All American Auto Mall in Old Bridge Updates

Episode 26: Weekly Updates + Holy Semiconductors!

February 23, 2021 Jason Savino, Marketing Director, All American Auto Group Season 1 Episode 26
All American Auto Mall in Old Bridge Updates
Episode 26: Weekly Updates + Holy Semiconductors!
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All American Auto Mall in Old Bridge Updates
Episode 26: Weekly Updates + Holy Semiconductors!
Feb 23, 2021 Season 1 Episode 26
Jason Savino, Marketing Director, All American Auto Group

Jason discusses weekly updates including the dealership becoming involved with the F-150 Mafia: New Jersey Chapter, the dealership becoming an official PlugShare.com EV Charging location and more. Jason then talks about something he never thought he would ever have too: semiconductors. It is the new trendy headline in the media when talking about the auto industry and inventory shortcomings and it is not going anywhere any time soon. 

Show Notes Transcript

Jason discusses weekly updates including the dealership becoming involved with the F-150 Mafia: New Jersey Chapter, the dealership becoming an official PlugShare.com EV Charging location and more. Jason then talks about something he never thought he would ever have too: semiconductors. It is the new trendy headline in the media when talking about the auto industry and inventory shortcomings and it is not going anywhere any time soon. 

Unknown:

Hey everyone, I'm Jason Savino, the Marketing Director for the All American Auto Group. And this is the All American Auto Mall in Old Bridge Updates podcast. This is episode number 26. I'm going to provide some weekly updates and then holey semiconductor chips. We're going to talk a little bit about the issues right now with them in the auto industry and beyond. It's a pretty busy week for me. So I'm releasing this a little bit early. Pretty exciting news, I have a Ford executive coming in, on Thursday of this week to kind of sit with us, the marketing team and go over kind of what we do digitally. Obviously, they look at us as one of the leaders in digital marketing and kind of what we do here. So that's pretty exciting to have that opportunity to have them come in and check us out and kind of learn from us and go over some strategies and stuff. So that'll be a big part of my week. Towards the end of the week, I wanted to mention two really exciting partnership we have now with the F 150. mafia New Jersey chapter. It's this great Facebook group. When I joined a couple weeks ago, and we connected with the leader of it, it had about 400 members, I know it's been growing like crazy since then, just a nice Facebook group, you know, a bunch of guys and gals that have F 150s here in New Jersey that kind of share what they like about it, you know, best place to get stuff for their f 150. They share pictures, just a really nice group. And we made a partnership with the leader of it. This wonderful gentleman named Steven. He's a retired veteran as well. He uses our service department and got his first or not his first but got his f150 from Oasis Ford, before my family had purchased this location. So he's been coming to this location for over a decade using our service department. And so finally connected with them. And we have a partnership now with them, we give the F 150 mafia in New Jersey chapter special discounts and stuff like that, and pretty exciting. We're going to be holding or hosting a meeting for them on Sunday, March 21, here at our old bridge location. So obviously Sunday we're closed were letting them use our parking lot as a meeting space, though. You know, they'll do a fantastic job with COVID protocols and all that stuff. So if you own an F 150 in New Jersey, I highly recommend you check out their Facebook group f 150, mafia, New Jersey chapter, join the group interact with them, it's great time and then come out to their first meeting in 2021. Here at all American Ford and old bridge, some other weekly updates. We became an official Evie charging location on plugshare.com. So we do have two Evie chargers. We've been Evie certified for a while now going back to you know when they have the Fusion Hybrid initially, and the fusion energy. So obviously now with the Maki and the F 150. Hybrid coming. And just a complete shift in the auto industry towards more Eevee. We have some stations, it's located in our route 18 parking lot. So you could find more locations on plugshare calm but we're now in official charging location. And then also pretty exciting that I'm proud of. I've been working closely with the Chamber of Commerce of old bridge Sayreville and South Amboy. Of course, I was voted on to the Board of Trustees for that. And I've been doing a lot with the President David Hernandez, amazing guy, he owns the old bridge funeral home. He's the president of the chamber. He's been trying to get the chamber to do more videos and be more active on social media. We're kind of redesigning the website so a lot of exciting stuff for the Chamber of Commerce and he was here and we filmed the little business highlight segment for all American Ford and old bridge and I films and David kind of did like an interview style with me. So that video hopefully will be released potentially next week, I guess at this point. So I'll be sharing that on our social media pages. So that was exciting. The Last Episode Episode 25. We did a get to know segment on Nate who's on my marketing team. He talked a lot about you know his history with vehicles what he's driving now when he likes some of his New Jersey foodie type stuff that he likes to get involved in. So that was a great episode. Check that out. If you're interested in learning more about Nate and Then that basically I just wanted to run down the semiconductor chip issue right now in the auto industry, because it's affecting all manufacturers, the entire industry globally as well. We're getting a lot of questions from customers, because they're starting to see it in the news. A lot of questions from vendors, because, you know, I'm telling them that we don't have inventory. And I can't spend a lot on marketing with them right now. So they have questions about it. So I figured I would just spend, you know, less than five minutes kind of talking about it. And just educating from what I'm seeing in the news, it's not that complicated, I'm not going to get super scientific on you. Basically, you know, over the past decade, as these manufacturers of vehicles have become increasingly dependent on electronics within their vehicles, you know, to boost the appeal of their products, everybody now is going towards that like Tesla Model, you want to be sleek and edgy when it comes to technology and being ahead of the times. So obviously touchscreens have been in vehicles forever. But now they're getting bigger and more complex, computerized engine controls and transmissions built in cellular and Wi Fi connections, collision avoidance systems with the use of cameras and other sensors. So all these different safety features. Now, Ford copilot 360, is a great example. And then even Subaru and their Subaru eyesight, you know, very up there in terms of leading technology, when it comes to safety features, all of these new kind of electronic features within the vehicles require the semiconductor chips. So, you know, depending on the manufacturer, and what's in the vehicle, a new car can basically have, you know, hundreds of semiconductor chips in them. And the lack of even a single component can delay production, and you know, cause delays and shutdown. So that's kind of the issue that's going on. And then when you combine that with COVID, hitting, and automakers you know, most of them shut down their factories during the beginning of COVID. Like that March to May area, maybe even into the summer a little bit, a lot of the factories have to shut down for COVID reasons and then just cutting back on production, because, you know, the demand wasn't there initially. So with sales, kind of plunging demand plunging during the height of COVID, factories had to shut down. Obviously, they slashed orders for the semiconductors, the semiconductor makers had to shift their production lines to meet the orders for these chips for products like laptop computers, webcams tablets, the new smartphones, and gaming systems like the PS five, and Xbox, of course, so it was just this weird, perfect storm, I guess of you know, everybody being at home for COVID. And so you know, laptop sales went off these gaming systems, you know, kids were stuck at home, they wanted the latest gaming systems, and then even technology like, you know, products that are used for webinars and video conferencing, the webcams and stuff and, you know, with zoom exploding and remote, online schooling, all that different stuff, the sales of some of those products just absolutely exploded, and the semiconductor chips are used in those. So you had the auto industry kind of lowering their orders for semiconductors, every other industry when it comes to those electronics and at home stuff drastically increasing and that cause these chip producers to just not be able to balance that demand. When the automakers ended up, you know, needing to beef up their production again, because the auto industry came back a little bit faster than people imagined. I think. And and there was a lot of reasons for that, right? The combination of these manufacturers having their COVID relief programs like 0% financing for a lot of months, low lease payments, stuff like that. So I think they didn't realize people are gonna start to buy cars right away. And you know, really our sales from a dealership perspective. They definitely dip to volume wise. And a lot of it was because of not having enough inventory. So it's not like we were short on customers and demand. So is interesting because I don't think we expected that. Obviously use cars exploded because there's less news, new cars. But it was just interesting the way supply and demand worked out during COVID. And then in tandem with that you had a big pandemic shutdowns of major chip production facilities in China and Taiwan. So, again, they're two dominant semiconductor chip producing nations. And they were shut down for a while. So all these factors have led to now this residual effect of you know, now that the factories opened up as car dealerships, we actually thought production of new vehicles would get better, but now you're starting to see the after wave effects of kind Have those initial shutdowns last year, and you're starting, we're starting to kind of feel these residual supplier issues from the manufacturers. So that's kind of where we're at now and why the chip thing is such a big buzzword in the news. And it's a key word whenever you search anything online, related to inventory, you know, it's said to not going to get better until about may ish. So what we've heard from Ford and Subaru, our main manufacturers this past week is that, you know, they both as manufacturers need to shift their production alignment, based on their model. So some models are literally going to get shut down and that effort is going to be moved to and that ship supply is going to be moved to other models. So like for Subaru, you got to watch, like our cross track inventory is actually very strong, we're in a good spot compared to our Subaru competitors around us. But from a national standpoint, the cross track inventory is going to plummet, because, you know, they are focusing, I think more on producing the forester and the outback. So our forest inventory is going to be great and plentiful, and our cross track inventory is gonna go down. Same thing with Ford, you know, for one of the first times ever, we might have more explorers on the ground than f 150s, f 150s, the demand for them is just so high, especially in the new redesigned 2021 model. So their Ford's going to do what they can to increase production with the F 150. And their core SUV models like the edge, the escape and the Explorer, but you just got to watch, it's gonna fluctuate, it's going to change. It's a crazy thing to keep up with here, in terms of what we're focusing on marketing wise. And, you know, it just changes what's on the ground, what's on our website constantly. So selection has always been a big, why by for us in terms of you know, especially with the F 150. With so many configurations, like we obviously want customers to get exactly what they want. And right now customers are having a hard time finding what they exactly want, you know, when it comes to their specifics with an F 150 or an explorer or something like that. So we just keep recommending, you know, shopping around, check out our inventory, it changes constantly. But that's where we're at with these semiconductors and the overall inventory. And, you know, hopefully we see March not too bad, we're set up in a good spot with some of our models here. And like I said, use cars, our inventory is very high, it's in very good shape. We have such a wide selection, great mix, you know, tons of vehicles under 15. k, we have a lot of vehicles within that sweet spot of like 15 K to 30 k a lot of very quality certified Pre Owned vehicles that are newer model year. So we have a ton of 2018 2019 2020 is even a lot of them come from our return retired service loaner fleet. So those are incredible quality, certified vehicles. So check out our website, our used car inventory is changing even faster than our new car inventory. Sometimes we get quality Certified Used Car and I try and post it on social media and it's sold that day. It's like some of this stuff is crazy. Just because again, the demand is so high. And use cars have been you know, very, very fast moving. So like everything, all of my recommendations, always check stuff out shop around, we encourage it, you know, because we we are confident in our selection and our ability to earn your business on a constant basis. So shopping around and getting what you want is most important. And right now, you know, inventory is crazy, but it's there right now. So for a lot of stores and for us cars in particular and the new certification programs that Ford has released, they have two certification programs now blue and gold as part of their Ford blue advantage certification program. So a lot of good stuff to get peace of mind when it comes to us cars and certifications. But that's the update wanted to make it a quick episode this week with some of those updates and then the semiconductor chip issues and we'll be back next week.