#619 - 🎤💧🚀 Hopes, Hosts, and Hydrogen

TOGETHER WITH

Happy National Hospitality Worker Appreciation Day!

To say automotive is an expression of the hospitality industry may not be entirely true, but saying it isn’t may be just as uninformed.

The truth is, this industry sits at the spot where hospitality meets technology, meets mobility, meets finance, meets marketing, meets…we could go on.

Seeing the dealership as a place where we offer more than cars is how we embrace our opportunity to be hospitable.

Maybe even…unreasonably hospitable. 😉

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Some Updates

Got some news from the newbs and the seasoned vets today. Start-ups almost totally founded on EV tech are finding ways to make 2024 work, while legacy automakers are able to spread efforts over ICE and even hybrid offerings.

You can catch a lotta fish with a wider net, but you can catch the fish you want with a spear, too. So, y’all do y’all.

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Auto Start-Ups, Starting Up? 

Start-up life is challenging, and we don't mean just yanking the string on a push mower (it's almost Spring, you ready?).

• Lucid Motors plans to keep production levels consistent in 2024. The EV company has targeted about 9K vehicles, slightly more than its 2023 output. The cautious approach is going around in the EV world right now, with well-established and start-up companies alike looking for the sweet spot of supply to match demand. 

• Rivian is one of those companies facing a challenging landscape. Its Q4 2023 gross margin dipped, leading to the decision to cut its workforce by 10%. Despite these hurdles, Rivian managed to double its previous year's delivery numbers, surpassing 50K EVs. The company is betting on cost-cutting and more affordable models to boost its growth by the end of 2024.

• VinFast's Q4 net loss widened, yet the company targets 100K sales in 2024, nearly tripling the 35K vehicles sold in 2023. The plan isn't just wild dreaming, the company is expanding globally and has plans to lease battery tech in India and Indonesia. So, while a rough 2023 leads other companies to scale back, VinFast is working with dealers and international manufacturers to ramp up. 

Mercedes ICE-y Plans

Mercedes-Benz is making plans and taking gains. Despite supply chain warnings and geopolitical noise, the company's shares rose 5% following Q4 reporting and a 3B euro buyback. 

Amid slowing EV sales, the company says it will update its ICE lineup and adjust its 2030 goals to "up to 50% electrified." 

CEO Ola Källenius says they aren't backing off innovation or investments in new tech, specifically BEVs, despite supply chain challenges and big economic movements. 

Strike Averted

Ford workers in the Kentucky Truck Plant will not strike. The UAW and the automaker have reached a tentative agreement. Negotiations continue, but for now, 9,000 workers at the brand's most profitable facility will keep on keeping on. 

Some Charging News

Electrify American has opened its flagship indoor charging station in San Francisco. The location has 20 chargers, a customer lounge, and round-the-clock security. 

On the other side of the country, Richmond, KY is breaking ground on the first National Electric Vehicle Infrastructure (NEVI) charging station in the southeast.  

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There’s the news, friends. Like it or not, this is what some of the companies that make up the complex ecosystem of the auto industry are spending their time, money, and attention on. Luckily, no matter the facts, the news is the news and not a road map. We don’t get to change it, but we do get to decide what we are going to do about it.

TOGETHER WITH EFFECTV

Maximizing Effect with Effectv

Last year, during ASOTU CON 2023, Effectv's Head of Sales Development, Dawn Williamson, sat down with Kyle to discuss the evolving TV landscape and how modern automotive marketers can optimize their strategies.

Our fabulous friends at Effectv are returning to Baltimore with us this year for another round of conversation, context, and collaboration that will propel the industry and its people into the future of retail auto! 

Every single day, Effectv helps dealers form meaningful connections with their community, and for 3 days in May, they are partnering with ASOTU to bring that connective power to the whole automotive community. 

Don't miss out — grab your ticket today! 

MORE THAN CARS MOMENTS

It’s Miller Time

Southwest Virginia auto dealer, Chris Miller, is stepping into the political ring with a campaign that merges his business acumen with a deep-rooted commitment to West Virginia's community.

A native of Huntington, Miller has grown his family's ventures from two businesses to twenty-six, spanning across car dealerships, real estate, and even bison farming.

Now, as he eyes the WV Governor's seat in the 2024 race, Miller's agenda is clear — transform state governance with his people-first philosophy, and end the exodus of the state's youth in search of better opportunities elsewhere.

Miller says he’s not just running for office, he's running to make a difference, and we’re totally here for it. Best of luck, Chris! 🍀

AROUND THE ASOTU-VERSE

Coming Soon

• MADA Annual Meeting at ASOTU CON 2024

  ASOTU is partnering with the Maryland Auto Dealers Association to host their annual meeting. MADA member tickets are covered, just contact your association to get one. Then come ready to be where the future of innovation, collaboration, and dedication begins — ASOTU CON!

DATA & INSIGHT

Hydrogen on the Horizon

Whether you believe hydrogen is fundamental to a clean energy future or dismiss it as wishful thinking, one thing is for certain — more of it is coming, especially for transportation.

Asia is leading the charge with ambitious plans that underscore the global shift towards sustainable energy sources. Here's a closer look at some of the key players:

🇨🇳 China — Currently the world's largest consumer and producer of hydrogen (primarily produced from fossil fuels) but with significant plans to boost “green” hydrogen production (primarily produced by electrolyzing water) for industries like steel and chemicals.

🇸🇦 Saudi Arabia: Home to the world's largest green hydrogen project in development, aiming to produce up to 600 tonnes of green hydrogen per day using solar and wind energy.

🌍 Global Effort: The International Energy Agency highlights numerous countries investing in operational or upcoming hydrogen projects.

As the U.S. continues to embrace a hydrogen-fueled future, the first hydrogen-powered commuter train in the nation is set to arrive in Southern California later this year.

An additional four hydrogen trains are also on track for deployment by 2027 as part of an $80M deal between Swiss manufacturer Stadler Rail and The California Department of Transportation.

Last year, Nikola rolled out 42 hydrogen semi-trucks that are expected to hit the roads soon, and California's transit agencies are poised to order hundreds of hydrogen buses for zero-emission targets.

Despite the commercial and public transportation sectors exploring hydrogen fuel, its adaptation for personal cars is still being hindered by high costs and skepticism.

🦴  Environmental Concerns — Currently, 99% of hydrogen is produced from fossil fuels (with 71% derived from natural gas), complicating its clean energy credentials amid rising fuel prices and the global energy crunch.

💭 The Dream — Environmentalists hope to one day achieve fully green hydrogen production, but for now, it uses a lot more energy compared to charging a battery. So, hydrogen can either be green or efficient, it can’t be both…yet.

Quick Hits

• Dune 2 fan reviews are setting positive records. 👍

• S&P 500 hits record and the Nasdaq heads for best day in over a year. 📈

• The first moon landing since the 1970s successfully landed yesterday. 🚀

History

• 1455: Traditionally the publication date of the Gutenberg Bible, the first Western book printed with movable type. 📖

• 1945: Six Marines raise the U.S. flag atop Mount Suribachi in Iwo Jima during the final stages of WWII. 🇺🇸

• 1997: For the first time, a movie (Schindler's List) is shown on television without commercial interruptions. 📺

Thanks for reading another email. We are always curious to know: what brings you back? We have to assume nobody likes to waste their time, so what’s in these emails that make YOU open? After all, you’re our #1 fan, and we are yours.