#585 - 📈👍🎉 Sustaining Stability

TOGETHER WITH

VW’s full 2023, Cox’s used 2024, and Hyundai’s hydrogen plans.

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-Paul, Kyle, Chris & Kristi

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BUSINESS

Auto Announcements

VW's Full Year

VW's 2023: The German automaker is sitting on top of a nice year of growth. 

• They sold 4.87M cars, a 6.7% increase from 2022. 

• Their fully electric sales jumped 21.1% to 394K units. 

• The Volkswagen group saw a 35% increase in EV sales, with 192K sales in China's highly-valued market. 

VW vs. Tesla: The company wants to maintain its European position as other brands enter the market. Namely, they are cutting prices on their ID electric car line in France, Belgium, Germany, Norway, and other countries to stay competitive with Tesla. 

• VW's ID3 ranked 84th overall and 13th in EV sales in France, while Tesla's Model Y led the pack.

• Total EV sales in Europe hit 2M in 2023, aiming to capture a larger market share by 2030.

Used Prices Stabilize 

Relief is on the way for Dealers and Consumers alike. New Car supply is returning to normal, and the used car market is following suit. Cox Automotive forecasts a 0.5% price increase from December 2023, which it says will lead to an uptick in used sales, with an expected 36.2M in 2024. 

This slight increase follows a 7% reduction in prices over 2023 and a 15% drop as compared to 2022. So, prices have lost some of the inflation they packed on during the pandemic, but a return to stability is closer each day. 

Hyundai Hydrogen

While many automakers are dipping their toes in the pool of hydrogen power, Hyundai just announced at CES it will be diving in headfirst moving forward. 

High-Tech Trash Power? The software-defined strategy will use Waste-to-Hydrogen and Plastic-to-Hydrogen processes to innovate the production of its fuel cell-based power. 

So far, options for such tech are limited as most hydrogen fuel cell stations are in California. With a carbon-neutral goal of 2050, we imagine they have time to implement infrastructure to meet market demand for this alternative power source. 

Honda and Sony

Honda and Sony are collaborating on a mobility project, and finally, at CES, we saw a bit more of it.

The Afeela is an EV that does a good job representing the automaker/tech giant collaboration. 

Specs. In terms of design and tech, it's pretty well decked out. Under the "hood," it has a dual-motor all-wheel-drive system and a 91-kWh battery that can use 150 kW DC charging. 

The weird part. You knew there would be a weird part. At the CES reveal, President and COO of Sony Honda Mobility, Izumi Kawanishi, used a Sony Playstation 5 controller to drive the car across the stage. Kids are about to be much better at driving. 

…

Reports from 2023 are promising, but along with increased sales figures is an increase in the attention media, culture, and people are paying to electrification. Some with hesitant apprehension, others with excited anticipation. It’s undeniable electric cars, hydrogen cars, hybrids, and software will continue to be a larger part of the conversation as time passes.

The best time to own part of this conversation as well-informed, community-minded, and locally-invested voices is each day.

TOGETHER WITH REYNOLDS AND REYNOLDS

From Sales To Service

At the NADA Show next month, you can count on us to cover all the latest and greatest from our friends at Reynolds and Reynolds over at Booth #2963W.

We’ll showcase how they’re able to help your entire dealership – from sales to service – run more efficiently and profitably with a system built to work as one. They couldn’t be more excited to show it all, and we couldn’t be more excited to share.

Join us for all the “oohs” and “ahhs” you’ve come to expect from Reynolds and Reynolds. And, let us know who else we just gotta meet up with while we’re there! 😎

/Positivity

If we tried to tell all the wonderful, charitable, and creative stories happening in dealerships across our industry, we would need a bigger email. But we have just enough space in this email for YOUR story.

Let us help show the community and world what you have going on in your store! 🕊️

DATA & INSIGHT

Market Vibes

Economic Overview —

• All three major U.S. indexes (DOW, NASDAQ, and S&P) ended 2023 with considerable growth.

• But, we’re only six trading days into the new year, and Wall Street is already off to a bit of a rocky start with the S&P 500 declining 0.7%, dragged down in large part by sharp declines in shares of big tech and plunging shares of Boeing.

• Housing affordability metrics are at a 40-year low amid the surge in mortgage rates.

• Even with the recent bout of high inflation, the strong labor market has pushed wages for frontline workers higher than they've been since the 1970s.

 
Auto Zone —

• Data shows the auto market is holding strong and demand is high.

• Consumers are increasingly surprised by the rising prices of new cars, but this hasn't deterred them from purchasing.
   

• Car Segments decreased -0.49% last week.

• All nine segments decreased, but only one segment reported a decline of more than 1%.

• Prestige luxury cars saw the largest decline, dropping -1.90% (an increase in depreciation from the prior week’s decline of -0.81%).
   

• Truck Segments decreased -0.77% last week (compared to the depreciation seen the prior week of -0.80%).

• All 13 segments declined last week, with five of the 13 reporting declines exceeding 1%.

• The Sub-Compact Luxury Crossover segment had the largest decline at -1.66%. This marks the eighth consecutive week that this segment has reported a greater than 1% decline.
   

TIE CUTTERS

2024 TIME Dealer of the Year Nominee: Robert H. Crews III

Robert H. Crews III shines as a nominee for the 2024 TIME Dealer of the Year Award.

Representing South Carolina with over 40 years in the industry, Crews has built a legacy of community service alongside a myriad of successful dealerships.

Mentored by Rick Hendrick, Robert emphasizes a customer-first approach, earning him accolades like Subaru's "Love Promise Retailer of the Year."

Just a few of his key contributions include substantial support to the Ronald McDonald House Charities, The American Red Cross, and Surfers Healing Folly Beach, a surfing camp for children with autism.

Bravo and best of luck to you, Robert! 👏

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

• Biden Admin introduces a new rule that could change the gig economy. 📈

• Aviation experts are still investigating how a door plug detached mid-flight from an Alaska Airlines Boeing 737 Max 9 jet last Friday. 🆘

• Scientists say the planet is dangerously close to its global warming limit as 2023 goes down as the hottest on record. 🥵

• Mazda has partnered with Camshop to craft a wireless mouse in the shape of an RX-7 FD. 🐭

History

• 1863: The world’s oldest underground railway opens, the London Underground. 🚇

• 1920: The Treaty of Versailles takes effect, officially ending WWI. 🕊️

• 1942: Ford earns a World War II contract to build copycat versions of the Willys MB Jeep. 🪖