#491 - 🌟 Be The Change

TOGETHER WITH

Some of our team took another trip to the ASOTU CON venue yesterday, and we just need to say again that while the Live! Casino Hotel Maryland is an amazing space, Baltimore is simply not ready for what is about to happen.

Don’t believe us about the venue? Keep an eye on our LinkedIn.

Don’t believe us about this whole industry preparing to enter a bold new future? Grab your ticket to ASOTU CON 2023 and let us show you.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

TODAY’S LOT WALK

• Data & Insight: Market updates à la the Automotive Advisor. 🤓

• Business: Rivian ditches yellow, Canoo sells vans, and Xpeng soars. 🦅

• Culture: Fashion is weird but fun, but also weird. 👕

Reading time: 4 min 41 secs

DATA & INSIGHT

Weekly Economic Update

Each week, we geek out over the juicy data and market insights from John Ellis and the Automotive Advisor team. Here’s the latest:

 Navigating Current Market Conditions:

⛽️ Pain at the Pump — Gas prices have been on a steady rise throughout the Summer, but are finally beginning to ease. The national average for unleaded gas is $3.83/gallon as of August 24, down 1.2% WOW and down 1% YOY.

🏡 Housing Market Hurdles — The housing market remains very sensitive to mortgage rates, which have been volatile this year but have surged to new 22-year highs in recent weeks. The existing home market continues to be constrained by supply and will be as long as rates remain high.

💪 Job Stability — Initial jobless claims remain steady, indicating a healthy labor market.

🎭 Mixed Sentiment — Overall consumer sentiment dipped 3.1% in August due to those rising gas and interest rates. However, the consumer’s view of vehicle buying conditions was mostly unchanged from July and at the best level since February.

 New Car Market:

🚗 Strong Sales — July saw a surge, with an annual sales pace near 15.9M, up 2.6M from last year. Sales volume increased by 15.3% YOY, reaching 1.32M units.

🚙 SUVs on the Rise — Mid-sized and compact SUVs are gaining market share by 0.2%. Meanwhile, trucks and SUV/Crossovers saw a slight decline of 0.1%.

Used Car Market:

🔍 Market Surprise — Used-vehicle sales continue to surprise, increasing by 2.1% in July. Retail sales are also trending up.

📉 Pricing Dip — Used-vehicle pricing declined 4% YOY primarily due to declines in wholesale values earlier this year.

Wholesale Prices:

🚗 Car Segments — Car values decreased by 1.73%, with compact and mid-size cars leading the fall.

🚚 Truck / SUV Segments —Trucks and SUVs dip by 1.43% staying consistent with previous weeks.

What's on the horizon for 2024?

🏦 Steady Growth — With the wild swings of the COVID era fading, growth in 2024 will likely resemble pre-pandemic stability. Federal Reserve Chairman Jerome Powell has expressed cautious optimism but maintains a readiness to act if needed. Analysts predict the Fed will trim rates to around 4% next year.

🌟 Retail Optimism — Rates and inflation are moving in the right direction and the outlook remains positive. Dealers are gaining market share, and data indicates the first half of 2024 will offer a thriving economic landscape.

💼 Labor Lament — Despite this rosy outlook, the labor market continues to face concerns due to the aging workforce, which means the job market is about to get real competitive, y’all.

TOGETHER WITH VEHICLES FOR CHANGE

Reshaping Lives

Our ASOTU CON 2023 charity partner, Vehicles for Change, is about more than cars in a big way. They’re reshaping lives and the industry through transformative training, support, and employment. 🙌

By championing those re-entering society post-incarceration, Vehicles for Change paves the path to reinvigorated families, decreased recidivism, and new opportunities.

Every graduate enters the hiring pool with top-tier auto tech skills and an average of three ASE certifications. Vehicles for Change makes it easier for many dealers to boost their teams, uplift their community, and craft a brighter tomorrow.

Contact Vehicles for Change and be the change you wish to see! 🌟

BUSINESS

🟡 Rivian Changes Color Palette

Rivian discontinues Compass Yellow paint for R1T and R1S. From now on, orders will default to LA Silver, requiring customers to press several buttons to get their preferred shade of spilled mustard.

🔋 Canoo Unveils the LDV 190

Meet Canoo's new electric cargo van - the Lifestyle Delivery Vehicle LDV 190. It has dynamic handling and performance, an innovative cargo cartridge, additional LED lighting, and optional translucent roof panels. Canoo aims for a 20k annual production in Oklahoma City, potentially making them the first #VanLife models marketed directly at cowboys.

📈 Xpeng's Share Price Soars

Xpeng announces a massive $744M deal with Didi, causing a 13% surge in share value. The deal will lead to a new mass-market EV brand launching next year! This will join an already uncountable number of EV brands that may or may not be driven by real people.

🚔 Chicago vs. Kia & Hyundai

The Windy City alleges Kia and Hyundai missed essential anti-theft tech in their 2011-2022 models, leading to 7k+ thefts last year. Viral videos showcase how vulnerable these cars are when somebody decides to steal them. This mess has ruined the faith in "dusting for prints" that years of cop shows built in us as kids.

🇫🇷 Renault's Big Move with Ampere

Renault sets the stage for its Ampere EV unit's spring 2024 IPO. Ampere separated from Renault on November 1st, paving the way for Nissan's 15% stake investment. They couldn't wait to get free of one another so they could *checks notes * invest in each other...?

CULTURE

Lockheed, but Make It Fashion

Paul and Kyle covered a weird one from South Korea yesterday on The Automotive Troublemaker. It deserves a second look because, honestly, it's fun to talk about weird stuff from a Korea that isn't North.

🤨 What? Lockheed Martin, the renowned American aerospace and arms manufacturer, is having a moment with South Korean streetwear.

🦉 Who? South Korean company, Doojin Yanghang Company, sells apparel adorned with the Lockheed Martin logo. People (i.e. TikTok influencers) can't get enough.

🕵️‍♂️ Deets? The $30 shirts come in black or white and feature the company's logo in primary colors along with parts of the company's mission statement.

👕 Did You Know? This isn't the first time famous global logos have entered South Korean fashion. Brands like CNN and Kodak have previously popped up on shirts across the country's hip and swaggy. 

In case any dealers-with-dope-logos are wondering, the ASOTU team needs one of each size. 😉

Quick Hits

• Tragic! France is paying millions to destroy excess wine. 🍷

• Dropbox sold “Unlimited” plans but regrets it since people use so much space. 😾

• Power Rangers turned 30 and have a wildly dark-looking comic event planned to mark the occasion — check out the Power Rangers: Darkest Hour trailer. 🦹‍♀️

History

• 1885: What is often referred to as the first motorcycle is patented by Gottlieb Daimler and Wilhelm Maybach. 🏍

• 1964: Roy Orbison releases his number-one hit “Oh, Pretty Woman.” 💃

• 2005: Hurricane Katrina, a Category 5 storm, devastates New Orleans. ⛈