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California’s Vehicle Market Recovering, Improvements Expected to Continue

Contact: Jenny Dudikoff
Phone: 916-599-5415

SACRAMENTO, CA – As consumers continue to navigate the challenging times of 2020, California’s vehicle market is showing signs of recovery amid the global pandemic. With notable improvements since the second quarter, the industry is trending to continue improving going into 2021, with pent up consumer demand and low interest rates continuing to support the anticipated rebound.

As a result of the Coronavirus, vehicle sales, both new and used, took a tremendous hit during the early months of 2020. However, the third quarter has shown to be more promising for the industry, despite the expected overall decline this year. According to the California Auto Outlook Third Quarter 2020, anticipated new vehicle sales are projected to reach 1.67 million in 2020, a 20 percent decline from 2019 and reach about 1.9 million next year, an increase of 12 percent from this year.   

“With the rate of decline in the California market significantly eased in the third quarter, we are encouraged by the improvements we are seeing in the marketplace and especially in consumer demand. While there are many factors involved in this recovery including consumer confidence, available inventory, slow improvement in employment, and the uncertainty around COVID-19, we are on the right trajectory,” said California New Car Dealers Association Chairperson, Mark Normandin, owner of Normandin Chrysler Jeep Dodge Ram FIAT. “The automotive industry has always been resilient with the ability to swiftly adapt, and this year is no different. We will continue to work hard to support the rebound of sales while having an emphasis on health and safety to keep our customers and employees safe and healthy.”

New and Used Sales

While COVID-19 and its impacts on the economy has taken a significant toll on all vehicle sales this year, used vehicle sales continue to perform better than new vehicles sales. Used vehicle sales have experienced an 8.2 percent decline during the first nine months of 2020, compared to a 24.6 percent decline for new vehicle sales in the same timeframe. For a national comparison, U.S. new vehicle sales are down 18.4 percent.

Segment Market Share

Larger, more family-friendly vehicles continue to be in high demand by consumers, with non-luxury SUV’s leading the in segment market share in California, making up 33 percent of sales, an increase of 3 percent from last year. Pickups and vans make up 18 percent of the market, an increase of 2 percent from last year and small cars falling three percent since last year, from 19 percent to 16 percent.  

Alternative Powertrains

The electric and hybrid vehicle market has continued to show growth in 2020, with new hybrid vehicle sales making up 6.4 percent of the market, new electric vehicle sales at 6.1 percent, and plug-in hybrid vehicles making up 1.8 percent of the market. The market share for these vehicles has seen a slight increase from this time in 2019, from 13.4 percent to 14.3 percent through the third quarter of 2020.

Model and Brand Rankings

During the third quarter of 2020, the Honda Civic held on to its top spot as California’s best-selling model in the new vehicle market, with Toyota, Honda, and Ford as the top brand leaders in the state. Toyota also holds the number one spot for the best-selling compact SUV with the RAV4, and the best-selling brand in six-year-old or newer used vehicle market, with nearly 13 percent market share.

Regional Variances

While regional variances between Northern California and Southern California are similar, Southern California declines are occurring at a slightly slower pace. Northern California new passenger car sales are down 32.3 percent and new light truck sales are down 12.4 percent. The southern portion of the state is doing only slightly better with a decline in new passenger car sales of 28.1 percent and a decline in new light truck sales of 11.5 percent.

The California Auto Outlook Third Quarter 2020 Market Report provides comprehensive information on the state’s new vehicle market. The report includes annual trends, two-year perspective, segment watch, including the top five models in each segment, brand scoreboards, regional comparisons and more. The complete report can be accessed here.

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California Auto Outlook, is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian.

About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair.  Our members sold more than 2 million new cars and trucks in 2019 and employed more than 140,000 Californians, significantly contributing to our state’s economy.  As the nation’s largest state association of franchised new car and truck dealers—with more than 1,100 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. 

California’s 2020 Vehicle Market Down, But Expected to Continue Improving

SACRAMENTO, CA – As the nation and California ease back into a much-needed vehicle sales rebound amid the global pandemic, new data shows that the low point for the year has likely been reached and the industry will begin a slow climb back up heading into 2021. 

As a result of the Coronavirus, vehicle sales, both new and used, took a tremendous hit during the early months of 2020. Despite the sharp, unprecedented sales decline not seen since the Great Recession and the beginning of a slow recovery, we can expect an increase going into 2021. According to the California Auto Outlook Second Quarter 2020, anticipated new vehicle sales are projected to reach 1.63 million in 2020, a 22 percent decline from 2019 and exceed 1.8 million next year.  

“This year is unprecedented in so many ways. For dealerships across California, it started with the abrupt changes in vehicle sales. The first four months of the year were some of the lowest points the industry has seen in quite some time, and we are just beginning to find our way out with the hope that the worst is behind us. We see the results of pent-up consumer demand but are trying to balance that with low inventory,” said California New Car Dealers Association Chairperson, Mark Normandin, owner of Normandin Chrysler Jeep Dodge Ram FIAT. “As dealerships look to run their businesses with additional emphasis on health and safety for consumers and employees, we are ready and eager to offer the same value we did pre-COVID, but we are watching  whether consumer confidence returns to pre-COVID-19 levels. 2020 has been a long and trying road, but we will continue to do what it takes to move forward in a safe, healthy and prudent manner.”

New and Used Sales

While COVID-19 and its impacts on the economy has taken a significant toll on all vehicle sales, used vehicle sales are performing better than new vehicles, experiencing a drop of 14.5 percent compared to the new vehicle market at a 26.9 percent decline. For a national comparison, the U.S. market is down in new vehicle sales by 23.5 percent.

Passenger Cars vs. Light Trucks

Light trucks continue to outperform passenger cars, experiencing a 20.5 percent decline in the first half of the year versus a 35.6 percent drop for passenger cars. However, the light truck market share in California remains lower than that of the rest of nation, holding 62.5 percent market share in the Golden State compared to 75 percent market share nationwide.

Alternative Powertrains

The electric and hybrid vehicle market continues to grow, showing a very slight increase from the first half of 2019, from 13.2 percent to 13.4 percent for the first half of 2020.

Model and Brand Rankings

During the second quarter of 2020, the Honda Civic regained its top spot as California’s best seller in the new vehicle market, with Toyota, Honda, and Ford as the top brand leaders in the state. Toyota also holds the number one spot for the best-selling non-luxury SUV brand and the best-selling brand in six-year-old or newer used vehicle market, with a 13 percent market share.

Regional Variances

Regional variances between Northern California and Southern California are trending with the overall state and national declines, with Northern California experiencing a slightly higher incidence of decline. The north saw a decline of 31.6 percent in passenger car sales and 16.5 percent decline in light truck sales with the southern portion of the state doing only slightly better with a decline in passenger car sales of 29.5 percent and a decline in light truck sales of 15.7 percent.

The California Auto Outlook Second Quarter 2020 Market Report provides comprehensive information on the state’s new vehicle market. The report includes annual trends, two-year perspective, segment watch, including the top five models in each segment, brand scoreboards, regional comparisons and more. The complete report can be accessed on CNCDA’s website at: https://www.cncda.org/news/auto-outlook-2020-q2/

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California Auto Outlook, is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets. When reporting these auto industry trends please acknowledge the Data Source: Experian.

About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair.  Our members sold more than 2 million new cars and trucks in 2019 and employed more than 140,000 Californians, significantly contributing to our state’s economy.  As the nation’s largest state association of franchised new car and truck dealers—with more than 1,100 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. 

DMV Investigation Finds Volvo Program Illegal, Now Enforcement Action Must be Taken

Contact: Jenny Dudikoff
Phone: 916-599-5415

SACRAMENTO, CA – The California New Car Dealers Association (CNCDA), representing nearly 1,200 new car dealerships statewide, has been vindicated in seeking review by the Department of Motor Vehicles (DMV) of Volvo Car USA concerning Care by Volvo (CbV).  The DMV agreed with CNCDA and found multiple aspects of the ongoing program illegal.

After CNCDA filed a petition early last year with the California New Motor Vehicle Board (NMVB), the Board heard arguments and unanimously ordered that DMV investigate CNCDA’s claims that as a licensee of the of the DMV, Volvo had been in violation of the California Vehicle Code (VC) by introducing CbV.

CbV is aimed at getting consumers to lease their cars directly from Volvo, instead of buying or leasing them directly from a Volvo dealership. Described by Volvo as a “subscription” program, CbV offers customers a two-year lease with a fixed, standardized, pre-determined monthly charge including cost of the vehicle, insurance, maintenance, road hazard protection and normal wear and tear. CbV is currently available for two Volvo models – the XC40 and the S60. Both models are also sold and leased by Volvo dealers directly to consumers outside of the CbV program. Through CbV, Volvo undercuts its dealers on price when the dealers lease the same vehicle to consumers.

In 2019, CNCDA alleged that the CbV program is illegal and violates several provisions in the California VC aimed at protecting franchisees and consumers. The NMVB unanimously agreed that CNCDA’s claims were warranted and directed the DMV to investigate the following specific allegations, each of which constitute a separate ground for disciplinary action against Volvo’s DMV license under the law:

  1. Care by Volvo creates competition between manufacturer and dealers
  2. Care by Volvo is an illegal franchise modification without notice to its dealers
  3. The Care by Volvo Program preferentially allocates vehicles and refers sales to dealerships controlled in part by Volvo
  4. The Care by Volvo Program undermines the purpose of prohibiting payment packing

After a six-month long investigation, the DMV has issued their written report which finds Volvo’s CbV “subscription” program to be illegal and found four specific violations. The DMV agreed with CNCDA on the first three claims listed above, resulting in “potential legal consequences,” constituting cause for license discipline pursuant to the California VC.  With these findings, the DMV has submitted its report to the NMVB for its consideration.

“We are extremely pleased with the outcome of the investigation and continue to be encouraged that the New Motor Vehicle Board and the DMV agreeing with our essential claims against Volvo. While the successful investigation confirmed Volvo’s illegal actions, it is shocking that Volvo is still offering the Care by Volvo program in California despite the clear findings in the DMV report.  Illegal behavior by manufacturers must be stopped and Volvo should suffer the consequences for their flaunting of California law. Our franchise laws need to be upheld to protect dealers and consumers,” stated Brian Maas, President of the California New Car Dealers Association. “Our dealer members continue to support innovation, including subscription-based models, but DMV licensees such as Volvo must follow the law. We therefore urge the New Motor Vehicle Board and DMV to take immediate action to force Volvo to come into compliance or face severe sanctions.” 

For more information and details of the DMV’s full report, please click here.

Click here to view the May 14, 2020 Cease and Desist letter from CNCDA attorneys to Volvo Car USA.

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About CNCDA

For more than 96 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair. Our members sold more than 2 million new cars and trucks in 2019 and employed more than 140,000 Californians, significantly contributing to our state’s economy. As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. 

California’s 2019 Used Vehicle Market Increased, While New Vehicle Sales are Expected to Remain Strong in 2020

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – California new vehicle sales closed out 2019 as predicted, with slightly less than 2 million units sold statewide. While market conditions continue to shift throughout the state and national landscapes, 2019 California used vehicle sales remained well above average. According to the California Auto Outlook Fourth Quarter 2019, used vehicles 6 years old or newer increased by nearly 8 percent.

“While there was a slight decline in new vehicle sales in 2019, used vehicle sales increased over the same period, making  it another successful year for California new car dealers and their customers,” said California New Car Dealers Association Chairperson, Mike Weseloh, owner of Weseloh Chevrolet-Kia in Carlsbad. “With average new vehicle prices continuing to shift upward, it is unsurprising to see this shift toward used vehicles. What remains to be seen is whether this trend continues or reverses during 2020.”  

While new vehicle sales are expected to dip in 2020, the expected sales will exceed the depths of the Great Recession in 2009 by more than 780,000 units, totaling about 1.82 million this year. This is an expected decline by 3.7 percent from 2019, totaling a smaller decline than the 2018 to 2019 drop.  

2019 experienced a noteworthy increase in electric vehicle sales, with hybrids and electric vehicles making up more than 13 percent of the total vehicle market share. Most prominent in the space was an increase in the hybrid vehicle market share from 4.2 percent in 2018 to 5.5 percent in 2019. 

Additionally, the Honda Civic retained the top spot as the best-selling model in California for 2019, while the Toyota Camry came in second.  However, Toyota remained the California market leader at 17.2 percent market share while Ford held on to that title nationally at 13 percent.

The California Auto Outlook Fourth Quarter 2019 Market Report provides comprehensive information on the state’s new vehicle market. The report includes: a segment watch, including the top five models in each segment; a market perspective, comparing California nationally; brand scoreboards; a five-year sales trend comparison and more. The complete report can be accessed on CNCDA’s website at: www.cncda.org

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California Auto Outlook, is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets.  When reporting these auto industry trends please acknowledge the Data Source: IHS Markit.

About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair.  Our members sold more than 2 million new cars and trucks in 2018 and employ more than 140,000 Californians, significantly contributing to our state’s economy.  As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. 

California’s Electric and Used Vehicle Markets Growing as New Vehicle Sales Decline in 2019

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – As the California new vehicle market continues to experience mild declines, California’s electric vehicle market share is experiencing continued growth along with the used vehicle sector. As predicted, new vehicle sales are falling and are expected to slip to 1.9 million units in 2019, according to the California Auto Outlook Third Quarter 2019.

“California new car sales continue to shift downward. However, as this happens, we continue to see new upward trends emerging, specifically the growth in the electric vehicle segment, the slight but steady increase in used car sales and the increase in demand for larger vehicles,” said California New Car Dealers Association Chairperson, Ted Nicholas of 3 Way Chevrolet Cadillac in Bakersfield. “These changes don’t necessarily mean consumers are purchasing fewer vehicles, it’s just an indication that their purchasing behavior is changing, and we need to continue to adapt to those changes.” 

While year-to-date overall new light duty vehicle registrations have dropped 5.1 percent in California and 0.7 percent nationally, electric and hybrid sales have reached an all-time high of 13.4 percent combined market share for the first nine months of 2019. The overall market share makeup includes 5.5 percent electric, 5.5 percent hybrid and 2.4 percent plug-in hybrid.  

The used vehicle market for the first three-quarters of 2019 remains solid, increasing by about 1 percent, with used light truck sales  driving the increase at 3.8 percent while passenger car sales are down 1.4 percent from this time last year.

Regional sales continue to stay on trend with state and national sales. Northern California experienced an overall 5.6 percent decline in new vehicle sales, with an 8.8 percent decrease in passenger car sales and a decrease in light truck sales by 3.3 percent. Southern California experienced slightly less of a decline with a 5.3 percent overall decrease, including passenger car sales falling by 10.8 percent and light truck sales dropping just 0.4 percent.

Toyota and Honda continue to lead the way as market share leaders in the state, with Ford, Chevrolet and Nissan coming in next as the most popular brands in California. The Honda Civic continues to stay on top as California’s best-selling passenger car and the Ford F-Series comes in as the best-selling light truck.

The California Auto Outlook Third Quarter 2019 Market Report provides comprehensive information on the state’s new vehicle market. The report includes: a segment watch, including the top five models in each segment; a market perspective, comparing California nationally; brand scoreboards; a five-year sales trend comparison and more. The complete report can be accessed on CNCDA’s website at: www.cncda.org

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California Auto Outlook, is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets.  When reporting these auto industry trends please acknowledge the Data Source: IHS Markit.

Governor Newsom Signs California New Motor Vehicle Franchise Bill

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – The California New Car Dealers Association, representing nearly 1,200 new car dealers statewide, has achieved a huge victory in its aggressive efforts to strengthen and update California’s new motor vehicle franchise laws.

Governor Gavin Newsom has signed AB 179 into law. Overcoming significant manufacturer opposition, AB 179 unanimously passed the California State Legislature without a single no vote and now has the support of the Governor. AB 179, authored by Assemblymember Eloise Reyes (D-San Bernardino), contains a number of provisions that will improve California’s franchise laws, while continuing to protect the California franchise system, California new car buyers and local businesses. Key components of the bill include:

  1. Strengthening California’s franchise laws
  2. Addressing inappropriate treatment of dealers by manufacturers
  3. Enforcing manufacturer accountability for unlawful actions against dealers
  4. Conforming California franchise laws to recent actions in other states

“This is a significant step forward in our commitment to a stronger and more equitable new motor vehicle franchise system for California new car dealers. With AB 179 taking effect January 1, 2020 this is a huge victory for all Californians, local businesses and consumers alike. This bill brings California’s new motor vehicle franchise laws into the 21st century by establishing a level playing field between local independently-owned dealerships and multinational vehicle manufacturers,” said California New Car Dealers Association President, Brian Maas. “Franchise laws exist to govern the relationship between dealers and manufacturers, California was overdue for significant improvements in the laws that will continue to protect dealers, their businesses and their patrons. We are pleased and encouraged that Governor Newsom agrees and supports our approach to improvements in California’s franchise laws.”  

CNCDA is appreciative of the work achieved by the author and all stakeholders on AB 179 and will remain committed to a stronger, more protected new motor vehicle franchise system.  

For more information on the provisions in AB 179, please click here.

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About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair. Our members sold more than 2 million cars and trucks in 2018 and employ more than 140,000 Californians, significantly contributing to our state’s economy.  As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. For more information, visit www.cncda.org.

California Electric and Hybrid Vehicle Sales Increasing, Other Powertrains Decreasing in Sales

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – The California green vehicle market continues to experience increases year over year, specifically in the hybrid and electric vehicle space. According to the California Green Vehicle Report, while these vehicles have achieved an all-time market high, market trends for other powertrain types show notable decreases. Despite the progress in green vehicle sales, consumers still overwhelmingly prefer gasoline powered vehicles.

“While the new vehicle market is experiencing a slight decrease in sales, we are encouraged that consumers are still purchasing vehicles. With an increase in electric and hybrid vehicle sales, it is safe to say that California consumers are opening up more to the idea of alternative vehicles, but the traditional gas powered vehicle is by far still the preference of more than eighty percent of California drivers,” said California New Car Dealers Association Chairperson, Ted Nicholas of Three-Way Chevrolet in Bakersfield. “California still has a long way to go to address consumer concerns when it comes to Zero Emission Vehicles, including issues like charging infrastructure, convenience, range and affordability. These factors cannot be ignored, and all play a role in consumer purchasing behavior,” Nicholas added.  

Electric vehicle sales in California have increased dramatically so far in 2019 from this time last year, experiencing an increase of 63.7 percent. Hybrid vehicle sales are up by 22.1 percent year to date. This trend holds true regionally, where combined electric and hybrid vehicle sales are up 14.9 percent in Northern California and 9.9 percent in Southern California.

“While electric vehicle sales are up quite significantly year to date, it is noteworthy that the vast majority of the electric vehicle market sales can be directly attributed to Tesla’s Model 3, with more than 33,000 sales year to date. This begs the question: is this sustainable or is this a temporary swing in the marketplace when considering Tesla’s distribution timelines,” stated Brian Maas, California New Car Dealers Association President. “There is a lot to consider when looking at these electric vehicle numbers, it is premature to assume this type of consumer behavior and purchasing trends of one particular brand are permanent.”

Gasoline powered vehicle sales are down 7.3 percent year to date, but consumers are still purchasing the traditional Internal Combustion Engine (ICE) more than 80 percent of the time, with overall sales making up 81.6 percent of the market.

Additionally, brand share in the alternative powertrain market has shifted this year. With Toyota typically being the front runner, Tesla now takes that title with 32.6 percent market share. Rounding out the Top 5 California brands for hybrid, plug in hybrid, electric and fuel cell vehicles are Toyota, Honda, Ford and Lexus.

The California Green Vehicle Report provides comprehensive information on the state’s green vehicle market. The report includes a segment watch, including top 20 best-selling alternative powertrain vehicles; best sellers in market segments including hybrid, plug in hybrid, electric and fuel cell; market trends by powertrain type and brand shares in alternative powertrain market. The complete report can be accessed on CNCDA’s website here.

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California Green Vehicle Report is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets.  When reporting these auto industry trends please acknowledge the Data Source: IHS Markit.

About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair. Our members sold more than 2 million new cars and trucks in 2017 and employ more than 140,000 Californians, significantly contributing to our state’s economy. As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. 

California New Car Dealers Unanimously Granted DMV Investigation Sought in Volvo Petition

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – The California New Car Dealers Association (CNCDA), representing nearly 1,200 new car dealerships statewide, successfully convinced the New Motor Vehicle Board (NMVB) on August 15th to unanimously direct the Department of Motor Vehicles (DMV) to conduct an investigation into Volvo Car USA concerning Care by Volvo (CbV).

At a public hearing  before the NMVB to consider the petition filed earlier this year by CNCDA,  the Association presented arguments against Volvo, claiming that as a licensee of the DMV, Volvo has been in violation of the California Vehicle Code (VC) by introducing CbV.

CbV is aimed at getting consumers to lease their cars directly from Volvo, instead of buying or leasing them directly from a Volvo dealership. Described by Volvo as a “subscription” program, CbV offers customers a two-year lease with a fixed, standardized, pre-determined monthly charge including cost of the vehicle, insurance, maintenance, road hazard protection and normal wear and tear. CbV is currently available for two Volvo models – the XC40 and the S60. Both models are also sold and leased by Volvo dealers directly to consumers outside of the CbV program.

CNCDA claims allege that the CbV program is illegal and violates several provisions in the California VC aimed at protecting franchisees and consumers, each of which constitutes a separate ground for disciplinary action against Volvo’s DMV license under the law.

The NMVB unanimously agreed that CNCDA’s claims were warranted and directed the DMV to investigate the following specific allegations:

  1. Care by Volvo Creates Competition Between Manufacturer and Dealers
    • CbV diverts customers away from dealers to Volvo with the ultimate goal of bypassing the franchise model entirely.
    • Such business practices are prohibited under California law and undermine the fundamental purpose of California’s robust new motor vehicle regulatory system.
  2. Volvo’s Failure to Give Written Notice to Franchisees and the Board About CbV
    • The VC prohibits franchisors such as Volvo from making franchise changes that would “substantially affect the franchisee’s sales or service obligations or investment” absent 60 days’ written notice to the affected dealers and to the NMVB.
    • CbV is a franchise modification as it fundamentally alters the way dealers sell vehicles and requires a notice to the franchisee and to the NMVB which Volvo did not provide.
  3. The CbV Program Preferentially Allocates Vehicles and Refers Sales to Dealerships Controlled in Part by Volvo
    • California auto manufacturers are prohibited from giving preferential treatment to dealerships controlled by them in whole or in part.
    • Volvo assigns a share of certain highly desirable, limited supply vehicles to CbV dealers to the exclusion of non-CbV dealers who are not controlled by Volvo.
  4. The Care by Volvo Program Undermines the Purpose of Prohibiting Payment Packing
    • CbV’s flat monthly lease amount conceals the actual cost of the CbV vehicle and the bundled services and fails to disclose that the costs will vary between CbV customers.
    • California law mandates that dealers disclose, prior to contract drafting, all charges for goods and services to be added to a contract for the sale of a vehicle. Volvo seeks to escape this restriction by requiring dealers to perform its DMV paperwork.

“We are extremely pleased with the outcome of the hearing and are encouraged that the New Motor Vehicle Board agreed that all four of our claims against Volvo deserve DMV investigation. This is just the first step in ensuring that manufacturers, specifically Volvo, stop going around their franchisee business partners in an attempt to retail vehicles directly. Franchise laws exist to protect dealers from this type of behavior,” stated Brian Maas, President of the California New Car Dealers Association. “Our dealer members support innovation, including subscription-based models, but we are against violating the law. There is a right way and a wrong way to do business in California, Care by Volvo is the wrong way. We look forward to the results of DMV’s thorough investigation into our claims and are hopeful that this illegal behavior will be stopped and punished.”

The NMVB also requested the DMV provide the Board with a written report on the results of its investigation within 180 days. 

For more information and details of the petition, please click here.

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About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair. Our members sold more than 2 million new cars and trucks in 2018 and employ more than 135,000 Californians, significantly contributing to our state’s economy. As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. 

California Vehicle Market Trending to Fall Below 2 Million Sales in 2019

 

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – The California new vehicle market is experiencing a mild decline as we proceed through the second half of 2019. As predicted, sales are expected to decline 4.6 percent overall in 2019. According to the California Auto Outlook Second Quarter 2019, new vehicle sales fell 5.6 percent during the first half of the year, with light truck sales declining 1.1 percent and passenger car sales falling 10.8 percent.  

“As we continue to see the California vehicle market shift, with a slight decline in new car sales, we remain encouraged that numbers continue to stay above historical industry standards. It is not a huge surprise that after years of increased sales, we are seeing the market level off, reflecting the broader economic and political climates. However, there is optimism that used car sales are up, demonstrating that consumers are still purchasing vehicles, but their purchasing behaviors are shifting more towards the used vehicle market,” said California New Car Dealers Association Chairperson, Ted Nicholas of 3 Way Chevrolet Cadillac in Bakersfield

The used vehicle market for the first half of 2019 remains solid, increasing by more than 5 percent. Light truck sales were up 8.5 percent and passenger car sales were up by about 3 percent from this time last year. 

Regional sales continue to stay on trend with state and national sales. Northern California experienced an overall 5.4 percent decline in new vehicle sales, with a 6.5 percent decrease in passenger car sales and a decrease in light truck sales by 4.5 percent. Southern California experienced more of a decline with a 5.9 percent overall decrease, including passenger car sales falling by 11 percent and light truck sales dropping just 1.4 percent.

 Counter to the overall downward trend, electric and hybrid vehicle sales have experienced growth, reaching 13 percent combined market share for the first half of 2019. Electric vehicles are on pace to exceed 100,000 sales for 2019 and make up 5.6 percent of the market share while hybrids come in with 5.2 percent of the market. Plug-in hybrid sales continue to fall and make up only 2.2 percent of the market share.

New car sales increased for eight brands so far this year, with Toyota and Honda holding on to first and second place as the most popular brands in California. The Honda Civic continues to stay on top as California’s best-selling passenger car and the Ford F-Series comes in as the best-selling light truck.

The California Auto Outlook Second Quarter 2019 Market Report provides comprehensive information on the state’s new vehicle market. The report includes: a segment watch, including the top five models in each segment; a market perspective, comparing California nationally; brand scoreboards; a five-year sales trend comparison and more. The complete report can be accessed on CNCDA’s website at: www.cncda.org

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California Auto Outlook, is produced for CNCDA by Auto Outlook, Inc., an independent research company specializing in the analysis of statewide and regional automotive markets.  When reporting these auto industry trends please acknowledge the Data Source: IHS Markit.

California’s New Car Dealers Contribute to a Greener Sacramento

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – California’s new car dealers have stepped up and made a significant contribution to making Sacramento a greener place to live, work and play. Sacramento residents and visitors can now enjoy a new, convenient, and easy to use electric vehicle (EV) charging station to accommodate their EV needs, right in the heart of Midtown Sacramento.

The California New Car Dealers Association (CNCDA), owners of the parking lot on the busy corner of 16th and L Street, collaborated with Electrify America (EA), to provide four EV DC Fast chargers to the urban core of Sacramento. Now up and running, they are among the first of ten EA charging sites that will be established in the Sacramento region.

“We are excited to be part of the green movement taking place locally in Sacramento. Having the opportunity to provide the crucial and conveniently located space for these DC Fast Chargers is a testament to the commitment of California’s new car dealers statewide. Our members want to be part of the solution in making California a greener place to live and do business,” said Brian Maas, president of the California New Car Dealers Association. “We are eager to become more involved in local community efforts promoting zero emission vehicles and will continue to lead by example.”

DC Fast Chargers

As part of a nationwide, multi-year plan, EA’s infrastructure in the CNCDA parking lot includes ultra-fast DC Fast Chargers, capable of 50, 150, and 350 kW, designed and tested for ease of use with brightly lit body and screen making them easy to find in a parking lot day or night, including  a long cable to increase accessibility for users. DC Fast Chargers are capable of providing a full charge to compatible electric vehicles in less than 30 minutes.

CNCDA’s Commitment to Zero Emission Vehicles (ZEVs)

In 2018, California’s new car dealers sold more than 240,000 ZEVs, plug-ins, and hybrids, making up 12 percent of the new vehicle market statewide. This accounts for nearly 50 percent of ZEV sales nationwide. California’s new car dealers remain committed to leading the nation in ZEV adoption. To learn more about California’s new car dealers’ commitment to ZEVs, click here.

Sac-to-Zero

As the location host, CNCDA will be participating as a partner in a highly anticipated community event, Sac-to-Zero, taking place Saturday, June 8th from 5:00PM – 8:00 PM. Located in the CNCDA parking lot at 1601 L Street, Sac-to-Zero will be celebrating the movement towards zero emission vehicle transportation in Sacramento. Sac-to-Zero will take place during Sacramento’s Second Saturday, and is a free, family event that will have music, food, drinks, test drives and more information about how Sacramento residents can increase their ZEV footprint in the region. For more information on the event, please visit www.SactoZero.com/launch.

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About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers.  CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair.  Our members sold more than 2 million new cars and trucks in 2017 and employ more than 140,000 Californians, significantly contributing to our state’s economy.  As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy.

CNCDA is working to continuously provide our members with the most up to date information on the coronavirus as it pertains to dealerships.

Visit our Dealership Coronavirus Resources webpage for more information.

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