Dealer Advisor: Prepare for the Worst or Be Destroyed Over the Next Two Decades

Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.

Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.

“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.”

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Why Are Fatal Hit-and-run Accidents At an All-time High?

Roadway fatalities have been on the decline relative to population since the 1970s. However, the safest year on record since car ownership became commonplace was actually 2014. Deaths spiked in the following two years, with a very modest decline in 2017. While some of the increase can be attributed to more people driving more miles than ever before, accounting for both elements still results in a higher overall rate of fatal incidents.

Hit-and-run statistics mimic this trend, with 2,046 pedestrian deaths reported in 2016. It’s not the total number that’s alarming — it’s the rate of increase, too. The AAA Foundation for Traffic Safety now claims hit-and-run fatalities are becoming a serious issue; reported incidents within the United States have seen a 60-percent increase since 2009. In fact, they’re the highest they’ve been since the NHTSA started keeping track in 1975.

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AAA: New Safety Tech Effectively Doubles Cost of Minor Repairs

Advanced safety tech may save your skin, but it certainly won’t spare your wallet in the event of a minor accident. According to research from the American Automobile Association, replacing and/or recalibrating the sensors needed to allow modern driving aids to function properly are severely inflating the cost of even minor repairs.

Unfortunate, considering features like blind spot monitoring and automatic emergency braking are cropping up as standard equipment on even the most affordable rides. Car ownership continues to get more expensive and there doesn’t seem to be much we can do about it — with one exception.

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Higher Risk: Study Claims States That Legalized Marijuana Have More Traffic Accidents

The Insurance Institute for Highway Safety and the Highway Loss Data Institute announced Thursday that auto crashes in states with legalized recreational marijuana have increased 6 percent. Both groups will be on hand at the Combating Alcohol-and Drug-Impaired Driving summit at IIHS’ Vehicle Research Center in Ruckersville, Virginia to present two studies on the issue. Perfect timing, considering Canada just became the second country to legalize the substance and support for decriminalization continues to grow in the United States.

Of course, things are rarely so simple. While the IIHS and HLDI remain confident in their research, the National Highway Traffic Safety Administration claimed marijuana use was unlikely to contribute to traffic mishaps in any meaningful way back in 2015. And that’s just for starters. There is so much conflicting information on this issue, it’ll make your head spin harder than the most savage bong rip of your life, bro.

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The Message Isn't Getting Across - Drivers Still Think Too Highly of Gee-whiz Driver Assist Features

American safety advocates have long cautioned motorists and manufacturers that poor communication leads to unrealistic expectations of driver assist systems, thus putting lives in danger. The Europeans are waking up to this reality, too.

Despite an ever-growing list of standard tech in new cars, customer bewilderment hasn’t waned, a new study shows. You’d be alarmed (but perhaps not surprised) by the number of people who think self-driving cars are already on the market.

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Like Manual Transmissions, Handbrakes Are Also Hurtling Towards Extinction

We’ve long bemoaned the death of the manual transmission. But with few practical advantages other than being more enjoyable to a limited subset of the population, it’s quickly (and understandably) slipping into obscurity. It’s not alone. Based on research conducted by online automotive marketplace CarGurus, the good ol’ handbrake is also rapidly losing relevance as automakers shift their focus to electronic parking brakes.

Isolating its research to the United Kingdom, CarGurus claims just 37 percent of new cars leave the factory with a traditional, mechanical brake lever. And those that still have them are typically bargain-focused nameplates like Suzuki and Dacia. Considering neither of those brands sell any models here, the number is likely even lower in the United States.

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These Are the Cars With the Best Infotainment Systems, According to J.D. Power

J.D. Power and Associates is supremely interested in multimedia systems these days. In fact, in now incorporates audio, communication, entertainment, and navigation (ACEN) into its initial quality study. If an automaker wants one of J.D. Power’s tombstone-shaped awards, it now has to ensure its multimedia equipment isn’t vexing to consumers. Unfortunately, ACEN has proven the most problematic category for new vehicle owners since its addition to the annual survey three years ago.

The research and marketing firm recently decided to break out its ACEN scores to see which vehicles had the best infotainment systems. However, in this instance, what constitutes superior hardware is simply a lack of customer complaints. For J.D. Power, multimedia system quality is determined by the number of problems experienced per 100 vehicles over the first 90 days of ownership.

Since potential problems include everything from technical failures and overall features to how well the system was explained by the dealer and plain general satisfaction, decoding what makes a particular system truly bad is difficult. But a lower frequency of complains always means a better product. Which models shined the brightest?

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Tesla's 'Affordable' Model 3 Costs a Bundle to Insure, Study Claims

The Model 3 was intended to be Tesla’s affordable alternative for the mass market and, for the most part, that’s what it has been. Granted, the automaker did opt to prioritize the production of higher trim levels as a way to maximize profitability. But, given its financial situation, it was an understandable strategy. The Model 3 is still the cheapest way to get into a Tesla. However, it’s not the cheapest vehicle to own — especially when it comes to insurance rates.

Last year, AAA said premiums on Tesla vehicles would likely go up 30 percent after reviewing data from the Highway Loss Data Institute. At the time, Tesla said the analysis was “severely flawed and is not reflective of reality.” But the auto club stated the HLDI’s findings matched its own research, as well as numerous other sources.

“Looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates,” said Anthony Ptasznik, chief actuary of AAA.

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Old Man's Game: Car Dealerships Can't Hold Onto Younger Employees

There’s a popular notion that young people are ruining the automotive industry. It probably has something to do with the steady climb of average transaction prices and a median income for millennials that’s comparatively worse than that of their parents at a similar age. Plenty of evidence exists that younger individuals aren’t particularly fond of the car-buying experience.

They don’t seem particularly fond of the car selling experience, either. Millennials account for nearly 60 percent of dealer hires but shops lose over half of them every year, according to a study by the management firm Hireology. That’s an impressively high turnover rate that probably isn’t helping turn around stagnating car sales, as it takes a while to master any profession.

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Feeling Average? Study Shows Owning a Car Is Still the Cheapest Way to Get to Your Destination In a Car

Say you’re an urbanite who made the decision to leave the perils and unexpected expenses of car ownership begin and rely only on your phone. A money-saving choice? Not necessarily, according to a study the American Automobile Association.

Drawing information from numerous studies, AAA’s report looks at the cost of owning a vehicle versus the cost of replacing those same trips with a ride-hailing app and infrequent car rental. It’s not even close, but, as the saying goes, your mileage may vary.

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Same Old Song: Study Claims Uber and Lyft Increasing Congestion Problem in Seattle

A new study from Schaller Consulting is claiming that ride-hailing services, like Uber and Lyft, contributed to 94 million additional miles being driven on Seattle-area roads in 2017. We’ve heard similar claims in the past. Data-backed allegations typically revolve around the notion that app-based services don’t encourage motorists to carpool so much as they pull pedestrians away from public transportation.

Considering how difficult most subway systems and bus lines are to enjoy, that’s not hard to believe.

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Public Becoming More Apprehensive About Robotic Cars, Here's Our Best Guess as to Why

A little knowledge is a dangerous thing. Despite the public having become more aware of autonomous vehicles over the last several years, acceptance of the technology appears to be at an all-time low.

According to a recently published survey from Cox Automotive, general knowledge of self-driving cars has grown over the last two years by around 20 percent to 78 percent of a sample audience. However 68 percent of those respondents also felt the technology was potentially unsafe, which represents a nearly 20 percent increase within the same timeframe.

Likewise, general apprehension grew alongside the level of driving autonomy with complete computerized control being the scariest and 84 percent of the sample saying human drivers should always have the ability to take over when they wanted. The public appears to be turning against self-driving vehicles and automakers are going to need to figure out why because these findings are not an isolated incident.

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Honda Odyssey Reigns Supreme in Latest Minivan Crash Test

You don’t need a family to own a minivan, it just helps avoid a series of awkward follow-up questions. However, regardless of whether you’re riding with your complete progeny or your only friend in the world, you probably hope your vehicle has your back in the event of an accident.

The Insurance Institute for Highway Safety’s small overlap crash test separated the wheat from the automotive chaff ever since its introduction in 2012. The test imagines what happens when the front corner of a vehicle collides with another vehicle or an stationary object, focusing an immense amount of energy on a small area of the automobile. It’s a worst-case scenario for the structural integrity of a model and makes for a great viewing experience, as it really does a number on the test car.

Despite fielding a rather pathetic number of vehicles, the minivan segment performed pretty well in the IIHS passenger-side small overlap front crash test on the whole. However, while no outright deathtraps revealed themselves, the group still saw some mixed results.

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Autonomous Tech Won't Displace Truckers, Biased Studies Claim

Last year, the Center for Automotive Research said robotic vehicles will eventually displace professional drivers in figures that will be “certainly in the millions.” Meanwhile, Goldman Sachs predicted trucking job losses of 25,000 per month as autonomous vehicles roll out in earnest. Truckers are going to end up like pinsetters and switchboard operators — saddled with a career that have been nullified thanks to automation, until they become extinct. However, we’ve also heard there’s a lack of manpower within the industry and that’s helping spur development.

This year, a glut of new studies emerged that suggest self-driving vehicles will actually benefit truckers. Unfortunately, they all come from sources that really want you to be stoked with the technology.

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Korea Takes Top Three Spots in Initial Quality Study: J.D. Power

This wouldn’t have happened in the late ’80s, that’s for sure. J.D. Power’s 2018 Initial Quality rankings, amassed from problems reported by owners over the first 90 days of vehicle ownership, shows the area south of the 38th parallel as the Land of Least Annoyance.

The fresh-faced, fledgling Genesis brand took the top spot in this year’s rankings with 68 problems reported per 100 vehicles, followed by Kia in second place (72 problems) and Hyundai in third (74 problems). You might say Hyundai (Motor Group) excelled.

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  • ToolGuy "The more aerodynamic, organic shape of the Mark VIII meant ride height was slightly lower than before at 53.6 inches, over 54.2” for the Mark VII."• I am not sure that ride height means what you think it means.Elaboration: There is some possible disagreement about what "ride height" refers to. Some say ground clearance, some say H point (without calling it that), some say something else. But none of those people would use a number of over 4 feet for a stock Mark anything.Then you go on to use it correctly ("A notable advancement in the Mark VIII’s suspension was programming to lower the ride height slightly at high speeds, which assisted fuel economy via improved aerodynamics.") so what do I know. Plus, I ended a sentence with a preposition. 🙂
  • ToolGuy The dealer knows best. 🙂
  • ToolGuy Cool.
  • ToolGuy This truck is the perfect size, and the fuel economy is very impressive.-This post sponsored by ExxonMobil
  • ToolGuy If I were Jeep, I would offer a version with better NVH and charge more for it.And then I would offer a version with worse NVH, and charge more for it. (There is an audience for both.)