#588 -🚢⛽️🧂 Big Salty Plans

TOGETHER WITH

Stellantis invests in sodium, new methane taxes begin, and the Red Sea gets more complicated.

It’s easy to marvel at the quality and quantity of employment provided by the automotive industry. A network of global markets, suppliers, and consumers exists in a balance.

The benefits of that broad, robust, and collaborative presence come with vulnerability.

We live in a world where pirates off the coast of Egypt can change the price of bread in our community here in the US.

Let’s hope for a quick resolution to the world’s ongoing conflicts and work in the meantime like the whole world is connected somehow to what we are doing. Because apparently, it is.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

What’s Happening?

Stellantis

Stellantis is getting salty. Not long after VW and BYD reported advancement toward sodium-ion batteries, Stellantis says it will invest in a French battery startup, Tiamat, to get its hands on that bright and abundant future. 

• Stellantis did not disclose the specific investment amount, but Tiamat's fundraising goal is about $160M. Chump change for Stellantis, right? 

• The money will go to the company's first plant, which is planned to begin production in Northern France by 2026, with capacity expanding to 5GWh (30M battery cells) by 2029,

Not to be confused with the ancient Mesopotamian sea goddess, Tiamat was formed in 2017 from a state science research institute. Its batteries are cheaper and charge quicker, but offer less range and are mostly suitable for small private vehicles. This is something somebody sometimes will have to offer consumers if they want to sell all these electric dreams. 

US Oil and Gas

This year the EPA will begin issuing fines on oil and gas companies for excessive methane emissions. While the nation has been making a mixture of symbolic and practical efforts toward reducing greenhouse gases, this is the first federal tax on such emissions in the country. 

The new rule follows record US oil and gas production. It encourages fossil fuel companies to cut methane emissions since they are more harmful to the environment than carbon dioxide. The oil/gas industry is the largest producer of them. 

The fines will increase by the year per ton of methane released. 

• $900 per ton in 2024

• $1,200 per ton in 2025

• $1,500 per ton in 2026, and so on. 

Additionally, the Department of Energy will allocate over $1B to incentivize advances in "no- and low-emitting oil and gas technologies," including methane monitoring and leak prevention.

Methane is a naturally occurring gas in our atmosphere. A lot comes from wetlands and keeps the cocktail of breathable air we love loving us back. However, the oil and gas industry produces methane equal to all the world's wetlands, doubling down on the planet's primary source. We don't know all the science, but doubling an ingredient in a recipe usually changes the outcome of the meal. 

Volvo, Tesla, and The Red Sea

Volvo and Tesla have announced production issues following the Red Sea attacks. 

• Volvo paused production in Belgium for three days due to security issues in the Red Sea preventing delivery of gearboxes. 

• Tesla suspended production in Berlin, citing supply disruptions following the US and UK's strikes against the Houthi militia, who have been disrupting key shipping routes in the Red Sea.

Ok, so, what is happening in the Red Sea? An Iranian-backed rebel group has been targeting ships, mostly linked to Israel, in one of the world's most important shipping routes. 

The US and UK attacked Houthi targets in Yemen to break up the piracy, but now it seems more of the region and world will be dragged into the conflict as the rebel group vows to retaliate. 

NATO supports the strikes, while Iran and nearby countries predictably aren't fans. 

Wait, so is the US at war with Iran? Not really, but Israel's ongoing actions in Gaza following the October 7th terror attack conducted by Hamas have everybody taking sides and some taking up arms for the sake of those sides. 

Implications at home? The Red Sea shipping disruption will impact the cost of freight and delay the time it takes to get products, oil, and gas where it needs to be. This will contribute to higher costs for many consumer items. Many companies are taking a detour around Africa, which adds about 10 days and a $1M expense to the trip.  

--

Goodbye, pandemic, chip shortage, and supply crisis.
Hello, shipping disruptions, fuel price fluctuations, and more unrest in the news.

We can’t panic every time somebody says the sky is falling, but we also can’t ignore the stress our team and community are feeling.

It’s time to put some rubber on the road. Loving people more than we love cars means every time the headline is hard to read, let’s give our communities something better to look at.

Based on the dealers we know, we trust you all to bring a little hope to this chaotic moment.

TOGETHER WITH QUANTUM5

Leadership That Drives

January is halfway over, and that means February is just two weeks away. 

NADA 2024 is almost here, so it is time to check in with and hear from some of our industry's thoughtful leaders. 

Quantum5's CEO, David O'Brien, will be speaking on February 1st from 12:00-12:45 pm, and again on Saturday, February 3rd from 1:00-1:45 pm about "Five Leadership Strategies to Drive Performance.” We expect it to send all in attendance home with something empowering! 

Of course, you could always just drop in at booth #7113N to see what else Quantum5 has for our industry in 2024.

Make a plan to visit their team at NADA 2024. 

DATA & INSIGHT

Cars Get the “Like and Subscribe” Treatment

Subscription services reign across industries like TV, movies, and music, but with emerging technologies that allow cars to be as connected as cell phones, it was only a matter of time before those features would become available to drivers - for a price.

By 2030, a staggering 96% of new cars will be connected, and here's what it means:

What's Happening: Connected car services, like enhanced roadside assistance and advanced infotainment systems, are becoming integral to the driving experience. 66% of U.S. drivers are already on board.

Dealership Dynamics: This trend isn't just about tech, it's a goldmine for dealerships. With potential revenue from subscriptions and add-ons, it's also a chance to boost customer satisfaction and loyalty.

Consumer Hesitance: Despite the benefits, there's still pushback over costs and usability. But data shows that once consumers dip their toes in, satisfaction skyrockets — 82% consider these services for future purchases.

The Dealer's Role: Crucial in educating consumers, dealers can turn confusion into subscriptions through demonstrations and hands-on experiences.

👉 Read the full story here. 👀

TIE CUTTERS

2024 TIME Dealer of the Year Nominee: Ray Catena

Ray Catena, a TIME Dealer of the Year Award nominee from New Jersey, is a true auto industry icon. Starting with a humble used car shop in '58, Ray's built an empire, the Ray Catena Auto Group, known for outstanding customer service and luxury brands. But Ray's heart is as big as his business acumen. He's a community champion, backing causes from The Wounded Warrior Project to local youth sports and nurturing future auto techs with vocational programs.

Big cheers to you, Ray! The ASOTU team admires your blend of entrepreneurial spirit and commitment to giving back. You're not just selling cars; you're making a difference! 👏

AROUND THE ASOTU-VERSE

Coming Soon

• WEDNESDAY, 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. Join ASOTU’s Paul J Daly for this FREE event. It is a must-attend for anyone eager to stay ahead of the EV curve!
  🔌 Register here 🔌 
   

• THURSDAY, JANUARY 18, 2024
  Public Policy Day at WANADA
  At this year’s Washington Auto Show, we're mixing serious auto insights with serious fun. With our friends at Mosaic, 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

• Wholesale inflation declined last month. 👍

• Lawmakers propose a $7B bill to bring affordable internet access to Americans. 🇺🇸

• Somebody bought the original “Friends” script for $30K. They must not know they can watch it on Netflix for like, ten bucks. 📺

History

• 1909: For the first time ever, an automobile hearse was used in a funeral procession. 🌹

• 1967: The Green Bay Packers defeated the Kansas City Chiefs in Los Angeles in the first Super Bowl. 🏉

• 2001: Wikipedia, a free online encyclopedia, is launched. 🙌