#573 - πŸ’¨πŸŽ’πŸ¦Ί Airbag Safety

Incentives, Value Retention, and Collector's Market

December 21, 2023

ASOTU Daily Push Back Logo

TOGETHER WITH

Airbags are iffy, incentives are back, and Tesla’s charging standard is… well… more standard.

Plenty to look into today, but it’s hard to get this late in December without looking everywhere but here and now.

Thinking about 2023’s highs and lows or 2024’s dreams and anxieties is just part of the whole year-end ritual.

Let’s not lose sight of all there is to do, love, and dream about right here with us, and of course…

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Very Professional

Giphy/Fox

Airbag Alarm: Automakers Push Back on Recall Request πŸš¨πŸš—

Some prominent automakers, General Motors, Toyota, and Volkswagen, are doing recall math with preventable injuries and fatalities on one side and a 52 million unit recall on the other. 

  • 🚫 Recall Resistance: Automakers challenge NHTSA's 52 million airbag inflator recall proposal, questioning the risk analysis.

  • βš–οΈ Safety vs. Statistics: NHTSA links the inflators to one fatality and seven injuries, demanding action after an eight-year probe.

  • πŸ” Long Investigation: The recall, if enforced, could become the second-largest in US history.

  • πŸ“‰ Low Failure Rates: ARC Automotive argues the risk of new ruptures is extremely low over the next three decades.

That's it; we're adding ASOTU brand helmets to the swag shop. Coming 2030. 

Considering the NHTSA's proposed recall of 52 million airbag inflators, what do you think is the best next step for these airbags?

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Deck the Lots: US Dealers Drive Holiday Deals πŸŽ„πŸš—

Incentives are back in dealerships nationwide, and customers seem to be responding positively.  

  • πŸ“‰ Price Drop Push: A 1.5% drop in average new vehicle prices hints at a more buyer-friendly market.

  • πŸš— Inventory Overflow: Dealers are hustling to clear the highest inventory levels since early 2021.

  • πŸ’° Incentive Increase: A 136% year-over-year spike in sales incentives is luring buyers.

  • 🏷️ Big Brand Bargains: Major discounts from Jeep, Kia, Chevrolet, Mercedes, and Hyundai, including over $5,000 off on select models.

Tis the season for hot cocoa and clippin' coupons. 

EV Charging Club: VW Finally Joins the Tesla Bandwagon βš‘πŸš—

Volkswagen Group, including Audi, Porsche, and Scout Motors, has capitulated to Tesla's charging dominance, adopting its EV charging standard.

  • πŸ”Œ Charging Collaboration: Volkswagen plans Tesla's Supercharger integration in its EVs by 2025.

  • 🌍 Expansive Access: VW's move opens up 15,000 Tesla Supercharger locations to its customers.

  • πŸš€ Industry Shift: Volkswagen joins Ford and GM in embracing Tesla's North American Charging Standard.

  • πŸš— Supercharger Superiority: Tesla boasts a global network of 45,000 chargers with near-perfect uptime.

If Tesla never makes another EV, it will be part of the electric car conversation for the foreseeable future. 

Buick's Bold Buyout Bonanza πŸ·οΈπŸš™

General Motors has slashed its Buick dealership network in the US by half, a billion-dollar move aiming at profitability and EV transition.

  • πŸ” Dealership Downsizing: About 1,000 Buick dealerships have been cut to enhance sales at the remaining locations.

  • πŸ’Έ Billion-Dollar Buyouts: GM's costly program aligns with Buick's pivot to electric vehicles.

  • πŸš€ Sales Strategy Shift: The move triples throughput at the remaining dealerships, focusing on EV investment.

  • πŸ”Œ EV Transition and Market Trends: Buick's target for an all-EV lineup by 2030 drives the strategy despite its current lack of EV offerings in the US.

Why stop there? Cut it back to 1 dealership, and people will drive from across the nation to shop there, obviously. No risk to brand loyalty there. Nope. None. 

The Blazer EV's Software Saga πŸ–₯οΈπŸš—

Kevin Williams' road trip in a Blazer EV became a software nightmare, exposing the challenges in modern vehicle technology.

  • πŸ”Œ Charging Chaos: The Blazer EV faced significant charging and software issues, demanding multiple DC fast charging stops.

  • πŸ“‰ Infotainment Meltdown: Severe glitches plagued the Android Automotive-run infotainment system.

  • 🚨 Limp Mode Limbo: A charging session in Virginia triggered a restrictive "limp mode" in the Blazer EV.

  • πŸ” Common Concerns: Similar experiences by other EV owners indicate broader issues with Ulti Ξ©um-platform vehicles and Electrify America stations.

No wonder there are so many problem-free EV road trip stories; this guy has ALL the problems for them.  

TOGETHER WITH UPSTART

Outpace the Competition

Giphy/ABC

Is your dealership's digital game more vintage than vogue?

Colonial Volkswagen/Subaru was in the same boat until they partnered with Upstart for a digital overhaul.

With Upstart's integrated online and in-store retailing and financing solutions, Colonial seamlessly transitioned to the mega-efficient Single Point of Contact model.

🌟 The results?

  • Lead-to-sale rates skyrocketed to 50%, more than double the national average for Subaru dealers.

  • Leads jumped by 63% YOY, outpacing the national average by 74%.

  • Time-to-sale was slashed to just 4 days, leaving the 14-day national average in the dust. 

  • Plus, with AI-powered financing, Upstart is helping to optimize Colonial’s customer-friendly options and future-proof their strategies.

Ready to evolve your dealership with Upstart's innovative digital solutions? Contact them today and steer your dealership into the future!

DATA & INSIGHT

Vehicle Value Retention

Giphy/Fox

iSeeCars analyzed over 1.1M used cars from model year 2018 sold from November 2022 to October 2023 to find which vehicles hold their value best. Here’s what they discovered:

In General…

  • All cars are holding their value better in 2023 compared to 2019.

  • Expect those higher used car prices to stick around. With the limited production from 2020 to 2022 still impacting the market, there are just not enough cars to meet demand. Good news for vehicle values, but buyers will face steeper price tags.

Best in Class…

  • Trucks and hybrids retain the most value, losing only 35% and 37% respectively after five years.

  • Porsche, Toyota, Subaru, and Chevy had the highest number of models on the slowest depreciating list.

  • Overall, sports cars, small SUVs, and economy cars tend to hold their value best.
     

Visual Capitalist

 
Rough Rides…

  • EVs are the worst segment at holding their value, losing 49.1% in five years.

  • Maserati, BMW, and Audi had the highest number of models on the fastest-depreciating list.

  • Overall, luxury SUVs and sedans are some of the worst at holding their value.
     

Visual Capitalist

TIE CUTTERS

2024 TIME Dealer of the Year Nominee:
Cody Haiar

Cody Haiar is next up on our list of top-notch dealers who have been nominated for the prestigious 2024 TIME Dealer of the Year Award.

Haiar propelled his career from humble beginnings in cattle farming to eventually co-owning Frontier Motors and enriching his community in Winner, South Dakota wherever possible.

From bringing Junior Achievement to his area to supporting local causes like healthcare and disaster relief, Cody's impact goes far beyond selling cars.

A tip of the hat to ya, Cody, and best of luck! πŸ‘

AROUND THE ASOTU-VERSE

Coming Soon

  • TODAY @ 1:00 PM EST
    The 3rd Annual ASOTU Year End Extravaganza
    We’re capping off this wild year with our annual Year End Extravaganza! Join Paul and Kyle with outstanding guests like Steve Greenfield, Jamie Butters, and Daniel Govaer to re-examine 2023’s greatest hits and plan big moves in 2024.
    πŸ₯³ Experience the Extravaganza πŸ₯³

     

  • 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.

    πŸŽ₯ Let’s link up πŸŽ₯ 
     

  • 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 πŸ€

CULTURE

Top Ten Collector Cars

Hagerty / James Lipman

In its 7th annual Bull Market List, Hagerty has unveiled its hotly anticipated top picks for the best collector vehicles to buy in 2024.

Hagerty mulls over mounds of data and analysis to make their yearly selections that consistently outperform the market. So, if you’re looking to move from your stamp collection to something a little more expensive, these are your best bets:

The Lineup β€”

Hagerty / James Lipman & Cameron Neveu

Quick Hits

  • Mortgage rates dip, but demand still slips. 🏑

  • Comcast says hackers may have snagged the data of 36M users. πŸ’Ύ

  • β€œNight Court” will return for a Christmas special on Dec 23rd. πŸŽ„

  • The FTC has banned RiteAid from using facial recognition tech after it misidentified shoplifters. πŸ“Έ

  • Marvel will change the title of the upcoming Avengers 5 movie following the verdict in the Jonathan Majors trial. πŸ¦Έβ€β™€οΈ

History

  • 1898: Scientists Pierre and Marie Curie discover radium. ☒️

  • 1913: The first crossword puzzle is published, which was created by Arthur Wynne, a Liverpool journalist, and published as a "word-cross" puzzle in the New York World πŸ” 

  • 1914: The first feature-length silent film comedy is released β€” "Tillie's Punctured Romance" starring Charlie Chaplin and Marie Dressler. 🀫

  • 2012: "Gangnam Style" by Psy becomes the first video to reach one billion views on YouTube. πŸ•Ί

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