The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier is a regular weekday show where progressive Automotive Dealers and industry partners aren’t afraid to make some trouble by pushing back on many popular, but failing, beliefs that persist in the
It's a fine Friday across the Automotive Industry as we talk about Dealers banding together to become a formidable charging network. We also talk about stand alone stores bringing experience to the forefront, as well as a leaked email seething with desperation from one startup EV maker. GM and Ford Dealers are doing the work to build a formidable charging infrastructure across the US as Ford and GM take the front seatThe much contested and debated Ford EV Dealer certification requirements will result in 1920 EV-ready dealerships. This will be the most extensive network in the US by number of locations and will place the brand in the mix with Tesla, EVgo, and Electrify America.GM is also working with its dealers to provide a robust charging network. Nearly 1,000 dealers have enrolled in the level 2 charger program. The plan involves bringing up to 40K charging stations to rural America. If this happens, it will double the amount of these types of chargers in the US. Level 2 chargers are slower than Level 3 chargers, but still pack a punch and can fully charge many vehicles in a couple of hours. Perfect for parks, sports venues, and shopping mallsExperience is king as several new, stand alone dealerships are opened for Porsche and Jeep which strive to provide dedicated spaces to provide convenience, a robust shopping experience, and even walkabilityPorsche Brooklyn highlights a new, Porsche Urban Store format is a street-level gallery with intentionally timeless styling in the heart of this creative and professional neighborhood. The 10k square foot showroom features a high-end cafe, a ‘fitting room' for customizing your new Porsche, a Porsche Lifestyle Store and a dedicated New Car Delivery area.The same building houses the Brooklyn Nets training facilityThere is a 16k sq/ft service and parts facility one block awayChristian Meunier, Jeep brand CEO; Jay Feldman, Feldman Automotive CEO, Jim Morrison, head of Jeep brand, North America gathered for a photo in the new stand-alone Feldman Jeep of Clarkson“This new, free-standing Jeep store captures the heritage and the imagination of the Jeep brand and its enthusiasts,” says Jay Feldman, CEO of the Feldman Automotive Group. “We are paving a new path for future Jeep consumers.”The 16k sq ft store has been designed to be uniquely Jeep and features over a dozen technicians specializing in in Jeep brand productsAmidst pressure from customers who are tired of waiting for their new Lucid motors EV,Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Thursday is all the rage as we talk about the results of the Q3 Cox Dealer Sentiment Survey. We also talk about Carvana's current spot, Apple putting data recovery in user's hands, and the Lego indicator we've all been waiting for. The quarterly Cox Automotive dealer sentiment survey of 1000 franchised and independent dealers communicates that profits remain strong however concerns are rising over interest rates and the overall economySince mid 2021, lack of inventory had been the top concernThe survey focuses on what Dealers think will be the case 3 months from now based on current conditionsAffordability remains a top issueNew vehicle prices holding, pressure to incentivize is rising, the need for sales responsiveness is growingEarl Stewart from EST is expanding training sessions for sales staff, pushing them to respond to customers quickly and ranking them in comparison to their peers. “I'm disturbed because my salespeople have become order takers” Carvana stock price is reeling after a pact made from lead investment firmsThe investment groups are now forced to negotiate with Carvana for debt restructuring together for the next 3 months instead of separately“In the case of Carvana, its bonds are all unsecured. But the company could borrow against assets like real estate, effectively putting existing creditors further back in line to collect money if the company were to file for bankruptcy.”One concern is a looming liquidation of inventory, potentially driving a lower wholesale market, which is already down 14.6%, for used vehicles than expected over the next 3-6 monthsEnd to end encryption is coming to Apple's iCloud backup for their device suite.Apple says it will be available to the public in the US by the end of 2022 and will come to the rest of the world in early 2023.Recovering any data will now be solely the responsibility of the user, similar to backup codes used in cryptoLego has gone EV with their ‘Electric Sports Car' Set. Now we're official. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
We are in dealerships across the east this week, but that won't slow down the news drip. We are chatting up how it looks like Apple is pulling back on their autonomous dreams, Americans are leaning into side hustles, and how a coach got a team culture right enough to dismantle expectations.Not so fast on that fully autonomous Apple car. According to sources at Bloomberg, the company will be pushing the planned release of their first vehicle from 2025 to 2026 and scaling back its Level 5 autonomy ambitions for a system that still requires a good old steering wheel and pedals and will only operate autonomously on highways. Sound familiar? Still designing a system that allows operator to play games, browse social media, etcProcessor - named Denali - after the tallest peak in North America is 4x more powerful than Apple's current highest end chip andWill use radar, LiDAR, and cameras to navigateApple is also planning on offering insurance for ownersMore Americans are taking on side hustles to deal with rising costs In November, the economy added 263,000 jobs, the Bureau of Labor Statistics said on Friday, topping economists' average forecast of 200,000, according to Dow Jones.Due to inflation, rising household debt, and lower savings, over 60% of Americans are either already or considering picking up a second source of income.“”Gig workers still mainly gravitate toward ride-hailing services driving, delivering groceries, and renting out living and storage space, which usually don't require a long resume or experience, Neighbors.com said.”A soccer team that was not supposed to even make it out of the knockout round is now on to the quarterfinals, thanks to an inspiring coach dubbed Mr. Avocado Head.Morocco is the first Arab nation to ever make the quarterfinals after stunning soccer powerhouse Spain in penalty kicks late on TuesdayThe impressive part is the culture within the team Walid Regragui has createdThose close to the team feel the team understands how they are playing for their whole country, despite less than half being native bornThe team will actually give the coach's head a slap during practicesFamilies of the team are actually staying in Qatar with the teamGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's an energetic Tuesday in Retail Automotive as we cover Ford CEO Jim Farley's recent comments as the EV certification deadline closes. We also cover Best Buy's move to meet consumers where they are at, as well as an in-car integration with the popular mapping app WazeFord CEO, Jim Farley seems pleased that about two thirds of US Ford Dealers have opted in to the new EV certification plan that will allow enrolled dealers to continue to sell EVs beyond 20231920 Dealers have signed on with 85% choosing the top, Certified Elite track It's not easy going as NY, Illinois, Connecticut and others have filed lawsuits, protests the Motor Vehicle Board, and involved US Senators noting potential violations of franchise laws to which Ford disagrees withFarley maintained that Tesla started this bet against the dealer model and he intends to compete to keep it: “The future of the franchise system hangs in the balance here,” Farley said. “The No. 1 EV player in the U.S. bet against the dealers. We wanted to make the opposite choice.”Farley said he stands by the rollout of the program stating, “There's always a better way, But I don't think we made, really, any big mistakesDid you know Best Buy has a 40,000 sq/ft warehouse next to its HQ where 120 employees are on-set in a studio like environment ready to give virtual human-to-human service on ten categories of products from cameras to treadmills? Served over 250k people since 2021 in what the company calls ‘digital clienteling' Customer satisfaction has increased 20%Customers initiate connections with virtual store experts through the website or app and can interact via text, chat, phone calls, live-streaming or screen sharing.200 additional remote team members from across the enterprise available to provide expertise for the virtual storeBest Buy's online sales this fiscal year are on track to generate five times the digital sales pre-pandemicWazers around the world rejoice as Renault becomes first car manufacturer to package the popular map system Waze directly into vehicle's multimedia system without the need for a smartphone“Having Waze's real-time navigation, routing and alerts built into the display of Renault's vehicles, makes for a simplified and seamless driving experience,” said Aron Di Castro, director of marketing and partnerships at Waze.This is made possible by the vehicles' use of the Android Automotive OS also being currently integrated with other manufacturers: Polestar, General Motors, Chevrolet, and Volvo with Honda also on the wayThe deep integration of the Google software will give drivers increased control over many more elements of the driving and media experience including the ability to control smart devices at home through the vehicles voice controlsGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to another great week in Retail Auto as we talk about the newest auto tech school on the west coast and why it's significant. We also share Liza Borches' tips and strategies for moving aged inventory, as well as the truth on a rumored Swiss EV ban. An new, $22.3M advanced automotive tech school in a northern LA auburn is now open at Pierce college, thanks to a $3.5B California bond measure to invest in facilities that better prepare students for jobsNew requirements for being an Auto Tech are rapidly changing and now require a growing number of computer, technology, and programming skillsAlex Villalta, associate professor of automotive service technology and a graduate of the Pierce program, says “The students are coming in with laptops instead of toolboxes.”“Northridge Toyota in California hires Pierce graduates,” said shop manager Edward Lujan, who is in charge of everything from recruiting service technicians to ensuring they pass all the certification exams needed to advance. He has been in the service industry for 35 years, all of them with Toyota and Lexus.The California New Car Dealers Association awarded $413,000 over the last 5 years to 334 California students to help cover training costsWe got into the details of pricing aged inventory with CMA owner Liza Borches on Friday's All Things Used Cars room on Clubhouse with David Long. Here are key takeaways from Liza:Expect diversity. Every store, every team, and every market is going to require a nuanced strategy. However, no matter the nuances, some fundamentals exist.The right end user exists for every car. Moving inventory between your group's stores or out of your network could be vital to selling inventory while retaining more value.Repricing with wisdom. Before changing the price, call every relevant lead to gauge interest. You may be able to sell it with a smaller price drop."You were right. We have adjusted the price and wanted to give you dibs."30-day supply. Buying and selling within the same market will allow for greater control (and profits) as the market shifts.Posts about Switzerland proposing a ban on using EV's to stave off an energy shortage gained some steam on LinkedIn and elsewhere, but it's not as seismic as it seems. As it turns out, there really needs to be an emergencyThe basis for the reports is the ‘Ordinance on Restrictions and Prohibitions on the Use of Electric Energy' and notes that ‘level 3' could include limiting driving to essential travel only such as going to work, doctors, to get food etc. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's time for a Friday as we talk about one Senator's plan to sic the FTC on Ford. We also talk about Tesla incentivising customers to take delivery now, as well as the growing trend of kids passing on cash for meta-stuff. US Senator from Connecticut, Richard Blumenthal shared his plan to petition the FTC to launch an investigation into Ford's new EV certification program under suspicion that it is violating US franchise lawsIn a press conference he and other Connecticut legislators, along with the Connecticut Automotive Retailers Association asked for to once again delay their Dec 2nd deadline for opting in or out of the programCARA co-chair Jeff Aiosa told Automotive News, "Dealers look at their sales and service agreements with the manufacturer as a partnership to represent all the brand's products as long as they're in good standing,"To unilaterally change that agreement for a program is patently unfair."Ford responded by saying there would be no extension: "The voluntary program empowers our dealers on when and how to enroll and we understand that some dealers operating in markets with limited EV penetration may chose not to enroll in this round," and also noted there will be another entry point in 2025Don't call it a ‘discount' but Tesla is giving a rare $3750 ‘credit' as a ‘price adjustment' to US consumers who take delivery of a Model 3 or Y before the end of the yearThis appears to be half of the upcoming $7500 EV tax credit which will come into play next year and is likely in response to consumers canceling or postponing orders due to wait times or the upcoming creditLikely don't want to be sitting on inventory at the end of Q4 as demand is likely to remain very high into next yearAs reported yesterday, Tesla's profit per vehicle is $9500 as opposed to it's nearest EV competitor Toyota at $1300While adults struggle to find good use for the metaverse, Kids are easily socializing and spending money there as they are turning their nose up at allowance cash in exchange for virtual currency to spend in metaverse-like games such as Roblox.“They were handing it right back to me and saying, ‘Can you convert this to Robux?'” said Mr. Robleto, a 46-year-old web designer in Rockville, Md. “I don't even need to have cash in the house. I can just go online and put $5 into their accounts.”12 yr old daughter Kaylee bought virtual Louis Vuitton handbag and her 10 year old sister bought a Gucci jacket both cost under $5 eachAbout half of Roblox's 60 million daily users are under the age of 13Many brands are jumping in developing games for Roblox including the “Chipotle Burrito Builder”, Walmart Land, where kids earn virtual coins for “verch” such as headphones as well as clothes from Walmart's in house-brands for their avatars and Nikeland modeled after itGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
December 1st doesn't disappoint as we talk about Hyundai and Kia crushing November, illegal voicemails, people quitting on quitting, and Metallica's new song (yep). Hyundai and Kia sales jumped a whopping 43% and 25% respectively as November deliveries set an all time sales record. Hyundai inventory was up 12% over last month and has more than doubled YoYThe public and the FCC rejoice as ringless voicemails have finally been declared illegal, ending an era of phone spam that annoyed everyone without even letting them know. The ringless calls are now covered by the same Telephone Consumer Protection Act (TCPA) rules which condemn calls without explicit customer consentFrequently used by telemarketers, political campaigns, and a good number of auto dealersIn June, a court awarded 2.5M in a class action suit against Moss Bros. Auto Group in Riverside, CA citing "aggressive unsolicited marketing" Job quitting has just hit a 17 month low, down to 2.6% as fewer workers voluntarily left their jobs according to the Labor Department's Job Openings and Labor Turnover SurveyRecent layoffs and inflation could be affecting employee sentiment and securityJobs market still remains historically strongT0 the joy of rural service departments across the country, Metallica has released its first single since 2016. Just half a day after Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's the last day of November and we're ready to flip into the final month of the year as we talk about new S&P data that shows Tesla's shrinking market share. We also talk about the used cars that are holding their value best. Of course, we have to talk about US Soccer for a moment or Kyle might explode. Data from S&P Global Mobility shows that Tesla continues to lose market share to lower priced alternatives Like the Ford Mustang Mach E and Hyundai Ioniq 5Tesla owned 79% in 2020, 69% in 2021, and is down to 65% so far this yearOut of the more than 525,000 EVs registered over the first nine months of 2022 in the US, nearly 340,000 were Tesla vehicles as compared to the 46 other nameplatesS&P predicts the 46 nameplates will grow to over 150 by 2025In the over $50k price point, Tesla still commands 85% of the marketThe report notes that the overall EV market is growing rapidly putting Tesla in the best position to capitalize:"Tesla today is the brand best equipped for taking advantage of the immediate surge in EV demand, though manufacturing investments from other automakers will erode this advantage sooner than later."NADA released an article of the The 10 Used Cars That Hold Their Value Best After 5 Years The vehicle search engine iseecars analyzed over 3M 5 yr old used cars sold in 2022, found the average five-year-old car depreciated by only an average of 33.3 (17% less than the depreciation in 2021Fuel efficient smaller cars held their value bestJeep Wrangler with an average 7.3 percent depreciation and $2,361 difference Jeep Wrangler Unlimited with an average 8.7 percent depreciation and $3,344 downPorsche 911 with an average 14.6 percent depreciation and $20,6234 difference Toyota Tacoma with an average 14.9 percent depreciation and $5,926 difference Honda Civic with an average 16.3 percent depreciation and $4,237 difference Subaru BRZ with an average 18.2 percent depreciation and $5,985 difference Ford Mustang with an average 19.4 percent depreciation and $7,528 difference Toyota Corolla with an average 19.8 percent depreciation and $4,617 difference Nissan Versa with an average 19.9 percent depreciation and $3,183 difference Chevrolet Camaro with an average 20.2 percent depreciation and $7,981 differenceUS Men's Soccer team defeated Iran 1-0 to advance to the knockout roundKyle…goGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to *almost* the last day of November as we talk about leaked plans to revamp Tesla's Model 3, one F150 Lightning user's experience with a ‘bricked' truck, and is that app ‘social media' or ‘entertainment'?According to a Reuters exclusive, Tesla is working on the first revamp to their Model 3 sedan that includes an exterior update.Codenamed “Project Highland” one of the primary objectives is to remove unnecessary parts from the interior in order to focus on high value areas (like the display) and reduce production costs"Over and over, we found parts that are not needed. They were put in there just in case or by mistake. We eliminated so many parts from a car that did nothing," Musk said in an interview at a Baron Funds conference earlier in the month.Visible changes are a part of an effort to bring more ‘newness' to the vehicle as the market is flooded with competing vehiclesTesla has the most profitable EV on the market by far at $9500 per vehicle as contrasted with about $1300 for ToyotaEV enthusiast and Ford F150 Lightning owner Eric Roe (also owns a Kia Niro EV) tweeted that he plugged his truck into an Electrify America station, and heard a loud pop which was followed by a bricked truckHe followed up the tweet with details of being on a family vacation with his 2 dogs 1000 miles from home and posted pics of his truck on a flatbed which wouldn't even shift into neutral and had to be dragged onto the tow truckEmma Bergg, Global Director, Electric Vehicles & BlueOval City Comms for Ford Motor Company reached out right in the twitter feed and both Ford and Electrify America are said to have engineers on the incident to determine the causeThe twitter feed is full of user feedback on which is to blameNew tech, new problemsIs social media becoming less ‘social' and more ‘media'. Platforms like Tiktok are counting on it. Leroyson Figueira, a senior creative director at London-based marketing agency 160over90 explains: “It seems that every new digital platform that is not a website nor a utility app is immediately branded a social platform. Without pausing to think, TikTok has also been branded ‘social' by our industry when it is anything but.”“TikTok has film publishers and a film audience. It's not at all like Facebook, Instagram or Twitter. It's more like a TV channel or Netflix than a social platform. But the most democratic channel in history.”Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome back to a Turkey filled world as we throttle down on the last 5 weeks of 2022 starting with the Automotive News All Stars list. We also talk about VinFast delivering its first US vehicles, as well as the retail numbers from Black Friday. The annual list of Automotive News All Stars was announced where 40 individuals are selected from across OEM, Dealer, and Industry Partners. According to AN, “Our All-Stars persevered, delivering excellent products and services to their customers, introducing innovations that are key to the future of mobility, and making other significant contributions to the industry in myriad ways.”Elon Musk for being an early adopter or EVs, leading the US luxury segment, and turning Tesla's Fremont CA factory into the highest producing factory in the US at over 500k vehiclesGregg Ciocca Sr, pushing forward with 8+ acquisitions so far this year who stated plans to double his store count from 25-50. Since last year when he earned #83 on AN Top 150, Ciocca's reported revenue of $1.1B has almost doubled to $2B in 2022Today's Auto Collabs guest and CEO of tech startup, UVeve, 37 year old Amir Hever has transitioned the vehicle image scanning company he originally started to detect bombs from under vehicles to a powerhouse in the service drive detecting and producing condition reports in seconds to help service departments provide timely and accurate services to customersJoe Manchin, the W. VA Senator who aggressively and successfully pushed for an EV credit that brought manufacturing back to US soil. New Vietnamese EV maker VinFast has shipped its first batch of 999 vehicles to the US on a company owned ship bearing its name on the side. The vehicles will be delivered to customers who ordered them by the end of December according to the company.Some of the vehicles will be delivered to US EV subscription service, Autonomy, founded by Scott Painter (Truecar, Fair)According to the company's female CEO, Le Thi Thu Thuy, the second shipment of the VF8 crossover will be on its way in January $42,200 + battery subscription ($169/mo) or $57kThe company is building a North Carolina based battery factory scheduled to open in 2024 to take advantage of of the IRA tax credit for EVsParent company Vingroup has property and resort holdingsBlack Friday sees both increased foot traffic up 2.9% in physical stores and record online sales of $9.12B in spite of consumers' concerns about the economyPrevious online record 9.12B in 2020, and 8.92B in 2021Some growth is attributed to inflation while over 60% of Americans say concerns about the economy impacted their spending decisGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
As we head into Black Friday weekend we're excited to introduce you to a new voice from the frontlines of Retail Auto, Morgan McManaman, Senior Client Advisor and Brand Ambassador for Bozard Lincoln in Jacksonville, FL. Today we share a clip from our interview with her where she talks about being an advocate for working at Dealership to just about everyone she knows. You can catch the full interview on our In The Dirt w/ ASOTU Podcast here. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's Thanksgiving Day and we're helping you be the savvy conversationalist around the family table with a list of fun questions you can ask to keep the gravy train rolling. We're thankful for YOU! Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Tomorrow is the big day where we get extra thankfulness, but today we're still battening down the hatches as we talk about Nissans new EV maintenance bundle. We also cover a St Louis Dealer doing their part to curb vehicle theft, as well as a potential PS5 embedded in a vehicle.Nissan launches it's Carefree+ bundled maintenance plan for new EVs which is targeted to address both consumer hesitancy toward new EV technology and loss of revenue opportunities for Dealership service departments. The plan offers Ariya buyers a 3yr/36k scheduled maintenance including tire rotations and air filter and fluid replacements, 100k battery warranty and a year of free access to the EVgo public fast-charging networkData shows new EV owners are more likely to bring vehicles to the Dealership and adhere more closely to the recommended maintenance The move is also positioned to drive more dealership visits and increase opportunities for retention, upsells, and introduction to new models and technologyThe bundled product removes the opportunity to sell additional maintenance packages that would be a profit centerService Manager Elliot Silk and his team at Suntrup Kia and Hyundai St. Louis' grew tired of their customers' cars being targets of theft and decided to fight back themselves. 27 vehicles per day are stolen in St. Louis, a 75% increase over last year“Probably about 8 months ago it started coming in faster and faster and then of course customers are calling me all the time saying, ‘what are you going to do about it?'” said Silk. “Well, nobody has done anything so me and my guys thought about it and we took it upon ourselves to come up with a solution.”The team developed a bluetooth interrupter that requires pressing a button on a keychain in order to allow the vehicle to start which renders the vehicle useless without itCosts $200 to install, and the store is going to be installing on all new models soldIn a move that isn't all that surprising to the hosts of this show, Sony and Honda are reportedly considering incorporating a PS5 directly into the vehicle the companies are co-developingSony Honda Mobility says this idea is ‘in consideration' as it looks to compete with the in-vehicle gaming experience available inside Tesla vehiclesIn car gaming would only be available when the vehicle is stationary or in some form of autonomous driving modeHonda, individualGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's the Tuesday before turkey day and we're talking about Mazda's plans to zoom their way into the EV race. We also talk about the thousands of Tesla's being maintained by GM dealerships, as well as the new college course by…Mr. Beast?Better late than never, Mazda is the latest OEM to lean all the way into an EV future as they commit over $11B through the year 2030 to a number of partnerships to develop hybrid and BEV products including potential North American manufacturingCEO Akira Marumoto said the company is partnering on motors, chips, batteries and more in an effort to speed up development to stay competitive in the developing space, noting that US manufacturing may happen as soon as 2025-26 to take advantage of recent tax credits for EvsMazda expects 25-40% of sales to be comprised of EVs by 2030Expect 60% of the market to still require combustion by 2030 “We are not dismissing internal combustion vehicles,” Marumoto said. “We will have to respond flexibly.”Mazda currently has one hybrid and one BEVA 5% profit margin is targeted throughout the transitionGM President, Mark Reuss, surprised some investors when he announced that a small number of GM dealers have been providing maintenance to thousands of Tesla's since 2021 at the recent GM investor daySince 2021 Reuss reported that over 11k Teslas have been repaired by GM dealers citing their EV expertise from the Chevy Bolt as one of the reasons they are familiar and qualified with the tech, and chuckled as he said “It's a new business, and it's great.”Customers seem to love it too as they have a physical location to bring their vehicle with an established system to schedule and fulfill appointmentsAccording to Reuss, Tesla is investing millions to build more service facilities near GM dealershipsThere are several example of Tesla owners being quoted exorbitant prices and waiting months for service like a $16k repair a local EV shop was able to do for $700The recently crowned most popular YouTuber in the world, Mr. Beast aka Jimmy Donaldson, is growing up and has teamed up with East Carolina University (ECU) to offer a YouTube creator course that teaches the fundamentals of YouTube creationCourse will not require full enrollment and will be the first practical vocational training to prepare a more professional level skill set for the content creation platformDonaldson, who employees over 100 to operate the Mr Beast empire is looking forward to the prospect of the course preparing new hires for him as opposed to spending 6 months training new recruitsHis primary channel currently has 113M subscribers and growingGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's a magnificent Monday to be in the car business as we warm up those turkey ovens and those Black Friday deals. Today we discuss private sector buy/sells, GM's Bright Drop reaching $1B, and Domino's EV delivery strategy. The Dealership buy/sell transaction count reached 178 through the first half of 2022 which is a 19% jump from 150 in 2021 yet the total number of stores which traded hands was down. Private acquisitions drove the purchasing momentum as the publics' activity was down by almost halfAlan Haig, president of Haig Partners, said while the publics' acquisition activity remains high compared with the period before the coronavirus pandemic, it is below last year's first-half pace.Haig and others expect the publics to continue purchasing given their aggressive revenue targets.Record blue-sky is also a factor although earnings have seemed to plateau according to HaigDealers and firms expect acquisition activity to pick up as we approach end of year "We're going to continue to see a lot of activity by private buyers," Haig said. "They have more cash flow than they've ever had in their careers."GM's last mile delivery company, BrightDrop shared that it is poised to reach $1B in sales in the year 2023 which would make it one of the fastest companies in history to ever reach that figure within 3 years. Has over 25,000 reservations and letters of intent from Walmart, Hertz, FedEx and Verizon — and already has vehicles on the road making deliveries todayIn Sept the released their Trace Grocery E-cart and early adopter Kroger to deploy the boxy carts that can carry 350lbs of groceries w/temp controls that keep food safe for up to 4 hours and can be brought outside directly for customer pickup after digital verification“We're a tech startup with a subscription-based product offering that's backed by a global powerhouse — this puts us in a league of our own,” said Travis Katz, BrightDrop president and CEO.BrightDrop is tracking $10B in sales at a 20% margin by 2030Domino's Pizza is investing in a fleet of new Chevy Bolt's in an effort to add delivery drivers to its ranks, cut emissions, save money, and of course, deliver more hot pizzas. Will be securing 800 units to serve 37 company owned stores and hundreds of franchisees. Units will start hitting the road this month as they will have the largest EV fleet in the pizza industryHiring and retaining delivery drivers has been a challenge for the industry and providing the vehicle opens up the labor pool to those who don't have their own vehicleUnlike Papa Johns and Pizza Hut, Dominos fulfills all of its deliveries in an effort to maintain qualityDominos cites rapid recovery of costs due to lack of fuel and maintenance expensesGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
On this special Saturday edition we're sharing a clip from Friday's All Things Used Cars room on Clubhouse with David Long where he and vAuto Founder Dale Pollak discuss the best strategy for managing used car inventory during volatile times. Join us every Friday at 9am EST for more discussions like this. Subscribe to our daily email for these insights in your inbox ever morning Monday - FridayGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
We've got that Friday feeling as we talk about GMs plans to leverage tech and fulfillment centers to save a pile per car. We also talk about Consumer Reports Brand Reliability results, as well as the last minute decision to keep soccer fans more sober. During GM's Investor Day, President Mark Reuss announced that the company is planning on a $2000 savings per EV sold by using their new digital retailing platform developed by Tekion and shifting their delivery strategy to a regional fulfillment model.Opened 3 new centralized fulfillment centers (2 in CA and 1 in the southeast) to cut fulfillment times to as little as four daysLargest savings will come from reducing incentives as unpopular inventory won't be stuck on dealer lotsDealers will get vehicles for test drives only, inventory stays at GM facilitiesReuss says Dealers will be leveraged as a competitive advantage“We'll use cloud data and machine learning to continuously scan the order pipeline and available dealer and factory inventory for the best fulfillment option," Reuss said Thursday. "We know how this works because we know what vehicles move in certain parts of the country and at certain dealerships."Hybrid cars top the 2022 Consumer Reports Auto Brand Reliability Report as EV's rank as second to last above pickup trucksJake Fisher, CR's Senior Director-Automotive Testing, made comments at a press release which included pointing out EV's are new tech and he predicts a significant improvement as is common with any new vehicle launchToyota first released hybrid tech back in 1997Cites Tesla's Model 3 doing better than the newer Model YPickups were at the bottom of the list with only 7 of 17 models being rated avg or above avgCR's five most reliable auto brands are Toyota (72 points), Lexus (also 72), BMW (65), Mazda (65) and Honda (62)Qatar bans beer sales at the world cup in a last minute reversal of plans leaving the global community scratching their heads and thirsty"Following discussions between host country authorities and FIFA, a decision has been made to focus the sale of alcoholic beverages on the FIFA Fan Festival, other fan destinations and licensed venues, removing the sales points of beer from Qatar's FIFA World Cup 2022 stadium perimeters."SA, Budweiser's parent company, didn't immediately respond to a request for comment, but did tweet, “Well, this is awkward…”“That drives me crazy,” Hassan Al Thawadi, a senior Qatari organizing official, told The Wall Street Journal in an interview before Friday's decision. “Anybody who wants to come to have a drink will be able to, you know, have a drink.”Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Thursday is in full swing as we're talking about why the Auto Industry might just be the economy's bright spot in early 2023. We also talk about shaking off the deal-entitlement of 2022, as well as a new depth in analytics for Tiktok advertisers. The Automotive Industry might just be the bright spot for the economy in 2023 according to a Bloomberg analyst Connor Sen as he sights the potential effect the rebound will likely have on the country's GDP through the next several quarters.Auto volume deficit has affected the economy substantially as produced cars don't count until they are complete (with chips) and are sold to dealersIncrease in new/used pricing single handedly accounted for 10% of the overall Consumer Price Index increaseOwners holding on to vehicles longer increases repair bills and subsequently insurance rates as wellThe reverse is true as well. If output in Nov/Dec stays consistent w/ Oct, it will translate to a 10% quarterly jump which may account for 1-1.5% GDP growth alone Also as production normalizes, it will encourage the easing of inflation, which in turn encourages the Fed to relax on interest rate hikes and so on…“There's still room to go, but the auto industry is the best reason to hope for an economic growth and inflation surprise over the next several months.”Jonathan Banks, vice president & general manager of vehicle valuations at J.D. Power issues a warning to Dealers to freshen up their customer engagement skills as the supply situation loosens up“In the process, it is more than possible that essential customer engagement skills across the dealership environment have dulled — if not atrophied altogether — while new important competencies have failed to be nurtured.”He suggests a return to strategy and demand analysis as the customer's desire to engage digitally has become strikingly clear…as well as their options to do soHe cites similar occurrences after the 2008 ‘Great Recession' as new behaviors and technology emerged which made the market more transparent and efficient as it served consumers, Dealers, and OEMTiktok just released new Audience Insights in Tiktok Ads Manager where advertisers can now drill down into a good number of categories to glean insights such as:Age, interests, usage behaviors, gender splits, interactions with influencers, hashtag interactions, and even device typeFrom the report: “Audience Insights can help you discover new audiences beyond those that you traditionally target. If any surprising or unexpected interest categories appear, you can try targeting these interest categories to see how they perform. For example, the data may show that the beauty advertiser's audience is also interested in apparel and accesGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
We're into Wednesday as we talk about AutoNation's announcement of their purchase of a substantial number of TrueCar shares. We also talk about the just-released data on luxury loyalty including Tesla. An AutoNation press release announced that they have purchased 6.1% of TrueCar.From the release: "We are excited by this announcement from AutoNation, America's leading automotive retailer, as we see their commitment to a great Customer experience as fully aligned with the values of TrueCar and our offerings," said Mike Darrow, TrueCar's President and Chief Executive Officer. "Our companies believe this opens the door to an opportunity to collaborate on ways to provide a superior digital buying and selling experience for consumers.""We believe that TrueCar, with its leading digital marketplace, is well positioned to enhance the digital car buying experience and provide personal transportation solutions that are easy, transparent, and Customer-centric," said Mike Manley, AutoNation Chief Executive Officer. We also believe the investment will strengthen the relationship between our companies and provides an opportunity for closer commercial collaboration with TrueCar in the future."According to S&P Global / Polk Data presented during a main stage session at the recent Modern Retailing Conference,, luxury brand loyalty stands at about 46% including Tesla owners. When Tesla is excluded, the loyalty number drops to 44%Tesla alone has a loyalty rate of 86%Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
EV Headlines:GM CEO Mary Barra plans to tell investors that their fledgling EV business will sell 1M EVs and be profitable by 2025 at the company's investor day this Thursday according to BloombergMargins will be lower than ICE vehicles as volume efficiencies buildMorningstar Inc. analyst David Whiston said, ““GM won't sell at the prices of Teslas, so maybe they won't match the profits, but they should be able to show good margins. If Tesla can do it, there's no reason GM, Ford and others can't do it. They're just behind on product lineup and manufacturing.”Vietnamese EV maker, VinFast may be planning an US IPO as soon as January according to sources familiar with the matter. Discreetly applied for an IPO in April of this yearBacked by Vietnam's richest man, the company has already secured $1.2B in incentives for its EV factory in North Carolina, and intends to start production in 2024In July that it had signed agreements with banks to raise at least $4 billion to for it's US expansion and has about 73,000 global reservations for its EVsAmazon is taking some heat for selling mod kits for eclectic bikes and scooters that unlock increased speed.The process known as ‘chipping' trick the device into thinking the vehicle is only going 15 mph while it could be going more than twice thatThis is a bigger problem in europe where police aren't savvy enough to recognize the nuanced differences yetShopping is a getting a lot more personal as retailers begin to use facial recognition to reorganize layouts and inform marketingThis shift would allow retailers to move from passive reaction to shopping behavior based on sales to a more active approach to in store behaviorsBehaviors such as response to product packaging, time spent in sections, and how customers move around stores are able to be watchedThere are still privacy concerns due to the amount of personal data collection required without consent to understand this type of shopping behavior.Sometime today, the world's population is expected to reach 8 billion people according to projections from the United Nations with 8.5B expected by 2030 due to Life expectancy is also up 9 years from 1990 to 2019 when it reached 72.8 yrs but dropped to 71 in 2022The fertility rate is down to 2.3 births per woman from 5 in the 1950s. 2.1 is the level needed to sustain populationOver the next decades, the UN forecasts that the main driver of population growth in wealthy countries is immigrationGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
We're in Palm Beach with a whole crew of incredible operators, marketers, and industry partners learning and networking. Today also kicks off Used Car Week and the energy is palpable. We are also talking about charging ground to air and a shift in social media skill requirements.It's a big event week in Retail auto as MRC kicked off of CXO/MRC on Saturday in Palm Beach, FL and Used Car Week kicks off today in San Diego, CAFord F-150 Lightnings are set to power the first EV-Recharged electric plane flight for a high school football game flyover“According to Remy Oktay, the electric plane (a Pipistrel Alpha Electro) comes with a 21 kWh battery pack. As per Federal Aviation Regulations, it must land with a 30-minute reserve, which gives about an hour of usable flight time.”The electric plane will need 3 charges for a 2 city flight and has to have 30 minutes of charge left to landA local dealer, Monaco Ford, has stepped up to provide one of the 2 Lightnings needed to power the flight.There has been a big shift if the skills needed to hold the job of “Social Media Director” in the US since 2015 according to a new research report provided by LinkedIn Workforce Data CenterReport aggregates data from job postsSeven out of 10 skills on the list in 2015 don't appear on the 2021 list like blogging, event planning, and public speakingNew additions include Instagram, graphic design, and CavnaIn 2023 predictions by Social Media Today include Tiktok, video editing, video directionGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
We've got that Friday feeling as we ask the question if ‘omnichannel' is the next retail auto buzzword. We also talk about Mazda's claim to the top spot in 3 vehicle segment IIHS categories. One brand is also returning to brick and mortar with their customers.Omnichannel is quickly becoming the new buzzword as top dealer groups tout most customers begin or complete some of the deal online.Brian Deboer, Lithia CEO, stated Driveway sales accounted for 4% of total revenueTransactions are including test drives less and lessCEO David Hut of Asbury predicts 40-50% of all transactions will be completed through their Clicklane property in the next 2-3 yearsAcceleride, Group1's platform that utilizes the Roadster tool, saw 3 of 4 transactions in the group use some portion of the online journey in Sept.All groups note that it is not just the online capacity, but also the compelling brand propositions surrounding the transaction.Mazda brand proves to be the safest vehicles on the road, yet again, even with new testing procedures put in place.Small Car performance is now predicated on a new side test crash rating Brands like Subaru, typically highly rated, are having trouble keeping up with the new safety standardsBoth the CX-5 and the CX-9 also got the “Good” tag, one only given to 2 vehicles in each of those segmentsCurrently only Mazda has proven it will be able to obtain the IIHS Top Safety Pick+ rating in 2023With all the talk about retail going online over the last few years, Target is making its new stores a lot biggerIncludes 20k sq/ft more space, more open design, and a backroom expansion focused on fulfillment“Target's stores are at the heart of how we deliver for our guests, whether they browse the aisles, shop online or stop by for same-day services like Order Pickup and Drive Up,” said John Mulligan, executive vice president and chief operating officer, Target. “Guests and team members tell us they come to Target because they feel inspired, connected and welcomed.Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's Thursday and we're talking about NADA's Guiding Principles which were just released. We also give a round up of current EV news, as well as the likely new king of YouTube. NADA has released its “NADA Guiding Principles on Evolving Business Models and the Dealer Franchise System” which reads like a clear manifesto of what it is for and againstEV NewsTesla starts hiring for Cybertruck Production according to job listings seen by publication ElectrekListings include job titles for operations and engineering positions related to producing the exoskeleton bodyWorlds largest casting press was ordered to stamp out the stainless steel body as opposed to the traditional method of a steel frame with panelsRivian CEO RJ Scaringe said demand remains strong and a second shift is now running at it's Normal, Ill plant after posting a $1.73B loss in Q3 up from 1.23B YoYThe plant has an official capacity of 150kInitial target for this year was 50k but was cut to 25kCurrently 113k preorders for its RT1 up from 98k last quarter$14.2B in cash, enough to run through 2025Volvo is going all in on its Flagship EV, 3 row, EX90 which will begin production in 2023 and make 60k units in 2024 according to the companyIt is the first of the “Vanguard” line which will transform the brand to all electric by 2030The company projects the first year's output will be pre-soldYouTuber Mr. Beast is about to take the throne as the #1 YouTuber with almost 113M subs to surpass longtime king PewDiePie. Gaining subs at a rate of 1M every 5 days is far faster than any other youtuberJimmy Donaldson originally joined the platform in 2012 at age 13 and had his first viral video counting to 100,000 which took 40 hoursThe 23 year old has a net worth estimated at $56M and was just offered $1B for his business which he turned downGet the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunionGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to Wednesday as we discuss the potential of US Honda Dealers being a service solution for the new Honda-Sony EV. We also review Vroom's latest earnings call, as well as one Chick-fil-a operator's 3-day work week that's working. Despite a proposed direct to consumer, online only sales model for the joint EV project between Honda and Sony, CFO Kohei Takeuchi, said the 1000+ US dealers are well situated to service the vehicles during the company's financial results announcement yesterdayHe noted that discussions are still ongoing about the servicing planRegarding the sales plan he continued the sentiments that it would be different from Honda's current way, saying: "It will be something unconventional, not Sony, not Honda, but something new," he said.Last month Honda and Sony announced deliveries as early as 2026 of the vehicles which will be produced in it's Ohio plant and exported to JapanThere were many questions from US Dealers who wanted to play a role in the new ventureHonda continues to trim its N.America outlook due to shortages however, Takeuchi noted "The worst of the period is over, but there are still shortages of specific applications."#TILI: Who wants to come up with the leapfrog plan for “something new”?!Vroom's recent earnings call touted record e-commerce gross profit per unit of $4,206, up 16%, decrease in expenses, net loss improvement from $(115.1) million to $(51.1) million, and a marginal improvement in EBITATom Shortt, Chief Executive Officer of Vroom, commented: “We continued to make progress on our three key objectives and four strategic initiatives as outlined during our Investor Day in May. We are intensely focused on improving the customer experience. He also noted 98% of their customers received completed registration before the expiration of temporary onesEarlier this year, Vroom shifted its focus to trim volume to focus on increasing gross profit per vehicle. .Similarly to the strategy change announced by Carvana last week.Vroom stock saw a 7.9% increase yesterday but is still down over 90% YoY. Carvana is down over 97%In a time when hiring and retention is a focus across the retail world, one Chick-fil-a operator is getting attention from his introduction of a 3-day work week at his store…and it seems to be workingJustin Lindsey designed and implemented a full-time three-day-a-week work schedule that has eliminated turnover at the restaurant and made it a magnet for new hiresDivided the team of 25 team members and 18 team leaders into two pods who work three regular 13-14 hour shifts each weekThey work 2 Saturdays a month and are never on callMr Lindsay shared what prompted the move; “Traditionally, we had used the term ‘the gift of time' to refer to seGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
This Tuesday we're talking about state associations banding together to push back against Ford's plan to separate EV and ICE dealers. We also talk about the broader layoffs being announced in the tech space, as well as a preview of how much this years Thanksgiving might cost. Dealer associations across the country are accusing Ford of overburdening their dealer body and breaking franchise laws in a joint letter from over 13 separate state associations in response Ford's recent required investment of $500k to over $1M on facility upgrades, staff training and new sales standards in order to sell EVs. Several State association leaders including John Devlin of PAAA, Don Hall VADA, and Robert Glaser of NCADA all signed the provision as well as sending a separate letter on behalf of their states Dealers arguing the same Tim Hovik, chairman of Ford's National Dealer Council says the the company were aware of the state associations position and communicated they are still able to make changes while noting the dealer council is on board with the where things are heading but said the word ‘supportive' might be too strong a word.Elon Musk's Twitter layoffs weren't an isolated event as the tech and startup sectors ready themselves for border layoffs as economic conditions are considering hiring policies to stay competitive and profitableThe Fed's intention of raising the borrowing rates to more than 4% substantially changes the way businesses will operate. By comparison, in March 2020, interest rates were at around 0 to 0.25%. The access to cheap money enabled companies to go on a hiring binge the company . The first broad scale layoffs in the companies historyYou can expect Thanksgiving food prices to be around 13.5% higher than they were in 2021, according to data company IRI, with the average cost rising to over $60.One factor is the avian flu's effect on turkey prices and a turkey shortage. The traditional Thanksgiving main dish is expected to cost $1.99/lb compared to $1.15/lb on average.The cost of sides has increased by 18.8% and pies are up by 20.3%Some relief is in sight, as Walmart announced they would offer Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to a fresh, shiny week in Retail Auto as we talk about the growing promise of the role of hydrogen as an alternative fuel. We also talk about the progress that has been made in the partnership between Amazon and Rivian, as well as new tech-enabled variable pricing at restaurants. We've expressed our optimism about hydrogen many times on this show and our friends at AN released a great article on the history and promise of this alternative fuel source over the weekend as companies and experts weigh in on the broad investment in the technology and a blended approach to the replacement of fossil fuels"It's finally happening," said Matt Thorington, engineering manager of fuel cells for global supplier Bosch, which said this year it will invest as much as $591 million in hydrogen production technology by the end of the decade."There are things that don't work well with batteries," said Kristin Ringland, a global mobility analyst at Ernst & Young.Amazon's fleet of Rivians EV delivery trucks have hit the milestone of 5 million packages delivered as there are now over 1,000 of the vans making deliveries on a regular basisAmazons full fleet consists of about 30,000 vansStarting in July, the EDVs first rolled out in Baltimore, Chicago, Dallas, Nashville, San Diego, and Seattle. Since then, they've been put into service in a bunch of new cities, including Austin, Boston, Denver, Houston, Indianapolis, Las Vegas, Madison, Newark, New York, Oakland, Pittsburgh, Portland, Provo, and Salt Lake City.The program was announced in 2019 w the goal of purchasing 100k vans and having them on the road by 2024 but that has been adjusted to the year 2030 citing supply chain blah blah blahRestaurants are considering taking a page out of the Dealer and Airline playbook by trying their hand at ‘dynamic pricing' due to the mass adoption of online ordering and digital menu systems.This could include lowering prices during slow times to maximize staff, etc, and raising prices during peak demand times to maximize profits“The low-hanging fruit here is to use all of that data to figure out, when things are busy, how can I make more money from that?” Ashwin Kamlani, co-founder of Juicer, told Food On Demand. “If I own a pizzeria and I'm on a college campus and have a line out the door at 1 AM because all the kids have been out partying, are they really going to care that the pizza's now $11 instead of 10? Probably not, but that's 10 percent more I can make on every pizza and that's a big deal.”Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's time for a Friday as we cover the Q3 earnings reports from the major auto retailers from across the country, as well as Carvana's drop and their strategy to turn it around. We also get into the psychology of color and how to deploy it to your advantage. Third quarter results reveal that all 6 top public auto groups are seeing significant declines in used car gross profits from 11 - 31% as volume also drops for someAutoNation Inc., Lithia Motors Inc., Penske Automotive Group Inc., Group 1 Automotive Inc., Asbury Automotive Group Inc. and Sonic Automotive Inc. Gross profit per vehicle ranged from $1,588 to $2,478 for the quarter Penske's CarShop and Sonic's EchoPark stand alone used car stores have also been brake-tapped as both companies announce they won't be opening any more stores this year due to the slowdownA combination of higher acquisition costs and softening demandStephens analyst Daniel Imbro told Automotive News; While there is demand for used vehicles at a price point of $15,000 or less, Imbro said, there aren't many vehicles available in that range…But I think the used market will be a weaker profit stream relative to the new-vehicle sideIn yesterday's earnings report Carvana reported a $508M net loss which is larger than the $506M loss from Q1 and more than 7x the $68m loss it reported a year ago as interest rates and inventory costs continue to riseCEO Ernie Garcia and CFO Mark Jenkins, wrote in a letter to shareholders.“The environment has continued to get increasingly difficult since the end of the quarter and it is probable things will continue to get more difficult before they get easier,” as the company shifts its strategy from focusing on growth to focus on profit.On a call w/ analysts Garcia also noted: “Cars are extremely expensive, and they're extremely sensitive to interest rates.” He added he was hopeful rates might be close to peaking. “Interest rates have moved up materially, and most customers use financing to buy a car.”Profit per vehicle retailed dropped to $3,500 down $1,172 from $4,672 in Q3 2021There will be no outlook for 2023 providedThe colors you choose can make a distinct difference in the emotions you trigger in guests and buyers. This new infographic from Luxury SoCal Realty intends to help you be more likely to sell your house faster, curb child aggression, and even wake up happyColor can help you increase or decrease appetite, Enhance mood, increase memory, boost attention spans, calm down customers, reduce perceptions of wait time, encourage sales or conversationsRed increases pulse, orange stimulates circulation, yellow increases metabolism, 60% of people who sleep in blue rooms wake up happy75% prefer purple over other colorsWhite paint reflects 98% make rooms look Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Today we welcome back Steve Greenfield, Founder of Automotive Ventures to talk about today's news and give us the breakdown of his November 2022 Auto Intel Report.The tech entertainment company founded by Audi named Holoride has since spun off as its own company and is now planning a 2023 rollout for its in-vehicle entertainment system according to Automotive NewsAudi announced their partnership to create holoride-ready vehicles at SXSW 2022 and the system will be available in 2023 in EuropeStarting packages cost just under $700 USD and include a headset, hand controllers, games, and of course, a safety tether. Porsche has also developed experiences around the tech which can be taken for a spin at their LA Experience center where a professional driver whips back seat riders around a track while the rider plays a first person shooter game. The targets…bugs.Porsche has dedicated serious resources to developing a branded, immersive experience for ridersOther features allow you to view media from your phone on the perceived 180 degree screenTILI: Maybe you can drive in a 2 hour loop and convince your kids they actually went to Disney Conversation around November's Auto Intel Report.Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to Wednesday as we go through the winners and losers of the October sales figures. We also talk about new information about the Cybertruck production dates, as well as the reason you might start seeing more Waymo vehicles at the Phoenix Airport. Carvana announced the closure it's Dealer Marketplace in a letter sent to Dealer-customers dated October 31, 2022 Program will end in 30 days, Dealer listings will stay up until thenOctober sales figures show that there are some big winners and losers as Toyota surged 28% cumulatively across its brands. Subaru is up 32% Mazda 30%. American Honda is down 16%At Toyota, the biggest winners were the Camry +68%, RAV4 +40% ; and Tacoma +44%Toyota had a 20 day supply at end of monthReuters reports that Tesla will begin early production of the long awaited Cybertruck in the middle of 2023 with mass production commencing by the end of 2023 according to sources with knowledge of the matter.Musk announced the early production date range in the last investor call, but mass production beginning late in the year means Tesla won't be recording revenue on the vehicle until 2024There are hundreds of thousands on the waitlist while Tesla has stopped pre-orders outside North America with Musk citing “ we have more orders of the first Cybertrucks than we could possibly fulfill for three years after the start of production."Final pricing or the production model have yet to be revealedPotential buyers put down $100 to secure their spot in line…since 2019Robotaxis operated by Waymo are now making regular passenger trips to the Phoenix airport to become the first ride-hailing service to operate in a complex airport environmentPreviously they had offered airport trips to employees accompanied by safety driversWaymo has been operating in Phoenix since 2017 and has a commercial service named Waymo One that uses a combination of vehicles with and without safety drivers and is available to anyoneThe company traditionally opens new service areas to “trusted testers” who have an NDA. Once the company feels ready, they open those service areas to regularly ridersAirport trips account for 20% of all ride hailing which presents an opportunity for significant revenue growthGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
It's the first day of November and we're fired up to talk about a bright spot in Hyundai's supply chain, as well as a gathering of some of the most powerful marketers in the country. We also talk about one coal-mining dad who is making waves as he publicly prioritizes his family. Hyundai and Kia sales are revealing a bright spot in ongoing supply chain challenges as Hyundai saw a 7% boost in volume and Kia recorded an October record as volume jumped 12% to produce 58,276 unitsRetail deliveries were up 11% overall to total 58, 76 as Randy Parker, CEO of Hyundai Motor America, noted. “Demand is still there and our lineup of EV vehicles contributed to record sales this month.”Kia's EV model sales; Seltos, Sorento, Niro, and Forte, accounted for a 101% increase TILI: It looks like demand and production for EVs are in stepAt this years Association of National Advertisers (ANA) “Masters of Marketing” conference CMOs and marketers for notable companies gathered from across the country to discuss 2023 strategies and best practices, noting pressure to cut marketing budgets in downturns is a historically losing formulaCEO Bob Liodice, opened the conference with a warning against cutting marketing to a large audience of members including execs from companies like Mastercard, McDonalds, Coca-cola, and many othersHe argued that brands will win when they actively differentiate themselves and defend the productivity of their investments in marketing in uncertain timesIn an effort to arm marketers to rightly advise leadership, Fleur Sohtz, chief marketing officer at Analytic Partners, noted pressure to cut budgets in 2023. “There's a way to use insights to show the board that cutting your budget will not only harm your business in the short term, the impact in the long term is really substantial,” she said. “If you cut your budget and your competitor doesn't, you can lose 15% of your business.”TILI: We're not talking about inventory adsA TikTok video about a story of a Kentucky coal miner who came straight out of a mine and went right to a University of Kentucky basketball game with his young son is going viral. Video features coach John Calipari, who grew up in a coal mining family, telling the story of the man sitting in the stands with his face and red beard blackened by coal dust sitting with his wife and sonThe coach talks about local businesses calling to bless him with free meals, hotel stays, and even a Dealership offering him a car to acknowledge his hard work and dedication to his familyCoach Calipari invited the family back for a VIP experienceTILI: If this doesn't feel like the heart of Retail Auto, we don't know what doesGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
Don't let the costumes fool ya, we're here to work this Monday as we talk about Ford's announcement to delay the deadline for dealers to decide on their EV future. We also talk about Ford's efforts to part ways with underperformers, as well as what one year of Meta being Meta has gotten us. Today's deadline Ford originally put in place for Dealers to make a decision whether or not to invest up to $1.2M and follow the standards required to sell EVs has been postponed until Dec 2nd after multiple requests from Dealers according to Ford spokesman Marty GunsbergThere are two tiers of certification. Both require no-negotiation pricing. The lower tier doesn't allow the Dealer to carry any inventory and carries sales limitsCertifications will last from 2024-2026 after which new dealers will be allowed to enter back into the certification process“A group of automotive trade association executives, representing associations in Virginia and 11 other southern states, this week asked Ford to "reconsider the Ford Model e program as it is currently described," saying it "includes unreasonable restrictions on dealer autonomy."TILI: We don't know the full reasoning, but it likely has to do more with legal action than Ford having a change of heartAn internal email circulated at Ford reveals the company is actively working to get underperforming workers out of the company. The Oct 4th email which was sent to all US managers focuses on all employees with 8 or more years with the company and have been identified as showing a pattern of underperformanceThey will be given the option to voluntarily quit to receive a severance package OR enroll in a 4-6 week “performance-enhancement plan”If they choose the enhancement plan, but do not improve, they will no longer be eligible for severanceEmployees identified as underperforming with less than seven years of service will face involuntary termination with severance“‘The changes are intended to simplify how managers confront poor performance and provide an alternative to the improvement plan, which can be an intense period of work for employees who have made up their minds,' the Ford spokeswoman saidFacebook hits the one year anniversary of its transformation into its current name, Meta and investors as well as the public don't seem very excited. In early 2021 then-Facebook was taking punches from leaked internal sources showing the company knew the negative impact it was having on society, concerns about Apple's new privacy rules, and TikTok's upswing. The company used the name change to Meta as an indicator of a page turned, and a bright futureAfter investing billions in metaverse dev, the company just announced its second ever revenue drop, and that profits have been cut in half. It's $1 Trillion market cap from last summer is now under one quarter of that…less than Home DepotBrad Gerstner, CEO of Altimeter Capital, a shareholder in Meta, released an open letteGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
We've got that Friday feeling as we talk about the first steps of the Twitter takeover and what it means for advertisers. We also talk about the new and hopeful service strategies for Dealer EV service departments, as well as a Walmart - Netflix partnership just in time for the holidays. The Twitter takeover is complete, but we're going to be hearing about it for a while. Immediately following the closing of the deal, Elon Musk assumed the role of CEO and fired outgoing CEO Parag Agrawa, CFO Ned Segal, Vijaya Gadde, Twitter's top legal and policy executive, and Sean Edgett, general counselTweeted “The bird is free”Severances cost approx $200MSome argue there is a conflict of interest in the automotive advertising sectorPlans to reinstate Former President Trump's account among others while committing to not let Twitter become a free-for-allIn a message to Twitter advertisers, Musk wrote “Dear Twitter Advertisers, I also very much believe that advertising, when done right, can delight, entertain and inform you; it can show you a service or product or medical treatment that you never knew existed, but is right for you. For this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs. Low relevancy ads are spam, but highly relevant ads are actually content! Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise. To everyone who has partnered with us, I thank you. Let us build something extraordinary together.”The EV service game is going to be different, but certainly not a disaster according to an expert panel hosted by Automotive News Fixed Ops journalRide quality and maintenance needs become more important and frequent due to the heavier weight and acceleration capabilities of EVJohn Rock, Retail Innovation EV/CX Manager for Cadillac said “Lube, oil and filter were always the entry point. Now it's tire rotations that become the entry point.”Tire replacement, suspension and alignment work are likely upsellsfRetention is likely to increase even if revenue per vehicle declines according to panelist Peter Kahn, senior director-research and insights for dealership management system provider CDK GlobalMelissa Best, service director fo Pearson Hyundai in Midlothian, VA notes that the extended warranty terms on EV batteries should also increase dealer service visits over non-dealerIn an entertainment-to-retail partnership over 2400 Walmart locations will be adding a “Netflix Hub” in time for the holidays where customers and Netflix show fans can buy merch for popular shows like “Stranger Things,” “Squid Game,” and the upcoming “Knives Out” sequel. Offerings will also include “concession kits” where bundled snacks make watching more enjoyable, as well as $19.99 gift cards, equivalent to the new moGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
This Thursday is full of fire as we talk about the sudden closure of Holman Lincoln Ford in Pompano Beach that is sending a shockwave through the industry. We also cover the sizable drop in employee turnover at Dealerships in 2021, as well as the viral video of Elon Musk marching into Twitter HQ.Holman Ford Lincoln in Pompano Beach closes permanentlyThere is no mention of the closure on their site and the location no longer appears on holmanauto.comTheir Google Business listing for the service center was also marked ‘permanently closed' yesterday which also appears to have reverted to an open statusSources close to the group note that the decision was not made on the basis of relationship with the Ford/Lincoln brandAccording to the NADA Annual Dealership Workforce study, turnover in US dealerships saw a substantial drop in employee turnover as it dropped to its lowest level since the study was first introduced in 2011“Average industry turnover was 34 percent in 2021 — the lowest level in the 11-year history of the National Automobile Dealers Association's annual Dealership Workforce Study.”The key potential differentiator is that earnings were up 27% in 2021Average dealership employees rose to 74, which is still below pre-pandemic numbers, contributing to both efficiency and higher earnings per employeeA tweet by Elon Musk shows him marching into Twitter HQ carrying a sink with the caption being “Entering Twitter HQ - let that sink in!”His profile which currently has 110.2M followers also appears to have a changed profile description that now reads “Chief twit” By law, the $44B deal has a Friday deadline to closeGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
We are in Atlanta with Michael Cirillo and we couldn't help but stand in front of some iconic retail locations for the show. Today we are talking about how lawmakers are forcing the hand of Apple engineering and Hyundai is preparing for a big boost in state side EV production.The EU is making Apple grumpy by passing legislation that will require them to shift all charging ports to USB-C on mobile devicesGreg Joswiak, VP of Worldwide Marketing, has been very clear that Apple is not happy about being legally coerced into changing technologyOther options include moving completely to wireless charging to avoid the retool to USB-C#TILI: Sometimes tech is best left to the…tech people.Hyundai is pressing into EV production with their breaking ground for a Georgia based ‘Megaplant' set to begin production in January 2025Target production is 300k vehicles per year in phase one and 500k as they scale the factoryThere will also be a redesign of the entire supply chain for the factory, citing many companies looking to move close and build production facilities in GA as wellThe US based factory will put Hyundai in a great position to be eligible for new EV tax credits that require US production#TILI: Rivian is still trying to get to GA and Hyundai is off to the races. This is sure to be the first of many announcements of state side production for EVs.Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
This Tuesday we're talking about how a hatchback just won SUV of the year. We also talk about a over-delivering tweet from Ford CEO, Jim Farley, as well as the uptick and sentiment around POS tipping. Somehow a hatchback just won the SUV of the Year award, thanks to Hyundai self-classing their Ioniq 5“Regardless of how any individual defines the term, there's no denying our 2023 SUV of the Year handily meets the diverse needs of the compact SUV segment it competes in, and then some.” -MotorTrend“Long story short: You and I may think of today's SUVs as practical family haulers, but in the eyes of NHTSA, they're work vehicles first and foremost.” -JalopnikHyundai expressed the reasons for calling the Ioniq 5 an SUV is because of the AWD capability, large passenger volume, 2300 pound towing capacity, high seat posting, and ease of loading the rear cargo area for purposes of utility.#TILI: And we thought D2C and Agency model were concerning…now we don't know which way is up!Ford CEO, Jim Farley took to twitter to make a bit of a surprise announcement: The F150 Lightning is even faster than the company previously announced. TWEET: Update: The 0-60mph speed for #F150Lightning w/ Extended Range Battery is now under 4.0 seconds. Lightning fast!⚡️
We're firing up the engines (and batteries) this Monday as we cover the shifting landscape with auto loans. We also talk about the reasoning behind Tesla's price cuts in China, as well as a lucky swing that turned unlucky for one Ford store. The tides are shifting for major auto lenders as an increase in write-offs and pull back in originations are noted across the country.Wells Fargo & Co. - higher loss rates for loans it originated late last year led to an increase in write-offs for the periodTightened underwriting standards when they saw last year's originations starting to have problems. This led to a 40% drop in originationAlly Financial Inc. saw charge-offs for retail auto loans quadruple in Q3Said charge off rates could climb to 1.6% from current 1.05% although still below pre-pandemic levelsFifth Third Bancorp said it's pulling back on originations citing dropping used car prices and risk of being upside downChief Credit Officer, Richard Stein said Fifth Third is seeing more consumers -- subprime credit scores, outside the companies typical borrower, try to get concessions from lenders to keep vehiclesTesla cuts prices by over 9% on some on Model Y and Model 3 vehicles in China citing falling material prices and overcoming recent production glitchesModel Y now costs the equivalent of $39,880, down from about $43,750, while the long-range version has an even bigger discount. A standard Model 3 fetches about $36,710, down by about $1,930 bringing levels closer to what they were in MarchThis announcement came a day after CEO, Elon Musk warned of a “brutal recession” an an earnings call Competition in the Chinese market is much hotter than it is in the US market where Tesla still holds a commanding lead in EV deliveriesA Ford dealer in Arkansas is in a legal battle with a consumer who sunk a hole-in-one at a golf tournament for, he thought, a brand new F150Austin Clagett stood in front of the $53k pickup for a photo after sinking his hole-in-one on Oct. 8 at Morrilton Country ClubOn its Facebook page, the Dealership said that it provided the truck "for display/advertising purposes only" because it didn't have enough lead time to obtain insurance for a giveaway. "Without our knowledge," the store wrote, "Morrilton Country Club promoted that this new truck would be available as a winning prize at the event despite our agreement that it would be for display purposes only."Screenshots show the Country Club posted the contest and the Dealership liked the post which has since been deletedAutoblog reported that Norwood provided video of a club employee calling Jay Hodge Ford after Clagett's hole-in-one. "Oh, don't tell me," a dealership worker said, and the club employee responded, "Unfortunately, it happened."“Price indemnity insurance” and costs between 3-15% of the item based on the probability of a winPro Golfer 1 in 3k, Amaeur with -1 Handicap 1 Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
We're closing out the week of regular programming as we talk about Lithia's record Q3 numbers with a twist. We also talk about a Wisconsin Dealer Group who is the first to execute on a widespread GM EV Charger program, as well as the new Starlink internet service on commercial airplanes coming soon. Lithia Motors hit a Q3 record as their net income increased by 6.9% to just over $330m and total revenue jumped 18% to $7.3B as reported in their quarterly earnings callBoth new and used sales were up 4.3 and 6.4% respectivelyThey continued to buy and sell throughout the quarter, returning to the Wisconsin market in july Purchased 5 Airstream dealerships in the Pacific Northwest in OctoberAvg new car sale $47,416 w $5789 gross (up 11%)Avg used sale $30,361 w $2478 gross (down 19%)Same store sales total units down 6.4%CEO Brian DeBoer said "Our teams are focused on improving operating leverage as fundamentals normalize across our industry," GM's Dealer Community Charging Program which was announced last year has installed their first 2, level 2 EV chargers Wheelers Family Auto Group in Marshfield, Wisconsin, are the first to install the 2 chargers Owner Mary Jo Wheeler-Schueller said “This is the first one in North America. To offer this will put Marshfield on the map. This is a great stop for people commuting from other areas to stop and check out our community and what Marshfield has to offer.Co-owner, Daniel Wheeler, added that “there are not a lot of chargers” in Central Wisconsin and there are “ton of people” commuting north. The Dealer Group has purchased 5 chargers total through the program for $4,447 each, or $22,245 total.The GM program plans to install up to 40,000 Level 2 chargers across North America as GM notes that 90% of Americans live within 10 miles of a GM DealerStarlink, Elon Musks' satellite internet service provider announced that the high speed service is coming to commercial aviation starting in 2023 offering service as fast as 350mbps per planeFrom the starlink site: Starlink can deliver up to 350 Mbps to each plane, enabling all passengers to access streaming-capable internet at the same time. With latency as low as 20 ms, passengers can engage in activities previously not functional in flight, including video calls, online gaming, virtual private networks and other high data rate activities.Currently, the very best speeds on planes top out at 100mbpsOther features from the site include a low profile design, easy installation, and a full hardware warranty as long as there is a monthly subscriptionOne time hardware cost of $150k, monthly subscription from 12,500-25k / moYou can reserve right on the siteGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
This Thursday we're talking about a new mid size concept for Hummer, Netflix rebounds in Q3, and a new study that has retailers asking for more tech to enhance the customer experience. Just a bit smaller is what GM is considering in a new concept, said to come into its Hummer line as a mid size EV pickup. A smaller, electric Hummer is still a design concept in GM's California studio, but has a good chance of going into production and is seen as a priority project, said the people, who asked not to be identified because the plans are private.GM is spending $35bn to bring EVs to market over the next 3 yearsGM has secured 90k reservations for the current Hummer, priced at $110kAs of Sept. 30, they have only delivered 781 vehicles….TILI: 90k and 781 are different numbers, but let's add a new line for Europe!With ads and gated multi-logins on the horizon, Nexflix announces an increase of 2.4 million subscribers in Q3Most of the subscriptions came from outside of the US“After a challenging first half, we believe we're on a path to re-accelerate growth,” Netflix said in its quarterly letter to shareholders. “The key is pleasing members.”Netflix generated about $7.9 billion in revenue in the third quarter, a nearly 6 percent increase from the same period last year.The company announced they will no longer offer subscriber count as a tracking metric starting in 2023, saying that total revenue is the most important metric moving forwardAccording to a new study from retail research company PYMNTS, big retailers say they need more tech to deliver better customer experiences.American retailers use an average of 5.3 digital toolsOf those using less than 3, only 17% are happy with the experience they are providingSince March of 2020, a record number of consumers began using online ordering and curbside pickup to purchase groceries and say it is a habit they are likely to continueDespite the evidence that those who win in retail are spending on tech, overall spending on tech in retail dropped in 2021Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
Welcome to Wednesday as we talk about Cadillac's return to the ultralux state. We also cover a major fine levied by the FTC on a Maryland Auto Group, as well as a $1B investment in hospitality for an upcoming F1 event in Vegas. In a long awaited reveal on Monday, Cadillac unveiled their new flagship EV, the MSRP will be north of $300k ultra-luxury Celestiq which will begin production in late 2023600 hp , 640 ft/lb of torque, and 300 mi of range“Celestiq is the purest expression of Cadillac, acknowledging our incredible history and driving us to a bolder and brighter future,” said Cadillac global vice president Rory Harvey in a press release. “It is a completely bespoke work of automotive art, built around the most advanced and innovative technology that we have ever engineered into an automobile.”Hand built with no more than 6 being made at a timeConcierge design process where approved Dealers advise buyers as they and designers work together to craft a unique vehicle where “Each client will experience a personalized journey to make their vehicle exactly the way they desire.”Features include standard rear-wheel steering and all-wheel drive, multi zone auto dimming sunroof and a 55” wide hi res display spanning the entirety of the dashTili: Is this an EV dev or a brand flex? Yes. Passport Automotive Group which holds brands, BMW, Infiniti, Mini, Nissan, Mazda, and Toyota has been fined $3.38 M by the FTC in a discrimination suit involving charging illegal fees and engaging in lending discriminationFrom AN “FTC alleged Passport advertised certified, reconditioned or inspected cars at specific prices but added extra certification, reconditioning or inspection fees it falsely claimed consumers were required to pay. For example, the FTC cited one case in which a vehicle advertised for $24,050 sold for $26,440 because of illegal add-on fees. ““...also alleged Passport charged Black and Latino consumers about $291 and $235 more, respectively, in interest than white consumersThe fine will be paid by a combination of the group, as well as its president Everett Hellmuth and vice president Jay KleinPassport says it disagrees with the allegations in the strongest possible terms but noted that fighting the ruling "...ultimately would have distracted us from the important work we do. "That time, energy and money can be better utilized by continuing to invest in our communities," the dealership group said. "For that reason, we agreed to the settlement announced today."This is the second run in w the FTC for Passport. In 2018 they sent out 20k+ fake “Urgent recall” notices to drive dealership visits.The stratospheric growth of F1 in america is prompting a $1B renovation of the iconic Venetian hotel in LasVegas in preparation for the F1 race in Las Vegas in NovGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
This Tuesday we're talking about Amazon's impressive employee churn rates. We also cover a new report indicating big differences between Millennial and Gen Z buying habits, as well as an iconic former Ford Factory going down in Jacksonville. According to leaked internal documents, Amazon is experiencing attrition rates as high as 81% across the entire company spanning positions from warehouse workers all the way to vice presidentsThe documents, which include several internal research papers, slide decks and spreadsheets, indicate that only one third of new hires stay past 90 days with the vast majority of them willfully quitting vs being laid off or firedA New York Times investigation revealed an annual turnover rate of 150% among hourly employeesWall Street Journal and National Employment Law Project have both found turnover to be around 100 percent in warehouses , twice the industry averageA major issue cited is the lack of tracking training and promotion data$8B is the estimated cost of the turnoverIronically, saw a huge Amazon ad offering free technical training with no college debt featuring a smiling Gen Z'er Tili: People need purposeA new study by Advantage Unified Commerce indicates a major shift in buying behavior between Millennials and Gen Z when it comes to indulgent premium productsIndicates that brands must deliver an elevated ‘premium' experience that creates indulgent moments in the midst of ordinary lifeMillennials = aspirational Gen Z = intentionally premiumConsumers report no intent to walk away from premiumization in the face of inflation, with 65% planning to purchase premium over the next 12 months“premium” defined as: worth the purchase with "added value, proof of value, performance, inclusion and shareability."Gen Z indicates being willing to work more as opposed to scaling back purchasesA piece of auto manufacturing history is slated to be demolished as a Jacksonville City Council unanimously agreed Tuesday with the owner of the Ford factory which was built 100 years agoThe plant made Model Ts for about 8 years before Ford closed operations as a result of the great depressionAt one point the factory boasted 200 cars per day and was one of the highest producing sites in the southeast (modern factories produce over 1,000 per day)It was then turned into a parts warehouse, and later a pallet factoryThe prime waterfront real estate will be redeveloped after the buildings removal A city-hired photographer will document the building's legacy before it's torn downGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
Let us be the first to welcome you into a fresh Fall week as we survey what Dealers are doing across the country by investing in fixed ops. We also talk about a cogent warning for EV service safety, as well as the pop-up retail trend that will be sticking around well past the holidays. As new car supply continues to struggle and the used market is riding the pricing roller coaster, many Dealers continue to invest in fixed ops to take hold of the opportunity to gain market share and to build resiliency into their future profit model Many dealers like Brian Godfrey of Pat Milliken Ford in a Detroit suburb has immediate need for multiple techs and additional bay space as sales continue to rise by double digitsCan only handle existing customers Customer service and retention remain the focus of keen operators as they know data shows over 70% of customers choose non-dealership repair shops once warranties expireShortage of new cars will exacerbate the issue over the next 36 monthsPublics and privates are seeing sales growth and adding capacityGroup 1 is up 16% YoY through through the first half #1 Cochran Automotive in the Greater Pittsburgh Area is adding 27k sq ft to expand wholesale parts businessAdam Simms, owner of Price Simms in the San Fran Bay Area built a commercial fleet center that is seeing continued growth. "I'm very bullish on the small commercial fleet business," Simms adds "can't invest enough money" in service and partsThe new EV service game is about training, procedure, critical thinking, and safety as a new battery (pun intended) of testing systems can solve electrical problems and avoid the pinnacle issue that will stop an EV, ‘energetic failure'. Different than ice procedures where there are few ways to get in fast trouble while diagnosing or repairing a vehicle, EVs require extra caution due to extreme voltage at multiple pointsPPE, ABC fire extinguishers guard against shock and small fires, but ignoring thoughtful procedure can lead to electrocution the ominous ‘thermal runway'Thermal runaway is when a battery cell short circuits and heats up leading to a chemical reaction that is near impossible to stop like in this video of parked electric busses The encasement of battery cells in several layers of aluminum make it difficult to direct suppression at the seat of the firePhysical damage is one of the primary causes while overcharging can also be an issue leading us back to proper equipment, procedure, and critical thinking being essential to continue servicing EVs safelyIn an oxymoronic kind of way, Pop-up retail stores are becoming fixtures of the post pandemic retail space with many retail experts seeing the trend as a component of successful retailers in the futureOpening for only a few months allows rGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: ...
Welcome to Friday, home of All Things Used Cars on Clubhouse. Today we look at rising new ventures in auto and sports to pay attention to. We look at the newest announcement by Sony and Honda with their plans in North America, Hyundai pressing the accelerator on air travel, and the sport you didn't see coming.Just a couple months after announcing their new partner company, Sony and Honda announce a plant to be built in North AmericaFirst deliveries will take place in early 2026.Models for sales, aftermarket, and service are still not confirmed, though Honda's online D2C experiment in Japan is most likely to make its way to the US.Sony Honda Mobility also expects initial sales in Japan to come from North American exports to the automaker's home country.#TILI: There is no doubt that the lack of mention of the dealer network from Honda has us concerned, but we know that quality conversations from Honda dealers are an opportunity worth stirring up quickly!Air Taxi conversations aren't going anywhere according to a new collaboration by HyundaiThe US FAA is still working on considerations for aircraft certification as well as traffic, take off, and landing rulesThis is the first collaboration by an automaker with an established aeronautical corporation.TILI: So, dealers know how to sell transportation products…ever thought about finding in-roads to conversations with new entrants in this space for delivery and service?Pickleball is taking the world by storm, and it isn't just retired folks at the YMCA anymoreTom Brady and Kim Clijsters purchased a 2023 expansion teamSam Querrey, the former world #11 and two-time Wimbledon semi finalist, announced his next chapter: pickleball.Other notable team owners include LeBron James, Draymond Green, Drew Brees, and Kevin Love.Recently Carvana became the title sponsor for the PPA (Professional Pickleball Association)The sport is quickly growing in popularity due to its ease of learning, smaller court sizes, and communal feel.#TILI: I wonder if there are any growing communities of Pickleball players near dealerships in the US…Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Thursday is full of brand and community conversations. We are welcoming special guest Ben Hadley to talk about Elon's new Musk, Carvana petitioning to get back in Michigan, and how Delta and Starbucks are giving you more bang for your buck on the way to data and brand loyalty.Tesla is a car, tunnel, social, solar, space, internet, charging, roofing, media, perfume (wait) companyElon announced The Boring Company (responsible for new tunnel drilling tech) was selling perfume called “Burnt Hair”The perfume sells for $100/bottle and the company sold a million dollars worth alreadyWe must note that back on April 1, 2022, we offered a gift of Elon's Musk for 267 billion referrals to The ASOTU Daily Push BackBoring Company, a tunneling firm last valued at $5.7 billion, sold flamethrowers at $500 apiece in early 2018, raising $10 million. He also sold 50,000 Boring Company hats.#TILI: One thing we know for sure is that Elon has built brand, community, and media content to the point that product is not dependent on sales anymore.Carvana is leveraging consumer trust to regain Michigan sales licenseCustomers we asked via email "to support keeping Carvana and online, hassle-free car buying available without interruption in Michigan."The retailer noted they believed the paperwork and legal processes they are being ‘singled out for' are not in the best interest of the customer.This is the second time Carvana has taken such action. They saw over 6k people sign a similar petition in Illinois not too long ago.Carvana also announced they are the premier sponsor for Pickleball a week ago#TILI: Would the court of public opinion petition to keep you in business?If you fly Delta and love Double Shot No Whip Vanilla Pumpkin Spice Venti Lattes, you are in luck with a new rewards program announced yesterday.“To entice customers to join the partnership, members who link their accounts between now and December 31 will earn an additional 500 SkyMiles and, after joining and making one Starbucks purchase, they will accrue 150 stars, enough for a free coffee.”One of the big reasons for partnerships like this is access to purchase, travel, and behavior data tied to both types of rewards accounts.The new program was announced days after a shift in the Dunkin' Donuts reward program sent shockwaves through loyal purchaser social media accounts.Delta hopes this program, and others they have implemented, will “deliver more moments and interactions that matter” with their customer base.#TILI: Staying top of mind with customers and finding avenues to enter spaces they naturally transact in is a powerful brand awareness and attachment play.Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories:
Welcome to Wednesday as we are talking about the recent delivery numbers in the EV game. We also talk about Nissan's sale of their Russian business at a substantial loss, as well as the results of a real-life asteroids game. Tesla's share of the EV market is still dominant but is showing signs of slipping as figures show their 79% ownership of the market in 2020 slipped almost 10 points to 69.95% in 2021. As of August of this year, Tesla appears to hold 67% of the market despite many new offerings. Tesla Model Y: 134,978 unitsTesla Model 3: 123,634 unitsFord Mustang Mach-E: 25,596 unitsTesla Model S: 20,032 unitsTesla Model X: 19,739 unitsHyundai Ioniq 5: 16,929 unitsKia EV6: 15,612 unitsChevy Bolt EUV: 11,788 unitsVW ID.4: 9,127 unitsNissan Leaf: 8,740 unitsFord and Hyundai have taken big strides forward in the last year and GM is also poised to continue their growth as they recently announced an increase in Bolt EV deliveries in Q4Nissan will sell its entire stake in its Russian business to a state owned entity for 1 Euro (.97) taking a loss over over $685m. According to Reuters: The Japanese automaker transfer its shares in Nissan Manufacturing Russia LLC to state-owned NAMI, it said. The deal will give Nissan the right to buy back the business within six years, Russia's industry and trade ministry said.The Nissan deal was "of great significance for the industry," Russia's Industry and Trade Minister Denis Manturov said in a statement.Nissan is revisiting their alliance with Renault who owns 43% of Nissan as sources close to the matter say they are considering a new electric vehicle venture32 minutes is a BIG deal when talking about outer space asteroid bumper cars.NASA sees this as a way to protect against additional threats “the universe may throw at us”NASA was hoping for a 10 minute difference, but the asteroid slowed its orbit by about 32 minutes“All of us have a responsibility to protect our home planet. After all, it's the only one we have,” Nelson said. “This mission shows that NASA is trying to be ready for whatever the universe throws at us.”Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
It's a great Tuesday to be in Retail Auto as we cover a move by GM to leverage their battery tech into home and fleet services. We also talk about the demise of CNN NFT project that promised ownership of history, as well as the fact that October is apparently the new November when it comes to Black Friday. GM is launching offshoot division, GM Electric, which will sell products and services that allow consumers to transfer and store energy to and from their personal EVs and EV fleets named Ultium Home and Ultium CommercialSpecial charging and storage equipment will allow for the storage of power and management of that power to residential homes and will act like a back up generator other commercial applications will make allowance for the transfer of power from one vehicle to another to help alleviate periods of stress on the power gridTravis Hester, head of GMs EV growth initiatives said “We have become an expert battery manufacturer,” he said. “It's a natural evolution for us to move in here.” as the company moves to leverage their massive investment in battery tech and production capabilitiesTesla and Toyota have been offering similar services. Tesla generated $866M in Q2TILI: Owning the driveway has more bluesky than everIn a surprise move to it's NFT community, CNN has announced the sudden abandonment of it's NFT project, “Vault by CNN” which was comprised of collectible and notable “Moments” from history as reported by CNNIn the Summer of 2021 CNN minted reports of key events or artistic interpretations inspired by them, creating digital collectibles that owners could show off somehow or trade with others, like baseball cards.The program is shutting down its Discord and will not be issuing any type of utility leaving investors, some who have invested 6 figures holding the bagThere will be some sort of “rebate” effort which in many cases will only account for a small percentage of the tokens current value in cryptoThe parting Discord message thanked the community for being a part of the ‘experiment'. Users noted that the word ‘experiment' was never used. They are not alone as a lesser known AP attempt at NFTs as well as many other major efforts have shuttered in recent monthsTILI: More than the money, the brand is the big loserBlack Friday has officially begun at Target stores across the country as the company has released its first “weeklong Black Friday Deals” which feature Target's best planned pricing for the season. “Weeklong deals” will continue all the way through actual Black Friday and will also include the popular “Deal of the Day” TILI: The consumer mindset around “sales” has totally changedGet the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to the second full week of October during a five Saturday month as we talk about a near-total recall of every Rivian vehicle produced this year. We also talk about Tesla's latest strategy to skirt state franchise laws, as well as a “happy dance” little moment for Toyota President Akio ToyodaRivian recalls just about every vehicle they've made this year, and unlike Tesla's last recall, this can't be fixed over the air. According to a notice filed with the National Highway Traffic Safety Administration (NHTSA), the fastener connecting the front upper control arm and steering knuckle may not have been “sufficiently torqued.”If left unchecked the loosening of the fastener could “cause a loss of vehicle control and increasing the risk of a crash.”Symptoms included, vibrations, noise, and harshness in the front suspension, and changes in steeringThis affects 12k of the 14k vehicles produced and spans every model from the RT1 Pickup to the electric delivery vans the company is building for Amazon“It's important not to minimize the potential risks involved and why we are volunteering to conduct this recall,” Rivian CEO RJ Scaringe wrote in an email to customers viewed by CNBC. “In rare circumstances, the nut could loosen fully. I want to reiterate that this is extremely rare, but it does reinforce why we are acting with such urgency and caution.”You can view Rivans recall page hereTesla is throttling down on its plans to build its sales and service centers on tribal land in New Mexico to exploit a gap in the state's automotive franchise laws. After the company lost a proposal in 2019 to gain an exception to the laws in the legislature they began seeking alternate means and were able to open their first center inside an old casino on tribal land north of Santa Fe as the partnered with the First Nation of Nambé PuebloTesla is now opening a second to offer service coverage to Albuquerque thanks to a new partnership with the Santa Ana Pueblo. There will also be a sales center and EV chargersSome state legislators such as Cabinet Secretary, Ricky Serna, made an appearance at the event to express his sentiment, “This project will yield economic growth, healthy career pathways and contribute to Governor Lujan Grisham's aggressive carbon reduction goalsWhen Toyota broke GMs 9 decade sales winning streak by selling more vehicles in 2021, Toyota President Akio Toyoda did a little “happy dance” in his office according to his own comments at the annual Toyota Dealer meeting where he performed a slight variation of the danceThe win was a result of supply constraints and Toyota leadership does not expect it to continue as the situation has regulated substantially in the past yearToyota is set to have its worst year since the last supply disruption in 2011 as volume is down 15% this year so far. Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories:
It's Friday and we're wrapping up this week's news talking about an unanticipated challenge with waterlogged EVs. We're also talking about why Amazon is pulling the plug on its autonomous delivery robot program, as well as what we should be looking for in today's jobs report. Waterlogged EVs are beginning to ‘explode' according to Florida's Chief Fire Marshal"There's a ton of EVs disabled from Ian. As those batteries corrode, fires start," Patronis tweeted Thursday. "That's a new challenge that our firefighters haven't faced before. At least on this kind of scale."Crews are using hundreds of gallons of water attempting to put these fires outAt NAMAD, Mark Bland of S&P Global mentioned that only 50% of fire stations nationwide are equipped with the training and resources to fight these EV firesAmazon has pulled the plug on its ‘Scout' autonomous delivery robot program after three years citing the program was not meeting customer expectationsCooler sized robots on 6 wheels would carry packages directly to consumers homes and open its side hatch to allow the packages to be receivedThe program was about 3 years old and began autonomous deliveries in sidewalks communities in Seattle before expanding the program to Southern CaliforniaAbout 400 amazon employees were assigned to the project and will be offered jobs in other areas of the companyThis is a sign that CEO Andy Jassey is reprioritizing funds as sales growth begins to slow from record levelsGood news could be bad news when it comes to the job report releasing todayDuring his talk at NAMAD, Jonathan Smoke, Chief Economist at Cox Automotive, mentioned that historically low unemployment reports would continue to push the fed to raise interest rates at their aggressive pace.Economists surveyed by Dow Jones expect the report, due out Friday at 8:30 a.m. ET, will show that payrolls increased 275,000 in September, while the unemployment rate held at 3.7%. At least as important, estimates are for average hourly earnings to increase 0.3% month over month and 5.1% from a year ago.One major concern is that both job growth and wage growth are outpacing inflation, leading to supply side recession. The hope is that if jobless claims rise, less aggressive spending would hit the market.“I don't think the Fed is going to pivot or pause or anything of that nature before the end of the year, certainly not because of jobs data,” said Shannon Saccocia, Chief Investment Officer at SVB Private Bank.Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
This Thursday we're coming to you from the annual NAMAD membership meeting in Miami, FL where a change in leadership was announced last night. We're also talking about the continued struggle of self-driving tech, as well as the new weight requirement for roads given the rise in EVs, and a massive semiconductor plant coming to Syracuse, NY. NAMAD President Damon Lester stepped down and assumed the role as Vice Chair of the Board. After a 1 year executive search process, Hugene Fields will be stepping up. Self Driving cars still stalling out in go to market strategyOne of the hardest things to figure out is something called “unprotected left turns,” or left turns when navigating oncoming traffic.A McKinsey & Co. report states the industry has currently invested over $100bn in R&D for self-driving technology.“You'd be hard-pressed to find another industry that's invested so many dollars in R&D and that has delivered so little,” Anthony Levandowski says in an interview. “Forget about profits—what's the combined revenue of all the robo-taxi, robo-truck, robo-whatever companies? Is it a million dollars? Maybe. I think it's more like zero.”Transportation companies say that EV vehicles are too heavy for roads“[C]ars and trucks climbed from an average of 3,200 pounds (1,451 kilos) to 4,200 pounds over the last four decades, according to the Environmental Protection Agency.”Currently, less than 1% of vehicles on US roads are EVs, but with aggressive sales targets, it will be harder for transporters to meet highway weight requirements.“‘The truth is we will not be able to move as many electric vehicles under the current weight limit. That could mean more trucks on the road, delays in orders and increased costs,' said Sarah Amico, executive chairman of Jack Cooper, among the largest car haulers in North America.”Transporters are asking for an additional 10% weight limit, giving them the ability to carry the same number of vehicles, if they are all EVsSemiconductor chips coming to Syracuse (Half of ASOTU team just cheered)Largest private investment in NY history, up to 100B to build a mega complex in Syracuse's northern suburbsMicron would build up to four separate semiconductor fabrication plants in phases at the 1,300-acre site off Route 31, Micron President and CEO Sanjay Mehrotra told syracuse.comIt will be the 8th largest site in the US. The US accounts for less than 12% of global chip productionGet the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to Wednesday as we get ready to cover the 2022 Namad Annual Meeting. We're also talking about Elon holding true to his original offer for Twitter, an outside automotive tech joining the automotive ranks to help improve auto tech, and a big step forward in home connectivity. In another turn of events, Elon is in for $44mm againTwitter shares jumped 12.7% to $47.93 before trading was halted for the second time, while Tesla shares rose by about 2.4%.Deal is supposed to close at the originally agreed upon $54.20 priceTwitter employees, caught by surprise in the middle of meetings on Tuesday, expressed disbelief in tweets. "I am sitting on 2023 company wide strategy readouts and I guess we are going to collectively ignore what's going on," wrote Rumman Chowdhury, Twitter's director of machine learning ethics, transparency and accountability.Take away: Anyone want to guess what impact brand has on value?Salesforce VP of Engineering joins auto digital retailing leadership team“Dan's proven track record of building and maintaining top-talent culture at Salesforce is truly impressive and unique in any size of engineering organization,” said Andy Park, CEO and Founder of CarNow. “His experience combined with our organizational growth tees up an exciting next chapter at CarNow as a technology leader.”Jemiolo led the team responsible for integrating Slack into Salesforce following the acquisitionTake away: We are seeing more and more enterprise tech enter and be connected to auto, both the tech and the people.Matter 1.0 is finally ready for launch, changing smart home connectivityMatter is a protocol to connect compatible devices and systems with one another. Smart home devices should be secure, reliable, and seamless to use. And with Matter, they are.Layman's terms: the smart home industry just agreed on a data centricityThe first rollout also includes Matter controllers and bridges. These are devices that already connect and communicate with other devices in the smart home ecosystem.Take away: Sounds a bit familiar with what auto data sources are trying to figure out. Maybe another industry we can look to for guidance.Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
This Tuesday we are talking about the drop in vacancies in retail real estate. We also welcome long-time collaborator with ASOTU, Steve Greenfield, to discuss October's Auto Intel Report. Brick and mortar retailers are coming back from the pandemic with surprising strength as recent numbers reveal U.S. retail vacancy fell to 6.1% in the second quarter, the lowest level in at least 15 years, while asking rents for U.S. shopping centers in the quarter were 16% higher than five years ago, according to real-estate services firm Cushman & Wakefield.More stores opened last year than closed for the first time since 1995 and analysts at Morgan Stanley expect the trend to continue even in the face of a looming recessionThis is a result of a major pull back in new retail space construction due to the digital revolution, now the table is levelingBrookfield Property Group, one of the biggest mall owners, said that spending at its 132 U.S. malls is 31% above pre-pandemic levelsThe U.S. now has nearly 22 square feet of retail real estate per person, more than any other country and more than double the per-capita square footage of France and the U.K.—and nearly eight times China's rateThe Agency model is a huge topic of conversation in Retail Auto and there are few approaching it with as much measured thoughtfulness as Automotive Ventures founder Steve Greenfiled. He shares his observations and encouragement to the Dealer body in the recent issue of his monthly Auto Intel Report you can get for free from his website www.automotiveventures.comLarger groups noted as being positive about the shifts as they see themselves as the distribution model: “receptivity to the agency model increases, while the concern goes down. This is due to the fact that bigger groups are more likely to be the preferred channel of distribution (vs. smaller players), will have more say in strategic decisions, and have a greater influence and "voice at the table" to partner with OEMs.”Get the Daily Push Back email at https://www.asotu.com/JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/Read our most recent email at: https://www.asotu.com/media/push-back-emailShare your positive dealer stories: https://www.asotu.com/positivityASOTU Instagram: https://www.instagram.com/automotivestateoftheunion
Welcome to the first full week of making trouble in Q4. Today we talk about why big truck ICE engines aren't going anywhere. We also discuss last week's big stock hit to automakers and sellers, as well as a survey that goes deep on sentiment toward ad tracking. Big news for big trucks…they aren't going anywhere. As EV mania continues to envelop the retail automotive industry, heavy duty trucks are the only segment whose gas and diesel powered engine investment continues by Detroit's big three.This is a hugely profitable segment. According to Automotive News, “Ford Motor Co. says it gets more revenue from Super Duty sales alone than Southwest Airlines, Marriott International and many other Fortune 500 companies generate.”Ford, Chevy, and Dodge all have new technology rolling out in their biggest baddest trucks over the next year with everything from more powerful engines, built-in 5G for over the air updates, and back up cameras that work with the tailgate downThese are the true “work trucks” which are used in construction, mining, emergency and utility work and there isn't much interest in EV technology due to demanding conditions and reliability for such heavy useDuring a media reveal of their new Super Duty line at Churchill Downs, Ford CEO Jim Farley said, "If you're pulling 10,000 pounds, an electric truck is not the right solution. And 95 percent of our customers tow more than 10,000 pounds… This is a really important segment for our country and it will probably go hydrogen fuel cell before it goes pure electric."Auto stocks took a formative blow late last week with Carmax leading the way with a 25% drop in its share price due to a big miss on earnings forecasts and a turbulent outlook for the used car market. Revenue of $8.1 billion was up 2% over YoY but below the analyst estimate of $8.5 billion. Earnings per share were $0.79, down from $1.72 a year ago.CarMax shares down 49% year to dateCEO William Nash said, "Macro factors, including vehicle affordability that stem from persistent and broad inflation, climbing interest rates, and low consumer confidence, all led to a marketwide decline in used auto sales." "Obviously, consumers are having to make decisions ... I just think they are prioritizing their spend a little differently," Chief Executive Officer William Nash told analystsCarmax has gained market share over competitors such as CarvanaShares of GM and Ford were down about 5% in morning trade, while AutoNation Inc , Lithia & Driveway and Group 1 Automotive fell between 7% and 10%.A new Cheetah Digital survey across 5,404 consumers across Australia, France, Japan, Spain, U.K., Ireland and the U.S. ”finds targeted ads and personalized emails make consumers feel “creepy,” but more so with Boomers than younger generations. In comparison to a 2021 survey, more members of younger generations also found such marketing techniques to be “cool.” as reported by Retail Wire. Included are: Ads that follow you across devices, ads from unknown companies based on location data, ads related to something you talked about near a smart device, and social media ads based on recent shoppingTrends reveal boomers are most creeped out, followed by Gen X, with Millennials most accepting. Gen Z data shows their level of ‘creeped out' is higher than that of MillennialsConsequently, the percentage of