#605 -🌋🚗🌋 Wednesday's Hype!

Toyota's Hybrids, Carvana's Profits, and Starship's Grocery Bots

February 07, 2024

PRESENTING

More than Cars LOGO

Another day, another chance to grab your place in the revolution.

More Than Cars is about uniting the auto industry, revealing who dealers really are, and pushing back against stereotypes set in motion by a few jokers so consumers know they can dare trust the vast majority of the auto dealer body.

We get pumped just talking about it.

If you get hyped thinking about all the industry can be for you, your team, and the consumers you serve, it’s time to take a step deeper into the ASOTU-Verse and join us in Baltimore this May for ASOTU CON 2024.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Did You Hear?

Giphy/PBS

Toyota and Sandwich Math

Following an exceptional Q3, Toyota expects its full fiscal year profits to jump 9%. That means for every $100 they made last year, they will have $9 more this year. So, they can almost afford a $5 Footlong from Subway (ain't math confusing sometimes?).

  • Hybrids and high-margin vehicles are primary contributors to the increased profits. 

  • Hybrid sales surged 46%.

  • Overall sales increase 11%.

  • In the brand's largest market by volume, North America, sales grew 28%.

📈 At the time of writing, Toyota Motor Corp | US is up 8.53% in the market. 

Carvana. Next Step: Profit?

Carvana has been quiet lately. Maybe a little…too quiet?

The last 18 months have been a refocusing time for the big glass vending machine company as they prioritize cutting costs over growing.

So far, so good? The company's stock reflects positively through the changes, with the low tide of $5 per share only a distant memory now that the value is $55 per share. So far, they've cut $1.1B in annual expenses. What are they doing to cut costs? 

  • An AI called "Carli" has made reconditioning and pricing more efficient. 

  • Cut over 4,000 jobs, saving about $900 per unit. 

In Q3, the company grossed about $5,952 per unit, which the CEO hopes to keep increasing with additional changes this year. 

📈 At the time of writing, Carvana Co | US is up 6.37% in the market

Spillin’ the Tea with Mazda

Mazda is adopting the T-Standard. Not Earl Grey, Tesla's charging tech.

Starting in 2025, all of the brand's BEVs will come ready to use Tesla's 15K+ superchargers in the US. 

No Mazda EVs are for sale in the US yet, but with a record 363K vehicles sold in 2023 and a 450K goal for 2024, the company is planning a lineup expansion to keep up with its "human-centric" values. 

The Japanese multinational company says its 2025 CX-70 will be available in hybrid and fully electric models. It should be an interesting little A/B test for what Mazda drivers dig. 

📈 At the time of writing, Mazda Motor Corp | US is up 1.63% in the market

Hertz, Polestar, and Volvo

When it rains, it pours. Or, in this instance, "when it rains, it Polestars."

We wrote about VW and Polestar's break-up a few days ago, but now Hertz is giving them the "don't call us, we'll call you” treatment.

  • The rental car giant has paused plans to buy 65K EVs from Polestar. 

  • This follows Hertz's announcement that it would sell off 20K EVs, including Teslas.

Speaking of Volvo, after they announced their parting plans with Polestar, their shares jumped 26%. Apparently, shareholders dig it when you score a strong Q4 and stop paying somebody else's bills. 

  • Volvo is a 44% stake owner in Polestar

  • Greely is a 78.65% stakeholder in Volvo

  • Q4 2023 operating income hit $643M, a massive increase from Q4 2022's $370M

  • In January, Volvo grabbed a 10% increase in sales with a 40% jump in EV sales in Europe.

  • The Brand's EV sales were down in China and the US.

📈 At the time of writing, Hertz Global Holdings INC | US is up 7.86% in the market, Polestar | US is up 8.13%, and Volvo is down 1.37% 📉

PRESENTING MORE THAN CARS

This Much

Giphy/CBC

Sometimes, it's hard to quantify "Love." 

When we say, "We love dealerships," we get looks ranging from curious to confused. So, we decided to stretch our arms out and say, "This much."

That's why we made “More Than Cars!” 

New episodes of Retail Auto's only docu-series are coming, y'all — but you could always binge Episodes 1 and 2!

Or, snag the highlights from our More Than Cars Mashup. There, you'll get an exclusive behind-the-scenes look at three teams who make loving people more than you love cars look easy: Audi Grapevine, Beaver Toyota, and West Herr Automotive Group.

Share your thoughts, and let us know who we should feature next!

MORE THAN CARS MOMENTS

Warm Harbor in Ann Arbor

LinkedIn/Subaru of Ann Arbor

Subaru dealers give us plenty to talk about, and we love it!

The Subaru of Ann Arbor team partnered with Operation Warm as part of the Subaru Loves to Help initiative, and children all over their community are warmer for it.

The automaker and its dealers have helped 750,000 children and families in urgent need with brand need necessities.

Following them for any amount of time on social media reveals the joy with which they serve. We're always blessed to know people receive genuine care from people who are happy to give it.

Have your own story of dealers loving their community? Hit reply and let Chris and Kristi know!

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 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.

CULTURE

It’s Not Delivery, It’s Robo-Delivery

Youtube/Starship Technologies

Robo-delivery developer Starship Technologies has secured an additional $90M in funding to broaden its services globally.

Founded in 2014 by the creators of Skype (dang, how long has it been since you heard THAT name?), Ahti Heinla and Janus Friis, the company focuses on last-mile delivery with little cooler-sized delivery robots.

Starship's L4 autonomous robots, having completed over 6M trips, deliver various items from meals to important documents across 80 locations worldwide, including the US, UK, and Germany. This new funding, co-led by Plural and Iconical, will fuel further expansion and technological advancements in AI, wireless charging, and other delivery innovations.

With a focus on sustainability, Starship's robots offer an energy-efficient delivery solution, underlining the company's commitment to reducing carbon emissions and enhancing daily life through convenient, autonomous delivery services.

Usually, self-driving tech makes us worried about car crashes. This one makes us worried about the resurgence of highwaymen.

Quick Hits

History

  • 1804: John Deere is born in Vermont. 🚜

  • 1817: Baltimore becomes the first American city lit by gas street lamps. 🔥

  • 1940: Walt Disney's second feature-length movie, "Pinocchio," premieres in NYC. 🤥

Thanks for getting your Wednesday started with us, friend! Who says today has to be a mid-week dip? It wasn’t us. Check out our other content on the links below to see that the only “dip” worth talking about today comes with chips.

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