According to Edmunds, BMW dominated U.S. luxury sales in the first quarter. With the election fast approaching, what implications will it have for the high-end luxury car market? In today’s episode of Inside the automobileTom Maoli, President and CEO of celebrity caris here to share his thoughts on what we’re seeing in the market and economy today.
Key takeaways
1. Tom Maoli mentions that the automotive sector got off to a slow start in January and February, but saw a significant increase in March and April. He notes that despite challenges such as falling margins, high payments and supply chain issues, car sales remain strong, indicating consumer demand.
2. Maoli expresses concerns about the impact of political decisions on the automobile industry. He discusses potential policy changes, such as President Biden’s push to promote electric vehicles by 2033. He contrasts that with a hypothetical return to a more traditional approach under Trump, including an emphasis on drilling and solving market challenges.
3. The conversation includes insights into business strategies, such as leveraging lower interest rates for acquisitions. Maoli suggests that despite current pricing dynamics and industry challenges, it is a good time for dealers looking to grow their group due to favorable interest rates and continued transportation demand.
4. Additionally, Maoli discusses challenges such as gaps in electric vehicle infrastructure, supply chain crises, and the need for better political understanding of the realities of the automotive sector. However, he also sees opportunities, such as dealers adapting to changing consumer preferences and focusing on service departments amid changing market dynamics.
5. Nonetheless, Maoli highlights personal successes within the industry, including his daughter’s accomplishments in running a Ford store and expanding the company’s reach. This highlights the importance of effective leadership and adaptability to navigate the automotive business landscape.
“Four years ago, interest rates were 3%. As interest rates fall, these prices will rise again. It’s still a strong industry and, like I said, you can’t stop transportation, and if they “They don’t buy cars, they fix them.” –Tom Maoli
