🚗 2025's Two Rate Cuts

TOGETHER WITH

NADA is right around the corner, and with it, as much learning and networking as you can handle.

But let’s not forget the parties! We’ve been keeping track of all the parties folks are hosting around the event and are throwing our own shindig as well.

We’ve filled up the ASOTU Party, but you can get on the waitlist here, and we will let you know if we find a bit more space.

Keep Pushing Back,
-Paul, Kyle, Chris & Kristi

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BUSINESS

🔌 Toyota’s Paradox, BYD’s Brazillian Scandal, Nissan-Honda’s Merger Doubts

Toyota: Production Down, Sales Up

Toyota’s global production fell 6.2% in November due to supply chain issues, but sales surged in key markets like the U.S. and China with strategic model prioritization and clearing inventory backlogs helping them adapt.

BYD: Labor Scandal in Brazil

BYD halted construction of its Brazilian EV plant after authorities found Chinese workers living in “slavery-like” conditions. The company severed ties with the contractor and relocated affected workers. While BYD remains a top EV brand in Brazil, the scandal underscores risks in global expansion and the need for stricter oversight.

Nissan-Honda Merger: High Stakes

Nissan and Honda are negotiating a $54B merger, potentially creating the world’s third-largest automaker. Critics, including Carlos Ghosn, call it “panic mode” for Nissan, citing redundancies and cultural challenges. Success depends on integrating visions without undermining operational efficiency or fueling further doubts about leadership.

We’ve got more on these stories and several more from your automotive world, check them all out in our Daily Digest.

TOGETHER WITH ACTIVATOR.AI

🤝 Activator: Turning Data Into Deals

So, you’re heading to NADA 2025— but are you prepared for the annual parade of “big promises.”

While the hype’s flying around, wander over to Booth #3119 and meet Activator. They’re not here to drown you in buzzwords; they’re here to show you how real data sparks actual results.

Forget cookie-cutter campaigns. With Activator’s automotive CDP, you’ll engage both browsers and ready-to-buy shoppers across email, SMS, direct mail, and digital + social advertising. No fluff, no gimmicks—just clear insights and tools that make sense for your dealership.

Plus, you’ll grab free swag and a show special when you sign up at NADA. It’s less about flash, more about substance.

Mark your calendar, skip the empty promises, and see how Activator turns data into genuine, measurable impact at Booth #3119

DATA & INSIGHT

👀 The Weekly Market Watch

The Federal Reserve capped off 2024 with a modestly hawkish tone while signaling only two rate cuts for 2025. The decision reflects lingering concerns about inflation and tariff policy.

• Inflation Still Elevated — While inflation has moderated over the past two years, it remains above the Fed’s 2% target. Core PCE inflation is projected to hit 2.0% by 2027, but the path remains slow.

• Policy Uncertainty Looms — Potential changes in trade and tariff policies add to inflationary risks, though the Fed noted that too many unknowns remain to factor them into projections fully.

• Market Reaction — Stocks dipped, with the S&P 500 down 3.5% from its peak, while the 10-year Treasury yield climbed above 4.5%. Despite this, markets remain fundamentally strong, with the S&P 500 up 24% and the Dow Jones up 14% for the year.

The used vehicle market remains resilient according data from Cox Automotive, with strong sales and tighter inventory in December.

• Inventory Volume Stays Flat — Total used-vehicle inventory on dealer lots began December at 2.18M units, unchanged from November but down 6% year-over-year. Days’ supply tightened to 46 days, down one day from November and nine days lower than December 2023—particularly tight for this season.

• Sales Show Strength — Used retail sales rose 2% month-over-month in November, hitting 1.42M units, a 13% year-over-year increase. Seasonal demand has been stronger than usual, boosting sales across franchised and independent dealers.

• Affordability Challenges Persist — The average used vehicle listing price ticked up slightly to $25,565, down 3% YOY. Low-price inventory remains scarce, with cars under $15,000 showing just 34 days’ supply, 12 days below the industry average.

Last week’s auction activity highlighted a steady seasonal depreciation trend, with inventory hitting its highest level of the year and buyer caution driving a 2% drop in the conversion rate.

• Car and Truck Depreciation — Car values fell 0.43%, with Sub-Compact Cars seeing the sharpest decline at 0.82%, while Truck values dropped 0.47%, led by a 1.03% decrease in Full-Size Crossovers/SUVs. Compact Vans saw the smallest decline at 0.23%.

• Segment Highlights — Premium Sporty Cars continued to outperform, recording only a 0.09% decline for the week, while older models (8-16 years) across Cars and Trucks saw steeper drops averaging 0.56%-0.58%.

AROUND THE ASOTU-VERSE

🗓️ Coming Soon

⚜️ January 23-26th, 2025 — NADA Show in New Orleans

• Psst…

  • Are you planning a party for NADA and want more people to know?

  • Are you looking for a party at NADA?

  • OR, would you like to party with ASOTU at NADA?

    • Check out NADAParties.com 

🦀 May 13-16th, 2025 — ASOTU CON in Baltimore, Maryland

🥊 Quick Hits: Birds, Trillions, and Subs

• President Biden signs a bill formally designating the bald eagle as America’s national bird. 🦅

• Apple is on the verge of becoming the first $4 trillion company. 🤑 

• X is raising prices for its top-tier subscription service by 37.5% a month. 📈

🔁 Today in History: Iron, Radio City, and Apollo 8

• 1915: U.S. Iron and Steel workers begin a 3-week strike in Ohio for an eight-hour day. 🪧

• 1932: Radio City Music Hall opens at Rockefeller Center in Manhattan, NYC. 📻

• 1968: Apollo 8 returns to Earth. 🚀