CATA News

For the first time, the Chicago Automobile Trade Association (CATA), producers of the Chicago Auto Show, hosted “Driving Future Leaders: Automotive Career Day” at the 2024 Chicago Auto Show on Tuesday, Feb. 13. More than 1,400 students attended the day that highlighted the vast career opportunities available across the dynamic auto industry.

“There are many career opportunities within the auto industry, and the Chicago Auto Show is the perfect backdrop to make those connections to young people,” said Morand. “The first-year event was a success, and wheels are already in motion to make the Automotive Career Day event even bigger and better for next year!”

The day kicked off with Teen Innovation Summit, powered by Toyota and Toyota Lexus Minority Owners Dealership Association, to highlight the variety of careers within the industry. The Teen Innovation Summit was produced by an award-winning educational nonprofit organization that helps students from diverse backgrounds to discover and navigate career pathways in creativity, technology, and business.

“We are thrilled to partner with the Chicago Auto Show,” said Teen Innovation Summit Founder Alissa Constable. “Together we are creating a dynamic environment to learn from leaders and be immersed in innovations in the automotive industry.” 

Students were able to join sessions with speakers from Northwood University and Women in Automotive, as well as meet one-on-one with representatives from Illinois Tollway, Powering Chicago, US Army, and the University of Illinois Solar Car team as part of the career fair segment of the event.

“The Chicago Auto Show was a wonderful opportunity to showcase the opportunities and growth in the industry, but the most beautiful thing is to look down the road to see the next generation leaders to innovate and grow in the auto industry,” said Kathy Gilbert, Founding Board Member of Women in Automotive.

The program concluded with a panel discussion “Career as an Automotive Technician” with representatives from Apple Chevrolet, BMW and the CATA, producer of the Chicago Auto Show. Following the sessions, students enjoyed the show, participated in interactive exhibits including test tracks, and spoke to representatives from the auto manufacturers and related exhibitors.

The car-shopping marketplace unveiled the winners of its annual Dealer of the Year Awards (DOTY)to the top automotive dealers. Out of the more than 50,000 U.S. and Canadian auto dealers with profiles, 987 were honored as Cars.com DOTY recipients based on more than one million online consumer reviews submitted in 2023. Winners were selected based on average star rating, total number of reviews and dealer response to those reviews — all key drivers of repeat and referral business.

“Local dealerships are central to vehicle buying, and our DOTY Awards highlight the many local retailers who take pride in their reputation, striving each and every day to provide a five-star experience for their customers,” said Jamie Oldershaw, vice president of reputation at Cars.com. “A consumer submits a dealership review every 27 seconds on Cars.com, providing dealers with valuable real-time feedback and shoppers with firsthand information about a dealership’s customer experience.”

Award-winning dealers earned 21X more consumer reviews than non-winning dealers, highlighting the importance of online reputation and how it helps build long-term, trusted relationships between a customer and dealer. Year after year, high levels of responsiveness and individual dealership employee accountability are the most reliable predictors of dealer success in the DOTY Awards. Eighty percent of honorees respond to consumer reviews compared to only 41% of non-winning dealers, and about half respond to 90% or more of their reviews.

Furthermore, nearly two-thirds of DOTY winners leverage Employee Profile Pages for their dealership staff, which allows car shoppers to ask questions and connect directly with salespeople before ever stepping foot on the lot. More than 195,000 dealership employees received over 1.4 million individual ratings last year, an 8.5% increase from 2022.

This year’s Cars.com Dealer of the Year Award winners include:

A full list of winners can be found here.

As a CATA member, you have access to HR and Employee Relations Support from SESCO at no charge. SESCO also hosts training webinars at additional, albeit, reduced costs. Here’s a listing of upcoming SESCO webinars:

Tuition: $60.00 per person, per webinar

Tuition includes a copy of the PowerPoint presentation and live recording emailed to registered individuals.

Please click HERE to register for SESCO’s 2023 Webinars

(Requests for cancellations or substitutions will be honored if they are received seven (7) days prior to the beginning of the seminar. The person(s) may be registered for another webinar session or other names may be substituted; otherwise, the company will be billed for the full amount of the webinar.)

[From Cox Automotive] Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were down in February compared to January. The Manheim Used Vehicle Value Index (MUVVI) fell to 203.8, a decline of 13.1% from a year ago. The index was down 0.1% against the month of January 2024. The seasonal adjustment magnified February’s results. The non-adjusted price in February increased by 1.7% compared to January, moving the unadjusted average price down 11.0% year over year.

“Though February activity was muted as we started the month, we saw more activity in the lanes at Manheim in the second half of the month and finished the last week of February with some of the strongest weekly gains in wholesale prices for many years,” said Jeremy Robb, senior director of Economic and Industry Insights for Cox Automotive. “Tax refunds have picked up over the last two weeks, with the average refund now 4% higher than 2023 levels at this time. This has put money into consumers’ pockets, and retail purchase activity is increasing. In turn, dealers are coming to the lanes and buying units at Manheim right at the start of the spring selling season for wholesale markets.”

In February, Manheim Market Report (MMR) values saw above-average weekly increases for most of the month and ended February on a high note. Over the last four weeks, the Three-Year-Old Index increased an aggregate of 1.6%, including a rise of 0.8% in the last week of the month. Those same four weeks delivered an average increase of 0.8% between 2014 and 2019. Over the month of February, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 99.9%, meaning market prices were just below MMR values but moved higher than January. The average daily sales conversion rate increased to 61.0%, which indicates that demand was improving relative to January, normal for this time of year. For comparison, the daily sales conversion rate averaged 58.6% in February during the last three years.

The major market segments saw seasonally adjusted prices that remained lower year over year in February. Compared to February 2023, luxury lost less than the industry, down just 12.0%, and SUVs performed a little better than the industry, declining 12.8%. Compact cars continued as the worst performers year over year, down 16.5%, followed by midsize cars, off by 15.1%, and pickups, down 14.3%. Compared to last month, trucks lost 1.4%, and compact cars were down 0.2%. Declining less than the market overall, midsize cars were up 0.8%, and both luxury and SUVs increased 0.3%.

With the increase in interest in electric vehicle (EV) values versus the non-EV market, we are working on sharing metrics for those segments. Seasonally adjusted EV values for February 2024 were down 15.0%, while non-EVs were down 12.0% year over year. If we look at values against last month, seasonally adjusted EV values increased 1.0% from January 2024, while non-EVs increased by 0.3% over the same period.

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Automotive News released its “Best Place to Work” application for dealers. With new categories, and an expanded list of 150 winners, dealers may opt to complete the application to be considered as the “Best Place to Work.”

Click here to apply: Home (bestdealershipstoworkfor.com)  

The deadline to apply is April 19, 2024.

Forecasters expect U.S. auto sales in February to increase modestly, but only modestly – a percent increase of low single digits vs. February 2023, adjusting for the fact that February 2024 has an extra day, since it’s a Leap Year. For example, analysts for S&P Global Mobility, and in a joint forecast from J.D. Power and GlobalData separately each predict a forecast for U.S. new-vehicle sales that rounds up to about 1.2 million cars and trucks, in February 2024.
Source: Forbes [LINK: February Auto Sales: Selection Is Better, But Rates And Payments Are High (forbes.com)]

The 2024 Chicago Auto Show came to a successful close on Monday, Feb. 19, after a 10-day run at McCormick Place. The 116th edition of the show welcomed nearly 260,000 guests to experience the latest cars, trucks and SUVs, automotive technology and electric vehicles.

The 2024 show featured an array of vehicles, new to show attendees, including the world debut of the 2025 Kia Carnival and 2025 Kia K5. Lucid and Tesla both made a first-time Chicago Auto Show debut and Mazda returned, courtesy of Napleton Auto Group. Fans of Mazda were thrilled the full lineup was featured at the show, after a brand absence of a few years. Other notable new vehicles at the show included the Buick Envision, Cadillac Escalade IQ, 2025 Chevrolet Equinox, 2025 Chevrolet Traverse, Ford Explorer, Ford Mustang Mach-E Bronze, GMC Hummer Earthcruiser, Nissan ARIYA Pole to Pole, Nissan Frontier Forsberg, Tesla Cybertruck, Toyota Land Cruiser and Volkswagen ID.Buzz.

Three indoor test tracks graced the show floor. Ford’s “Built Wild” track featured the Bronco family of vehicles and gave attendees the thrill of conquering “Bronco Mountain,” a 38-degree hill inside of the show. Hyundai offered rides in a trio of EVs including the Kona Electric, IONIQ 5 and IONIQ 6. Chicago Drives Electric’s indoor EV track, powered by ComEd, returned featuring nearly double the number of brands over the previous year. The popular track offered 20 different EVs for attendees to experience from brands including BMW, Cadillac, Chevrolet, Ford, Kia, Lucid, Nissan, Tesla and Volkswagen.

“Perhaps what sets our show apart most is that we’ve never shifted our focus away from the consumer; the attendees drive our strategy to produce an event that’s fun, engaging and informative, as research shows that more than 75% of people who attend the Chicago Auto Show are there to shop,” said Chicago Auto Show General Manager Jennifer Morand.

Even despite the headwinds producers initially faced given the late Stellantis exit—due to cost-cutting efforts in the wake of the UAW strike—the 2024 show only experienced a slight decrease in attendance over the previous year.

“We’re hopeful this was a one-year decision, and that Stellantis brands will return to the 2025 Chicago Auto Show,” said 2024 Chicago Auto Show Chairman JC Phelan. “The fans deeply missed the presence of these iconic brands this year.”

Furthermore, third-party research shows that when brands don’t participate in the Chicago Auto Show, 36% attendees report being less likely to purchase from an absent brand and 32% of consumer opinions decline as a result.

Along those lines, brands that were present had an increased opportunity to gain conquest sales. The lines at Ford’s “Built Wild” experienced record-breaking numbers, with the wait time nearly three hours long on more high-trafficked days.

Between the show’s three indoor test tracks and three outdoor test drive experiences by Ford, Kia and Subaru, the show produced more than 80,000 in-vehicle driving experiences.

This year’s themed days and special events drew in large crowds and new audiences to the show. The Toyota Miles Per Hour run once again provided a unique twist for a winter race in Chicago—at 72 degrees indoors McCormick Place! Held inside the Chicago Auto Show and organized by the Chicago Area Runners Association, 650 runners paced a 60-minute run through the show floor for participants to record their own miles per hour. Toyota awarded the top three winners for men’s and women’s times at its post-run celebration in its display; winners clocked in at more than 10 miles.

Also returning to the show was the popular Chicago Friday Night Flights craft beer sampling event. More than 600 attendees sampled 20 different craft beers from local breweries.

And new to the programming this year, the inaugural Automotive Career Day hosted more than 1,400 students for a lively morning filled with educational panels, networking and a career fair of local automotive employers.

“There are so many career opportunities within the auto industry, and the Chicago Auto Show is the perfect backdrop to be able to make those connections to young people,” said Morand. “The 2024 first-year event was a success, and the wheels are already in motion to make the Automotive Career Day event even bigger and better for next year!”

The show saw fan’s engagement translate to social media as well. Initial Meltwater data reports the Chicago Auto Show's message reached more than 83 million over the last 90 days. Strong engagement is measured between the show and its fans across all social media platforms.

Finally, the show saw support from new and returning sponsors. 2024 premier partners included Cars.com, ComEd and Powering Chicago. Official sponsors were AT&T, U.S. Army, Volta Charging—a member of the Shell Group—and Wintrust. Additional show sponsors included Bosch Tools, Furniture Firm, NASCAR and Weber.

Environmental groups pushed the reintroduction of House Bill (HB) 1634 mandating the state of Illinois to adopt California’s emissions standards, which would effectively require 100% of Illinois vehicle sales to be fully electric by 2035. This was met with a wave of opposition, preventing its passage in committee.

Furthermore, earlier this week, Governor Pritzker came out publicly with his opposition of the proposed legislation. He said that now isn’t the right time for Illinois to adopt California standards, even though Illinois is working its way to having zero emissions on the road. He said the strategy there is to create incentives to lead people in that direction versus enforcing strict standards.

[From Wards Auto] The dealer is still a vital part of the car-buying process, especially for younger consumers,  according to the recently released Cars Commerce Industry Insights Report.

“The fact that 80 percent of Gen Z want to finish their transaction at the dealership is a really significant number,” Rebecca Lindland, senior director of industry data and insights at Cars Commerce, tells WardsAuto. “For us, it reinforces the idea that dealers are really valuable.”

In January, 80 percent of all consumers said they preferred to buy their vehicles in person, according to the report. The report notes 89 percent of Baby Boomers – those born between 1946 and 1964 – are likelier to prefer an in-person purchase. But 80 percent of Gen Z – born between 1997 and 2017 – also prefer buying their vehicles from dealerships, although that group often purchases from online retail sites. The most likely to purchase their cars online, at 16 percent, are millennials – those born between 1981 and 1984.

Cars Commerce finds that 59 percent of all consumers say it is important to touch, feel and test drive a car before purchase. That usually means going to a dealership. A car is still most people’s second-largest purchase after a home, Lindland says.

“They want to know who they are doing business with,” she says. “There is an element of authenticity that you want to look the person in the face.”

Discussions with friends or family are their most-used car-buying information source.  Gen Z buyers are more likely to have purchased a used car than any other generation. At 12 percent, this generation also is the most likely to have leased a vehicle. The preference for leasing or buying used vehicles may reflect the high prices of new cars, but that may change. The number of affordable new-car options is growing, the report says.

In January, the report says entry-priced inventory, which Cars Commerce defines as costing $29,000 or less, rose by 63.1 percent compared to the same month in 2023. Entry-priced inventory is still 79 percent below the January 2019 level, however. Growing the number of affordable options faster faces multiple challenges, Lindland says.

“Vehicles are becoming more expensive because the safety requirements are growing. Also, manufacturers have to earn back their investment,” she says. “It is a combination of things that are driving prices up. It’s really, really challenging, but we are seeing a 63% increase in the entry-level market. It is just not back to where it once was.”

The average list price on Cars.com for a new vehicle in January was $49,096. That is down less than 1 percent compared to January 2023 and December 2023. The Cars Commerce New Car Price Index (NCPI) estimates the total cost to purchase and finance a new vehicle, including estimated options, taxes, fees and interest for the entire loan term.

According to the NCPI report, the total cost to purchase and finance a new vehicle was down 3.3 percent in January, but it was still 32.7 percent above MSRP, the report says. There are more vehicles to choose from now, however: Inventory was up 36 percent in January compared to the same month in 2023. That means a buyer’s market is returning, Lindland says. For dealers, she emphasizes the need to respond promptly when a consumer is interested in a particular vehicle.

“Consumers have more choices now,” Lindland says. “Maybe that vehicle is available on someone else’s lot when it may not have been (previously). Be responsive and knowledgeable; we encourage dealers to have the same type of experience online and on the lot.”