#583 - 🚚🕹️🤖 Next-Gen Mobility

TOGETHER WITH

Happy Monday, friends!

Without a doubt, you are moving into your week with a hefty to-do list, a packed schedule, and hopefully, a few dreams.

Don’t forget that you don’t have to accomplish it all alone. You have a great big community here that’s ready to pitch in and lend a helping hand.

And, that includes us. ✋

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Don’t Take It Personally

The EPA Considers Cali’s EV Mandate

The U.S. Environmental Protection Agency is reviewing California's ambitious plan to mandate all new vehicles sold in the state by 2035 to be electric or plug-in electric hybrids.

• 💨 Emission Revolution: The California Air Resources Board (CARB) hopes to end the sale of gasoline-only vehicles in California by 2035, but many others are saying “not so fast.”

• 📅 Upcoming Review: A public hearing scheduled by the EPA on the 10th will discuss CARB's request, and the agency says they will consider written comments until February 27th.

• 🇺🇸 National Impact: This move sets a precedent, with at least 12 other states planning to adopt similar zero-emission vehicle requirements starting in 2026.

California in 2035: Where the only thing exhausting will be the wait in line to charge your EV.
 

Hyundai's Tech Glow Up

Hyundai is bolstering its software-defined vehicle (SDV) capabilities through a strategic expansion with Wind River.

• 🤝 Software Shift: The automaker’s Tier 1 supplier wing, Hyundai Mobis, is committing to a deeper collaboration with the software developer, Wind River, targeting next-gen mobility.

• 🖥️ Advanced System Development: Focusing on Wind River Linux, VxWorks operating systems, and system simulation, they aim to craft a global collaboration network that will improve scalability and efficiency.

• 🌐 Cloud-Native Evolution: Utilizing Wind River’s resources, Hyundai Mobis hopes to modernize the future development, deployment, and operation of its central controller gateways and infotainment systems.
   

Stellantis Bows Out of Super Bowl Ads

Stellantis (parent company of Chrysler) is making cuts to its advertising budget after a difficult year for the industry.

• 📉 Advertising Cutbacks: Following a similar move by General Motors, Stellantis announced it will not advertise in the upcoming NFL Super Bowl citing market challenges.

• 🚘 Sales and Shows: The company reported a 1% decline in U.S. sales last year and has since opted out of major auto shows in Chicago and Washington, as well.

• 💼 Cost-Cutting Measures: Initiating voluntary buyouts for U.S. employees and adjusting to a new UAW contract, Stellantis is still navigating financial pressures and a volatile market.

At approximately $7M per 30-second commercial, we can’t say we blame them.
 

Self-Driving Semi-Trailers

Spearheaded by Aurora and Continental, the impending arrival of their Level 4 autonomous semis is set to revolutionize the freight industry in the very near future.

• 🚛 Pioneering Partnership: Autonomous vehicle company Aurora Innovation announced the finalization of the design, architecture, and hardware for its Aurora Driver. That technology is ultimately destined to power a lineup of driverless semi trucks being produced in partnership with German auto supplier, Continental.

• 🖥️ Fallback System Innovation: They’ve designed a unique fallback system designed to take control in case of a primary failure, enhancing the safety of these auto autos.

• 📆 Strategic Roadmap: The next few years are crucial, with final testing and initial driverless launches planned for late this year, and industrialization and validation phases set for 2026-2027.

Pros: Never worry about running into Large Marge again.
Cons: No more quirky truck stops filled with local candy and bizarre souvenirs.

TOGETHER WITH NADA

Meet Us In Vegas

In just four weeks, the National Automotive Dealer Association returns to Las Vegas for the 55th annual NADA Show. 🔮

In addition to four days of nonstop education and exposition, you can also connect with the ASOTU Crew — we would love to see you there! 👀

So, get your tickets to the 2024 NADA show today…

Then, come find us! We’ll be the ones in the “Love People” gear. 🥰

DATA & INSIGHT

Understanding the EV Tax Credit Updates

The U.S. gov implemented some changes to the EV tax credit on the first of the month, and the revamped system may impact how you sell electric vehicles and interact with your customers.

Here's a rundown of what's new, and what it all means:

⏎ Instant Rebate — First up, the tax credit isn't a next-year tax season thing anymore. It's now an instant rebate at the point of sale. This is a game-changer for customer interactions. You'll need to handle some paperwork, but it means immediate discounts for buyers, making EVs more attractive right off the bat.

🧢 Income Cap — Buyers will still need to fit certain income criteria to snag the credit — $300K for married couples filing jointly, $225K for heads of households, or $150K for other filers. Get ready to help customers understand if they qualify.

🎭 The Good and the Bad — The credit is no longer tied to the buyer’s tax liability, so they get the full credit regardless. However, the list of eligible vehicles also got a whole lot shorter.

🔋 Vehicle Eligibility — A car’s eligibility for the EV tax credit now hinges on two key factors: its assembly location and price. To qualify, vehicles must be assembled in North America. There are also price ceilings — $55,000 for cars and $80,000 for SUVs and trucks. It will be important for dealers to stay updated on which models meet these criteria.

🗣️ OEMs Respond — Some automakers are adjusting their supply chains to re-qualify for the new clean vehicle credit, while others like GM will offer their own EV incentives in response to losing eligibility.

🤝 Credit Transfer — Buyers can choose to transfer their new or used clean vehicle credit to a registered dealer in exchange for an equivalent reduction in the purchase price of the vehicle. Dealers must in turn provide the buyer with certain required information and submit a “time of sale report” containing buyer and vehicle information to the IRS.

🔄 Used EV Market — A separate tax credit is available for used EVs, with a cap of $4,000 on vehicles costing less than $25,000.

TIE CUTTERS

2024 TIME Dealer of the Year Nominee: Troy Duhon

Troy Duhon has been chosen to represent Louisiana in the running for the 2024 TIME Dealer of the Year Award.

Starting his journey washing cars at his dad's used car lot at 12, Duhon realized his childhood dream of owning his own dealership by 30. Now, he oversees 35 dealerships across several states with his children joining the family business alongside him.

Troy’s impact stretches far beyond car sales. He and his wife Tracy founded Giving Hope, an organization transforming lives through food, shelter, and dignity. He also participates in other local initiatives like an annual “Stay in School” car giveaway, and Thrive New Orleans which provides summer camps and after-school programs.

Duhon's ethos of "dream-making," instilled by his father, resonates throughout his dealerships and community, and it shows.

Congrats on the well-deserved nomination, Troy! 👏

Word on the street is we have more content featuring Troy coming very soon…stay tuned! 😉

AROUND THE ASOTU-VERSE

Coming Soon

• 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 🎥

Quick Hits

• The nation’s employers added 216K jobs to the market last month. 💼

• The FDA approved Florida's proposal to import cheaper prescription drugs from Canada. 💊

• LEGO Ideas’ latest project is designed to help pay homage to your ancestry with a 1,040-piece Family Tree. 🌳

• Starbucks’ latest Stanley cup collaboration caused mayhem at Target stores across the country. 🥤

• Elon Musk ended 2023 as the world’s richest person, nearly $100B richer than he was in 2022. 💵

History

• 1790: U.S. President George Washington delivers the first State of the Union address. 📣

• 1816: Sophie Germain is the first woman to win a prize from the Paris Academy of Sciences for her paper on elasticity. 🥇

• 1835: The U.S. national debt is $0 for the first and only time in history. 👌

• 1993: Michael Jordan's game-high leads the Chicago Bulls to a 120-95 win over Milwaukee, and marks his 20,000th point in the 620th game of his NBA career. ⛹🏾‍♂️