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- #587 -✨🚗✨ Bold New Market
#587 -✨🚗✨ Bold New Market
Hertz yardsale, Kia's DIY vans, and Google's Cookie Fiasco
TOGETHER WITH
Rivian’s mini-victory, Kia’s new deal, Hertz’s backpedal.
The world may be ready to coast into the weekend, but the automotive world is still spinning full blast.
Give today’s email a look, and remember the reply button works and makes a little sound on our phone so that we will see it and more than likely send a GIF back. 🔔
Stay awesome and…
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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Reading time: 5 mins 41 secs
BUSINESS
News: Listen and Win
Giphy/CBS
Rivian: Wins and Losses
Electric truck maker Rivian is celebrating a unique win in an otherwise rough season. While Tesla won the overall EV game for 2023, in the class of "Big EVs," Rivian beat the Model Y and Ford's F-150 Lightning.
Rivian sold 24,783 R1S EVs in 2023, the most of any large EV.
While not top of their pile today, Ford's Mach-E, F-150 Lightning, VW's ID.4, and Hyundai's IONIQ 5 each had record sales years.
Small EVs with wider affordability had a good year, too; GM's Chevy Bolt sold just over 62K before the company stopped production to focus on more expensive models.
Trophies don't pay the bills. Despite the stand-out performance in their precise market, Rivian's market presence took a significant dip. While the last 30 days show a 3.32% increase in the stock, pros expect a -$1.37 per share to follow Rivian's Feb 21st full-year earning report.
Kia and Uber: DIY Vans
Kia has a new modular PBV platform with five concepts to show, and a big customer is already lined up.
The Platform Beyond Vehicle (PBV) is designed with a fixed driver cab and interchangeable body types. This allows for quick changes between taxi, delivery, or personal vehicle styles.
Models within the platform determine the capacity with models like the spacious PV7, the compact PV1, and multiple configurations of the PV5.
Kia plans to establish a dedicated PBV plant by 2025 with 150K yearly production and a fleet management system for their buyers.
What buyers? Welllll, Uber is already sniffing around. The two companies signed a memorandum of understanding.
Hertz: EV Yardsale?
Uber's digging into the electric dream, while Hertz is trying to wake up from their body shop nightmare. The rental car firm says it will sell 20K of its EV fleet and replace them with ICE.
That was short-lived. Previously, the company committed to ordering 100K Teslas by the end of 2022 and another 65K Polestars over five years. Due to high collision and damage repair costs, they are changing direction.
Hertz shares fell 3% after the announcement.
They expect ~$245M in incremental depreciation expenses from the EV sale in Q4 of 2023 and warn of potential impacts on its adjusted corporate core profit.
Despite the sale, Hertz intends to improve profitability for its remaining EV fleet.
You know that old saying: "If you can't fix it, you don't own it"? CarGuru dove into the cost of EV maintenance and found it was about $330 a year cheaper to maintain an electric car. But, as a still emerging industry segment, EV repairs and the pros who perform them aren't available and are more expensive.
The right service center could pick money off electric trees if they got good at beating the high cost and extended wait times of EV bodywork.
Cox Data: New Market Changes
Inventory rises = prices fall. That seems to be the name of the game in December 2023. As the new vehicle sector transitions into a buyer's market on the heels of higher inventory, prices (and margins) are dipping under MSRP.
December saw a 2.4% year-over-year dip in average transaction prices, ending at $48,759.
The dip in December followed a 1.3% increase in November.
Discounts and incentives. Still looking at December, new vehicle sales incentives hit an average of 5.5%, the highest average since August 2021.
Luxury and EV incentives were the highest at over 8%.
As luxury prices dipped 8.8% YOY, sales of luxury brands surged 22.1%. The luxury segment accounted for 20.2% of all US sales in December.
"Merry Christmas, dear! We owe Mercedes-Benz $80K!"
Toyota: Solid-State
Toyota says its solid-state batteries will be out sooner than they thought. At one point, the auto-titan said production would start in 2027 with their eye on a 2028 release.
Breakthrough? The company says they've had a stroke of luck and are closing in on batteries with 600+ miles of range and a 10-ish minute charging time.
…
You can't please em' all, and if you try, you likely won't please any of em'.
The market evolution surrounding alternative powertrains has some companies announcing lofty environmental goals and others shouting to stake a claim while the getting is good. Ultimately, they all want to sell cars to people who want to buy cars.
Dealers are uniquely positioned to hear what people want in real-time, not just make broad, sweeping declarations based on last year's data and expert analysis.
In truth, you can please em' all if you ask, listen, and answer them one at a time.
TOGETHER WITH TRADEPENDING
Brief Videos, Broad Perspectives
Giphy/Nickelodeon
We’re ushering in the new year with a new era of auto insights from TradePending!
We all know...
Videos are an excellent way to connect with your customers.
But did you know?
There are many avoidable pitfalls hidden in the world of digital content.
Maybe not, but you’re in luck. TradePending TV just dropped a concise video with 3 eye-opening considerations on using video in car sales — plus some savvy bonus advice!
It’s 2024, and consumer expectations are evolving rapidly. You’d better be evolving with them.
Check out the full video and more from TradePending TV today, so you have what your customers are asking for tomorrow!
THE AUTOMOTIVE PUSHBACK
Marketing Funnels Are Dead: Think Lifetime Value Loops Instead
Ever get the feeling those traditional funnels aren’t quite cutting it these days?
It’s cause they aren’t.
In our latest article by Michael Cirillo, discover why top marketers in 2024 are ditching the outdated funnel model for a more dynamic “lifetime value loop.”
This innovative approach focuses on the long-term value of customers, transforming them from one-hit wonders into life-long fans.
Check out the full article here for an insightful journey on how to restructure those old-school approaches and dig deeper for enduring connections.
DATA & INSIGHT
Giphy/PBS
Google Chrome has begun testing its new “Tracking Protection” feature to limit cross-site tracking and restrict third-party cookie access. 🚫🍪🚫
Starting with a 1% global user test on January 4th, the move comes as part of Google’s larger “Privacy Sandbox” initiative to eliminate third-party cookies by the second half of 2024.
The new protections enhance a user’s online privacy while maintaining a quality web experience — a feat easier said than done, hence the rigorous testing.
As Chrome phases out third-party cookies, dealerships may need to adapt their digital marketing strategies and work to optimize their websites, ensuring they all function effectively without relying on those external trackers.
TIE CUTTERS
2024 TIME Dealer of the Year Nominee: Matt Cook
From courtroom to car showroom, Matt Cook's transition from a lawyer to leading Idaho's Goode Motor Auto Group has rightfully earned him a nomination for the prestigious 2024 TIME Dealer of the Year Award.
His journey, rooted in a family legacy in the auto industry, has seen him expand the business across Idaho and Alaska. Matt excels in fostering a supportive and uplifting workplace environment and treats his employees like family.
Matt’s kindness and generosity go far beyond his dealership’s doors. He’s also focused on making real, positive changes in his community through foundations like Goode Gives Back and the Goode Education Foundation.
You’re a real one, Matt. Kudos on the nomination and best of luck! 👏
AROUND THE ASOTU-VERSE
Coming Soon
JANUARY 17, 2024 @ 12:00 - 5:00 pm EST
Disruptive Forces in Automotive Retail: How to Effectively Navigate the EV Transformation
Leading experts like David Spisak unveil the latest trends and strategies in electric vehicle technology, market dynamics, and consumer preferences in this dynamic online forum. This FREE event is a must-attend for anyone eager to stay ahead of the EV curve!
🔌 Register here 🔌
JANUARY 18, 2024
Public Policy Day at WANADA
At this year’s Washington Auto Show, we're mixing serious auto insights with serious fun. We’re talking with big names about big topics in the industry, and we want YOU to be part of the conversation.
✨ Get in on our exclusive coverage ✨
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
Automotive supplier Magna reveals their latest breathalizer and camera system designed to act like a responsible friend who takes away your car keys after you’ve had a few too many. 🌬️
Amazon and Google lay off some staff as big tech cuts continue. 🧑💻
A new He-Man show is coming, and it looks like an anime fever dream. ⚔️
History
1879: Ray Harroun, the first Indy 500 winner, is born. 🏎️
1939: “Timely Comics” (which later became “Marvel”) is founded by American publisher Martin Goodman in New York. 🦸♂️
2015: Hyundai Santa Cruz concept debuts at the North American International Auto Show. 🎅
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