#481 - 🚀 Consumer Sentiment Rebounds

TOGETHER WITH

If you want to go fast, go alone. If you want to go far, collaborate.

And if you want to collaborate, come to Baltimore, September 25-27 for ASOTU CON 2023.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

TODAY’S LOT WALK

• Dahl’s Dinner Plans 🍴

• Consumers Feel Good, and The Economy Is Following 🤗

• AI Learns Some New Tricks 🤖

Reading time: 4 mins 25 secs

DEALERS

Dahl Brings Dinner

Dahl Automotive came together with its community to make a difference in the lives of the hungry.

The Month of Giving: During July, Dahl Auto donated a portion of sales from used cars and oil changes, raising an impressive $10,000.

Food for the Hungry: The money went to food for the Hunger Task Force, the area's only free food bank, supporting 120 different food programs.

A Community Effort: Shelly Fortner, the food bank's director, praised group President Andrew Dahl and the Dahl automotive team for the impact of its support.

Shout out to the Dahl team! Nobody wants their neighbor to go hungry, but folks often stop at wishing. It takes special care to do something about it.

/Positivity

We love sharing the stories of dealers partnering with their communities. If you have a story like that, send it our way!

DATA & INSIGHT

Weekly Economic Update

John Ellis and his weekly economic update never let us down, so we'd let you down by not dropping a recap here!

💸 Economy:

• Consumer sentiment has reached its highest level since December 2021 at 91.4%.

• Job numbers, wages, and spending are up, while inflation is softening to 2.4% and is expected to reach 2% in August.

🚘 New & Used Car:

• New car sales dipped by 0.5% week over week, but supply is growing.

• Used car sales increased by 0.5% week over week, and supply is down.

🧾 Wholesale:

• Depreciation is slowing, down 0.6% for the 3-year-old index.

• Non-luxury and luxury depreciated by 0.7%.

• Sale prices remain below MMR but are improving, and lane efficiency increased for both 3-year-olds and 6-year-olds.

🛍️ Retail Spread:

• Wholesale value declined for all model-year vehicles, with older models declining less.

• Spread percentages are relatively stable for various vehicle ages.

🏦 F&I Outlook:

• A shift towards cash pay is growing, and long-term lengths are shrinking.

• Banks and captives are still trending above credit unions, but the situation is improving.

• Dealers should be transparent about financing as part of the deal to create profitability.

📢 Summary:

• Positive consumer sentiment and stabilization in the market indicate a manageable acquisition, retail, and disposal market.

• Focus on fundamental efficiencies to continue profitability.

• The update emphasizes the necessity of reconditioning strategies and careful management of inventory acquisition costs. 

TOGETHER WITH VEHICLES FOR CHANGE

Partners for Change

Vehicles For Change is a non-profit that leverages the power of the automotive industry to meet the needs of families facing financial instability. Since 1999 their work has opened doors to a better life through mobility and employment for over 24K people.

ASOTU is proud to announce Vehicle For Change is our charity partner at ASOTU CON 2023! We are excited to work alongside them for a better future.

AROUND THE ASOTU-VERSE

ASOTU CON 2023 - The Countdown Continues

BUSINESS

Japanese Automakers (Toyota, Honda, Nissan) 🤑

Experiencing temporary financial relief due to the weak yen, offsetting declining sales in China and electric vehicle transition challenges.

💰📈💪Earnings topped estimates, with currency factors playing a significant role. The long-term impact of the weak yen remains uncertain.

Ford 🤝

Hired Apple veteran Peter Stern to lead the new division "Ford Integrated Services." He will work with CEO Jim Farley on Ford's restructuring plan, Ford+, emphasizing the push into modern, consumer-oriented technology. 🤓🍏💿

Nikola Motors 👩‍🚒

Recalling 209 trucks after discovering a battery fire was caused by a coolant leak, not sabotage.

🔥😳👉 The company identified a supplier component as the source and is working on a fix. Affected trucks can remain in service during the resolution.

Tesla ✂️

Reduced prices for Model Y in China by up to $1,900 and offers new incentives on Model 3, aiming to maintain competitiveness. The move may clear the previous generation's remaining units ahead of expected updates to Model 3. ✂️🚙🇨🇳

U.S. President Joe Biden & Auto Industry 🎢

Urged the UAW union and Detroit's Big Three automakers (Ford, General Motors, Stellantis' Chrysler) to forge a fair agreement before contracts expire.

👨‍💼🎡👩‍🏭 The call comes as the UAW seeks new contracts by September 14, with potential strikes and demands for higher wages, benefits, and inclusion of battery plant workers.

CULTURE

AI and Algos

Technology changes fast, and so does the epicenter of the change. People camp out to get the next version of Microsoft Windows, and now we read on every site about the next weird feat accomplished by AI. Eventually, we may be writing about the technology that our technology created while we were not looking. Still, we snagged some news that may be relevant to your context today or tomorrow.

⭐️⭐️⭐️⭐️⭐️

Amazon is enhancing the online shopping experience by rolling out AI-generated review summaries. The resulting summaries skim all user-generated reviews and give readers a quick general overview of the gripes and praises of the product.

🤳🤳🤳🤳🤳 

Meanwhile, TikTok is adapting to the EU's Digital Services Act (DSA) by allowing European users to opt out of the personalized algorithm that shapes their content feed. The move brings TikTok into compliance with some privacy regulations but also opens Pandora’s box of weird content for users.

🏈🏈🏈🏈🏈 

Lastly, LinkedIn seems to be developing an AI-powered "coach" to assist users with job applications and professional networking. Imposter syndrome just made a powerful friend.

Quick Hits

• Netflix adds cloud gaming to its streaming menu. 🎮

• A gene therapy injection has cured alcoholism in a monkey. 🙊

• The Russian ruble has hit its lowest since early days of the invasion of Ukraine.

History

• 1947: Ferrari makes its racing debut 🚦

• 1969: The Woodstock Music Festival opens with 500,000 rock music fans. 🧑‍🎤

• 1998: Apple introduces the iMac computer 🍏

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