#494 - 🧭 Navigating Like Pros

TOGETHER WITH

Welcome to September!

A lot of great things will happen this month. Labor Day, the first day of fall, and, of course, retail automotive’s most lively, collaborative, and energizing conference: ASOTU CON 2023!

Yep, the day gets closer every moment, so grab your ticket and book a flight to join us in Baltimore Sept. 25-27.

It’s gonna be dope, but it’ll be more doper with you there.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

TODAY’S LOT WALK

• Data & Insight: New Challenges, New Solutions. 💡

• Business: Uber Bikes, GM AI, and Mercedes’ Van. 🏍 

• Culture: A Drone Races the Best. 🏁

Reading time: 4 mins 37 secs

DATA & INSIGHT

Navigating New Landscapes

With manufacturers finally refilling showroom floors post-pandemic, auto dealers are now faced with the challenge of rebuilding their sales volumes and nursing unfavorable reputations. The big question is — how can they best navigate this new landscape?

According to new studies by Wards Auto and Urban Science, here’s what dealers need to know:

⚔️ Challenges ⚔️

• Perception Gap: Both dealers and auto buyers are less confident about the readiness of dealerships for the future. Only 27% of auto buyers believe dealerships are future-proof, closely mirroring the views of dealers at 31%. This is an astonishing 80% decrease in the perception gap within a year.

• Resource Gap: While dealers maintain some confidence, only 34% of auto buyers feel that today's dealers offer the resources, tools, and technology needed for a smooth buying experience. Even fewer auto buyers, just 30%, think salespeople have the expertise necessary to navigate the complex purchase process.

• Age Gap: Preferences for online car shopping are highest among millennials (ages 27-42), males, and those living in the West. Millennials are also most likely to explore alternative methods of purchasing vehicles.

🛍️ Trends 🛍️

• Digital Resistance: Surprisingly, auto buyers are resistant to the idea of purchasing a vehicle entirely online, despite the ongoing digitalization trends.

• Manufacturer Dealerships Rule: Manufacturer dealerships remain the top choice for auto buyers. Interest in national, used dealerships has actually decreased, highlighting the continued appeal of branded outlets.

• Hybrid Shopping: Auto buyers adopt a hybrid approach, combining online research with in-dealership visits. They seek price quotes online but still value in-person engagement, emphasizing the need for seamless omnichannel experiences.

• Alternative Formats: Dealers are adapting to change, with 91% considering alternative retail formats, especially for the growing market of battery-electric vehicles (BEVs).

🗣️ CTA 🗣️

• Invest in Training and Facilities: Prepare for the increasing demand for BEVs by enhancing training and facilities.

• Embrace Technology: Update technology and ensure all staff members, from sales to finance and service, are well-versed in omnichannel tools.

• Seamless Communication: Offer multiple communication methods to enable customers to complete their purchases effortlessly.

• Alignment with Buyer Priorities: Acknowledge and address the gaps between dealer and consumer priorities to fine-tune omnichannel processes and reshape sales methodologies.

TOGETHER WITH EFFECTV

Connections That Matter!

Our friends at Effectv are back for ASOTU CON 2023 to sponsor the podcast stage!

As the advertising sales division of Comcast, Effectv has the data, tools, and platform to get a dealer’s message to the right consumers across every screen. Dealers have cars, and people want to buy them – Effectv knows precisely how to connect the two.

Join us September 25-27 in Baltimore for interesting conversations connecting some of the best minds in automotive.

AROUND THE ASOTU-VERSE

Keep Workin’ Those Facts

David Long’s All Things Used Cars returns this week to continue their discussion about lead management with Jasen Rice and other industry leaders.

Seasoned pro? Join the Clubhouse room and share your wisdom.

Industry newcomer? Come soak up the community’s free-flowing info, insight, encouragement, and wisdom.

There’s something for everyone! 

BUSINESS

Move Makers: Polestar, Mercedes, Uber, GM

Polestar 📈 + 📉

Polestar lost $304M in Q2, which sounds like a huge bummer but is actually attached to some good news.

• Deliveries jumped 36% year-over-year to 15,765.

• Revenue for the quarter was $685M.

• They are still on track for their 60,000 - 70,000 delivery goal for 2023.

Gotta spend money to make money, and apparently, you gotta lose some of that money to eventually keep any of it. #NotBusinessAdvice

Mercedes 🚐 + 👨‍👩‍👧‍👦

Mercedes-Benz has joined the ranks of automakers in the #VanLife sector. While technically any van can be lived in, their 2024 eSprinter Van is refreshed and ready to live by the river, Wal-Mart parking lots, or the side of the interstate when you get too sleepy. How thoughtful for people with $71K to drop on a home, vehicle, or VeHOMEicle!

Uber 🛵 + 🚕

Uber is taking the obvious next step toward its carbon neutral by 2040 goal - electric motorbikes in Kenya. The company will ramp up the Electric Boda (a Swahili term for motorbike taxi) to 3K within six months and eventually expand the project to other African nations. The change will drop operating costs for gig drivers by up to 35%, resulting in a roughly 20% drop in the cost to customers.

GM 🤖 + 🚙

Thanks to Google Cloud's conversational chatbot, General Motors OnStar is getting an AI shot in the arm. Dialogflow will take over non-emergency OnStar features and play a key role in GM's $25B in annual subscription revenue by 2030 plans.

CULTURE

Swift Drone Racing

An AI system named Swift showcased champion-level drone racing abilities, challenging elite human pilots in real-world competitions.

Swift took on top names in FPV (first-person view) drone racing, including world champions from renowned leagues.

Swift's achievement highlights the rising capabilities of autonomous systems in real-world challenges, suggesting a transformative future where technology seamlessly merges deep learning with real-world applications. 

Quick Hits

• Fans and critics seem to be enjoying Starfield, the sci-fi planet-hopping game from the makers of Skyrim and Fallout. 🪐

• A truck in Canada dropped some crates and released 5M — MILLION, y’all — bees. 🐝

• Somebody made a “Best Pizza In Your State” map, just FYI. 🍕

History

• 1752: Pennsylvania's new State House bell (known today as the Liberty Bell) arrives in Philadelphia from the Whitechapel Foundry in London. 🔔

• 1995: Rock and Roll Hall of Fame Museum opens in Cleveland, Ohio. 🤘

• 1997: The Intermodal Surface Transportation Efficiency Act goes into effect for cars and light trucks, requiring those sold in the US to have front and side airbags for both the driver and front seat passenger. 💨