#535 - ☀️ Car Shows Persist

TOGETHER WITH

“It’s all about finding a balance” is a sentence you can say in almost any situation and get people to agree with you.

When you gotta say something a little more weighty than that, we hope you find our email useful for practical, direct, and entertaining things to add to your conversations.

Happy Water Cooler-ing, friends.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

UAW UPDATE BY ASOTU

• UAW reached a tentative deal with Stellantis but has expanded its strike at GM.

• Local UAW approved the tentative agreement with Ford last night that includes $8.1B in new investments and $5,000 ratification bonuses.

• UAW president Shawn Fain says he is setting his sights on currently nonunion auto plants.

TODAY’S LOT WALK

• Business: Cruise calls for a full stop, Hertz and Ford back off EVs, Tesla reverses course on price cuts.

• MTCM: Mohawk Honda opened the doors for a trunk-or-treat.

• Culture: Japan’s Mobility Show strikes a hopeful note for car shows and EVs that are fun to drive.

Reading time: 4 mins 41 secs

BUSINESS

Down To Business

GM's Cruise License Revoked:

• What happened? We wrote recently about how California suspended Cruise's driverless operations license after an accident where the company's autonomous car dragged an injured pedestrian.

• Why? Cruise misrepresented the accident details.

• Current Status? Cruise is reviewing procedures and is now using safety drivers.

Hertz Scales Back on EVs:

• What happened? Hertz reduces its electric car plans due to high EV repair costs and Tesla's price drops impacting resale value.

• Numbers: Hertz owns 35,000 Teslas, not the 100,000 projected for the end of 2022. Hertz shares fell 10% and Tesla's by 3%.

• CEO Statement: Stephen Scherr cited EV repair costs and market value drops for lower Q3 margins.

Ford's EV Losses Grow:

• What happened? Ford's shares fell 12% due to rising losses in its EV division, driven partly by Tesla's price cuts.

• Other Concerns: Ford retracted its 2023 outlook over potential higher labor costs with the UAW union and reduced EV investments.

• 2nd thoughts: Saying US consumers are unwilling to pay premium prices, the brand is postponing about $12B in EV manufacturing plans, including a 2nd battery plant in Kentucky.

• Numbers: Ford's EV segment had a quarterly loss of $1.33 billion.

Tesla's Model Y Price Increase:

• What happened? Tesla raised the Model Y Long Range price by $500 to $48,990.

• Why? Indicates stronger demand for the SUV.

• Note: This follows Tesla's price cuts for the Model 3 and Model Y earlier in the month. Prices are also adjusted in China.

TL;DR: Cruise cars got a time-out, Hertz isn't feeling the electric buzz as expected, Ford's EVs seem to be short-circuiting, and Tesla's Model Y is now a hot (and slightly pricier) ticket!

TOGETHER WITH CONGRUENT

Storytime w/ ASOTU and Congruent

One day, the ASOTU email team asked the creative agency, Congruent, what they wanted to say in the Daily Push back email. This is their story…

ASOTU email team: What do you want to tell our readers?

Congruent creative team: Don’t think about a fluffy little puppy doing that cute pounce thing they do. And definitely don’t smile about it.

ASOTU email team: Too late. Why would you want us to write that?

Congruent creative team: If we can make you do what we want and smile with only words, just imagine what we could do with pictures and videos, too.

ASOTU email team: You should consider doing this for a living.

Congruent creative team: We’ll give it a shot.

/Positivity

If we tried to tell all the wonderful, charitable, and creative stories happening in dealerships across our industry, we would need a bigger email. But we have just enough space in this email for YOUR story. Let us help show the community and world what you have going on in your store!

MORE THAN CARS MOMENTS

Mohawk Style Halloween

Mohawk Honda converted their detail bays into a Trunk-or-treat experience for their community yesterday! 👻

The event offered a fun alternative to trick-or-treating to families who may have kids too little for the trek or live in a place where door-to-door candy collection is impractical. 👹

Folks were invited to wear their costume, bring their family, and enjoy a part of the dealership; not much of the public got to visit. 🏴‍☠️

What a fantastic and low-barrier way to share space, time, and joy with your community! If only there was still a day to prepare for Halloween...🤔

AROUND THE ASOTU-VERSE

Coming Soon

• MAY 14-17, 2024
  ASOTU CON 2024 in Baltimore
  Based on the overwhelmingly positive feedback, we’re heading back to the Live! Casino & Hotel Maryland in May next year for ASOTU CON 2024. Stay tuned — tickets will be released the first week of November!

  🗓 Add it to your calendar now! 🗓

CULTURE

Japan Mobility Show

At the Japan Mobility Show, formerly the Tokyo Motor Show, big names like Honda, Mazda, Nissan, Subaru, and Toyota dropped electric and hybrid sports car concepts. Leading folks to claims about auto shows, sports cars, and their ability to survive the shift toward electric cars.

Check out The Verge’s write-up on each of the concept cars.

What does it mean? Japan's auto industry is indicating a shift towards accelerated EV development, offering consumers more electric options that prioritize driving enjoyment. For auto dealers, this means a broader range of EV models to sell, though challenges like high prices and limited charging infrastructure demand strategic promotion, possibly leveraging revived auto shows for marketing.

Maybe it’s time for the showroom to become the Show-Em’-Room?

Quick Hits

• Google Wallet IDs are now valid in 3 more states: Arizona, Colorado, and Georgia. 🇺🇸

• Sony says supply issues are behind them, and it expects a big Christmas season for the PS5. 🎅

• People’s budding relationship with ChatGPT has some talking about 2013’s “Her,” a weird movie where the Joker falls in love with his smartphone. 😍

History

• 1938: "The War of the Worlds" radio broadcast sets off mass panic. 👽

• 1963: The first Lamborghini. 🏎

• 1974: Muhammad Ali regains The Heavyweight Title by knocking out George Foreman in the eighth round during the fight billed as "Rumble In The Jungle." 🥊