#615 - 🏛🔘🛠 Regulate, Redirect, and Recall

TOGETHER WITH

Do what they do, but better, or do what they refuse to do.

Since most people spend a lot of Monday refusing to accept the weekend is over, simply showing up grateful for Monday means you’re already standing out in your world!

Let’s be grateful and…

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Monday News

Today, we’re talking about the government for a moment, and then it’s back to business.

Since consumers elect the government and the government is always poking its thoughts into the conversation between buyers and sellers, you could say the government bit is business too…just with extra steps.

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White House, Electric Car

The Biden admin is working to expedite the transition to EVs, possibly using the EPA regulations to crack down on tailpipe emissions. 

• Goal: EV market share to 67% by 2032, up from less than 8% in 2023.

• Rub: Automakers and the UAW have raised concerns about transitioning their fleets to EVs within the proposed timeline.

• Stakes: Failing to meet CO2 targets could result in $14B in fines for U.S. automakers.

• Fans: Tesla advocates for stricter regulations, pushing for a 69% EV market share by 2032 and 100% by 2035.

• Room for improvement: Detroit's automakers have the lowest average fuel economy among major manufacturers in the U.S., falling short of the 2023 projected industry average of 26.9 MPG.

📈 The US GPD in Q4 2023 increased 3.3%, and inflation reduced.

Ford's Little Pros

Ford's CEO, Jim Farley, says he is redirecting the Pro business from beating Tesla to beating China. 

Highlighting significant growth opportunities in fleet and commercial services, the automaker is pivoting to small, affordable (and profitable) EVs. Mr. Farley set the expectation of pre-tax earnings reaching $8B to $9B. 

With their small, low-cost EV platform coming, Ford could balance out America's heavy lean toward SUVs, Trucks, and Crossovers with small, affordable cars. 

 📉 At the time of writing, Ford Motor Co. is down 0.44% in the market.

Mer-See-Deez Prices?!

Mercedes is getting in on the lower-price market, too. The brand says it will focus on low-cost ICE and hybrid cars, reversing a previous emphasis on high-end models. The plan includes launching 25 new and updated models in the US and surpassing 300,000 sales in 2024.

Like they say, you gotta make money to make money. 

📈 At the time of writing, Mercedes Benz Group AG is up 1.15% in the market.

Scout Carolina

Scout Motors started construction on its electric off-road vehicles factory in South Carolina. The rejuvenated stand-alone VW-backed brand is going for that rugged all-electric vibe we aren't sure exists, but we have faith that they mean what they say and will bring their off-road eco-friendly combination to life. 

They're backing up the "rugged" vibe with "chunky buttons." Yes yes, in a world where everything is going touchscreen, the Scout will have old-school buttons. 

Scout targets over 200K annual units and got started with a $1.3B tax incentive to bring their factory to the state.  

📉 At the time of writing, Volkswagen AG is down 0.14% in the market.

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Well, Ford, Mercedes, and Scout have plans to make our current context work for them. What about you? Ready to hold it down, push it back, clean it up, or burn it down as needed?

TOGETHER WITH UPSTART

Survey Says: Webinar

2023 was a whirlwind year for dealers — from high rates to automakers’ strikes to continued supply chain issues. So, Upstart surveyed 100 dealers across the country for a quick recap on 2023, their outlook for 2024, and just how tech-savvy they are with their online, in-store, and financing processes.‍

You’ll hear:

• Dealers’ outlook for car sales in 2024

• How advanced dealers’ online and in-store processes are today

• The biggest pain points in the financing process

• How to effectively bridge the online and in-store gap

Join us on February 21st at 1:00 pm EST to hear all about the data Upstart collected and the insights they’ve gleaned.‍

👉 Click here to register for the webinar today. 👈

DATA & INSIGHT

Fewer Recalls, More Recalled

It seems like the increase of EVs entering the market has led to an explosion (no battery fire pun intended) of repairs and recalls. Data shows different…kinda.

In 2022, U.S. automotive recalls decreased for the second consecutive year to 916 events, a 4% drop, but affected units surged by 23% to 38.4M, the highest in three years.

Electrical system issues were the leading cause, representing 21% of recalls, with expectations of this trend continuing due to the increase in electrified models.

It goes to show ya that data can be a weapon without context. A weapon can be a tool too, but you wouldn’t use an Allen wrench to fight a wolf, so it doesn't work both ways.

AROUND THE ASOTU-VERSE

Coming Up

WIll Guidara at ASOTU CON 2024!

Hear more from Will at ASOTU CON 2024 this May!

Grab your early bird ticket here.

Podcasts

Quick Hits

• Dune 2 is coming to theaters on March 1st, but early reactions say it’s a banger. 🌶

• Russia is making a weapon that can kill satellites but doesn’t have one yet.

• Paul McCartney’s bass was stolen 51 years ago and has finally been recovered. 🎸

• JK! Saturn’s moon, Titan, can’t host humans after all. 🪐

• Over 8M people watched the Super Bowl on YouTube. 🏈

• Solar + battery will account for 81% of new electricity generation this year. ☀️

• OpenAI, ChatGPT’s company, is getting into the video-from-text game. 📼

• Stellantis workers will receive profit-sharing checks of about $13,860 for 2023, 6.1% down from 2022’s $14,760. 👷‍♂️

History

• 1878: Thomas Edison patents the phonograph. 🎶

• 1945: United States Marines land on the tiny island of Iwo Jima. 🇺🇸

• 1954: The Ford Thunderbird concept is completed. 🦃