Foxconn also has a line of proposed EVs, including
a Model B hatchback, Model V pickup
and Model N van.
Still, Foxconn's parlays into automotive territory
have mostly been on the fringes.
It penned a manufacturing deal with Monarch
Tractor, an American all-electric, autonomous
driving tractor company. And it has a joint venture
with Saudi Arabia's Public Investment Fund
to design, manufacture and sell the Middle Eastern
kingdom's first auto brand, a marque called
Ceer.
Lordstown legacy
In the U.S., however, it was a center of controversy
in the failed attempt by Lordstown Motors
Corp. to build electric pickup trucks at the ill-fated
startup's former General Motors plant in Ohio.
Lordstown filed for bankruptcy last year after
failing to resolve a dispute with Foxconn over an
day they launch it. "
Tekion, the automotive software provider that
developed the technology powering both GM's
Digital Retail Platform and CarBravo, is trying to
solve challenges raised by earlier iterations of
digital retailing tools - such as inconsistent
price and payment information or requiring customers
to restart steps they already completed,
said Binu Mathew, Tekion's chief technology officer.
GM was an early investor in Tekion.
At the start of the COVID-19 pandemic, " any
online buying experience was better than nothing, "
Mathew said. " Now, even speaking personally
as a consumer, I want a seamless experience,
and I'll actually choose a car based on that seamless
process. "
Higher conversion
The Digital Retail Platform pulls in inventory,
pricing and incentives. Mathew said Tekion's
technology can integrate dealership management
and customer relationship management
systems, preferred lenders and F&I tools. The
platform is capable of handling cash, finance and
lease deals, Sobczynski said, and creates a " completely
warm handoff " for customers, no matter
where they start and finish a deal.
" We are seeing the platform performing well, as
it is very sticky, " Sobczynski said. " It is bringing
customers through the retailing process more efficiently
and really at a quicker rate. "
the automaker said.
CarBravo is built on the same technology from automotive
software provider Tekion that powers GM's Digital
Retail Platform. It is available as a standalone website
and accessed through participating dealerships' sites.
Collaborative approach
Customers can browse inventory, view inspection reports
signed by dealership technicians, customize payments,
value a trade-in, choose finance and insurance
products or accessories, and request a test-drive.
" What CarBravo provides to the dealer is us being able
to go to market together, " Ahearn said. " Pick a group,
even some of the large ones that have 100-plus stores.
That's really hard to establish. And now you take the power
of our dealers and CarBravo as one brand, and now we
get to go to market together. "
CarBravo dealerships now can reach more customers,
including buyers from other brands, who wouldn't otherwise
be on their radar, said Andy Guelcher, dealer principal
at Mohawk Chevrolet in Ballston Spa, N.Y. The dealership
certifies every used vehicle it can through the platform,
Guelcher said.
CarBravo might not appeal to every dealer, he said, including
those with a well-run, local used-vehicle operation.
But
Guelcher said a model that brings more eyeballs to
a dealership's used-vehicle inventory will lead to more
sales, more service visits and more new-car sales opportunities.
" It's
the simplicity of the program as it relates to gathering
more customers, " said Guelcher, chairman of the
Chevrolet National Dealer Council. " More dealers will
see that there is benefit here. "
ACURA
continued from Page 8
he said. Such integration is what makes
Acura's tool unique, Langle added.
Phase 1
Though ZDX deliveries started nationally
across Acura's 270-retailer network,
training for the tool in the first 60
days following the on-sale date is what
Langle referred to as " Phase 1. "
Acura is prioritizing retailers in states
that comply with California's zero-emissions
vehicle program and in
other states such as Florida and Texas
that aren't officially ZEV but have higher
rates of EV adoption.
Langle didn't provide details about
Phase 1 retailers, but said they represent
different markets, DMS integrations and
EV demand. " We've received very positive
sentiment, " he said. " Obviously, it's
something new - it's a change for the
dealers and it's a change for us. "
The tool is available to the entire retail
network, but Langle said Acura encourages
untrained stores to sell the ZDX
through the traditional process to avoid
creating a bad experience for customers.
The ZDX just entered its
fourth
month on the market and crested 1,000
sales in August, with 2,035 moved since
its launch. Of these sales, 76 percent
investment Lordstown says it was promised to
jointly develop an EV platform.
Lordstown has since exited from bankruptcy as
Nu Ride Inc. and is pursuing a claim against Hon
Hai Technology Group and its Foxconn Ventures
subsidiary alleging fraud and a failure to adhere
to commercial and financial commitments in a
partnership between the businesses.
In 2021, Foxconn agreed to take a $50 million
stake in Lordstown Motors, which in turn agreed
to sell Foxconn its Ohio factory for $230 million.
A press release touted the deal's promise by positioning
the plant as a factory making vehicles on
a contract basis for numerous companies.
" The Foxconn partnership will unlock the tremendous
potential of the Lordstown plant by
getting it to scale faster, " Foxconn said, adding
that it would be a " state-of-the-art " EV facility.
" Lordstown Motors and all OEMs whose vehicles
are built at the plant will benefit from the increased
capacity utilization, possible use of common
components and shared overhead costs. "
GM said its data shows buy rates from retail
leads generated through the platform are about
twice as high as what has been typical for Chevrolet
and Cadillac.
Of the customers at Shaheen Cadillac and Shaheen
Chevrolet who get as far as filling out a
credit application through GM's tool, 50 to 60
percent eventually will buy the car, said Matthew
Platko, general sales manager of the Lansing,
Mich., dealerships, which are live on the platform.
A standard lead, by contrast, turns into a
sale about 12 to 14 percent of the time, he said.
Platko said he would like to see GM advertise
the platform to generate more of those higher-converting
leads.
" There's so much transparency with it, " he said.
Some dealers said local flexibility would be
helpful, from incorporating more dealership
branding on the website to highlighting models
in higher supply in a particular market.
" We've learned that when people accelerate
the deal online and as much work as they do online,
that they're closer to the funnel. I'm all-in, "
said Ruddy Brito, CEO of Mastria Auto Group,
which has a Cadillac dealership in Raynham,
Mass., on the platform.
Brito said he understands GM's desire for customers
to have a similar experience no matter which
dealership they visit. Yet, he added, " each dealership
has its own personality. And so there's got to be
some sort of flexibility when it comes to that. "
were completed with the online tool.
With training of the next 100 dealerships
now underway, Acura expects to
complete the second phase of the rollout
in the first quarter of 2025.
Only " a couple of customers " have
purchased a ZDX completely online
without going into a dealership, but
Langle said every sale is technically an
end-to-end transaction because both
the store and the buyer use the tool to
complete the sales process.
Though dealerships are seeing different
scenarios, most customers are coming
into stores, even if they start online.
Because the EV is " new to us, our dealers
and to the majority of our customers, "
Langle said, " they want to touch,
feel, see and drive the car, and understand
how charging works. "
Strategic opportunity
Acura said its entry into the EV market
offers an opportunity to introduce
the online sales tool to customers who
might be a little more tech-savvy and
open to a digital retail experience.
Eventually, Acura will scale the tool
across its lineup, possibly beginning
with the electric crossover based on the
Performance EV Concept. " EVs are a
great place to start, " Langle said.
" When it's the right time, " he added,
" we'll give that option for other models. "
Automotive News - September 23, 2024

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