CATA News

The Media Preview of the 2023 Chicago Auto Show played host to several significant world introductions and features keynote addresses from top industry executives. Held Feb. 9 and 10, the Media Preview saw the introduction of the Toyota Grand Highlander, Subaru Crosstrek and Volkswagen Atlas and Atlas Cross Sport. In addition, Jeep made news with the reveal of it’s 20^th anniversary Wrangler Rubicon and Ram announced the Ram 1500 REV and followed up with a Super Bowl commercial.

Two key industry executives also made news during the Media Preview. Hyundai Motor North America’s Vice President, Product Planning and Mobility Strategy Olabisi Boyle formally kicked off the Media Preview at the Midwest Automotive Media Association Breakfast. Following up on that, Subaru of America President and CEO Tom Doll addressed more than 600 people from the Economic Club of Chicago.

Chicago Auto Show organizers, in partnership with A Girls Guide to Cars and Women in Automotive, held the sixth What Drives Her program during the show’s Media Preview on Friday, Feb. 10. Industry leaders from across the country came together for a robust discussion and award recognition ceremony to highlight women in four different categories: Rising Star, Best in Craft Media, Automotive Ally, and Best Retailer. Over the years, the event has welcomed dozens of leading female professionals to the stage to share trends, stories and personal anecdotes of the integral role that women hold in the auto industry.

This year’s program, sponsored by Cars.com and CDK Global, brought female executives to the Chicago Auto Show stage to discuss “Women Leading the EV Revolution.” The panel was moderated by Cars.com’s VP of Cars Media, Julie Scott, and was comprised of four panelists: Chris Feuell, Chrysler brand CEO; Kathy Gilbert, CDK Global senior director, minority dealer and women retail; Melissa Washington, ComEd SVP of customer operations; and Linda White, BMW director of government and external affairs.

You can watch the recording of the panel discussion here.

“This year’s program featured a panel of women who are accomplished in their field and also incredibly inspiring,” said Jennifer Morand, co-founder of the What Drives Her program and general manager of the Chicago Auto Show. “The conversation covered a wide range of topics that helped spotlight the influence and purchasing power females have in the EV space.”

“In addition to the breadth of themes discussed, it was a privilege to honor some of the industry’s top leaders with the What Drives Her awards,” continued Morand.

Best Retailer Award Winner

Soledad Romero, store manager, Romeoville Toyota, started in an entry-level position at the dealership during the pandemic. She demonstrated her excellence as a leader and a human being with compassion, pride, integrity and discipline to achieve results. Since she has climbed her way up to the top of management.  Romero didn’t have any automotive experience when joining the team just two years ago. She leads by example and is willing to help with any department in the dealership. Her team says she handles it all with grace and compassion while leading her team.

"It has been such an honorable moment in my career, to have been recognized and presented with the Best Retailer Award,” stated Romero. “To have been classified under a category such as ‘Influential Woman in Automotive’ has been an incredible experience. Let's continue to support and strand strong behind empowering women who share the same passion for retail in automotive."

Best Retailer finalists included: Gabrielle Abinion, general manager, Fox Valley Volkswagen; Soledad Romero, store manager, Romeoville Toyota; and Carly Weck, finance manager, Elgin Kia.

The Chicago Auto Show’s First Look for Charity gala brought in more than $2.5 million to benefit 18 local charities, and two attendees left with the keys to a new vehicle. Held the evening before the auto show opens its 10-day public run, the black-tie benefit raised $2,520,465, bringing the 31-year total funds raised to $60 million.

“First Look for Charity is one of Chicago’s finest one-day fundraisers and we are thrilled to have such a great turnout this year to support the charities,” said Kevin Keefe, 2023 Chicago Auto Show chairman. “On behalf of the Chicagoland new-car dealers, we couldn’t be prouder to host this benevolent event that directly impacts our communities.”

As the name of the event implies, those who attend First Look for Charity are part of the premier viewing of each year’s Chicago Auto Show. Tickets to the fundraiser are $275 each, and purchasers can elect to have their proceeds equally benefit all participating charities, or any one charity of their choosing. For the event, the auto show floor is replete with live entertainment and a variety of gourmet food and beverage stations.

A highlight of the evening was the drawing for the event’s grand prize vehicles: a 2023 Honda CR-V Hybrid and a 2023 Subaru Crosstrek, compliments of the Chicagoland and Northwest Indiana Honda dealers and Chicagoland Subaru dealers.

The first winner, Patty R., Chicago resident and Misericordia supporter, said “First Look for Charity is one of my favorite events! I have been eyeing the CR-V for a few years. [I am] happy to see it is a hybrid and now it's mine!" Winning the 2023 Subaru Crosstrek was Eddie H. of Chicago. “Thank you to Subaru for donating to such a wonderful charitable event. My family and me are thrilled to be the lucky winners.”

The 2023 First Look for Charity beneficiaries include: 100 Club of Illinois; Advocate Health Care; the ALS Association Greater Chicago Chapter; Ann & Robert H. Lurie Children’s Hospital of Chicago; the Boys & Girls Clubs of Chicago; Catholic Charities of the Archdiocese of Chicago; Catholic Charities of the Diocese of Joliet; Franciscan Community Benefit Services; Glenwood Academy; Habitat for Humanity; the Jesse White Tumbling Team; Lydia Home & Safe Families for Children; and Misericordia; New Star; Special Olympics Illinois; Susan G. Komen, Chicago; and Turning Pointe Autism Foundation.

The weekly automotive-themed radio show on WLS AM 890 featuring DriveChicago General Manager Mark Bilek and CATA Director of Marking Jim OBrill gained a new “official” host this past Saturday. Ray Stevens is a multi-award winning Chicago and National broadcast personality. He has received prestigious ACM and CMA awards for Major Market personality of the year. Ray is a four-time winner of the Country Radio Broadcasters morning show personality of the year and is a past Nominee of the Country Radio Hall of Fame.

In addition to his radio work Ray is a huge supporter of Chicagoland charities and can be seen on FOX 32 Chicago doing his “good in the hood” segments. Ray has been nominated for the Marconi and Crystal awards for his work in the community and was awarded the Semper Fidelis award from the Marines for his long-standing commitment to veterans charities.

DriveChicago on WLS AM 890 airs every Saturday from 8-9 a.m. and is normally replayed on Sunday afternoons. CATA dealers are encouraged to play the dealer-friendly DriveChicago radio program in the their waiting rooms on Saturday morning. If you are interested in advertising on DriveChicago on WLS, contact Dan Richmanat the station.

The Internal Revenue Service has revised how it classifies vehicles potentially eligible for a Section 30D Clean Vehicle Credit. As a result, more new battery electric (BEV), plug-in hybrid electric (PHEV), and fuel cell electric vehicle (FCEV) models/trim levels are now considered “SUVs, vans, and pick-ups” for purposes of the credit’s $80,000 MSRP cap. All other BEV, PHEV, and FCEV make/models (e.g., sedans, coupes, station wagons, etc.) are subject to a $55,000 MSRP cap.  

The revised vehicle classifications are based on those in www.fueleconomy.gov, a shopping resource commonly used by both dealers and prospective purchasers, and apply retroactively to January 1, 2023. A listing of which make/models fall under which MSRP cap is available here.

Note: Some BEVs, PHEVs, and FCEVs sold since January 1, 2023, may now be potentially eligible for a Section 30D Credit where they weren’t before. Consequently, selling dealers should be prepared to provide purchaser-taxpayers with a Section 30D Clean Vehicle Credit report form as necessary. See IRS FAQs, Topic B, Questions 7 and 9. A sample Section 30D report form is found on the NADA Regulatory Affairs Alternative Fuel Vehicle and Refueling Incentive EV Incentive Webpage along with materials addressing the Section 30D and other the Inflation Reduction Act EV incentives.   

Well before the pandemic hurt the supply chain and vehicle inventory dropped, the average price paid for a new car in America was already on the rise. But the vehicles themselves are not getting more expensive – the options consumers add to them are.

According to two decades of data from auto website Edmunds.com, options like audio packages, engine or tire upgrades, and roof racks are the biggest factor in raising vehicle prices.

According to Edmunds, the average purchase price of a new vehicle was about $30,000 in 2009, $40,000 in 2019, and almost $46,000 in 2022. However, the average sticker price for base models, standard vehicles without any bells or whistles, has decreased (after accounting for inflation).

The least expensive car for the 2023 model year is the Nissan Versa, priced at $15,730. This model includes features considered standard like a push-button start, blind spot monitoring, and a touchscreen. The vehicle is priced comparably to the most affordable cars of 2002 (after accounting for inflation). On the other hand, the average price of a GMC Sierra 2500 HD, as sold, is now double the base price.

Makes and models across the board have seen a jump in the last decade in the difference between the base sticker price and the average sticker with options. The average price gap between base models and vehicles as optioned up by customers has increased from 24.6% in 2002 to 38.1% in 2022. Some examples include:

The CATA offices in Oakbrook Terrace will be closed from Friday, Feb. 3 to Tuesday, Feb. 22 as the staff moves down to McCormick Place to produce the Chicago Auto Show. As a result, dealer forms are temporarily unavailable, and members are unable to use CATA office meeting facilities. Form ordering will be temporarily disabled and re-open Feb. 22. Future meeting space may still be reserved by calling the CATA main line, 630-492-2282.

The Illinois Equal Pay Act of 2003 is a law that prohibits employers from discriminating between employees based on sex. In 2021 the Illinois legislature passed an amendment to the law by adding Section 11, which requires all private employers with 100 or more employees in Illinois to submit demographic and wage date to IDOL, along with the employer’s most recently filed Annual Employer Information Report EEO-1 and an Equal Pay Compliance Statement certifying that, among other things, the average compensation for its female and minority employees is not consistently below the average compensation for its male and non-minority employees.

A businesses’ total number of employees is the total number of people employed by the business who worked in or were based out of Illinois on December 31 of the twelve-month calendar year immediately prior to the year you are required to submit an EPRC application.

An EPRC application requires a business to submit to IDOL: (1) a $150 filing fee; (2) wage records, including a copy of your most recently filed EEO-1; and (3) an Equal Pay Compliance Statement.

Businesses are required to submit an initial EPRC application between March 24, 2022, and March 23, 2024. IDOL will assign an application due date that is within this timeframe and will notify the business of this due date at least 120 calendar days before your application will be due.

The 2023 What Drives Her program returns to the Chicago Auto Show Social Media Preview held Friday, Feb. 10 at McCormick Place. This program, now in its sixth year, celebrates women in the auto industry who are deserving recognition. The CATA invites you out to join in the celebration and share in the content. The event will take place on the main stage just off the Grand Concourse, outside of the North Exhibit Hall of McCormick Place. Event pre-registration is required.

Once again bringing together influential women in the automotive industry, this year’s event will focus on how women are leading the charge in the electric vehicle (EV) revolution. In addition, the What Drives Her awards program also is set to recognize females and advocates within the industry.

One of the awards that will be presented will go to a local retailer. The What Drives Her “Best Retailer” Award will recognize a female retailer who is employed by a Chicago-area dealership and demonstrates a high level of commitment and to any task at hand, whether in sales, service, finance or technical support. Last year’s award recipient was Megan Deters, sales manager at Brilliance Honda.

This year's finalists are the following:

Other nominees include Christina Baker, dealer partner, Rod Baker Ford; Linda Jacobs, dealer principal, Bill Jacobs Motorsport; Tina Pade, controller, Arlington Toyota; and Danielle West, HR director/operations manager, Fox Valley Volkswagen Buick-GMC.

To register, click here.

The latest Chicago Auto Outlook (always available in the Member Section of the CATA Website) forecasts a rise in vehicle registrations over the next 12 months. Supply chain issues persisted last year, and vehicle production cutbacks were significantly higher than projected at the beginning of the year. New retail light vehicle registrations in the area declined 19.2% from 2021 to 2022. National market fell 14.9%.

According to the baseline forecast, area registrations are predicted to approach 280,000 units this year, a 6.3% improvement from 2022. See sidebar to right for alternative upside and downside projections.

Pent-up demand is accumulating as new vehicles sales remain below baseline line levels. Auto Outlook estimates that approximately 140,000 new vehicle purchases will be postponed since the onset of the pandemic in 2020 through the end of this year, about 48% of sales in an average year! In addition, vehicle transaction prices are likely to drift lower as supplies become more in-line with demand. These two factors will give a boost to the market that should offset the negatives listed next.

Supply chain issues are lingering, and new vehicle affordability is weakening due to high inflation, increasing interest rates, slower economic growth, and falling trade in values. Household incomes are increasing, but not fast enough to keep pace with inflation. The stimulative impact resulting from pent up demand will be tempered due to softer economic conditions, but sales rates should still recover from current levels.

Among the top 25 sellers in the area market, Tesla, BMW, Kia, Hyundai, and GMC had the largest percentage gains (or smallest declines) in registrations from 2021 to 2022. Brand results in 2022 were almost entirely a function of vehicle inventories, not the typical determinants of new product launches and marketing.

EV market share in the area increased from 3.0% in 2021 to 5.7% last year. Electric vehicle share has increased by 4.6 share points from 2018 to 2022. Top five selling models last year were Toyota RAV4, Honda CR-V, Hyundai Tucson, Chevrolet Equinox and Tesla Model Y.

Click to download the latest Chicago Auto Outlook.