WELCOME! Transforming the way the world buys, sells, owns and - - PowerPoint PPT Presentation

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WELCOME! Transforming the way the world buys, sells, owns and - - PowerPoint PPT Presentation

Oct 28, 2023 671 likes •1.17k views

WELCOME! Transforming the way the world buys, sells, owns and uses cars 2 AGENDA The Industry & The Way Forward Sandy Schwartz, President and CEO The Economy Jonathan Smoke, Chief Economist New Vehicle Sales Charlie Chesbrough,

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WELCOME!

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Transforming the way the world buys, sells, owns and uses cars

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SLIDE 3

AGENDA

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The Industry & The Way Forward – Sandy Schwartz, President and CEO The Economy – Jonathan Smoke, Chief Economist New Vehicle Sales – Charlie Chesbrough, Senior Economist Used Vehicle Sales – Zo Rahim, Manager of Economic & Industry Insights A Changing Landscape – Michelle Krebs, Executive Analyst Outlook and Summer Playlist – Jonathan Smoke, Chief Economist Q&A

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MID-YEAR REVIEW 2020: The Way Forward Sandy Schwartz President and CEO

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TURNING MASSIVE CHALLENGES INTO MEANINGFUL CHANGE

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ACCELERATE DIGITAL ADOPTION TO MEET CONSUMER DEMAND

  • CREATE THE TOUCHLESS CAR BUYING EXPERIENCE CONSUMERS WANT
  • NURTURE MEANINGFUL LONG-LASTING SERVICE RELATIONSHIPS
  • FREE UP TIME AND RESOURCES TO BETTER SERVE CUSTOMERS

REAL-TIME MARKET INSIGHTS TO FUEL YOUR BUSINESS

  • GAIN AN UNDERSTANDING OF THE MARKET TODAY SINCE THE PANDEMIC
  • ENABLE DECISION-MAKING FOR YOUR BUSINESS BASED ON INSIGHT
  • SHARPEN YOUR UNDERSTANDING OF YOUR CUSTOMERS BASED ON

CONSUMER SENTIMENTS GATHERED

BE HUMAN AT YOUR CORE

  • MAKE CONTINUED SAFETY THE TOP PRIORITY FOR YOUR EMPLOYEES

AND CUSTOMERS

  • NURTURE RELATIONSHIPS AND DEEPEN CUSTOMER TIES BY

GIVING BACK TO YOUR COMMUNITY

  • CHOOSE BUSINESS PARTNERS THAT SHARE YOUR VALUES,

COMMITMENT TO COMMUNITY AND VISION

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MID-YEAR REVIEW 2020: The Economy Jonathan Smoke Chief Economist

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Overall Economy GDP Growth / FRBNY 3.1% (Q2 ’19)

  • 5.0%

(Q1 ’20)

  • 39%

(Q2 ’20 F) Employment Conditions U3 Unemployment Rate 3.6% (May ’19) 13.3% (May ’20) Buyer Confidence UofM Consumer Sentiment 100 (May ’19) 72.3 (May ’20) Wages Earnings Growth 3.3% (May ’19) 6.7% (May ’20) Buyer Ability Disposable Income Y/Y 4.7% (April ’19) 14.4% (April ’20)

OUR ECONOMY: To V or Not to V, That is the Question

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Auto Finance FRBNY $139.1 billion (Q1 ’19) $150.3 billion (Q1 ’20) Interest Rates Effective Fed Funds Rate 2.39% (May ’19) 0.05% (May ’20) Borrowing Costs Average New Auto Loan Rate 6.30% (May ’19) 4.56% (May ’20) Mobility Costs Average Retail Unleaded Gasoline Price $2.82 (May ’19) $1.98 (May ’20)

OUR ECONOMY: To V or Not to V, That is the Question

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Dealer Sentiment Index

S E C O N D Q U A R T E R 2 0 2 0

Strong Weak

How would you describe the current U.S. economy?

55 55 57 23 55 54 57 29 55 55 57 21 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Overall Franchise Independent

Note: Scale 1 - 100

Note: New question introduced in Q3 2019

Dealer Sentiment Index Q2 2020

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Dealer Sentiment Index

S E C O N D Q U A R T E R 2 0 2 0

Strong Weak

48 45 46 49 51 51 44 48 49 48 47 49 20 54 55 54 55 56 59 51 50 54 56 51 55 30 46 42 43 47 50 48 42 47 48 46 46 47 17 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Overall Franchise Independent

How would you describe the current market for vehicles in the areas where you operate?

Note: Scale 1 - 100 Dealer Sentiment Index Q2 2020

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Dealer Sentiment Index

S E C O N D Q U A R T E R 2 0 2 0

Strong Weak

What do you expect the market for vehicles in your area to look like 3 months from now?

55 52 53 70 56 57 49 63 55 51 51 63 45 64 57 57 73 69 61 54 62 62 57 54 66 57 52 51 52 70 52 55 47 63 52 49 51 61 40 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Overall Franchise Independent

Note: Scale 1 - 100 Dealer Sentiment Index Q2 2020

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Dealer Sentiment Index

S E C O N D Q U A R T E R 2 0 2 0

Good Poor

How would you describe the current new- vehicle sales environment?

57 57 61 65 59 60 57 53 54 55 56 57 39 57 57 61 65 59 60 57 53 54 55 56 57 39 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Overall Franchise

Note: Scale 1 - 100 Dealer Sentiment Index Q2 2020

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Dealer Sentiment Index

S E C O N D Q U A R T E R 2 0 2 0

How would you describe the current used- vehicle sales environment?

55 57 55 56 55 57 51 53 56 55 53 53 26 70 68 67 69 72 72 68 66 72 73 66 72 43 50 53 51 52 50 52 46 48 51 49 49 47 20 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Overall Franchise Independent

Note: Scale 1 - 100

Good Poor

Dealer Sentiment Index Q2 2020

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MID-YEAR REVIEW 2020: New Vehicle Sales Charlie Chesbrough Senior Economist

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Source: Cox Automotive/vAuto

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

COVID-19 MARKET IMPACT: New vs Used

  • 60%
  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 2020-01-06 2020-01-13 2020-01-20 2020-01-27 2020-02-03 2020-02-10 2020-02-17 2020-02-24 2020-03-02 2020-03-09 2020-03-16 2020-03-23 2020-03-30 2020-04-06 2020-04-13 2020-04-20 2020-04-27 2020-05-04 2020-05-11 2020-05-18 2020-05-25 2020-06-01 2020-06-08 2020-06-15

YOY Change

Weekly Retail Sales

YOY New YOY Used

Based on 30-day sales, market bottomed week of April 20; Used now showing YOY gains while New still contracting

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Source: Cox Automotive June Forecast, BEA Vehicle Sales

Supply constraints may limit market gains this month, especially pickups

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

12.6

2 4 6 8 10 12 14 16 18 Jun-2018 Aug-2018 Oct-2018 Dec-2018 Feb-2019 Apr-2019 Jun-2019 Aug-2019 Oct-2019 Dec-2019 Feb-2020 Apr-2020 Jun-2020

Total Car Light Truck

Monthly Light Vehicle Sales SAAR (millions)

FORECAST: June Improves, But Not Much

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Source: Cox Automotive/IHS registrations as of May 1, 2020

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

  • 70.0%
  • 60.0%
  • 50.0%
  • 40.0%
  • 30.0%
  • 20.0%
  • 10.0%

0.0% 10.0% Jan Feb Mar Apr

Sales Change 2019 vs 2020

Retail Fleet Retail Lease

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail2020 Fleet2020 Lease2020

Market Share by Channel

Jan Feb Mar Apr

Retail Fleet Retail Lease Jan 3.6%

  • 3.2%

4.3% Feb

  • 0.1%

0.5%

  • 3.7%

Mar

  • 36.2%
  • 40.3%
  • 42.5%

Apr

  • 42.0%
  • 69.1%
  • 58.8%

YTD

  • 20.2%
  • 28.2%
  • 26.9%

Retail Fleet Lease Jan 77.6% 22.4% 30.2% Feb 74.7% 25.3% 30.9% Mar 77.9% 22.1% 28.4% Apr 87.2% 12.8% 21.1% YTD 78.5% 21.5% 28.2%

CHANGING CHANNELS: Retail Gains, Fleet Drops

Fleet likely to remain suppressed through the year, and 0% offers will be tough competition for retail leasing

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Source: Cox Automotive/Kelley Blue Book * Data is a combination of Cox Automotive estimates and actual data

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

OEM June 2019 June 2020 Change Q2 2019 Q2 2020 Change H1 2019 H1 2020 Change GM 253,000* 175,000

  • 31.0%

744,316 488,774

  • 34.3%

1,409,321 1,105,206

  • 21.6%

Ford 218,000* 150,000

  • 31.4%

644,498 424,366

  • 34.2%

1,231,454 938,980

  • 23.8%

Toyota 202,352 155,000

  • 23.4%

608,392 404,749

  • 33.5%

1,152,108 900,496

  • 21.8%

FCA 206,000* 135,000

  • 34.5%

597,685 362,291

  • 39.4%

1,096,040 809,059

  • 26.2%

Honda 135,901 110,000

  • 19.1%

407,208 288,728

  • 29.1%

776,995 587,513

  • 24.4%

Hyundai Kia 122,507 105,000

  • 14.3%

359,413 276,265

  • 23.1%

648,111 549,040

  • 15.3%

Nissan 123,504 70,000

  • 43.3%

351,185 181,352

  • 48.4%

717,036 438,958

  • 38.8%

Subaru 61,512 50,000

  • 18.7%

182,772 132,608

  • 27.4%

339,526 263,199

  • 22.5%

VW 56,339 40,000

  • 29.0%

167,294 109,831

  • 34.3%

316,305 238,267

  • 24.7%

Mazda 22,828 20,000

  • 12.4%

67,722 55,873

  • 17.5%

138,555 123,543

  • 10.8%

Daimler 29,275 18,000

  • 38.5%

85,039 50,236

  • 40.9%

163,917 119,006

  • 27.4%

BMW 34,862 17,000

  • 51.2%

91,230 45,208

  • 50.4%

174,023 109,900

  • 36.8%

Tesla 25,700 10,000

  • 61.1%

53,975 24,350

  • 54.9%

83,875 80,550

  • 4.0%

Mitsubishi 12,317 4,000

  • 67.5%

29,030 10,902

  • 62.4%

71,100 46,465

  • 34.6%

Tata 8,485 5,000

  • 41.1%

27,155 15,272

  • 43.8%

62,405 44,604

  • 28.5%

Volvo 9,934 6,000

  • 39.6%

28,062 18,866

  • 32.8%

50,120 38,351

  • 23.5%

NATION 1,523,786 1,070,000

  • 29.8%

4,444,976 2,889,671

  • 35.0%

8,430,891 6,393,137

  • 24.2%

FORECAST: A Tale of Product, Geography, Incentives & Supply

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Source: Cox Automotive VMA Database

Nation -45% Pennsylvania -72% New York -63% California -56% Texas -31% Arkansas -12% Oklahoma -17% S Dakota -19%

Hardest hit COVID-19 states also suffered huge market declines as shutdowns and concern varied across the country

VIRUS IMPACT: State-Level Sales Loss

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  • Source: Cox Automotive VMA Database

Pennsylvania -2.2% New York -2.1% California -2.0% Florida +1.3 Texas +2.4%

Largest southern states gain significant market share, impacting Brand and Segment performance

VIRUS IMPACT: State-Level Market Share Changes

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  • Source: Cox Automotive VMA Database

Pennsylvania +2.1 California +1.6% New York +1.3% Florida -1.5% Texas -1.7%

Since May 1, hardest hit states gaining lost ground as pace of rebound rises

VIRUS IMPACT: Market Share Changing Again In Recovery Phase

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Source: Kelley Blue Book Vehicle Sales

Less fleet activity and geographic closures affecting market – along with 0% financing

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

  • 40%
  • 35%
  • 30%
  • 25%
  • 20%
  • 15%
  • 10%
  • 5%

0% 5% 10% Nissan Rogue Ford Escape Honda Accord Chevrolet Equinox Toyota Camry Honda Civic Honda CR-V Toyota Corolla NATION Jeep Grand Cherokee Ford F- Series Ram Pickup Toyota Tacoma Toyota RAV4 Chevrolet Silverado

Sales Change (YTD2019 vs YTD2020)

LARGE VOLUME PRODUCTS: Pickups Outperforming

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Source: Kelley Blue Book Vehicle Sales

Hyundai-Kia gaining from SUVs, GM from Trucks, while Nissan losing from collapse of Rental Fleet activity

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

  • 2.0%
  • 1.5%
  • 1.0%
  • 0.5%

0.0% 0.5% 1.0%

N i s s a n F C A B M W M i t s u b i s h i D a i m l e r T a t a H

  • n

d a V W V

  • l

v

  • F
  • r

d S u b a r u T e s l a M a z d a T

  • y
  • t

a G M H y u n d a i K i a

Market Share Change (H1 2019 vs H1 2020)

MARKET SHARE: Many Changes, Many Causes

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Source: vAuto /Cox Automotive VMA Database

2,000,000 2,200,000 2,400,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000 3,600,000 2019-06-17 2019-07-15 2019-08-12 2019-09-09 2019-10-07 2019-11-04 2019-12-02 2019-12-30 2020-01-27 2020-02-24 2020-03-23 2020-04-20 2020-05-18 2020-06-15

Available Supply Last 12 Months

With plants starting to open, and sales pace improving, available supply dropping quickly

20 40 60 80 100 120 140 160 180 200 2019-06-17 2019-07-15 2019-08-12 2019-09-09 2019-10-07 2019-11-04 2019-12-02 2019-12-30 2020-01-27 2020-02-24 2020-03-23 2020-04-20 2020-05-18 2020-06-15

Days’ Supply Last 12 Months

INDUSTY INVENTORY: The Next Recovery Hurdle

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Source: Cox Automotive VMA Database

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Chevrolet Ford GMC Honda Hyundai Jeep Kia Mazda Nissan Ram Subaru Toyota Volkswagen NATION

Days’ Supply

Toyota, Subaru, GMC low on inventory, Nissan, Ford highest

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Chevrolet Ford GMC Honda Hyundai Jeep Kia Mazda Nissan Ram Subaru Toyota Volkswagen NATION

Old Model Year Inventory Share

BRAND INVENTORY: Supply Varies Significantly

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27

Source: Cox Automotive VMA Database

20 40 60 80 100 120 140 C

  • m

p a c t C a r C

  • m

p a c t S U V / C r

  • s

s

  • v

e r F u l l

  • s

i z e P i c k u p T r u c k F u l l

  • s

i z e S U V / C r

  • s

s

  • v

e r H y b r i d / A l t e r n a t i v e E n e r g y C a r M i d

  • s

i z e C a r M i d

  • s

i z e P i c k u p T r u c k M i d

  • s

i z e S U V / C r

  • s

s

  • v

e r S u b c

  • m

p a c t S U V / C r

  • s

s

  • v

e r N A T I O N

Days’ Supply

Subcompact CUV and Hybrids lagging other products; Pickups have most old product but likely not a problem

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% C

  • m

p a c t C a r C

  • m

p a c t S U V / C r

  • s

s

  • v

e r F u l l

  • s

i z e P i c k u p T r u c k F u l l

  • s

i z e S U V / C r

  • s

s

  • v

e r H y b r i d / A l t e r n a t i v e E n e r g y C a r M i d

  • s

i z e C a r M i d

  • s

i z e P i c k u p T r u c k M i d

  • s

i z e S U V / C r

  • s

s

  • v

e r S u b c

  • m

p a c t S U V / C r

  • s

s

  • v

e r N A T I O N

Old Model Year Inventory Share

SEGMENT INVENTORY: Trucks In Tight Supply

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Source: Cox Automotive/Kelley Blue Book Data CY2019

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

Average Purchase APR%

ACURA AUDI BMW BUICK CADILLAC CHEVROLET CHRYSLER DODGE FIAT FORD GENESIS GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAND ROVER LEXUS LINCOLN MAZDA MERCEDES-BENZ MINI MITSUBISHI NISSAN PORSCHE RAM SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO 2 3 4 5 6 7 8 9 10 11 12 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000

Average Transaction Price

In a recession, consumers seek value, lower prices; lenders seek better FICO, lower risk

Consumers seek value, lower prices Lenders seek better FICO, lower risk

CONSUMERS UNDER PRESSURE: Brand Vulnerability

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29

Source: Cox Automotive/Kelley Blue Book Data CY2019

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data

Average Purchase APR% Average Transaction Price

In a recession, consumers seek value, lower prices; lenders seek better FICO, lower risk

Consumers seek value, lower prices Lenders seek better FICO, lower risk

CONSUMERS UNDER PRESSURE: Segment Vulnerability

Compact Car Compact SUV Electric Vehicle Entry-level Luxury Car Full-size Car Full-Size Pick Up Full-Size SUV High Performance Car High-end Luxury Car Hybrid/Alternative Energy Car Luxury Car Luxury Compact SUV Luxury Full-Size SUV Luxury Mid-Size SUV Luxury Subcompact SUV Mid-size Car Mid-Size Pickup Mid-Size SUV Minivan Sports Car Subcompact Car Subcompact SUV Van

3 4 5 6 7 8 9 10 11 $15,000 $25,000 $35,000 $45,000 $55,000 $65,000 $75,000 $85,000 $95,000 $105,000 $115,000

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33% 35% 37% 39% 41% 43% 45% 47% 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020

New Vehicle Deliveries Used MY0-4 Registrations Used Share

Source: Cox Automotive/Kelley Blue Book, IHS registrations

New light vehicle + used MY0-4 uncovers full market potential – “self-competition” increasing

New and Used MY0-4 Vehicle Sales

Source: Cox Automotive analysis of IHS-Markit vehicle registrations data Estimate

“Gently” Used Share

POTENTIAL MARKET: Value In Used Will Compete With New

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MID-YEAR REVIEW 2020: Used Vehicle Sales Zo Rahim Manager, Economic & Industry Insights

31

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USED SALES: Recovery

32

15.0 20.0 25.0 30.0 35.0 40.0 45.0 January February March April May June July August September October November December

Total Used SAAR

2019 2020

Source: Cox Automotive

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MID-JUNE MANHEIM INDEX: Sees Strong Increase

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125.8 146.1

90 95 100 105 110 115 120 125 130 135 140 145 150 Jan-95 Jan-98 Jan-01 Jan-04 Jan-07 Jan-10 Jan-13 Jan-16 Jan-19

January 1995 = 100

Source: Cox Automotive

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WHOLESALE PRICES: Are Now At Highest Point

34

86% 88% 90% 92% 94% 96% 98% 100% 102% 104% 106% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

MY 2017 Retail and Wholesale Price Indices (wk1=100)

2019 Retail Index 2020 Retail Index 2019 Wholesale Index 2020 Wholesale Index

Source: Cox Automotive

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USED INVENTORY: Down

35

0.0 Days 20.0 Days 40.0 Days 60.0 Days 80.0 Days 100.0 Days 120.0 Days 140.0 Days 160.0 Days 01/08/20 01/11/20 01/14/20 01/17/20 01/20/20 01/23/20 01/26/20 01/29/20 02/01/20 02/04/20 02/07/20 02/10/20 02/13/20 02/16/20 02/19/20 02/22/20 02/25/20 02/28/20 03/02/20 03/05/20 03/08/20 03/11/20 03/14/20 03/17/20 03/20/20 03/23/20 03/26/20 03/29/20 04/01/20 04/04/20 04/07/20 04/10/20 04/13/20 04/16/20 04/19/20 04/22/20 04/25/20 04/28/20 05/01/20 05/04/20 05/07/20 05/10/20 05/13/20 05/16/20 05/19/20 05/22/20 05/25/20 05/28/20 05/31/20 06/03/20 06/06/20 06/09/20 06/12/20 06/15/20 06/18/20 06/21/20 Inventory Days' Supply

Days Supply Wholesale Inventory and Retail Inventory

Rolling 7 Day Supply Retail Rolling 7 day Supply Wholesale

Source: Cox Automotive

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CPO SALES: Rebound

36

50,000 100,000 150,000 200,000 250,000 300,000 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Units

Source: Cox Automotive Analysis of Motor Intelligence

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MID-YEAR REVIEW 2020: A Changing Landscape Michelle Krebs Executive Analyst

37

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Source: 2020 Cox Automotive COVID-19 Consumer Impact Study

38

Delaying Vehicle Purchase/Lease*

↑ ↑

7% 17% 28% 35% 34% 33% 34% 34% 31% 27% 37% 36%

Mar 5-6 Mar 13-14 Mar 20-22 Mar 27-28 Apr 3-4 Apr 10-11 Apr 17-18 Apr 24-25 May 1-3 May 15-16 May 29-30 June 12-13

Anticipated Delay in Vehicle Purchase**

(among those planning to delay purchase) 32% 14% 18% 10% 8% 17% 24% 11% 5% 10% 5% 11% 10% 4% 5% 13% 2% 4% 10% 7% 32% 43% 40% 36% 41% 39% 37% 29% 36% 43% 30% 31% 33% 49% 46% 32% 37% 56% 49% 41%

Mar 20-22 Mar 27-28 Apr 3-4 Apr 10-11 Apr 17-18 Apr 24-25 May 1-3 May 15-16 May 29-30 June 12-13

Not sure 6+ months 3-6 months Up to 2 months

*Among 6-month auto intenders

↑

  • Q10. Have you done, or do you think you will do any of the following because of the coronavirus? *Note: Added “have done” in Wave 4
  • Q17a1. How do you anticipate the coronavirus will change the timing of when you purchase or lease a vehicle, if at all?

**Among 6-month auto intenders who will delay purchasing/leasing a vehicle

Factors At Work

  • General uncertainty in the market
  • Civil unrest
  • Continued unemployment concerns
  • Potential for a 2nd wave

A CHAOTIC ENVIRONMENT: An Uptick in Purchase Delays

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SLIDE 39

Source: 2020 Cox Automotive COVID-19 Consumer Impact Study 39

Delaying Vehicle Service/Repair*

(% consumers that said “Yes”)

↑ ↑

5% 13% 29% 37% 40% 37% 32% 32% 32% 28% 25% 25%

Mar 5-6 Mar 13-14 Mar 20-22 Mar 27-28 Apr 3-4 Apr 10-11 Apr 17-18 Apr 24-25 May 1-3 May 15-16 May 29-30 June 12-13

↑ ↑

  • Q10. Have you done, or do you think you will do any of the following because of the coronavirus? *Note: Added “have done” in Wave 4
  • Q18b. What type(s) of vehicle service/maintenance have you delayed or plan to delay?

*Among vehicle owners **Among those who would delay vehicle service

95%

are delaying vehicle maintenance

52%

are delaying vehicle repair

Types of Vehicle Service/Repair Being Delayed**

A CHAOTIC ENVIRONMENT: Flattened the Decline in Service Delays

Source: 2020 Cox Automotive COVID-19 Consumer Impact Study

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40

  • Q24. How, if at all, is your dealership currently selling vehicles?
  • Q14. Does your dealership currently have a digital retailing solution in place?

% of dealers are going beyond just conducting business in their physical location % of dealers with Digital Retailing solutions in place*

77% / 45%

64% 79% 74% 80% 75% 81% 77% 45% 52% 50% 50% 47% 44% 45% 4/10 4/17 4/24 5/1 5/15 5/29 6/12

81% / 78%

Franchise / Independent

87% 84% 89% 90% 82% 88% 81% 75% 75% 78% 86% 84% 82% 78% 4/10 4/17 4/24 5/1 5/15 5/29 6/12

Source: 2020 Cox Automotive COVID-19 Consumer Impact Study

(Franchise) (Independent) (Franchise) (Independent)

A CHAOTIC ENVIRONMENT: A Peak in Digital Retailing Activity

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SLIDE 41

Source: 2020 Cox Automotive COVID-19 Consumer Impact Study 41

  • Q11c. Overall, how did your recent vehicle purchase experience compare to the last time you purchased a vehicle?
  • Q11d. Why was your recent vehicle purchase experience better than the last time you purchased a vehicle?

58% 35% 6%

Much/somewhat better About the same Somewhat worse

How was it better: Consumer Voice

  • “It was way faster and easy.”
  • “Because of the coronavirus I believe the whole

process was faster and the dealership was certainly less crowded.”

How this experience compared to past experiences?

A CHAOTIC ENVIRONMENT: Changes the Buying Experience

63% 56% 56% 55% 53%

Top reason dealers plan to continue with Digital Retailing

Makes my dealership more efficient Great Customer Experience Optimizes Business Process Long-term Strategy Customers Will Want

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SLIDE 42

DIGITAL RETAIL KEY INDICATORS: Year-Over-Year Growth

190% 207% 186% 662%

Product Page Views Started Deals Pencil Deals Submitted Deals Increase in Volume

Source: Internal Consumer Use Data, Cox Automotive Product Analytics

May 2019 vs May 2020

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SLIDE 43

MID-YEAR REVIEW 2020: Outlook and Summer Playlist Jonathan Smoke Resident DJ

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SLIDE 44

MANHEIM USED VEHICLE VALUE INDEX

+2.3%

NEW LEASE VOLUME

3.4M 1.3M 2.0M

CPO SALES FLEET SALES

24%

LEASE PENETRATION LEASE MATURITIES

4.1M

2020 FORECASTS

12.9M

NEW SALES

34.1M

USED SALES

18.0M

USED RETAIL SALES

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SLIDE 45

LOOKING AHEAD: Our Summer Playlist

Sunday Best by Surfaces

A Salute To Dealer Optimism, Innovation And Resiliency

Break My Heart by Dua Lipa

Risk Of New Outbreaks In Many States

Cruel Summer by Taylor Swift

A Rocky Road Ahead with Everything from Unemployment to Election Politics

Be a Light by Thomas Rhett et al

Because It’s The Right Thing To Do

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SLIDE 46

Q&A

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SLIDE 47

Thank You!

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Contact Information:

Dara Hailes Manager, Public Relations Cox Automotive dara.hailes@coxautoinc.com Mark Schirmer Director, Public Relations Cox Automotive mark.schirmer@coxautoinc.com For additional content from Cox Automotive, visit the Newsroom at http://www.coxautoinc.com/newsroom and sign up for From the Newsroom, our biweekly newsletter: http://eepurl.com/gHs8OH