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■ Volkswagen reports a sharp 64% drop in profits in the third quarter! ■ SHRINKING SALES! The European car market has shrunk by about 2 million vehicles since the pandemic, resulting in about 500,000 fewer unit sales for Volkswagen annually. ■. VW faces strikes over 'Pandora's box' of plant closures as profits plunge! By Christina Amann and Andrey Sychev WOLFSBURG, Germany, Oct 30 (Reuters) - ■ Workers at Volkswagen (VOWG_p.DE), threatened strikes on Wednesday unless management backed down from planned factory closures in Germany, spelling more trouble as profits at Europe's biggest carmaker plunged to a three-year low. Volkswagen released its third-quarter results on the same day as a second round of increasingly bitter talks between VW and unions over wages and fixing the company's future, as high costs and weak demand in China dragged down sales. ■ VW's problems have fed wider anxieties about Germany's status as an industrial powerhouse and the competitiveness of European carmakers against encroaching global rivals. German automakers also fear the impact of a standoff between the European Union and Beijing, with new EU tariffs of up to 45.3% on Chinese electric vehicles coming into force this week. For Volkswagen, the Q3 results were further evidence that major change was needed to keep the company competitive. ■ But worker representatives accuse management of bungling decisions and tearing up a treasured consensus on decision-making. While unions are demanding a 7% pay rise, they say VW plans to shut three plants on home soil for the first time in the company's 87-year-history, as well as mass layoffs and 10% pay cuts for those who keep their jobs. "And I say quite clearly that Volkswagen has opened Pandora's box by terminating job security and other collective agreements, has jeopardised the trust of its employees and it is now up to Volkswagen to restore this trust," IG Metall union negotiator Thorsten Groeger said. ■ Workers expected a future for all German sites in the restructuring. "Otherwise, I can say quite clearly that we will have to plan further escalation with our negotiating and collective bargaining committee," he told reporters. Volkswagen on Wednesday reported a 42% drop in third-quarter profit, its lowest level in three years. VW's results showed its operating return on sales in the passenger car business fell to 2% from 3.4% in the nine months to September from the same period last year. ■ "This highlights the urgent need for significant cost reductions and efficiency gains," finance chief Arno Antlitz said in a statement. Antlitz said he was confident that the company could reach an agreement with workers but could not rule out strikes, with the company considering more than 10 billion euros in cost cuts. #Volkswagen #Automobil #automotive #Autonews #AutoNews24 https://lnkd.in/eVaBwK9d

MotorPeople&more! ■ Andy Wright | Vinart Dealerships "I think that if you look at the percentage of transactions that take place entirely online... it still represents a very small percentage of the sales that happen in this country. Overwhelmingly, American consumers are telling people that they still want to see, feel, touch, smell, and drive it before they buy it." ■ How the Amazon-Hyundai partnership is transforming car buying and consumer experiences: The standout partnership between Amazon and Hyundai created quite a buzz at the top of the year. In today’s episode of Inside Automotive, we’re diving into how this partnership is progressing and what it means for both the future of car buying and the consumer experience with Andy Wright, Managing Partner of Vinart Dealerships. ■ The conversation with Andy Wright delves into the current state of the automotive market, where dealerships are feeling pressure on new car front-end grosses due to a resurgence in supply levels, returning to pre-pandemic conditions for most brands. While the new car market faces challenges, the used car segment remains undersupplied, prompting consumers to consider leasing new vehicles as a viable alternative. Wright notes that many consumers are transitioning from used to new car purchases, driven by affordability concerns and the attractiveness of leasing options. Despite recent interest rate cuts from the Federal Reserve, Wright observes that banks have not adjusted their auto loan rates accordingly, limiting financial relief for consumers. The discussion also highlights the growing demand for electric vehicles (EVs), particularly hybrids, as consumers express increasing interest in electrified options. However, range anxiety and inadequate charging infrastructure continue to pose significant barriers to fully electric vehicle adoption. ■ Turning to the Amazon-Hyundai partnership, Wright acknowledges the ongoing enrollment of dealerships in the program. While Amazon navigates the complexities of automotive retail for the first time, he believes that consumer interest in completing transactions on the platform remains uncertain. Wright emphasizes the importance of flexibility in sales strategies, encouraging dealerships to adapt to consumer preferences, whether that involves online, in-store, or hybrid shopping experiences. He warns of the potential for “showrooming,” where consumers might utilize dealership resources before opting to purchase vehicles online, underscoring the necessity for dealerships to enhance their customer engagement and service offerings. https://lnkd.in/dkYvn-cy #Hyundai #dealership #cardealer #Automotive #amazon

■ Group 1 is seeking additional growth in the UK by pursuing acquisitions! The Group 1 Automotive Group had a strong performance in Q3, with year-on-year gross profit increasing by 8.4% to $852.7 million and turnover rising 11% to $5.2 billion. Source: MotorTrader ■ Group 1 has experienced significant growth in the UK. For the quarter, UK gross profits increased by 68.6%, reaching $1,174.5 million, while turnover rose by 55.2% to $1.2 billion. ■ In July 2024, the company acquired four Mercedes-Benz dealerships in the UK, which is expected to generate $105 million in annual revenues, with new car sales recorded as net revenue under the agency model. ■ In August, Group 1 completed the acquisition of Inchcape Retail's automotive operations in the UK, projected to generate $2.7 billion in annual revenues.  ■ In October, the company acquired a BMW/MINI dealership, which is expected to generate approximately $125 million in annual revenues. ■ “We continue to grow revenues through acquisitions. During the quarter, we executed strategic UK transactions, which added 58 dealerships. “We are excited to expand our operations across the broader UK with great brands, and will continue to explore growth-oriented opportunities,” said Daryl Kenningham, Group 1 president and chief executive officer. #Group1Automotive #GP1 #Inchcape #Dealership #Cardealer #dealergroup #Automotive #Autonews #MotorIndustry

■ Danish K.W. Bruun Import may face collapse following its acquisition by Global Auto Holding! ■ Experts warn that a shock similar to that faced by a British retail chain could occur with K.W. Bruun. Source. Motor-magazinet K.W. Bruun, the owner of Global Auto Holdings Limited (GAHL), has decided not to take any profit from the British dealer chain Lookers, which the group acquired last year. Lookers ended 2023 with significant losses, reporting a pre-tax deficit of €2.14 million, compared to a pre-tax profit of €101.19 million the previous year. K.W. Bruun Import could risk collapsing if its new owners apply the same strategies that led to difficulties with Lookers Motor Group Limited. This perspective is shared by Jacob Skjærris, a consultant specializing in financing and leasing in the automotive industry at SAKUI ApS. ■ As Reported on September 27th, Global Auto Holdings acquired Denmark's K.W. Bruun Import as the auto dealer expands into Europe. Global Auto Holdings operates through two principal subsidiaries: Alpha Auto Group in North America and Lookers in the UK and Europe. Canada's Car Dealer Nears $1.2 Billion Deal in Europe ■ By Ben Dummett and Anna Hirtenstein, Wallstreet Journal Global Auto Holdings is nearing a deal to buy Denmark's K.W. Bruun Import for about $1.2 billion including debt, people familiar with the matter said, as the auto dealer pushes deeper into Europe. A deal, if completed, could be announced as soon as later Friday, the people said. Closely held Global Auto says it is the largest Canada-based auto retail group. It is well established in both the U.S. and Canada, operating 16 car dealerships in North America offering brands such as Ford, BMW and Honda. With K.W. Bruun, Global Auto would become one of the largest importers and sellers of cars in the Nordic countries. The family-controlled business is based in Denmark and traces its roots back more than a century. Today it operates in Denmark and Sweden, offering 11 car brands including Peugeot, Citroen, Jeep and Alfa Romeo, according to the company’s website. The deal would represent Global Auto’s second foray into Europe. Last year it bought U.K. rival Lookers for about £504 million, equivalent to $645 million at the time. Through that deal it gained nearly 150 dealerships, plus other assets including a fleet and leasing business. ■ The rationale Anemic demand for cars is challenging the ability of Global Auto and other car dealerships to grow. Higher interest rates are making vehicles more expensive to buy, while appetite for electric cars has waned as consumers fret over the driving range of EVs and the relative lack of publicly available chargers. #AlphaAutoGroup #GlobalAutoHoldings #AutoNews #Automotive #Dealership #cardealer #lookers https://lnkd.in/eUkF2tBb

■ CAReer&more! #Career #Job #Hiring #Automotive #Automobil #Auto #Motoindustry #BYD #Kariera #Praca #Zatrudnienie #Motoryzacja #Automobile #Auto #Przemysł #Motoryzacyjny #職業 #工作 #招募 #汽車 #汽車 #汽車 https://lnkd.in/eVNHvaSf

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MotorPeople&more! ■ Magnusson new COO for Hedin Automotive Sweden Earlier this autumn, Hedin Bil and Bavaria joined forces under the unified brand Hedin Automotive. The Hedin Mobility Group is consolidating its Swedish retail operations under unified leadership, appointing Rickard Magnusson, current CEO of Hedin Performance Cars, as the new COO of Hedin Automotive Sweden. ■ The move aims to create a cohesive market presence and leverage economies of scale in the evolving automotive industry. Ander Hedin, CEO of Hedin Mobility Group, expressed excitement about the organizational change, emphasizing the importance of Sweden as the group's home market. Rickard Magnusson's extensive experience within the Hedin Group, starting as an intern in 2005, positions him well for this new role, having progressed through various key positions. Exciting times ahead for Hedin Automotive Sweden #Hedin #HedinMobity #Automotive #Dealership #cardealer

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■ Used electric car sales rose in the UK in October, while all other fuel types are losing money! ■ In October, used car prices decreased by 1.1% overall. Electric cars were the only fuel type that increased, rising by 0.3%. James Baggott, Car Dealer Magazin ■ Used car prices fell 1.1% in October as September plate change part exchanges dropped back into the market. The best performing fuel type, though, was electric with EVs actually rising in price by 0.3% during the month, according to data just released by Cap HPI. In a video interview about the latest on used car prices (above), Cap HPI senior valuations editor Chris Plumb said: ‘For the second consecutive month, EVs have had the strongest movement. ■ ‘The devil is in the detail but at the three year price point, EVs still look good value.’ EVs priced between £5k-£10k saw an increase of 0.7% with those in the £10k-£15k price bracket rising the same percentage. Plumb added: ‘We think for people concerned about the cost of living, the savings with an EV start to make quite a compelling case for them.’ ■ By comparison, used petrol car prices fell 1.4%, diesels dropped 1%, hybrids were down 0.6% and plug-in hybrids were down 1.1% in October. Plumb said demand had tapered off towards the end of October, as half term approached, and said the valuations firm believes more seasonal price changes will now take effect. He added: ‘I think that the first half of the month was okay. I think the second half people did report that they’d seen a seasonal softening. ‘I think we’ve got to be pragmatic about it, because of the time of year there has been that sort of drop off. But I don’t think it’s anything to be particularly alarmed about. I think it is just that seasonal movement that we’d normally expect.’ ■ Biggest used car price falls Source: October 2024 data, Cap HPI - Ssangyong Korando Electric -11.6% (£1766) - Ssangyong Korando Diesel -8.8% (£775) - Vauxhall Astra Diesel -7.8% (£796) - BMW 2 Series Convertible -6.0% (£896) - Nissan eNV200 -6.0% (£856) - Fiat 500L -5.9% (£478) - Genesis GV80 -5.9% (£2333) - Genesis GV80 Diesel -5.9% (£2252) - BMW Z4 Roadster -5.9% (£1625) - BMW 4 Series Convertible Diesel -5.9% (£1691) Looking ahead, Plumb says the used car market will remain stable with no sudden shocks in price changes, as was experienced at this time last. He said: ‘All the indications and all the factors are stacking up that consumer demand may have softened, but remains fairly robust. And used car demand remains strong.’ Derren Martin, director of valuations at Cap HPI, added: ‘Overall, October value movements can be seen as a return to normal seasonal drops, a welcome and reassuring picture for the industry, particularly after last year’s tumultuous final quarter. ‘With a return to a more predictable feel about value moves in the last two months, it looks like more of the same for the balance of the year.’year.#UsedCar #remarketing #EV #BEC https://lnkd.in/eYigjdi8