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General Motors’ recently-revised post-crash inspections continue to call for inspections of seat belts “after any collision,” and “Who Pays for What?” surveys continue to find an increasing percentage of auto body shops are billing—and being paid—for this procedure by the eight largest auto insurers.
In 2016, when Collision Advice and CRASH Network first asked about seat belt inspections in their “Who Pays for What?” survey, nearly two-thirds of shops—63%—said they had never billed for it. This year, that has nearly reversed, with 62% of shops reporting they have charged for the labor to inspect seat belts.
Among those shops, about one in three—34%, up from 24% in 2016—say they are paid for that procedure “always” or “most of the time,” and nearly an equal percentage say they are paid at least “some of the time.”
The trend is good news for shops and consumers. But for this procedure in particular, Mike Anderson of Collision Advice, who conducts the surveys in conjunction with CRASH Network, is concerned more with just making sure it gets done.
“Every OEM has a very specific procedure for how to inspect seatbelts,” Anderson said. “No matter whether you charge for it or not, we have an obligation to make sure that we’re fixing vehicles safely and properly, and that means following the OEM repair procedures when it comes to seat belts.”
The latest quarterly “Who Pays for What?” survey is now open through July. It focuses on “not-included” frame and mechanical labor operations. Shops can take the survey at https://www.surveymonkey.com/r/L3H3JQP Survey participants receive a free report with complete survey findings along with analysis and resources to help shops better understand and use the information presented. Anderson said the survey, which will take about 15 to 20 minutes, can be completed by anyone in a shop familiar with the shop’s billing practices and the payment practices of at least some of the largest national insurers. Each shop’s individual responses are held in the strictest confidence; only aggregated data is released.
The results of previous surveys are also available online at www.crashnetwork.com/collisionadvice.
Source: CRASH Network, Collision Advice Mobileum Inc., a leading global provider of analytics-based roaming and network services, risk management and testing and monitoring solutions, is pleased to announce Audi is deploying Mobileum’s Connected Car Testing solution to test and monitor the end-toend quality of service (QoS) of its connected cars.
By implementing Mobileum’s Connected Car Testing solution, Audi ensures its customers will experience the best online infotainment, safety, navigation and communication capabilities while they are in the car.
Mobileum’s Connected Car Testing solution allows Audi to remotely test its connected cars from a centralized location, and it provides unparalleled KPIs to monitor and improve the connected car experience.
In addition, Mobileum will enable Audi to support important safety features.
Source: Mobileum
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The automotive specialty-equipment industry has largely weathered the pandemic, with many companies reporting sales growth over the past year and anticipating continued growth in the coming months, according to new SEMA Market Research.
Findings from the new “SEMA State of the Industry—Spring 2021” report indicate that the majority of businesses saw significant sales growth during the pandemic: 66% of manufacturers, 60% of distributors and 40% of retailers/installers reported increased sales compared to 12 months ago, and nearly threefourths of all manufacturers and distributors expect sales to increase over the coming year.
Filled with data on how the pandemic has impacted businesses in the automotive specialty-equipment industry, the 63-page market research report helps companies understand how the market is performing. Key findings from the report include:
The specialty-equipment industry saw minimal staffing disruption because of the pandemic, with most maintaining or growing staffing levels. Additionally, 83% of manufacturers, 77% of distributors and 63% of retailers/installers plan on hiring more staff over the coming year.
Findings from the new “SEMA State of the Industry—Spring 2021” report indicate the majority of businesses in the automotive specialty-equipment industry saw significant sales growth during the pandemic�
Many companies selling in the pickup, sports car and classic segments reported double-digit growth in the past 12 months.
Manufacturers saw sales increase across many channels, especially direct-to-consumer through their company website and at independent specialty retailers.
The industry saw growth across
a variety of product categories. Manufacturers and retailers saw significant sales growth in performance categories especially, including intake and suspension products.
According to the U.S. Census Bureau, retail sales at motor vehicle and parts dealers hit $139.5 billion--its highest level in U.S. history. Despite the pandemic, consumers continue to work on their cars.
According to a survey of Americansconducted by Hertz, more than 80% of Americans plan on taking a road trip this summer. This means a lot more driving, and potentially a lot more potential engagement with the specialty-equipment industry.
At a time when most countries, like Japan and the European Zone, are experiencing economic contractions, the U.S. is showing strong growth after the disruption from the pandemic. This strong growth is expected to continue through the rest of 2021, as the services part of the economy fully reopens.
To learn more about the current state of the specialty-equipment industry and outlook for the future, download the new “SEMA State of the Industry—Spring 2021” report today at www.sema.org/research.
Source: SEMA
Used Vehicle Prices Expected to Climb to Record Highs as New Vehicle Prices Stay Steady in Q2: Edmunds
Consumers seeking relief from new car prices in the used car market might be a bit dismayed by used car prices as well, according to the car shopping experts at Edmunds.
Edmunds data reveals the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $22,977 in Q1 and $20,942 in Q2 2020, marking the highest quarterly used ATP Edmunds has on record.
“Tighter inventory and fewer discounts in the new car market are pushing shoppers to seek a reprieve in the used market, and this consumer behavior is what’s also driving used car prices to astronomical levels,” said Jessica Caldwell, Edmunds’ executive director of insights. “Car shoppers are used to getting deals, and often far below the sticker price for new, so anyone returning to the car market for the first time in a while is in for some serious sticker shock.”
Although used car prices are expected to climb to new levels in Q2, Edmunds data reveals new car prices appear to be leveling off—the ATP for new vehicles hit $40,827 in Q2 2021, compared to $40,070 in Q1 and $38,895 in Q2 2020.
Edmunds experts note this is due to a shift in the mix of vehicles available in the new market: Edmunds data reveals the share of pickup trucks dropped to 17.1% in Q2 2021 compared to 22% in Q2
2020, while the share of SUVs and passenger cars increased. SUVs made up 54.6% of the market in Q2 2021 compared to 51.3% in Q2 2020, and passenger vehicles made up 23.8% of the market in Q2 2021 compared to 23% in Q2 2020.
“Pricey, optioned-out pickup trucks have been the darling of consumers and the primary culprit in boosting the industry average transaction price during the pandemic, but the well of inventory has finally run dry,” said Caldwell. “Consumers who can be more flexible are buying more passenger cars and SUVs, and although they’re paying inflated prices for these vehicles, comparatively they command much
less than their truck counterparts. Other shoppers are forced to sit out of the market until what they want comes back in stock.”
Edmunds analysts note the car shoppers who are still making purchases in the current market likely represent a more affluent portion of the population.
“This is not a buying environment for people on the fringe of being able to afford new car ownership,” said Caldwell. “Average loan terms are already quite long and interest rates are relatively low on average, so the consumer really has to make up the difference in price.”
Edmunds experts advise consumers who are considering making a purchase over the Fourth of July weekend or later this summer to make a concerted effort to shop around their trade-in, which can be done for free on sites such as Edmunds. According to Edmunds data, the average trade-in value for used vehicles climbed to $21,224 in June, marking a 75.6% increase compared to June 2020.
“In these unique market conditions, car shoppers must remember that they have the most negotiating power through their current vehicle,” said Ivan Drury, Edmunds’ senior manager of insights. “Although it’s important to do your research on available incentives, getting competitive quotes for your trade-in will be the smartest way to guarantee the biggest discount on your next vehicle.”
Source: Edmunds
