CATA News

The 115th edition of the Chicago Auto Show concluded on Monday, Feb. 20 after a successful 10-day run at McCormick Place that saw a dramatic increase in overall attendance compared to the previous year. The only major auto show not to miss a beat as a result of the pandemic, the Chicago show grew back to its traditional two-hall footprint in 2023 and welcomed more than 300,000 total attendees—100,000 more than the previous year.

“The buzz on the show floor this year was palpable,” said 2023 Chicago Auto Show Chairman Kevin Keefe. “You could just feel the energy and excitement from everyone that the Chicago Auto Show is not only back, but back in a big way. We have kept our eye on the consumer since day one to ensure this show remains a high-quality, fun event for attendees of all ages, and we’re proud to see this strategy paid off,” Keefe continued.

“Not missing a show during the pandemic has proven critical to the momentum we’re enjoying now,” said Chicago Auto Show Co-General Manager Dave Sloan. “The goodwill we generated from the Special Edition Chicago Auto Show we staged in the summer of 2021 continues to pay dividends.”

The longest-running auto show in North America returned to a two-hall footprint this year filled with top-tier exhibits by global automakers, new vehicle introductions that made worldwide or national debuts, a host of interactive exhibits, indoor test tracks and outdoor test drive opportunities.

The 2023 show received significant vehicle introductions, including the 2023 Jeep Wrangler Rubicon 20th Anniversary editions, 2024 Subaru Crosstrek, 2024 Toyota Grand Highlander, 2024 Volkswagen Atlas and 2024 Volkswagen Atlas Cross Sport.

Notable new vehicles at the show included the BMW XM, Cadillac LYRIQ, Chevrolet Blazer EV, Chevrolet Corvette E-Ray, Chevrolet Equinox EV, Chevrolet Trax, Dodge Hornet, Ford Mustang Dark Horse, Honda Accord, Honda Civic Type R, Honda CR-V, Honda Pilot, Hyundai IONIQ 6, Lamborghini Countach, Lexus RX, Lexus RZ, Maserati MC20 and Toyota Prius. In addition, concept cars were prominently on display and included the Buick Wildcat, Chrysler Airflow, Dodge Charger Daytona SRT and Ram Revolution.

The show saw support from new and returning sponsors. 2023 premier partners included Autel, Cars.com, and Powering Chicago. Official sponsors included ComEd, NASCAR, and Wintrust.

Whether it's having fun with an off-road experience, learning about the capabilities of a pickup truck or taking an EV for a test drive for the first time, the show’s seven indoor test tracks and four outdoor test drive experiences offered more opportunities than ever before for consumers shop, learn and play. Across the 11 ride-and-drive opportunities, the show produced nearly 150,550 in-vehicle driving experiences. 

“In speaking with the manufacturers that participated in an indoor test track and/or outdoor test drive, they noted that the total number of rides during our show far exceeded brand expectations,” said Jennifer Morand, Chicago Auto Show co-general manager. 

The 2023 show also marked the return of fan-favorite specialty events on the show floor. The Toyota Miles Per Hour run hosted more than 500 runners on opening weekend for a 60-minute, 2.4-mile loop through the show floor—even on the Chicago Drives Electric EV track—where participants could 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 nine miles. Chicago Friday Night Flights, a craft beer sampling event within the show, returned for another round with a total of 10 local breweries on hand. More than 650 attendees purchased tickets to sample craft beers as they took in the show. 2023 marked the third year of the beer sampling event, drawing more than double the crowd from 2020.  

The Chicago Auto Show is already underway with plans to return to McCormick Place in February 2024. The Media Preview will be Feb. 8-9; First Look for Charity will be the evening of Feb. 9; and the public show will be Feb. 10-19, 2024.

The Chicago Automobile Trade Association continues to show their care and support to the community by sponsoring Versiti Blood Center of Illinois and A Safe Haven food drive at the 2023 Chicago Auto Show. Emblematic of the new-car dealer members’ dedication to the community, the Chicago Auto Show’s annual blood drive and food drive each resulted in remarkable success.

Versiti’s 2023 Chicago Auto Show Dennis Buckley Memorial Blood Drive ran from February 11-20, during the public run of the show. Dennis Buckley, a former staff member of the Chicago Automobile Trade Association, helped lead the auto show and was a driving force behind the blood drives. After passing away from cancer in 2004, the blood drive was named in his honor. It continues as the largest annual blood drive in the state of Illinois.

This year at the 2023 Chicago Auto Show, the Dennis Buckley Memorial Blood Drive collected an extraordinary 1,047 units of blood. Of the 928 people that registered, 658 of those individuals gave blood for the first time and 370 were diverse donors.

 “We see a lot of first-time donors at the auto show, said Amy Smith, Versiti’s Director of Donor Services Operations.  “People are coming for the opportunity to look at the cars, but end up giving to a lifesaving mission while they are on the show floor.”

“Out of all of our special event drives, we see the highest amount of first time and diverse donors that come through the auto show,” said Smith. “There is a great mix of diverse communities that come to the auto show and they tend to be the most giving.”

Smith explains that diverse donors are crucial because Versiti “ensures the right blood types and matches as we look at rare patients that need blood in the Black and Brown communities. We are constantly in need of O-Positive and O-Negative types of blood, as only 4% of the Black and Brown communities are giving blood.”

A Safe Haven Foundation helps Chicagoans experiencing homelessness become self-sufficient through housing, healthy lifestyles, and employment. The new-car dealers of the Chicago Automobile Trade Association recognize the importance of helping those in their communities. With that, the Chicago Auto Show partnered with A Safe Haven’s Community Food Pantry that distributes food to families in Chicago.

From February 15 through the 17, individuals who brought three cans of food to the Chicago Auto Show received a coupon of $5 off a full-price adult ticket. All the food brought was donated to A Safe Haven and will be distributed to families five miles from McCormick Place. Through the kindness of attendees of the Chicago Auto Show, the amount of food collected doubled from last year. This year, seven gaylord boxes were filled to the top. This equates to four tons of food and provides nutritious meals to thousands of families in need.

"A Safe Haven is grateful to the Chicago Automobile Trade Association for their sponsorship of the Chicago Auto Show Food Drive and their continued partnership in addressing the issue of hunger in our community, said Mark Mulroe, A Safe Haven’s president.  “Each year, we receive thousands of canned goods to aid our pantry and other local food pantries in North Lawndale. This support helps us ensure that individuals and families experiencing homelessness and food insecurity have healthy meals and do not go hungry!”

“I am so humbled to be part of a group of car dealers that takes pride in giving back to the community and for making all of this possible for more than two decades, said Kevin Keefe 2023 Chicago Auto Show chairman.

CATA is hosting RMP’s Tax, Titling & Registration Seminar consisting of the most current and accurate SOS (Secretary of State) and DOR (Department of Revenue) processes. This informative two-hour seminar consists of everything from license and titling basics all the way to more advanced deal processing. Topics include properly titling, registering and remitting taxes to remain compliant with SOS and DOR, adjusting any corrections on completed ERT applications and tips on streamlining your dealership tax, title and registration processes.

Ali Pouliot and Joey White from Vitu will be available to answer any questions during and after the seminar. Lunch will be provided.

CLICK HERE TO REGISTER

U.S. Senators Joe Manchin (D-WV) and Shelley Moore Capito (R-WV) introduced the bipartisan Supply Chain Disruptions Relief Act to provide tax relief to auto dealers experiencing inventory shortages due to global supply chain issues.

“Russia’s war in Ukraine has drastically disrupted supply chains around the world, and it is critical that we protect American auto dealers from the increased financial burdens of inventory shortages. West Virginia has always been an automotive powerhouse, and I’m proud to join this bipartisan effort to provide tax relief to auto dealers across the state and country,” Senator Manchin said. “I encourage my colleagues on both sides of the aisle to support this important legislation, and I will continue advocating for the economic success of American auto dealers.”

“Soaring prices and supply chain disruptions have created significant strain on American families. I’m proud to join with a bipartisan coalition of colleagues to put forth a solution that would bring needed relief, and address West Virginians’ issues regarding vehicle purchases,” Senator Capito said.

The bill would allow new vehicle dealers to delay the recognition of income triggered by the Last-In First-Out (LIFO) recapture for tax years 2020 and 2021, when dealers faced uncontrollable, pandemic-driven inventory shortfalls of new vehicles.

 Specifically, the bill would:

• Provide a statutory determination that the requirements for a qualified liquidation under Section 473 have been satisfied for new motor vehicle dealers that have had a reduction of new vehicles held in LIFO inventory;
• Expand the period to replenish inventory and compute LIFO reserve/LIFO recapture until the tax year ending before January 1, 2026; and
• Direct Treasury to provide regulatory guidance to enable dealers to calculate LIFO during the expanded replacement period.

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: