Our roundup of the latest news from metro Detroit and Michigan businesses as well as announcements from government agencies. To share a business or nonprofit story, please send us a message.
J.D. Power: Demand Outpaces Supply in November Retail Vehicle Market
New-vehicle retail sales for November 2022 are expected to be relatively flat when compared with November 2021 and demand is ahead of supply, according to a new joint forecast from J.D. Power in Troy and LMC Automotive.
Retail sales of new vehicles this month are expected to reach 933,400 units, a 0.3 percent decrease from November 2021. November 2022 has one additional selling day than November 2021. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 3.8 percent from 2021.
Total new-vehicle sales for November 2022, including retail and non-retail transactions, are projected to reach 1.1 million units, a 5.6 percent increase from November 2021. Comparing the sales volume without adjusting for the number of selling days translates to an increase of 9.9 percent from 2021.
“November results demonstrate that vehicle production is continuing to improve, with available retail inventory exceeding 1 million units for a second consecutive month and a larger share of manufacturers’ production being allocated to fleet customers,” says Thomas King, president of the data and analytics division at J.D. Power. “The increased production is enabling a 9.9 percent increase in total vehicle sales (non-selling day adjusted) for the month of November.
“On the retail side, demand continues to exceed supply, as evidenced by continued strength in transaction prices, retailer profits, inventory turn rates, and minimal manufacturer discounting. However, as inventories and interest rates rise, these metrics will show signs of either moderation or decline.”
New-vehicle transaction prices continue to rise but at slower pace than earlier this year. The average price in November will set a record for the month of $45,872, an increase of 3.1 percent from a year ago.
The record transaction prices mean that buyers are on track to spend nearly $42.8 billion on new vehicles this month — the highest level ever for the month of November and a 7 percent increase from November 2021.
“Dealer profits are falling but remain extraordinarily strong,” Kind says. “Total retailer profit per unit — inclusive of grosses and finance and insurance income — is on pace to be $4,359, down 15.4 percent from a year ago, but still more than double 2019 levels. The decline is due primarily to fewer vehicles being sold above MSRP. In November, nearly 41 percent of new vehicles are being sold above MSRP, which is down from 50 percent in July 2022.”
Total aggregate retailer profit from new-vehicle sales for the month of November is projected to be down 12.2 percent from November 2021, reaching $4.1 billion, the second-best November on record.
Other details from the J.D. Power report include:
- Average incentive spending per unit in November is expected to reach $1,009, down from $1,551 in November 2021. Spending as a percentage of the average MSRP is expected to fall to 2.2 percent, down 1.3 percentage points from November 2021.
- Average incentive spending per unit on trucks/SUVs in November is expected to be $1,024, down $525 from a year ago, while the average spending on cars is expected to be $1,014, down $544 from a year ago.
- Retail buyers are on pace to spend $42.8 billion on new vehicles, up $2.8 billion from November 2021.
- Truck/SUVs are on pace to account for 77.6 percent of new-vehicle retail sales in November.
- Fleet sales are expected to total 168,900 units in November, up 56.8 percent from November 2021 on a selling day adjusted basis. Fleet volume is expected to account for 15% of total light-vehicle sales, up from 10 percent a year ago.
- Average interest rates for new vehicle loans are expected to increase to 6.37 percent, 238 basis points higher than a year ago.
- Used-vehicle prices are falling and leading to less trade-in equity for new vehicle buyers. The average trade-in equity for November is trending toward $9,197, a 0.4 percent ($33) increase from a year ago but down $905 since the peak in June 2022. For context, November 2022 trade equity is still more than double the pre-pandemic level.
“The full-year outlook for 2022 has slipped to 81.5 million units, which is just 70,000 units higher than 2021,” says Jeff Schuster, president of global forecasts at LMC Automotive. “In 2023, we expect to see a rebalancing of supply and demand, and the overall volume effect due to supply disruption should fall to 2.9 million units from 7.3 million units in 2022. The 2023 outlook is tempered slightly by weakening economic conditions, down to 84.6 million units from our previous forecast. The market remains quite dynamic as some improving variables are countered by negative ones.”
Nation’s First DraftKings Sports & Social to Open at Somerset Collection Dec. 1
DraftKings Inc. and Live! Hospitality and Entertainment will open the country’s first DraftKings Sports & Social venue Dec. 1, at Somerset Collection in Troy.
Created with the sports fan in mind, the 10,400 square-foot space DraftKings Sports & Social is designed to offer customers a “high-energy, first-class dining and entertainment experience.”
“It’s been great collaborating with Live! Hospitality and Entertainment on this exciting project, which will deliver sports fans a great game day experience,” says Jeremy Elbaum, senior vice president of business development at DraftKings. “With a shared commitment to innovation and entertainment, we look forward to opening our doors to customers in the metro Detroit area.”
Scott Steenrod, COO of Live! Hospitality and Entertainment: “Our core mission with DraftKings Sports & Social is to raise the sports bar and set the new standard for dining and sports entertainment. Forging this strategic relationship with DraftKings, an industry leader in sports betting, has allowed us to create an iconic entertainment and dining destination where sports entertainment and sports betting will come together to create a truly premier experience. We’re thrilled for the public to experience the venue first-hand at the height of the NFL and college football seasons.”
DraftKings Sports & Social will look to offer fans an immersive sports entertainment atmosphere, the next best game watching experience outside of a stadium or arena. Highlighted by a state-of-the-art 32-foot LED media wall, game days will feature emcees and DJs, live fan-cams, competitions and games, and audio and visual displays including music and light effects.
Eligible guests will be able to enjoy DraftKings’ customer-friendly mobile platforms to place bets using the DraftKings Sportsbook and Casino products along with playing daily fantasy sports from their mobile devices across various sports, including football, basketball, baseball, golf, MMA, soccer, tennis and more, while watching multiple games live.
DraftKings Sports & Social will serve up an elevated gastropub menu of made-from-scratch items for lunch and dinner seven days a week, as well as brunch on the weekends.
For more information, visit here.
Ford Reveals New ‘Powering the Community’ Thanksgiving Parade Float
The Parade Co. and Ford Motor Co. on Tuesday unveiled a new float titled “Powering the Community.”
Designed and built by Parade Co. artists, Ford’s “Powering the Community” float is more than 100 feet long. The first section features an illuminated replica of the iconic, reimagined train station — the centerpiece of Michigan Central, the 30-acre hub nestled between Detroit’s Corktown and Southwest neighborhoods that Ford is helping reinvent alongside a dedicated Michigan Central team and a diverse array of partners like Google, the State of Michigan and the City of Detroit, to advance new technologies and skills programs that help usher in a more accessible, sustainable future for all.
The middle section demonstrates how Ford and its partners plan to activate spaces for the community in and around Michigan Central.
The third section — and focal point of the float — showcases the important role Ford’s community centers play in providing access to food and other essential resources for local neighborhoods in Detroit. With locations on the city’s East side and in Southwest Detroit, Ford Resource and Engagement Centers provide job training and placement services, tax and legal services, food distribution, youth programming and more.
The float’s community center is receiving power from a Ford F-150 Lightning that tips up to 24 feet off the ground and has boxes of food being distributed out of its frunk (front trunk). The moving lights along the float’s bridge represent the flow of electricity and power source the F-150 Lightning can provide. The people carrying boxes throughout the float represent the thousands of Ford employees that help distribute food and volunteer in communities in the city and across metro Detroit each year.
“Ford Motor Co. is an amazing community partner from every aspect imaginable, and a remarkable supporter of The Parade Co. and America’s Thanksgiving Parade presented by Gardner White,” says Tony Michaels, president and CEO of the Parade Co. “We worked with Ford on the design and our amazing artisans brought it to life to capture Ford’s powerful community impact and innovation — from Michigan Central to the F-150 Lightning. It is a thrill and honor to unveil this new float with Ford today.”
Eaton Rapids Boy is Blue Cross Blue Shield of Michigan Turkey Day VIP Winner
Evan Dexter, 14, from Eaton Rapids, south of Lansing, has won the eighth annual Blue Cross Blue Shield of Michigan #MIKidsCan Turkey Day VIP Sweepstakes.
As a result, he will ride on Blue Cross’ float in America’s Thanksgiving Day Parade presented by Gardner White, escort the gameday football to Ford Field for the annual Thanksgiving Day Classic, and watch the Detroit Lions take on the Buffalo Bills.
Dexter’s Turkey Day VIP Sweepstakes prize package also will include a custom jersey and commemorative football, 10 club seats for his family to watch the game and a Thanksgiving dinner served at Ford Field. The sweepstakes supports Blue Cross’ ongoing commitment to children’s physical fitness and good nutrition through its #MIKidsCan campaign and ongoing partnership with the Detroit Lions’ Play 60 program. More than 3,500 kids entered this year’s sweepstakes.
Detroit Lions, Comerica Launch Double the Impact for My Cause My Cleats Campaign
The Detroit Lions and Comerica Bank have announced a new community collaboration as part of the annual My Cause My Cleats campaign, encouraging the community to “Double the Impact” by donating to the Pure Heart Foundation, which provides children of incarcerated parents the opportunity to reimagine their lives and break the cycle of generational involvement in the criminal justice system.
The community can support the My Cause My Cleats endeavor by making a donation to the Pure Heart Foundation via its website.
The Detroit Lions will match the first $100,000 donated to the campaign through Friday, Dec. 9. To kick off the collaboration, Comerica is donating the first $10,000 to the Pure Heart Foundation, a 2022 Detroit Lions Inspire Change social justice initiative grantee and community partner of Comerica.
“Each year, My Cause My Cleats allows players to showcase their own worthy causes, and we believe this offers a tremendous platform to bring the community together in an effort to make a difference,” says Steve Davis, Michigan market president for Comerica. “Through our relationship with the Detroit Lions, we have collectively sought opportunities to impact our communities by directing financial assistance to nonprofit partners, offering volunteer support, and highlighting the missions and work accomplished by incredible organizations who transform the lives of our youth, families, and neighborhoods.”
Located in Detroit, Pure Heart Foundation supports children of incarcerated parents and provides services and support to break the cycle by improving their daily lives. Pure Heart has a multi-pronged, holistic model that focuses on six critical areas, including mental health, academic enrichment, family reunification, recreation and arts, cycle breaker initiative and mentorship.
United Way Encourages Volunteering, Donations on Giving Tuesday Nov. 29
United Way for Southeastern Michigan is encouraging people to spend time volunteering, in addition to making financial donations on Giving Tuesday, Nov. 29.
Masco has agreed to match all donations up to $25,000 for the annual impact day, which helps families locally and across the country.
Nearly 40 percent of families struggle to meet their basic needs. There is a lot of focus on financial contributions (which are important and needed), but United Way also is bringing attention to the need for volunteers. This is especially important as we enter the holiday season and there are still so many families struggling to make ends meet with food, housing, and childcare.
United Way has set ambitious goals of 40,000 hours of volunteer time and $40 million in donations raised through individual, corporate, and philanthropic community contributions.
Detroit Brand The Lip Bar Works with Kierra Sheard for Divinely Feminine Collection
Detroit-based beauty brand The Lip Bar has unveiled a collaboration with celebrity artist, businesswoman, and fellow Detroit native Kierra Sheard-Kelly for a limited-edition Divinely Feminine Collection.
The Divinely Feminine Collection is “the perfect kit for busy women with big goals and bigger favor.” It features:
- Bawse Lady Liquid Matte
- Minimalist Lip Gloss
- Straight Line Eyeliner
- Exact Arch Micro Brow Pencil
- Big Timer Mascara
- TLB Limited Edition Holiday Makeup Bag
Realty Executives Home Towne Named 2022 Extraordinary Brokerage
Realty Executives Home Towne, a full-service real estate brokerage with locations in Port Huron, Washington Township, Chesterfield Township, Shelby Township, and Troy has been named the 2022 Extraordinary Brokerage award recipient during the recent Realty Excellence Awards.
The award is issued to one brokerage per year. Nominees must demonstrate how to build a real estate business that puts clients and agents first. The brokerage should boast powerful growth in agent headcount and market share each year, inclusive culture, and unparalleled professionalism. These brokerages often offer a high level of brokerage support, sense of community, and forward-thinking leadership.
Home Towne received the award from franchisor Realty Executives International during the recent annual conference hosted in Nashville.
“Receiving the Extraordinary Brokerage award was both unexpected and an honor,” says Frank Locricchio, owner of the firm. “Our company wouldn’t be where it is at today without the hard work and support of our amazing executives. They are the best in the business, hands down. It is a team effort, and every day we work together to provide the best client experience possible while helping build each others’ businesses.”
For more information, visit here.
Giffels Webster Awarded Michigan Top Workplaces Honor for Sixth Consecutive Year
Giffels Webster, a Detroit-based consulting firm specializing in planning, land development, and infrastructure solutions, has been named one of Michigan’s 2022 Top Workplaces by the Detroit Free Press.
Giffels Webster has earned this award for the sixth consecutive year, which coincides with the company’s celebration of its 70th anniversary.
“I speak for the entire team at Giffels Webster when I say that we are thrilled to be named a Top Workplace for the sixth straight year,” says Scott Clein, president and partner at Giffels Webster. “It’s even more amazing to know that this honor is based solely on the positive feedback from our team.”