#747 - 🚗 30% of EV Owners

TOGETHER WITH

Friday at last, Friend!

Today we spend time learning about Q2 from the point of view of Ford, Stellantis, Hyundai, the U.S. auto industry, and global EV owners having second thoughts.

Hit reply and tell us about your Q2, or better, your Q3.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Q2: US, Global, Ford, Stellantis, and Hyundai

A little news, a little data, some context, an opinion or two, and ta-da, you've got an email.

We grabbed some news about the overall attitude of Q2 for automakers and then dove into the specific brands.

We ALSO saw that some 30% of EV buyers are looking for the exit-hatch back into gas-burning-glory. We're proud of people for trying new things. Like I (Chris) always tell my daughter, "How do you know you don't like spinach if you've never had it?"

I mean, she ends up not liking it, but still, she didn't KNOW until she tried.

--

Some Broad Data

Global Auto Industry Challenges
Declining sales and profitability are impacting major automakers worldwide.

U.S. Market Struggles
Excess inventory and competitive pressures have dented profits for Ford, Stellantis, and Nissan.

EV Sales Surge
Despite a rise in EV sales, automakers are cautious and pulling back on growth forecasts.

EV Owner Sentiment
Nearly 30% of global EV owners, and even more in the U.S., consider returning to internal combustion engine vehicles.

Charging Infrastructure Issues
Concerns over charging infrastructure, range, and battery life continue to challenge EV adoption.

Dealer Adaptation
The market could soon get more competitive, but the share of EV compared to ICE may shift in favor of traditional inventory.

Ford

Despite the disappointing results, Ford executives emphasized improvements in product quality and a commitment to reducing costs and complexity. The Model e unit, focused on electric vehicles, reported a loss of $1.1B, while the Ford Blue division, which includes traditional gasoline-powered vehicles, saw a near 50% decline in operating profit. Revenue increased by 6%, with vehicle sales up 2%.

Q2 Performance

• Ford's Q2 shares dropped by 18%, the worst since 2008.

• Adjusted profits were 47 cents per share, below the expected 68 cents.

• Warranty costs surged by $800M, totaling $2.3B for the quarter.

What's Coming Up

Looking ahead, Ford reaffirmed its 2024 guidance, projecting an EBIT of $10-$12B. The company remains optimistic about its long-term prospects, aiming to enhance quality and operational efficiency to regain investor confidence.

Stellantis Q2 Performance

Stellantis reported a 48% decline in global profits for the first half of 2024, with net revenues down 14%. CEO Carlos Tavares cited high inventory and ineffective marketing in North America as key issues. The company is launching 20 new vehicles to drive future growth.

Brand-Specific Q2 Spotlight

• Jeep: Anticipating sales boost from new models.

• Dodge: Introducing the electric Daytona and Hurricane-powered Charger.

• Ram: Launching the refreshed 2025 Ram 1500 with the new Hurricane I-6 engine.

• Chrysler: Focus remains on the Pacifica minivan.

Hyundai Q2 Performance

Hyundai reported a record Q2 profit of $2.9B, up 23% year-on-year, driven by strong U.S. sales of premium SUVs and hybrids.

This exceeded analyst expectations and mitigated concerns over slowing consumer demand affecting rivals like Ford and Nissan.

Hyundai plans to expand its hybrid lineup to address potential changes in U.S. EV policies following the upcoming election.

Despite a 10% slump in domestic sales due to inflation and economic weakness, Hyundai's focus on high-margin models and favorable exchange rates contributed to its robust performance.

TOGETHER WITH AUTOMOTIVE INNOVATORS TOUR

Last Chance to Level-Up

If you've ever considered what AI would look like in your operations and want a hands-on experience, then The Automotive Innovators Tour is the event for you!

Why Attend?

“The recent AI workshop transformed my marketing team. Initially apprehensive about AI, they quickly overcame their fears through interactive activities. They learned to use AI effectively and created innovative strategies with AI-generated content. The workshop empowered my team to be more efficient, effective, and valuable. They now see AI as a powerful ally in their work.” — Emma Gall, Corporate Marketing Director at Hudson Automotive Group

This is not a sit-back-and-listen event. Join for a full day of focused learning, including breakfast, lunch, and happy hour.

🍑 August 7th, 2024 in Atlanta, GA is your last chance to participate — get your ticket today!

BUSINESS CONT’D

Weekly Market Update

You’d be forgiven for assuming we only think about automotive. The truth is we keep our eyes on the culture, technology, and economy that our dear industry swims around in and with.

Check out this week’s market update here, and be sure to subscribe to the LinkedIn newsletter for more midweek DIVES into content to keep you ahead of the news.

MORE THAN CARS MOMENTS

More Than Orders

Being a leader is not about giving orders and expecting others to follow. 🙅

It’s about being an advocate, a listener, a learner, and a coach for those entrusted in your care. Good leaders prepare the people they lead to become better.

In our industry, there is no shortage of incredible leaders to learn from, so we compiled a few must-read tips and tricks from our community on LinkedIn.

Check it out here! 

/More Than Cars Moments

We want to help you show the world who dealers really are.

Share your stories of your team going above and beyond for your customers, serving your community, or achieving the success of your people, and we will share your stories here.

Encourage the community while shining more light on the good things happening in dealerships every day!

AROUND THE ASOTU-VERSE

Quick Hits

• Hallelujah! Southwest Airlines says it’s getting rid of open seating. 💺

• (Don’t) drop it like it’s hot. Snoop Dogg is set to carry the Olympic torch on its final leg through Paris. 🔥

• Gee, thanks. CrowdStrike, the cybersecurity firm that crashed millions of computers all over the world last week with a flawed update, is offering its partners a $10 gift card as an apology. 🙄

History

• 1775: U.S. Continental Congress establishes the United States Post Office in Philadelphia. 📬

• 1835: The first sugar cane plantation is started in Hawaii. 🏝️

• 1990: President George H. W. Bush signs the “Americans With Disabilities Act” prohibiting discrimination against people with special needs. ♿︎

Thanks for reading, friend! Don’t forget: Today is just as unique as any other day of your life. Don’t wait until New Year’s Day to start living how you want.