I am writing this from Beijing, where I am attending the press days at Auto China, China’s international auto show. It alternates between Beijing and Shanghai, in case you were confused as I wrote from Shanghai last year.
China’s vehicle market is the world’s largest, with passenger vehicle sales alone expected to hit 25.8 million this year, according to LMC Automotive. So, though sales growth has slowed, the mood is quite buoyant. All automakers are launching numerous electric vehicle models as China’s government has through a combination of emissions standards and a program resembling California’s ZEV program made it mandatory for automakers to produce EVs or face stiff fines.
Connected car technology is another big topic here. Executives I have interviewed figure China will produce innovations in this area because Chinese consumers are demanding so much connectivity in their vehicles, and with a market this size the scale is huge. I remember when China was mainly receiving technology from the West. Now that flow is reversing, at least where smart cars is concerned.
This week we have a story from my conversation with Scott Gorden of CLA. Given trends in the U.S. market, he figures now is the time to sell your dealership if you are thinking of doing so. Read more here.
No dealer wants to fall behind in floorplanning payments. But if that occurs – if the dealer becomes in default – he or she should carefully negotiate with its lender to ensure that the terms of the repayment agreement are as advantageous to the dealer as possible. In this issue, Scali Rasmussen offer a tutorial on that subject.
And of course there is Transaction News.