#602 - 🥂✍️🚘 Fisker's Dealership Debut

TOGETHER WITH

It gets quiet around the ASOTU group threads during the NADA show.

Not because we’re ignoring each other, or because we’re so swamped with projects that we can’t spare a moment to look up. It’s because we truly don’t want to be anywhere other than in the moment, connecting with you.

We’ll go back to constant collaboration and trading goofy memes on Monday.

For now, we’re here to soak up this one-on-one time with our community.

Keep Pushing Back
-Paul, Kyle, & Chris

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NADA 2024

Day One

J.D. Power Auto Summit

As we leave 2023 in the rearview mirror, a year where the auto industry clawed its way towards recovery with sales reaching 12.7M units and transaction prices hitting record highs of $46,000, it's time to look ahead.

2023 was all about rebounding, but 2024? Well, Thomas King of J.D. Power expressed a cautiously optimistic view for 2024 at this year’s Auto Summit.

He forecast a Seasonally Adjusted Annual Rate of 16.1M units, and the average transaction price is expected to slightly decrease to $44,900.

The industry faces challenges such as managing 1.8M units of pent-up demand and adjusting to a significant increase in lease maturities.

King emphasized the necessity of improved affordability, despite ever-increasing production and maintenance costs, and diminishing used car values.

Read the complete write-up here.

In Vegas and looking for an NADA after party? We’re tracking them all in one place with the help of our friends at Clarivoy. Check ‘em out here!

BUSINESS

News Buzz

Volvo’s Breakup with Polestar

Volvo Cars decided it will be stepping back from EV-maker Polestar and handing the reins over to Geely Holding, its primary shareholder.

😥 In the struggling EV market, Polestar has become a bit of a financial and resource burden on Volvo.

📉 Notably after Tesla's price cuts, Polestar has seen its shares plummet by over 83% since it went public in June 2022.

🦅 The announcement sent Volvo's stocks soaring, with a 30% surge at market open.

Breakups are tough. We hope they can all still be friends.

Fisker’s First US Dealer Partner

Remember when we told you about Fisker shifting gears and embracing dealerships to help boost their EV sales?

🥂 Well, they’ve officially signed their first US Dealer partner — Mills Auto Group.

✍️ Fisker partnered up with the well-known East Coast auto group during the company’s first Open House hosted at their Manhattan Beach headquarters on Tuesday.

🤝 “I’m absolutely excited for this partnership, and we want to thank Fisker for its confidence in our group,” CEO Damian Mills said. “We will instill Fisker’s vision and mission into our stores on day one.”

Congratulations to our buddy, Damian! We love a good partnership and this is definitely one to celebrate!

VW Goes AI

Volkswagen isn’t leaving companies like OpenAI and DeepMind to have all the fun — they’re launching an artificial intelligence lab of their very own.

🤖 Their new AI lab hopes to be a "globally networked competence center and incubator” focused on automotive AI innovations.

🧠 VW joins the ranks of tech giants aiming to make vehicles even smarter and more connected. The press release suggests the lab will explore AI applications in charging, predictive maintenance, and in-car voice recognition, among others.

🧑‍🔬 That being said, their AI Lab doesn’t actually intend to manufacture anything, but will rather serve more as R&D testing for generative tech, bringing strategic partners in for prototypes only as needed.

Nothing screams “trust us with technology” like a company known for gaming emission tests. #burn

TOGETHER WITH GUBAGOO & REYNOLDS AND REYNOLDS

Your Front Row Seat to NADA

Friday's all-day coverage of the 2024 NADA Show is brought to you by our pals at Reynolds and Reynolds, and Gubagoo.

We’ll be live at the NADA Expo Hall Opening Ceremony with dealer guests, auto partners, and much more.‍

👉 Stay tuned with us all day! 👀

DATA & INSIGHT

Weekly Market Watch

The US economy ended 2023 stronger than many thought it would. In the last quarter, the economy grew by 3.3% YOY. If it weren't for a big dip in car production because of the Auto Workers' strike, the economy could have grown by more than 4%.

The Federal Reserve kept interest rates steady for the fourth consecutive session, subtly signaling a more accommodating stance that could pave the way for future rate cuts and more affordable loan terms.

Spending growth is slowing while production increases, suggesting that inflation is dropping.

This year, major inflation measurements in the Personal Consumption Expenditures Price Index have seen significant slowdowns. The US economy outperformed expectations in 2023, surpassing predictions with a 3.1% GDP growth, unemployment at 3.7%, and core inflation at 2.7%.

With inflation easing, shoppers are beginning to feel more comfortable spending (though remaining thrifty is still a top priority).

The wholesale market is slowing down in how quickly car values are dropping, with a small decrease of only 0.33% this week. This is a bit less than the usual drop of 0.39% we saw before the pandemic for the same time period.

Cars that are 8 to 16 years old are starting to show a little bit of improvement, with five categories of these older cars actually going up in value last week.

AROUND THE ASOTU-VERSE

Coming Soon

Will Guidara, best-selling author of Unreasonable Hospitality, will be the keynote speaker for ASOTU CON 2024 in Baltimore, MD, this May 14-17th!

Will is a renowned figure in the customer service business, recognized for transforming Eleven Madison Park into the world's top restaurant

His book Unreasonable Hospitality is an approach rooted in human connection and emphasizes creating extraordinary experiences by giving people more than they expect.

Many of you have already read his book or encountered the ideas, but there is nothing like hearing it straight from the author.

🎟️ Get your early bird tickets today! 🎟️

Quick Hits

• Take Phil’s predictions today with a grain of salt. Turns out, he’s only right about 40% of the time. 🧂

• F1 has rejected the American Andretti team's bid to enter the sport in the next two years. 🏁

• Google Maps is experimenting with generative AI to help users discover more cool places. 🗺️

• Reports suggest that Taylor Swift has generated $331.5M for the NFL since she began her relationship last year with Kansas City Chiefs tight end, Travis Kelce. 🏈

History

• 1839: Edmond Berger invents the spark plug. 💥

• 1887: The first Groundhog Day is observed at Gobbler's Knob in Punxsutawney, Pennsylvania. 🦫

• 1913: NYC's Grand Central Terminal opens. 🚉