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- #613 - 🎬💰🤖 Cuts, Credits, and Cruisin'
#613 - 🎬💰🤖 Cuts, Credits, and Cruisin'
Stellantis' H2, Gas Station Stuff, and Money Moves
TOGETHER WITH
It’s Friday, but you know the week ain't over till it’s over.
The Crew is working on putting the final touches on ASOTU CON 2024 (Only 88 days away!) because let’s face it: when something is important, you work until the buzzer… then you work a little more.
We didn’t invent that; we learned it by watching the community we serve.
Work well and…
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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BUSINESS
News!
Giphy/BBC
Let’s discuss strikes, cuts, taxes, backroads, and bans. It seems like a recipe for a whole country music album waiting to happen, but instead, it’s just the day's news.
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Stellantis Report
Stellantis had a 10% dip in profits in the second half of 2023, largely resulting from the six-week strike at the big three last year.
Adjusted operating income fell from $12.1B to just over $10.9B YOY.
In addition to the strikes, the brand's sales and market share declined in North America.
Despite it all, Stellantis still posted record results for the third consecutive year, with new profits up 6% and a possible increase in shareholder dividends.
2024 has 18 more EVs for the brand and a continuous push toward affordability to stay competitive with Chinese brands.
📈 At the time of writing, Stellantis NV is up 4.84% in the market.
Lucid Cuts Prices Again (Again)
Sometimes the third time’s the charm and sometimes you gotta go back to the drawing board. There is a cliche for every situation. Lucid is cutting prices for the third time in seven months. The base price for its Air Pure EV is now $71,000.
Still too steep? Don't worry. They are also offering up to $1,000 for charging equipment to stimulate demand in a slowing market. That should help, right?
Despite some awards in the sector, they are facing low delivery numbers in the luxury EV market. This is in contrast to the companies targeting the "I just need to go to work, plz" sector, who are taking turns with the top EV sales numbers.
📈 At the time of writing, Lucid Group Inc. is up 3.07% in the market.
Dealers, Consumers, and On-The-Spot Credits
As we covered at NADA, the US government is offering on-the-spot EV tax credits, allowing buyers to immediately benefit from the rebate at purchase, with dealers handling the claim process.
$135M has been paid to dealers since the process changed.
While eligibility for qualifying buyers and models has tightened, EV sales have seen a boost through the incentive.
More on this from Paul and Kyle.
📈 At the time of writing, Lithia Motors Inc. is up 0.02% in the market
GM’s Backroad Plan
GM is nearly doubling its Super Cruise hands-free driving tech, including rural roads and minor highways. Following the expansions, the feature will be available on about 750K miles of North American roads.
GM says updating the high-precision lidar mapping tech will help vacationers and people towing, despite safety concerns with self-driving.
📈 At the time of writing, General Motors Co. is up 1.50% in the market.
Banwagon, CA
If we told you a city was looking to ban new gas stations, you'd already know which state we're talking about.
Sacramento, CA, has proposed a ban on new gas stations in alignment with its 2040 plan for "future-ready" stations. Ultimately, the push will urge companies to invest more in EV charging than in existing ICE infrastructure.
📈 At the time of writing, Shell PLC is up 0.65%, and 📉 ChargePoint Holdings Inc. is down 3.66% in the market.
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You know us. We’re fans of keeping up to avoid the indignity of catching up.
It looks like Stellantis will be increasing prices to keep up with the value of labor, which usually means increased incentives. Meanwhile, Lucid is cutting prices AND offering incentives. With the other changes swarming around, it feels important to remember that even discounted apples aren't oranges, y’all. 🤠
TOGETHER WITH WOCAN
Breakfast with Friends
There is no wrong way to spend time with inspiring leaders of the automotive community. That’s why we work to spark collaboration and conversations wherever possible.
But, spending time while sharing breakfast is definitely the right way. 🥯🥓🍳
Join us for a members-only breakfast meetup at ASOTU CON 2024 with the Women of Color Automotive Network (psst…ask WOCAN for your member discount!).
DATA & INSIGHT
Money Moves
Giphy
Economic Weekly Overview
The U.S. economy has been holding strong so far this year, surpassing expectations with a mix of strong trade growth and consumer spending.
Earnings Reports – Operating EPS (earnings-per-share) at $51.73 indicates a YOY growth of 2.7%, with technology and communication sectors thriving. Energy, on the other hand, is facing some headwinds from lower oil and gas prices.
Labor Market Strength – January's jobs report revealed a 353K increase in non-farm payrolls and a stable 3.7% unemployment rate, showcasing labor market vitality and tempering expectations for Fed rate cuts before summer.
Edward Jones / FactSet
New Car Trends: Domestic vs. Import
USA's Overflow – Dodge takes the trophy for the most stocked brand, with its compatriots Chrysler, Lincoln, and Ram not far behind.
Asia's Exclusive Club – Toyota's playing hard to get with a mere 36-day supply, followed closely by Honda, Lexus, and Mazda. Meanwhile, Cadillac sneaks into this elite group, probably wearing a disguise.
Price Trends – The average new-vehicle listing price was $47,142 in early February, marking a 1% decline from the previous year, while the average transaction price was $47,401, down nearly 4%.
Cox Automotive / vAuto
The Super Bowl’s Effect on EVs
The Super Bowl this year marked a significant spike in interest for EVs with certain ads particularly electrifying viewer curiosity.
Intrigue Increase – EV traffic on Kelley Blue Book surged by 223% on game night, outpacing hybrids and highlighting a growing consumer shift towards electric SUVs.
EV Ad Highlights – Kia's EV9 and Volkswagen's ID.Buzz emerged as the MVPs in boosting brand and model interest.
Overall Brand Lifts – Volkswagen, Kia, BMW, and Toyota saw significant upticks in shopper interest and research volumes.
Cox Automotive / KBB
Everyone always wants to clown on the staggering cost of a Super Bowl commercial, but the return on investment is pretty clear. Who wants to help us raise up for a spot next year??
We also cover:
🎈 That dastardly foe, inflation.
🫤 Americans are less enthused with their personal lives.
💰 And, auto loan struggles.
👉 Check out the complete article here. 👀
AROUND THE ASOTU-VERSE
Auto Collabs
The auto industry isn't just about selling cars, it's about creating community and relationships. Hear more from our friend Michael Wood about his time building a revolutionary approach to car sales and customer experience.
Quick Hits
History
1906: The (possibly) first use of a checkered flag to end an auto race. 🏁
1923: The burial chamber of King Tutankhamun is opened in the Valley of the Kings. 🪦
1937: Wallace H. Carothers receives a United States patent for nylon. 🪂