#556 - 🤫🛒🥸 Silent Shopper Secrets

TOGETHER WITH

Tesla sued a country, Rivian says the year will be ok, and VW is tightening some of its many belts. The auto world is buzzing with these headline-grabbers, but what really makes a difference in your shop today?

It's all about building relationships, one customer at a time.

Customers do their research these days so that new face in your showroom today already has an impression of your team based on online reviews.

So let’s serve generously, consider feedback with humility, and of course…

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Today’s New: A Summary

Auto Trader's Mystery Shopper Insights

• Key Findings: Friendly service and ease of transaction stand out among top dealerships.

• Email Leads: 20% of dealers failed to respond to initial emails, a missed opportunity considering their quality.

• Phone Calls: There is a slight improvement in phone interactions, but larger dealers struggle due to volume.

• Digital Presence: Smaller dealers excel in online engagement; however, 60% of top retailers had spelling errors in ads.

• Customer Reviews: Recent, authentic reviews are crucial; a mix of positive and negative responses can enhance credibility.

Takeaway: Treat everybody like a mystery shopper. It will improve ratings AND give your workplace a real Agatha Christie vibe. 

Italy-Saudi Arabia Automotive Collaboration

• Joint Ventures: Italy and Saudi Arabia are discussing partnerships in the automotive, mining, and oil sectors.

• Strategic Ties: Under Prime Minister Giorgia Meloni, Italy is bolstering relations with Gulf countries, impacting geopolitical and economic strategies.

• Industry Impact: These talks could lead to new opportunities in the global automotive industry, including technology sharing, market expansion, and diversified supply chains.

When we think about Italian cars, we think of Ferrari; when we think about Saudi cars, we think "Ferrari is the 'cheap' option." Chances are, whatever comes of these talks will never filter down to folks driving on average budgets. 

Volkswagen's Cost-Cutting Measures

• Savings Program: Volkswagen is implementing a €10 billion savings plan, including staff reductions, to increase competitiveness.

• Challenges: High costs and low productivity are impacting the VW brand's competitiveness, especially in the electric car transition.

• Workforce Reduction Strategy: Reductions will focus on partial/early retirements, avoiding layoffs until 2029.

• Beyond Staff Cuts: The majority of savings will come from other efficiency measures; details are pending.

Remember when the Scout became a stand-alone brand, and many VW dealers found out with everybody else? That was weird and surely no indication of how VW will roll out future industry-impacting changes. Right? 

Rivian Automotive Update

• Stock Performance: Rivian Automotive's stock underperformed last month, contrasting with gains in the broader automotive sector.

• Earnings Outlook: There are expectations of a reduced loss per share this year, but the stock remains rated as a 'Hold.'

• Revenue Growth: Significant year-over-year revenue growth is projected, indicating potential in the electric vehicle market.

• Market Valuation: Currently trading at a premium, suggesting high investor expectations.

Since Tesla is essentially an established brand now, Rivian is like the new poster child for America's relationship with EV startups. In this case, the poster "child" is actually a cat holding on to a branch, if you know what we mean. 

Tesla's Union Dispute in Sweden

• Strikes Affecting Supply: Swedish union strikes, including a key Tesla supplier, disrupt Model Y component supply.

• Union Solidarity: Widespread union action across sectors, impacting Tesla's operations in Sweden.

• Lawsuits Filed: Tesla sues Swedish state and postal service to circumvent strike-related delays. The carmaker won an interim decision in court.

• Global Impact: Disruptions could affect Tesla's European operations, particularly its Berlin factory.

• Musk's Stance: CEO Elon Musk is critical of union actions, reflecting Tesla's anti-union stance.

Based on Elon's anti-union history, this may be the first time an automaker fires a whole country. 

TOGETHER WITH MORE THAN CARS

More Than A Mashup

Did you catch the More than Cars episode 1-3 Mashup?

If you’re curious about what this docuseries is all about, this is the perfect place to start.

Get an exclusive behind-the-scenes look at three teams who make loving people more than you love cars look easy: Audi Grapevine, Beaver Toyota, and West Herr Automotive Group,

Check it out, tell us what you think, and then let us know who we should talk to next!

DATA & INSIGHT

November Market Trends

The Ups:

⬆️ Sales Volume Increase: November new-vehicle sales are projected to see a 6.5% rise compared to the same period last year.

⬆️ Inventory Surge: New-vehicle inventory starts the month at 2.4M units, up by over 900K units from last year.

⬆️ Market Recovery: Overall signs of recovery with higher sales numbers indicating a bounce back from previous socioeconomic constraints.

The Downs:

⬇️ Moderate Pace Decline: The Seasonally Adjusted Annual Rate (SAAR) is expected to hit 15.3M, a decline from last month’s 15.5M (though up by 1M over last year's pace).

⬇️ Weaker Sales Climate: Economists note a weaker buying climate, leading to a slower sales pace.

⬇️ Wholesale Market Adjustments: Wholesale values decreased in the first half of November, continuing a downward trend over the last six weeks. The Manheim Market Report Index indicates accelerated depreciation, more than typical for this time of year.

TIE CUTTERS

2024 TIME Dealer of the Year Nominee: Steve Pleau

Steve Pleau has been nominated for the prestigious 2024 TIME Dealer of the Year Award, distinguishing him as one of 49 standout dealers across the country selected for the honor

From washing cars in his dad's dealership to leading a booming automotive group in California, Steve's journey is an inspiring blend of ambition, family legacy, and generous community spirit.

More than a business leader, Steve's deep-rooted community commitment shines through. He champions local economic growth as a board member of the Greater Sacramento Economic Council and passionately supports education, notably with a $1M donation to Sacramento State. His dealerships actively engage in toy drives, cancer awareness events, and food drives, reflecting Steve's dedication to giving back and enriching lives.

Bravo and best of luck, Steve! 👏

AROUND THE ASOTU-VERSE

Coming Soon

• TODAY, NOVEMBER 28 @ 1:00 PM EST
  The ASOTU Wheelhouse

  Join host Daniel Govaer and guests Matt Haiken of Prestige Auto Collection, Michael Wood of Jaguar Land Rover of Virginia Beach, and Accu-Trade’s Brian Kramer for a round of discussion about the Cybertruck, Nitro Tires, and of course, Amazon selling cars (?🤯?)

  ⚙️ Listen here ⚙️
   

• Wednesday, DECEMBER 13 @ 2:00 PM EST
  ASOTU Edge Webinar with Upstart
  Transforming Car Buying: The Power of Connected Auto Retailing
  Learn how to blend online prowess with in-store digital finesse, alongside top-tier financing and management tools in 30-minutes.
  🧑‍💻 Register now 🧑‍💻
   

• 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

  Next year, we’re elevating the focus on context, connection, and dynamic conversations. Unlike traditional conferences, we’re going beyond a passive listening experience, turning every attendee, speaker, and exhibitor into a crucial part of the larger dialogue.
  🤝 Partner with us 🤝

Quick Hits

• An Israel-Hamas truce is extended by two days. 🕊

• California may allow citizens to opt out of having their data play a role in AI training. 🙅‍♀️

• Meta is facing claims it ignored reports of underage users on its platforms. 👶

• Disney’s “Wish” misses box office dreams. 🧞‍♂️

History

• 1520: Portuguese navigator Ferdinand Magellan begins crossing the Pacific Ocean. 🧭

• 1717: Blackbeard captures a French merchant slave ship which he renames as his flagship the "Queen Anne's Revenge." 🏴‍☠️

• 1895: America's first auto race is organized by the Chicago Times-Herald. Frank Duryea wins averaging 7 MPH. 🏎️💨