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We were 15 members strong (?) via Zoom, also joined by Kathy's husband, Steve. John MacFarlane offered our invocation. An announcement was made that we need folks to identify and recruit individuals to give programs at Rotary. Fines and brags followed and this writer led off with news of a new business venture. John MacFarlane then reported he won $50 by participating in the Wahpeton-Breckenridge pro football "get the last digits of the score right for both sides" contest, less of course the upfront $20 donation. Buzz Lundeen said he received his fine and brag card and that the Victor Lundeen Company was hosting Larry Dorn the next day to sign the book Larry wrote about his father. Kathy Austvold reported her husband was leaving the next day to do a mission project in Lake Charles, Louisiana. John MacFarlane also reported that Eunice did get COVID but made it through and they are both getting their first immunizations on January 23rd. Laurel Nelson was our program and she gave us a report on the state of the automobile industry. Prior to the pandemic their business had 77 full-time employees and after first laying off 25 to 30 of them they brought all but four back, those four with underlying health or other concerns. Before the pandemic they had a new car inventory worth $15 to $20 million but now they keep $5 to $6 million and the turnover is pretty fast. One of the big issues has been dealing with work absences due to the pandemic. Sales of new cars are down about 14.5% at their Fergus Falls location, while state-wide it is closer to a 21% reduction. Manufacturers are finding it hard to find semi-conductors, with the average vehicle now having about 50-60 mini-computers, some coming closer to 100. Parts are also a big problem. The one big positive is the low interest rates right now. While historically the average age of a car on the road in the U.S. has been 10 years, it is now 12 years, with the average cost of a new vehicle transaction at $40,000. With the trend toward electrification and driver assisted technology, another big concern is the lack of standardization in these areas. Laurel and Brent's Ford dealership spent $21,000 in special tools just to be able to service the all-electric Mustang, while it would cost them $140,000 to get equipment to service Hummers. There is also a question on how to dispose of electric batteries and electric cars also pose additional problems for first responders. The aforementioned trends work a lot better in population centers and warmer climates, so the preferences of the populations on the coasts carry greater weight than ours here in the middle of the country. The Minnesota dealer's association is working very hard on the Governor's effort to adopt California emission standards in Minnesota. Laurel noted that 40% of the business of border dealerships in Minnesota is with people from out-of-state and that if these emission standards are adopted they will add $1,100 to $1,500 to the average cost of a vehicle; they will also eliminate the ability of dealerships in our state to do trades with dealerships in neighboring states. If the whole country were to adopt the standards, then it would not be that big of deal but doing it state-by-state will be a big problem. Laurel also commented that they are being forced to become students of cybersecurity. The Nelsons have been here 29 years now and are still looking forward notwithstanding the challenges Laurel identified. She marvels at the younger generation being so technologically savy and willing to change. Thank you Laurel for a most informative presentation! |
