A big issue for striking GM workers is what their place will be – if they even have a place – in a future with more electric vehicles. A couple of stories I reposted on ABSR this week also relate to the fundamental changes coming to the automotive industry.
Though automakers are, to varying degrees, all producing growing volumes of electrified vehicles, and many are investing in self-driving technology, a recent study by J.D. Power found consumers are wary of both. More experience with and knowledge of these technologies should help change this. Hopefully automakers are onboard with both their own educational campaigns and with helping their dealerships educate both employees and consumers.
However, an early producer of alternative powertrain vehicles, Toyota, doesn’t seem to be too committed to educating consumers. It has found a lot of misperceptions about even its Prius hybrid, which many consumers still think must be plugged in. Toyota is addressing the issue by offering longer powertrain warranties. A Toyota executive compared consumer education about alternative powertrains to “public-service” campaigns and said Toyota is not in that business. Hmmm.
On to this week’s issue! A change in Department of Labor policy that raises the salary threshold employee compensation must meet to qualify for exempt status (from overtime pay) takes effect in the new year. While not all dealership employees will be impacted, some will. It could change how much overtime pay a dealership must shell out. Read our column from Arent Fox to learn more.
Also this week, GlassRatner looks at the dangers of waiting too long to address financial problems at a dealership, which can lead to dangerous practices such as such as selling vehicles out of trust. The authors offer a list questions dealers should ask themselves if they get into that kind of situation. The best thing, natch, is to avoid it all together.
And, Transaction News! Need I say more?
Enjoy!
