#506 - 🚌 On The Move

TOGETHER WITH

Ahoy there, me hearties! Next week, we set sail for Baltimore as ASOTU CON be chartin' a new course in the world of retail auto. Ye won't want to miss our treasure chest of attractions — panels and speakers that are sure to shiver yer timbers, industry partners looking to help ye multiply yer doubloons, and a bounty of delectable grub to keep yer bellies full.

Join us for a swashbucklin’ good time, arrrr walk the plank like a common scallywag!

P.S. — Set yer voices to matey mode cause it’s International Talk Like a Pirate Day. 🏴‍☠️

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

TODAY’S LOT WALK

• DATA & INSIGHT: The economy marches on. 🥁

• BUSINESS: Strike🪧, Tesla🏭, and Kenya. 🇰🇪

• CULTURE: These driverless vehicles are getting out of hand. 🛩

Reading time: 4 min and 24 secs

DATA & INSIGHT

Strikes and Spikes

The UAW strike is, of course, all the rage right now, but John Ellis and The Automotive Advisor Team are keeping us keyed in on all the stats and happenings that dealers need to know to navigate the rocky road ahead. Here’s the latest:

🪧 UAW Strike: The Million-Dollar Question —
How long will the UAW strike last? Your guess is as good as anyone’s, but a prolonged strike means more inflation in our auto market, so keeping a watch on data trends and dealer demand is going to be crucial to mitigate the impacts. Keep tabs on daily inventory by manufacturer to spot MSRP inflation hints tied to the halt.

😳 Car Note Hikes —
Pre-pandemic, buying a new car took 33 weeks of income. Now, it's 42.

📊 Supply Dynamics: New vs. Used —
New cars aren’t in a hurry, sitting for an average of 57 days (mostly due to affordability and high-interest rates). On the flip side, used cars are a tad more restless, with an average 45-day lot life. Keep your eyes peeled, though; wholesale prices could really start to shake things up.


🛒 Wholesale Market Plays It Cool —
The wholesale market shows a stable three-year-old price index, with inventory volumes steady.

🃏 Acquisition Game: A Wild Card —
The acquisition market is stabilizing, with only a minor change of $100 from last week. However, like most things, the impending UAW strike might swiftly alter that landscape in the coming days/weeks.

✅ Vibe Check: Franchise vs. Independents —
Overall dealer sentiment held mostly steady in Q3 2023 compared to Q2, though high interest rates and economic concerns continue to weigh heavily on the market. Franchised dealer optimism is on the rise, while independents are a bit more skeptical.

Top Factors Holding Back Business According to the
Cox Automotive Dealer Sentiment Index:

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AROUND THE ASOTU-VERSE

Less Than A Week!

Wanna be on the winning side of an automotive revolution?

It’s not too late! Grab your ticket to ASOTU CON 2023 now and join us September 25-27th in Baltimore, MD, for an energizing, informative, and, most of all, collaborative time with passionate leaders from retail auto and beyond.

This train is going to be harder to catch in motion; you may as well get on at the platform if you know what we mean. 😉

BUSINESS

UAW Strike Update: Big Three & EV Plans

Until the strike resolves, we will keep updates coming.

• Reminder. UAW strike against the Detroit "Big Three" (Ford, GM, Stellantis) intensifies. Roughly 13,000 workers halted work, marking a historical moment with simultaneous strikes at all three automakers.

• Impact on EVs: The strike jeopardizes multibillion-dollar plans to ramp up electric vehicle production and challenge Tesla.

• White House Involvement: Biden dispatched advisers to Detroit. While not mediating, they aim to aid in constructive negotiations.

• Core Issues: Beyond higher wages, workers demand better job security, shorter work weeks, and reinstated defined pensions, especially with the industry's EV shift.

• What's at Stake? Production of high-profit models like the Ford Bronco is stalled. Prolonged strikes may affect the production of models like Ford's F-150.

Tesla's Global Expansion Buzz

Elon Musk's Tesla is in demand! While Saudi Arabia courts Tesla for a potential EV factory, Turkey's Erdogan invites Musk for a factory setup, noting existing ties with Turkish suppliers. Tesla aims to sell 20 million vehicles by 2030, so new factories are coming, and now they need to settle on where. 🌍🚗💡

Kenya's Electric Ride Revolution! 🚌⚡

We don't get to talk about the nations of Africa very often here, and wanted to share this cool story from Kenya.

ROAM unveiled "The Move," an all-electric shuttle bus crafted locally in Kenya. With a 200 km range on a single charge, the flashy, spacious bus is the latest in ROAM's push for greener Kenyan streets. A game-changer in African e-mobility! 🌍🍃💨

CULTURE

2Stealth4U?

Ever lose your car keys? Well, this story is here to help you feel much, much better about yourself.

South Carolina is counting the stars in the southern sky after a U.S. F-35 fighter jet went missing. The pilot ejected safely due to a "mishap,” leaving the jet possibly airborne.

Joint Base Charleston reported the jet's location tools weren't working but the auto-pilot was.

Rep. Nancy Mace exclaimed, "How in the hell do you lose an F-35?" As authorities ask for help in the search, the public is asking the age-old question: are we wise enough to use what our intelligence creates?

Quick Hits

• X (formerly known as Twitter) revoked the UAW’s verification checkmark following the decision to go on strike. Once the union called out Musk, the check reappeared. Imagine trying to explain this to your grandparents. 👵

• Unity said sorry and promised to make some changes. We’d like to believe our article about the story played a major role in this decision. 🤣

• A TikTok trend says Magnesium and vitamin D3 cure anxiety. Expert opinions range from “Yeah, it could work for some” to “Don’t bet on it.” 🩺

History

• 1851: The New York Times is founded. 📰

• 1932: Ab Jenkins tests a v12 engine for 24 hours around a 10-mile race track, averaging 112.91 MPH. The official record is later set by Ab with 3,000 miles in 25.5 hours. ☕️

• 1985: Tipper Gore and other political wives form the “Parents Music Resource Center” as Frank Zappa, John Denver, and other musicians testify at U.S. Congressional hearings on obscenity in rock music.