#577 -🎉✍️🚘 Transitions In 2024

TOGETHER WITH

Dealers and auto brands are working things out, BYD may take the EV crown, and Toyta’s big enough to have good, bad, and new news all at once.

Most people are waiting for 2024 at this point. Still sleeping off that extra plate of Christmas goose or egg rolls, depending on how you “roll.”

We working to make the most of the 13th month, and we know you are, too. So expect all our regularly scheduled, informative, encouraging, and community-building content into 2024.

It’s really been a pleasure to serve you all this year.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Today’s News: Wheels and Deals

Automaker & Dealer Dynamics: Steering Through the EV Transition

Dealer/automaker relations are at a crossroads, navigating the high stakes of an electric future amid pressures and mixed incentives!

• 🛑 Diverse Decisions: Approximately 50% of Ford and GM's Buick dealers are steering clear of selling EVs in 2024, with investment costs and market readiness sparking both hesitation and lawsuits.

• 💸 Financial Fork in the Road: Facing investments up to $400,000, many dealers choose buyouts or traditional models. Chevy demands all-in commitment with no exit offers.

• 📈 Adapt or Divert: As some dealers embrace the electric shift with Chevy's push and Ford's Model E certification, others opt out, reshaping the automotive retail landscape and testing brand loyalties.

BYD Gears Up to Eclipse Tesla

Tesla's reign as the EV king might just get a shock from China's BYD, proving the race isn't over until the last volt zaps!

• 🏎️ Narrowing Gap: BYD is trailing Tesla by only 3,456 EVs globally in Q3, and as Q4 results rev up, it's poised to potentially snatch the EV sales crown.

• 💵🌏 Competitive Edge & Global Chess: BYD is not just undercutting Tesla with more affordable models but also expanding globally amidst tariff tensions. Despite potential battles in Europe and cautious U.S. entry, its dominance in China and strategic moves electrify the market.

• 🚘 Autonomous Aspirations: Recently, BYD has obtained a conditional license for testing level 3 autonomous driving, joining the high-speed tech race and marking a significant leap in its innovation journey, potentially shifting the landscape of automated driving.

These numbers could change any second if BYD decides to enter the US market or Musk decides to stop personally adjusting the mirrors of every Tesla before it leaves the factory.

Toyota's Record Surge & EV Strategy Amid Daihatsu's Safety Scandal

In a dramatic twist of automotive fate, Toyota zooms ahead with record-breaking production and a new electric SUV, while Daihatsu slams the brakes over a safety scandal!

• 📈 Production Powerhouse: Toyota's global output surged by 11% in November, hitting a record with 926,573 vehicles produced, reflecting a robust recovery from supply chain disruptions and soaring demand.

• 🔌 Electrifying China: Launching the Bozhi 4X, an upgraded bZ4X electric SUV in China at around $25,000, Toyota heats up the EV race with impressive features and a 615 km range, signifying a strategic pivot towards affordable electrification.

• 🛑 Daihatsu Dilemma: Toyota-owned Daihatsu hits pause on production across all plants until the end of January amidst a scandal involving falsified safety tests for three decades, potentially impacting Toyota's 9,000 workers and its sterling reputation. 

Toyota breaking monthly output records is like that one pinball machine with every top score taken by some guy who only goes by “A.S.S.” each time he hits another high score.

TOGETHER WITH WIDEWAIL

So, You Want Fewer Negative Reviews?

Widewail's recommendation?

Focus on communication in the service department. It's mentioned in 37% of negative reviews in 2023, the #1 topic.

Widewail's latest market research report studied Google reviews from 16,500 dealerships in 2023 to understand what's actually motivating customers to leave a good or bad review.

The report includes:

• National dealership reputation benchmarks

• How to maximize positive reviews

• How to minimize negative reviews

• How consumers think about price

• EV sentiment trends

All backed by data. Download the 2023 Voice of the Customer Report today!

DATA & INSIGHT

Cars Holding Value Better Post-Pandemic

A recent CNBC article highlighted that cars aren't depreciating like they used to, a phenomenon attributed to a pandemic-induced market twist. Intrigued by this shift, we explored further, integrating insights from Kelly Blue Book to offer a comprehensive perspective crucial for our 2024 strategies.

• Slower Depreciation: Cars now retain 10% more value after three years, marking a significant shift from pandemic times due to production and supply chain disruptions. Experts predict this trend of value retention will continue.

• Price Trends: New car prices have dropped for three consecutive months, and used car prices are declining, signaling a buyer's market. However, the selection of used cars remains limited. The average new car price saw a 5% reduction last month, the first year-over-year decrease in a decade, highlighting a significant shift in pricing trends.

• Loan Rates & Affordability: Loan rates for new and used cars are decreasing, hinting at a buyer's market despite historically high rates. The average person now needs to work fewer weeks to afford a new car, indicating improved affordability.

• Long-term Market Effects: Despite the favorable conditions, the pandemic's long-term effects are expected to maintain higher-than-normal prices, particularly for affordable vehicles, due to tight supplies. Analysts anticipate used car prices will remain elevated for several years.

TL;DR: The automotive market is adapting with vehicles holding more value, favorable pricing and interest rates for buyers, and an overall positive shift. However, supply challenges and market adjustments due to the pandemic's long-term effects are expected to shape the landscape for years. These insights are crucial for strategizing in 2024.

TIE CUTTERS

2024 TIME Dealer of the Year Nominee: Jeff Field

Of the 49 dealers who have earned a nomination for the esteemed TIME Dealer of the Year Award, Jeff Field stands out for his savvy leadership and community spirit in Mississippi.

His journey from a sales position in 1987 to now leading the Landers Auto Group's ten stores is a testament to his hard work, supported by a strong family foundation and a commitment to excellence.

What's truly impressive about Jeff is how he extends his influence beyond the showroom. He's been a strong advocate for car dealers' rights, efforts to drive regional economic development, and support for first responders and underprivileged children, highlighting his dedication to community betterment.

Hats off to ya, Jeff, and best of luck! 👏

AROUND THE ASOTU-VERSE

Coming Soon

• JANUARY + FEBRUARY
  More Than Cars Episodes 3 + 4
  Tired of waiting for new episodes of retail auto’s only docu-series, More Than Cars? Us too. So, we’re dropping new episodes in January and February. Let’s start the new year right!
   👀 Watch episodes 1 and 2 👀

   

• 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 🤝

CULTURE

A Lumber of Love

The YouTube channel ND-WoodArt has recently garnered viral attention after building a fully functional replica of Tesla's Cybertruck crafted entirely out of wood. 🪵

This timber truck mimicking Tesla's futuristic design didn't go unnoticed by Elon Musk himself, who responded with enthusiasm to an open letter from the channel.

The creation, costing around $15,000, has sparked admiration among design and woodworking fans for its intricate design, unique concept, and overall cost and speed to build (~100 days).

Maybe this will help answer the age-old question: how much wood could a wood-truck chuck if I would wood-truck could chuck wood?

Quick Hits

• HBO’s “The Last Of Us” is 2023’s most pirated show. 🏴‍☠️

• Lucasfilm is suing a Star Wars-themed car wash in Chile. 🫧

• Scientists are reporting a successful cancer-destroying experiment using light that causes the cells to vibrate themselves apart. 🫨

History

• 1612: Galileo documents the first observation of Neptune. He records it as a "fixed star" without realizing it’s a planet. 🪐

• 1832: John C. Calhoun becomes the first Vice President to resign due to differences with President Andrew Jackson. ✌️

• 1975: With 32 seconds left in the NFC Divisional Playoff Game, Cowboys quarterback Roger Staubach throws a legendary 50-yard winning touchdown pass to Drew Pearson to defeat the Minnesota Vikings, and the "Hail Mary" play is born. 🏈