The Intersection 5-21-23

In Monday’s Automotive News:

Tekion’s big win: Tekion was ready to test its state-of-the-art dealership management system a few years ago, so it took the unusual step of buying two dealerships as a real-world laboratory for its products. Tekion CEO and founder Jay Vijayan tells Automotive News that the move, in part, helped the company’s software engineers gain a greater understanding of customer needs and wants. They were able to test more software functions simultaneously than with a pilot, and also make course corrections based on how users responded.

Will 2023 begin to see a return to normal for retailers? Supply chain issues slowed the sale of new vehicles in the first half of 2022, and the second half saw consumer demand lag in response to inflation and rising interest rates. One result: Cars in the U.S. are older than ever, as consumers hang on to what they have or opt for used-vehicle purchases. In 2022, retail and fleet sales of new light vehicles in the U.S. dropped to 13.9 million, down 8 percent from 2021 and the lowest level recorded in more than a decade. That trend is good news for the aftermarket and service sectors, with the average age of U.S. cars and light trucks now up to 12.5 years. It’s a fleet in need of more repair and maintenance. Still, retailers are hoping for a more positive outlook in 2023, Automotive News reports.

Growing popularity of scooters, e-bikes creates urban safety conundrum: Car-centric urban planning poses a challenge across the micromobility sector and a new study from the Insurance Institute for Highway Safety suggests it may be time for some rethinking. The study found stricter speed limits might be pushing electric scooter travelers onto sidewalks with more frequency, and that’s creating real safety concerns as scooters and e-bikes negotiate space with pedestrians. What can be done to address the growing urban mobility issues with all the options consumers have for getting from point A to point B? Automotive News looks at the issue..

Weekend headlines

U.S. demands recall of 67 million airbag inflators: NHTSA is demanding the recall of 67 million airbag inflators because it believes there is a safety defect, but auto supplier ARC Automotive rejected the U.S. regulator’s request.

Luminar CEO acquires majority stake in Forbes magazine: Auto tech billionaire Austin Russell, 28, plans to serve as a visionary for the Forbes brand and won’t be involved in day-to-day operations.