- ASOTU Daily Pushback
- Posts
- #547 - 🔍 Searching For Independence
#547 - 🔍 Searching For Independence
Rivian's Radio, Complimentary Cars, and Insurance UnSureNess
TOGETHER WITH
Another day, another hand-picked collection of news from around the automotive world.
Automakers are digging, experimenting, and asking friends to find the next big battery technology outside China. This is kinda funny since most of the stories we cover that include automakers and China are about trying to get into the world's biggest car market with some new EV JV.
Luckily, we're essentially immune to the hokey-pokey and can focus on serving the people inside and outside our space with almost no fear of geopolitics.
So celebrate that freedom, serve somebody, and of course...
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
First-time reader? Subscribe here!
Read time: 5 min and 21 sec
BUSINESS
Here On Business
Giphy/BBC
Automakers Shift Away from China's Rare Earth Dominance
Global automakers, including Tesla, General Motors, and Nissan, are actively seeking alternatives to China's rare earth materials used in EVs.
Alternatives include magnet-free motors and reduced rare earth content.
Move driven by sustainability and independence from market fluctuations.
This shift towards magnet-free motors and designs with lesser rare earth content is driven by a need for more sustainable and geopolitically independent supply chains. Despite these changes, rare earth magnets remain predominant, especially in Chinese EVs.
Rivian: Software Setback and Strategic Success
Rivian is navigating a tricky phase with its latest software update causing significant infotainment system issues in some models, necessitating physical repairs. On a positive note, the company's new Georgia factory has received official approval, a move set to boost Rivian's production capabilities and mark a significant stride in the evolving EV industry.
EV Growth Slows in Europe Amid Affordability Concerns
47% sales increase in early 2023, but the market is facing a slowdown.
Buyers are awaiting more affordable, efficient models (circa 2025).
Challenges: safety, range, high costs vs. fossil fuel cars.
Supply chain issues and changing consumer preferences impact major automakers.
Europe's EV market is slowing down as consumers wait for more affordable options. Although a significant sales increase early in the year, economic factors and high interest rates are causing buyer hesitance.
Stellantis Initiates Major Buyouts for U.S. Salaried Employees
Offers buyouts to half of the U.S. white-collar workforce.
Aim: Cost-cutting in North American operations.
6,400 of 12,700 non-bargaining employees targeted.
Part of the strategy to streamline operations amid EV transition and market challenges.
Stellantis is offering buyouts to a substantial portion of its U.S. workforce as part of a cost-reduction strategy in response to the auto industry's shift to EVs and current market challenges. This move, targeting nearly half of the non-bargaining employees, underscores the ongoing uncertainties in the automotive sector, especially in the face of economic struggles and rapid tech advancements.
TOGETHER WITH EPICAR
Where You Wanna Be
Giphy
Who are you gonna trust? Somebody who knows the map, or somebody who has walked the path?
EpiCar was born from a deep understanding of dealers' struggles in finding profitable inventory. They equip dealers like you to link up directly with private sellers to find premium vehicles ready for bidding.
Effortless Bidding: Place your bids easily and securely from any device.
Transparent, Profitable Deals: Benefit from advanced analytics for accurate profitability and transparent transactions without extra fees.
Exclusive Access: Register now for FREE and get first dibs on new cars within 10 miles for 6 months!
Join EpiCar's growing dealer network and get where you wanna be every time.
MORE THAN CARS MOMENTS
Celebrating Veterans Day with Vehicles for Change and MileOne Autogroup
This Veterans Day, Vehicles for Change, a nonprofit that trains former inmates in auto repairs, collaborated with MileOne Autogroup in a big way.
Together, they gifted ten free cars to U.S. Armed Forces veterans, supporting their transition back to civilian life.
One notable recipient, Army vet Brenda Jones from Baltimore County, can continue her nursing career with a reconditioned car.
This initiative highlights the power of community and compassion in honoring and assisting those who've served our nation.
Us: How many opportunities can one used car generate?
Vehicles for Change: Hold my wrench...
DATA & INSIGHT
Unpacking the State of Auto Insurance
Giphy
In an industry once marked by stability, personal auto insurance is now confronting a drastic shift — transitioning from longstanding profitability to significant losses. 📉
Let’s dig into some numbers and decisions shaping this new era:
Who❓
Personal auto insurance companies like State Farm and Allstate.
What❓
Main Issue: The personal auto insurance industry is facing significant losses.
Financial Indicators: S&P Global reports a startling combined ratio of 111.8 for 2022 in the personal auto insurance line, indicating an underwriting loss of $11 for every $100 collected in premiums.
Rate Hikes: In response to these losses, insurers are implementing double-digit rate increases.
When❓
The shift has become increasingly dramatic post-COVID.
This is the highest combined ratio in nearly 30 years.
Why❓
Vehicle and car part theft is trending upwards with more than 1M cars stolen and 53K catalytic converters replaced by insurers in 2022.
Increased accident severity due to factors like distracted driving and speeding.
Advanced automobile technologies are leading to higher repair costs.
General labor shortages, especially limited qualified auto technicians.
Post-COVID-19 changes in driving patterns:
Between January 2020 and January 2022, the proportion of new vehicles sold above the manufacturer-suggested retail price (MSRP) skyrocketed from 0.3% to 82.2%, leading to increased costs for insurers in replacing totaled cars.
And, of course…inflation.
How❓
The industry is responding by:
Implementing double-digit rate increases.
Ditching states like California and Florida where the risk of storms and wildfires is high.
Overhauling their operational models and risk assessments.
What Now❓
According to AM Best, the combined ratio is projected to decrease to around 106.5 in 2023, suggesting that the higher rates might be helping cover costs.
New car prices are beginning to calm down as manufacturing returns to pre-pandemic levels.
There's hope for stabilization, but consumer and regulatory tolerance for rate increases will be crucial.
TIE CUTTERS
2024 TIME Dealer of the Year Nominee: Peter Smith
Peter Smith, a fourth-generation dealer and owner of Bob Smith Toyota in Southern California, is one of the 49 standout dealers nominated for the 55th annual TIME Dealer of the Year Award.
Committed to community service, Smith actively supports local schools, youth sports, and area events, including the Crescenta Valley Fireworks Association. He champions educational opportunities through scholarships at Dolores Mission School and the Verbum Dei High School's work-study program, reflecting his dedication to giving back to the community that’s nurtured his family's century-long business.
Congrats on the well-deserved nomination, Peter! 👏
AROUND THE ASOTU-VERSE
Coming Soon
TOMORROW, NOVEMBER 16 @ 2:00 pm EST
ASOTU EDGE 30-Minute Webinar in partnership with Invoca
“Revolutionizing Phone Call Management: Adapting to the Digital Era”
Discover how the automotive industry is revolutionizing phone call management, personalizing marketing through call data, and enhancing customer experiences with cutting-edge tools like Invoca's AI technology. Dive in, decode, and drive success in today's digital age!
☎️ Register now ☎️
NOVEMBER 21 @ 7:00 pm EST
More Than Cars: Episode 1-3 Mashup Premiere
We're mashing up the best of More than Cars’ Episodes 1 and 2 with an exclusive glimpse into Episode 3 before it’s released — just for YOU.
👁️ See it first 👁️
FEBRUARY 1-4, 2024
NADA 2024 in Las Vegas
Are you going to NADA and itching for some eye-catching media coverage? We're your dream team for content creation.
🎥 Let’s link up 🎥
MAY 14-17, 2024
ASOTU CON 2024 in Baltimore
The design team is putting the finishing touches on elements and assets for the event. All participants and collaborators can expect to see the release THIS WEEK!
More Than Cars
Have you ever had a job change your life?
Nah, it takes a lot more than a paycheck. But when opportunity, community, and ambition come together, lives change.
Check out the story of Amariye Blunson at Kia of Frisco. He is a prime example of what a person with drive can do when given an opportunity to join the automotive community.
Quick Hits
History
1777: The Articles of Confederation, the first constitution of the United States, is approved by the Continental Congress. 📜
1965: Driving the jet-powered Spirit of America, Craig Breedlove sets a new land speed record of 600mph. 🚀
2001: Microsoft releases the first Xbox game console in the US. 🎮
Reply