#486 - 🍳 Cooking Up Innovation

TOGETHER WITH

33.8 miles. That is how many running miles I got on vacation last week that I was able to focus on dreams for the auto industry.

I keep coming back to this: how do we become an industry where college and high school grads are knocking down the doors to get into!?

When the stories cease being about ‘tripping into the industry.’ When elementary school kids look up to the dealers in their city. When communities go to their dealers first when hard times hit. When transportation is the vehicle to community rejuvenation.

I believe this is the trajectory those in the ASOTU community are on. Thanks for being a part of this community and this vision of Loving People More Than Cars!

Keep Pushing Back
-Kyle

TODAY’S LOT WALK

• Data & Insight: Automotive Advisor’s weekly economic update. 📊

• Business: Solar tractors, big cup holders, and investigations — oh my! 🥤

• Culture: The internet says goodbye to a friend. 🐕

Reading time: 4 min and 12 sec

DATA & INSIGHT

Weekly Market Outlook

According to Automotive Advisor’s weekly update, the auto market is finally finding its groove with stability in demand and supply. Here’s the latest:

🔎 Economic Outlook:

• Unemployment Victory Dance: The unemployment rate is down to 3.5%, returning us to pre-pandemic employment levels. The labor force participation rate remains steady at 62.6%.

• Underemployment Under Control: The underemployment rate declined to 6.7% from 6.9% in June.

• Steady Earnings: Monthly average hourly earnings growth remained steady at 0.4%, while earnings growth YOY hovered around 4.4%.

🔎 New Car Market:

• Price Peekaboo: The average price for a new ride in July 2023 was up just 0.4% from last year, the tiniest price jump in a decade. The average transaction price in July was $48,334, a month-over-month decrease of 0.7%.

• Incentive Fever: Automakers increased incentives by 5.5% in July, averaging $2,148 per vehicle (an 83% increase from last year).

🔎 Used Car Market:

• Used Car Revival: Used vehicle sales jumped in July as folks hunted for more affordable wheels. Purchases from retailers shot up 6% from June.

• Price Limbo: Used car prices dropped 1.6% MOM and 11.6% YOY. But here's the twist: line efficiency for 3 and 6-year-old cars went from 40% to almost 60%, meaning cars are bolting off lots.

🔎 Wholesale Market:

• Depreciation Deceleration: Depreciation put on the brakes for 3-year-olds, down just 0.1% to 95.2%. Non-luxury stayed flat, while luxury went down by 0.5%.

• Price Rollercoaster: Sale prices are still below MMR but inching up (-1.43%).

🔎 F&I Market:

• Loan Limbo: Used-vehicle loans in the first quarter averaged 67 months, financed at $26,420, with a 116% loan-to-value ratio.

• Future Forecast: As supply chains improve and production ramps up, prices are expected to decline. Rising interest rates continue to stress customer wallets, and affordability remains one of the largest obstacles for consumers.

TOGETHER WITH CARS AND STREAM COMPANIES

Our Feature Presentation

The great folks at CARS and Stream Companies are the co-presenting sponsors of ASOTU CON 2023!

Cars.com is the nations leading digital marketplace for retail automotive. They consistently display their belief in dealers by partnering in the work of putting the right cars and the right customers together.

Stream Companies are a fully integrated tech-enabled ad agency that expands a dealer’s reach, deepening its message's impact to sell more cars and retain more customers.

Get to know these two, and many more, great collaborators at ASOTU CON 2023 in Baltimore, MD, Sept. 25-27!

AROUND THE ASOTU-VERSE

Ticket, Flight, Room? ✅

BUSINESS

Xpeng + VW

📉 Facing its most significant quarterly loss since its U.S. debut in 2020, Xpeng is set for a strategic overhaul. Expect cost-cutting measures targeting a 25% reduction in vehicle BOM costs by next year.

The bright side? A potential partnership and a $700M investment from Volkswagen could solidify Xpeng's market position by 2026.

Rollercoasters are supposed to be fun; this one is a drag. But, like most bad times, it may get better if the right friends come along. #metaphor

Cooking w/ Rivian

🏕 A new patent from Rivian suggests an innovative Camp Kitchen for the R1S SUV.

Features? A retractable cooktop, storage drawers, and a water pump system. Camping enthusiasts, keep your fingers crossed; this could be more than just a concept!

We've heard cars are the next cell phone, but why stop there? #carhome

Tractor Triumph

🚜 Solectrac debuts an electric tractor rental program, allowing customers to experience the e25G - a versatile 25 HP electric tractor ideal for everything from farms to sports fields. Think about renting before you buy!

At least now you can hear "she thinks my tractor's sexy" over the sound of your tractor running.

Fisker Big Gulps

🎉 Fisker dazzles with a vibrant EV range, including the captivating convertible 'Ronin' and the quirky 'Pear SUV' boasting the "Houdini Trunk" - a dream for tight parking spots.

Our only question: can that trunk also make our errands vanish? 🪄🚗💨

The Verge did a whole piece on the cup holder's size...and they were right. Look at that bad boy!

Investigations

1. GM's Cruise: After a recent robotaxi collision, California regulators are on the case, leading to a 50% reduction in Cruise's operational fleet.

2. Ford Mach-E Recall: NHTSA is diving deep into Ford's Mach-E recall, with safety concerns lingering post-repair.

3. Tesla's Steering Saga: NHTSA is investigating a whopping 280,000 Tesla vehicles over alleged steering control issues in the latest models.

Two steps forward, one heavily observed step back. 🕵️‍♀️

CULTURE

Rest In Peace, Balltze

"Heroes get remembered, but legends never die." -Ghost Babe Ruth in the movie "The Sandlot."

Balltze, the Shiba Inu dog who sparked a genre of memes and even became the face of the Dogecoin cryptocurrency, has passed away at 12. "Ball Ball," as his human called him, passed on following a tough battle with cancer.

While all pet owners eventually face sad times, memes featuring Balltze made him feel like The Internet's Dog. Despite his unfortunate passing, through the power of art and desire for connection, he will live on through his meme. What a unique time we get to exist.

Quick Hits

• Meta plans to launch a web version of Threads this week. 🧵

• YouTube is partnering with musicians and record labels to establish rules for how AI-generated music should be treated on its platform. 🤖

• Charles Martinet is stepping down as the voice of Nintendo’s Mario after nearly three decades. 🎮

History

• 1864: The first Geneva Convention is adopted, establishing international standards for humanitarian treatment in war. 🤝

• 1865: William Sheppard is issued the first US patent for liquid soap. 🫧

• 1902: The Cadillac Automobile Company is formed by Henry Leland. ⚙️