#549 -💰♻️👷‍♀️ Predicting The Future

TOGETHER WITH

Well, it seemed things could go sour at any moment, but GM’s workers have ratified their new contract.

It shows that while we can see some storms coming from a mile away, they may change shape before they get to us.

From US investments to automaker enthusiasm, and each spot in between, it seems that predicting next year’s weather is the name of the game lately.

Imagining the future is fun, but let’s not get too hung up on potential droughts or floods while we have a present garden that needs watering today.

Invest in your people, love your community, and as always…

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

BUSINESS

Cold Facts and Hot Takes

Hyundai Prime

Hyundai announces new partnership with Amazon:

U.S. Boosts Domestic EV Battery Production

• $3.5 billion in federal funding for U.S. battery manufacturing.

• Redwood Materials and Toyota: Deal for recycled battery materials.

• Japan's Sumitomo Metal Mining: Exploring U.S. cathode production.

• Aims to reduce dependency on China and advance sustainability.

The U.S. government's finally putting money where its "Not Friends with China anymore" mouth is by funding battery production. You know, like they were gonna break out the nation's dependency on foreign oil once upon a time. 

Fisker's Stock Plummets

• 22% decline following a disappointing earnings report.

• Q3 results: Loss of 27 cents per share on $72 million in sales.

• Reduced full-year production forecast reflecting broader EV market challenges.

• Competition with Tesla and high interest rates impact.

Down 22%? Is this what happens when you dream of the stars but fuel your rocket with hype? 

Mercedes-Benz and Porsche Embrace EVs

• Mercedes-Benz: First 400kW EV charging station in Atlanta.

• $1 billion global plan for 2,000 charging hubs.

• Porsche: €250 million investment in Zuffenhausen factory.

• Focus on electric versions of 718 Boxster and Macan EV components.

It's like electrification is a bus everybody is trying to get a seat on, but like, nobody is sure where it is going. Also, we imagine Elon Musk in a conductor's hat as the driver for some reason. 

China's Evolving Role in EV Market

• Chinese EVs: Competitive pricing and global presence.

• Restrictions in the U.S. market due to political tensions. But for how long? 

• BYD outperforms Tesla in vehicle deliveries.

• Tesla's development is supported by China's President Xi Jinping.

What's gonna happen in China? Who knows. 
What's gonna happen in America? No clue.
What's gonna happen in your dealership today? Up to you. 

Changing Dynamics in the Used Car Market

• Prices dropped 5.5% last year.

• The average cost is still higher than pre-pandemic levels.

• High interest rates on auto loans.

• Strategies for dealers and consumers:

  • Price comparison and different vehicle options.

  • Pre-approval for auto loans.

  • Maximizing trade-in values.

  • Exploring certified pre-owned options.

Used car prices taking a dive? Time for dealers to get creative – the game's changing, but that's where the real players shine.

TOGETHER WITH MORE THAN CARS

More and More

This Thanksgiving, when you're asked, “How's work?” we've got the perfect answer - MORE.

Join us for an exclusive mash-up of "More than Cars" Episodes 1 & 2, plus a first look at Episode 3!

Proudly showcase what you do in the automotive world. Share this episode with loved ones, and together, let's redefine the conversation about our industry.

Starring: Audi Grapevine, Beaver Toyota, West Herr Automotive Group.

Join Us: Tue, Nov 21, 2023, 6:00 PM - 6:30 PM CST.

Your Industry, Your Show! Catch the live stream on LinkedIn.

DATA & INSIGHTS

November and Beyond

U.S. Market & Automotive Dealership Outlook – November 2023

Economic Highlights:

• The US economy grew faster than expected in the first nine months of 2023.

• Consumer spending drove growth, but the savings rate declined to 3.4%.

• The manufacturing sector faces a short, shallow recession; the services economy is expected to slow.

• Inflation's decline stalled; wage inflation remains high.

Market Trends:

• Federal Reserve likely finished with rate tightening.

• Equity markets experienced a 10% correction; modest positive growth is expected.

Automotive Dealership Outlook:

• Dealerships are adapting to post-pandemic challenges, like supply disruptions.

• Shift to MSRP pricing as used car values drop; OEM incentives return.

• Customer power increases with higher inventory and lower prices.

• Digital retailing evolves; dealers focus on efficient, effective sales processes.

• EV market grows, driven by policy initiatives and investments.

• Importance of first-party data in marketing as third-party cookies phase out.

The U.S. market shows resilience with growth in 2023, though challenges like inflation persist. Automotive dealerships face a transforming landscape with new opportunities and hurdles, including pricing strategies, customer dynamics, digitalization, and the burgeoning EV sector.

AROUND THE ASOTU-VERSE

Coming Soon

• 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!

  🗓 Add it to your calendar 🗓

CULTURE

Vintage Ferrari Stuns at Auction

In a record-breaking sale, RM Sotheby’s has auctioned off a 1962 Ferrari 330 LM/250 GTO for a staggering $51.7M, making it the most valuable Ferrari ever sold at auction. The sale also marks the second-highest price for any car at auction (though that first-place honor still belongs to the 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe that went for $142M in 2022).

The red racer’s pedigree is unmatched as the only GTO Tipo 1962 raced by Scuderia Ferrari, with a long history of impressive racing achievements. Having been under the delicate care of a Ferrari Club of America chairman for nearly 40 years, this pristine one-of-a-kind beauty was a must-have for some savvy collector with very deep pockets.

Quick Hits

• Windows is now an app for iPhones, iPads, Macs, and PCs. 🪟

• Marvel’s Madam Web drops a trailer. 🕸

• Wal-Mart sees a late October dip but raises outlook. 🤷

History

• 1863: Abraham Lincoln begins the first draft of what will become his Gettysburg Address. 🎩📝🇺🇸

• 1869: After 10 years of construction, the Suez Canal opens in Egypt. 🏗️🚢🇪🇬

• 1989: Disney’s original feature-length animated film “The Little Mermaid” premieres in theaters. 🧜🏻‍♀️🐠🦀