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- #606 - 🤖🎥👀 Keeping it Real
#606 - 🤖🎥👀 Keeping it Real
Skunkworks, Kentucky, and Dodging Digital Deception
TOGETHER WITH
Who doesn’t get junk mail in their inbox?
It’s just part of the game we’ve all grown accustomed to.
But now, trusting pictures, videos, and audio is getting harder.
Turns out face-to-face is the best way to go.
If only there were an event coming up that allowed passionate real-real people from auto to get together and collaborate…
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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BUSINESS
Some Changes
Giphy
Dividend and Conquer
Ford's Q1 dividend will be more than double its usual per-share take. The company announced that each share will get an extra 18 cents in addition to its usual 15 cents. The news follows a 29-cent adjustment in Q4, which surpassed analysts' expectations.
As EV efforts coast and hybrids take off, the company says it will target a $2B cost reduction to balance UAW contract investments.
Speaking of EVs, the brand says it will release new EV models based on market desire and has a "skunkworks" team dedicated to developing affordable EVs on a flexible battery platform. This is exactly what we hear the majority of consumers saying they want from an EV — an affordable daily driver (sorry, 300-mile-range 4-row SUVs).
Aligned with all this realigning, Ford says it will delay a $12B investment in battery production in Kentucky.
More Kentucky for the Toyota
While Ford slows its EV and Kentucky rolls, Toyota has committed $1.3B toward a factory in the state to produce EVs (one man's trash...?).
The investment will go toward three-row electric SUVs and, eventually, battery pack production.
Battery packs produced in North Carolina will be shipped to Kentucky until the new production is up and running.
The Kentucky investment and another $8B coming to the North Carolina plant are signs of Toyota's commitment to US operations, says Kerry Creech, president of Toyota Kentucky.
America of Buybacks
Mitsubishi is looking to reinvigorate some things too, namely shareholders with some buybacks. The company has a $3.4B plan to buy 10% of its shares back from investors.
After announcing the plan their shares jumped 11%.
The company had a record-high net profit last year and is currently sitting on about $3.7B. Much of this will return to shareholders at the end of the company's 2025 fiscal year if a suitable acquisition is not found.
Of course, they also have sights on the valuable US energy and digital markets, but policy regarding foreign investments and vehicle manufacturing could diminish the effort of Mitsubishi and other Japanese brands.
January Wholesale
Did you see Cox's Manheim Used Vehicle Value Index for January? As always, it has some helpful information.
Stable Prices: The Manheim Used Vehicle Value Index held firm at 204.0, suggesting a steadying market after last year's fluctuations.
Market Dynamics: Early price dips were offset by increased activity and demand, highlighted by a 56.0% sales conversion rate.
Segment Shifts: Luxury vehicles outpaced the market slightly, while EV values saw a sharper 16.4% YOY drop, underscoring changing consumer preferences.
Retail Resilience: Retail sales rose by 5%, despite a slight dip in listing prices, indicating a balanced market with a 53-day supply.
Consumer Caution: Improved consumer confidence contrasts with a dip in vehicle purchase plans, hinting at cautious optimism among buyers.
. . .
Each day, we write about the steps forward/back that go into finding the best path for the auto industry.
This tells us that the best thing to bring to the conversation may not be grit, but humility. And, dancing shoes. 💃🕺
TOGETHER WITH TRADEPENDING
Beyond the Basics
Giphy/NBC
Modern customers have various preferences for each part of the car-buying journey. Determining their monthly car payment is one that should be as straightforward as paying at the grocery store — fast, secure, and user-friendly.
Basic payment calculators just won’t cut it (they call them “basic” for a reason). Customers are looking for precision, and these antiquated tools are the financial equivalent of a sundial — great for ball-parking it, not for accuracy.
Learn from TradePending three valid options for helping customers understand how much they can afford when browsing your website, including their Payments product.
Allow customers to skip straight to what they can really afford. Let TradePending help you get there.
DATA & INSIGHT
Dodging Digital Deception
Giphy/SuperDeluxe
With the rapid advancements in technology and AI, the threat of scams and fraud has never been more prevalent. The integration of these innovations is driving efficiency and ingenuity, but they’ve also opened new avenues for fraudsters to exploit.
Understanding the threats and implementing measures to counter them is no longer a recommendation, it’s imperative for safeguarding business assets and customer trust.
FTC
According to a survey by Regula, a staggering 80% of companies now recognize the threat posed by fake biometric artifacts, such as deepfake voice or video, with concern most pronounced in the United States, where around 91% of organizations consider it a burgeoning threat.
The implications of this technology were starkly highlighted in a recent case from Hong Kong, where a multinational company's office was defrauded out of $25.6M. Fraudsters used deepfake technology to mimic the company's chief financial officer and other employees in a video conference, instructing an unsuspecting employee to transfer funds.
Regula
To counter these sophisticated threats, businesses in the retail automotive sector must adopt comprehensive and multi-layered security strategies:
🛡️ Rigorous Verification Processes: Implementing advanced identity verification measures, including biometric checks, can significantly reduce the risk of impersonation and fraud. Establishing the authenticity of individuals, whether customers or employees, is crucial in preventing fraudulent activities.
🛡️ Two-Factor Authentication (2FA) and Beyond: While 2FA adds an essential layer of security, businesses should also consider adopting more advanced authentication methods, such as multi-factor authentication (MFA), which provides even greater protection against unauthorized access.
🛡️ Critical Analysis of Communication: Scammers often employ a sense of urgency to provoke hasty actions. It's critical to train staff to recognize the signs of fraudulent communication and to verify the authenticity of urgent requests through independent channels.
🛡️ Ongoing Education and Awareness: Continuous education on the latest cybersecurity threats and scam tactics is vital. Regular training sessions for staff, along with updates on new scam techniques and preventive measures, can cultivate a culture of vigilance and cybersecurity awareness within the organization.
Read more about protecting yourself here.
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.
Podcast
Enjoying our daily email? Then, we expect you’ll dig our daily podcast, too!
The Automotive Troublemaker is a quick look at the day’s business, tech, culture, and of course, automotive news.
Quick Hits
Snapchat’s shares dropped 35% following news of weak revenue. 👻
American Credit Card debt reached $1.1T in Q4. 💳
In a war game simulation, a GPT model favored using nukes to “have world peace.” 🤖
Burger King invites fans to create the next new Whopper in exchange for a $1M prize. 🍔
History
1922: President Warren G. Harding has a radio installed in the White House, signaling its increased use and acceptance in America. 📻
1960: The Hollywood Walk of Fame is founded. ⭐️
1993: GM sues NBC for defamation over exploding gas tanks. 💥
Thanks for reading, friend! If you found something useful in today’s email, tell a buddy. Remember: knowledge hoarded is wisdom wasted. 😆