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- #559 -🥋💸⚡️ Broken Tax Breaks
#559 -🥋💸⚡️ Broken Tax Breaks
Europe Cartel, Ford's Investment, and Inflation's Impact
TOGETHER WITH
Biden backs off, Europe cracks down, and Hybrids last the longest?
Plenty to learn, discuss, and debate going around, and we encourage it. The things happening out there will influence what’s going on in our stores someday, so we may as well begin the conversation on our own terms.
So pass this news around, get some people’s temperature on current events, and find a piece of this story your team feels united in so you maximize your effectiveness while you…
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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BUSINESS
We Love News
Giphy
U.S. EV Tax Credit Policy Takes a Break
Temporary Exemption: The Biden administration may offer a temporary exemption from stringent EV tax credit rules.
Impact: This could affect the eligibility for a $7,500 subsidy under the climate law, which currently limits tax breaks for EVs using battery parts or minerals from 'entities of concern,' mainly Chinese suppliers.
Reason: To reduce the immediate impact on the EV market, as many U.S. battery plants are under construction.
Awaited Details: Automakers and consumers await final details, shaping the future of EVs in the U.S.
"Wait, maybe I was overzealous..." has been going around lately in the EV world.
Europe's Electric Vehicle Market
Market Growth: ACEA predicts that the EV market share in Europe will increase from 14% in 2023 to 20% in 2024.
Regulatory Scrutiny: The EU's antitrust team is investigating five major car battery makers for potential price-fixing between 2004 and 2017.
Challenge: Europe's auto industry is transitioning to electric but faces regulatory challenges.
Did anybody have "EV Battery Cartels" on their 2023 BINGO card?
Ford Motor's Financial Update
2023 Guidance: Ford reinstates its financial forecast with $10 to $10.5 billion in adjusted EBIT and $5 to $5.5 billion in adjusted free cash flow.
UAW Labor Agreement: The new deal, expiring in April 2028, will cost Ford $8.8 billion and increase vehicle costs by approximately $900 by 2028.
Efficiency Plans: Ford intends to offset these costs through productivity improvements and canceling or postponing $12 billion in EV investments.
Investing in workers is the canvas on which all other investment aspirations sketch their ROI.
EV Charging Infrastructure Expansion
U.S. and Global Developments: EVgo expands in Ohio, while Mercedes-Benz and BMW plan 1,000+ EV charging stations in China by 2026.
Eco-friendly Charging: Research finds EV charging could be better but is more environmentally friendly, especially with renewable energy sources.
Less carbon in the air and more mining runoff in the water and soil.
Consumer Reports on EV Reliability
Reliability Concerns: EVs report 79% more problems than gasoline vehicles; plug-in hybrids have 146% more issues.
Hybrids Lead in Reliability: Hybrids are 26% more reliable than gasoline cars.
Consumer Advice: Opt for older EV models for better reliability; Asian brands like Lexus and Toyota lead in overall reliability.
After "within my budget," most Americans hold "Won't break down all the time" pretty high in their new ride consideration priorities.
When customers are choosing a new vehicle at your dealership, what do you find they usually prioritize the most?What are you hearing most? |
TOGETHER WITH PLACER.AI
Follow the Data
Data shows a stark divergence between new and used car dealership visit trends, reflecting today's market's economic shifts and consumer preferences.
While branded dealerships have seen a dip due to supply chain woes, the used car market is thriving, attracting a broad consumer base with its affordability.
Local market insights reveal significant regional variations, emphasizing the need for localized strategies in dealership marketing and operations. Placer.ai's location intelligence data offers invaluable insights into these trends, helping dealers understand and adapt to the changing landscape.
Read the full report to uncover insights and strategies tailored to the unique challenges of the auto dealership industry. 👀
TIE CUTTERS
2024 TIME Dealer of the Year Nominee:
Barry Nelson
Barry Nelson, a Virginia Automobile Dealers Association representative and 2024 TIME Dealer of the Year Award nominee, exemplifies the true spirit of community involvement through his extensive contributions in Virginia.
Nelson began his career at his father's Ford store, learning the business from the ground up. Today, he heads Autos by Nelson, with multiple dealerships across Virginia.
However, it's his community contributions that truly stand out. Nelson's passion for sports has led him to coach American Legion Baseball for 16 years and support the Martinsville Community Recreation Association.
Beyond sports, he collaborates with local chambers and development authorities to drive business and job growth in the area. Nelson's dedication to giving back is a testament to his belief in empowering the community for future generations.
Congratulations on the recognition for all your years of hard work, Barry! 👏
AROUND THE ASOTU-VERSE
Coming Soon
TODAY, DECEMBER 1 @ 9:00 am EST
David Long’s All Things Used Cars on Clubhouse
What 3 Levers Can You Pull to Move Inventory? Get real-world tactics from David Long and the All Things Used Cars community tomorrow during an hour-long dive into turning over inventory.
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 🧑💻
The Wheelhouse
Did you catch this week’s discussion on The Wheelhouse with Daniel Govaer?
Hear from some industry leaders about the Hyundai/Amazon deal, new FTC rules, and the Cybertruck.
CULTURE
Broad Economic Juice W/ Bloomberg
Giphy/NBC
🚗 Inflation Impact: Significant cost-of-living squeeze since 2020. What $100 bought pre-pandemic now costs $119.27.
🍞 Consumer Spending: Groceries up by 25%. This affects overall consumer spending power.
🚘 Automotive Trends:
Used car prices surged 35%.
Auto insurance rates are up 33%.
Real wages are stagnant, affecting car affordability.
🏠 Housing Market: Home values increased 42% since 2020. High mortgage rates challenge the shift from renting to owning, impacting car buyers' budgets.
💡 Household Expenses: Increases in routine expenses like electricity and childcare.
🍽️ Lifestyle Costs: Even dining out is costlier, indicating overall budget tightening.
Understanding current economic pressure is crucial. It shapes consumer behavior and influences car purchasing decisions. Current inflation and living costs make customers cautious about major purchases like vehicles. Adapt marketing and sales strategies accordingly.
Quick Hits
The Hyundai Ioniq 6 tops the “Fasting Charging EV” list, while the Chevy Bolt is last. 🏇
More retailers are re-adopting the “keep it” return policy amid holiday hustle. 📦
Musk tells bailing advertisers he won’t miss them, with some “choice” words. 🤬
Some NFT creators are finally acknowledging the facts and making digital baseball cards. ⚾️
Don’t tell Dad, but this is how science says you should set your thermostat. 🌡
Some Doctors say, despite the promises, most meds don’t do much to help the common cold. Water, rest, and nutritious food go a long way. 🤧
History
1928: Duesenberg unveils the Model J at the New York Auto Show. 🎩
1955: Rosa Parks sets off a bus boycott in Montgomery, Alabama, when she refuses to give up her seat. 🚌
2019: The outbreak of coronavirus infection begins in Wuhan. 🦠
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