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Identical Invoice and MSRP Pricing, Honda Extends CPO, Airlines Brace For Impact of Summer

Author
More Than Cars Media Network
Published
Mon 18 Apr 2022
Episode Link
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Monday doesn’t disappoint with fresh ideas and challenges to kick off the new week. Today we’re talking about the future of MSRP and the Dealer’s role in new car sales, Honda making moves in the CPO space, and consumer indicators in air travel are a sign of the times regarding employment. It’s a good day to make some trouble. 

  • What will Dealers do when Invoice and MSRP are identical? 
    • Could it really happen? 
    • What could it mean for the Dealer and consumer
  • Honda offering CPO warranty program for vehicles up to 100k miles
    • There are now 3 tiers of CPO in the “HondaTrue” program
    • A market share and brand-loyalty play “ …53% of certified pre-owned customers are new to the brand and 42% later return to buy a new Honda vehicle, hopes this keeps them in the Honda family for years to come.”
      • Lifetime mapping, “"We're trying to build a relationship that lasts a lifetime," Dan Rodriguez, who leads Auto Remarketing for American Honda, tells USA TODAY by phone. "We look at it as a way to bring (young buyers) in through Honda TrueUsed, graduate them to CPO, which is a little bit newer car, and then eventually, bring them to a new car."
    • How does this give a pre owned edge over Carvana/Carmax sales?
    • What will this do to aftermarket warranty sales?
  • Airlines struggle to keep up with staffing and scheduling as the summer opens up
    • Jet Blue is reducing flights to keep up even after hiring over 3000 workers
    • “In an effort to make sure it has enough flight attendants working, JetBlue is offering a $1,000 bonus to flight attendants who don’t call out of work through May 31 and an extra $100 per trip for flight attendants who pick up open trips on days off, according to a memo to crew.”
    • “Southwest raised starting wages to at least $17 an hour and no longer requires that most airport workers have a high-school diploma. Some 15% to 20% of new hires don’t show up on their first day for some roles, said Greg Muccio, the airline’s senior director of talent acquisition. “We were sort of shocked by it. We’ve just had to adjust,” he said.”
    • “The operations staffing will be on a razor’s edge,” said Tim Donohue, co-founder of Aerology, a startup that works to predict flight disruptions. “The razor’s edge barely works when things go as scheduled.”



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Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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