#624 - 🛒🗓🏎 Days, Delays, and Direct Ideas

TOGETHER WITH

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In addition to this email, we have a daily show that covers the morning’s big stories, so you always know what’s up.

Because staying informed is so much better than getting schooled.

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-Paul, Kyle, Chris & Kristi

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BUSINESS

Big Business Updates

Direct sales take two steps forward in the US and one step back in Europe. The one step back is part of making real progress forward. Like Indiana Jones, you never know which step may have a booby-trap.

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Hyundai, Amazon, and Dealers

Some say Hyundai's partnership with Amazon is a game-changer for the auto industry, signaling a significant shift towards online car sales. This move introduces direct sales of Hyundai cars on Amazon, with fixed, non-negotiable prices and integrated financing options. It's a sign that the traditional dealership model is evolving, especially as this approach could encourage other manufacturers to adopt similar online sales strategies.

The strategy for US auto dealers looking to stay ahead is clear: adapt or get left behind. Dealerships should consider ramping up their online sales game by offering transparent pricing and exceptional digital experiences. Specializing in electric vehicles and leveraging technology for better customer service is also crucial. 

What do you think? Amazon is known for claiming markets, but they've never moved in on something as robust and well-established as the US dealer network. Hit reply and let us know how you see this playing out in 1, 5, 10, or 50 years. 

Roadster Release

Tesla says they will release the Roadster next year. No, like, for real. 

Why now? BYD just announced its $233K sports car, which stands as a direct challenge to the sub-one-second 0-60 super Tesla, and Musk just can't have that. 

Whatever happened to that Roadster in space? Since its launch in 2018, it has drifted toward Mars. Forever floating as a publicity stunt for Tesla and a show of application for SpaceX. It should reapproach Earth in 20 years and crash into Earth, Venus, or the Sun within 15M years. 

Toyota Talks

Toyota has not responded to union wage demands in the second round of their talks. The next round is set for March 6, so we won't know much before then. 

• The union is after a record-setting bonus and monthly pay raise based on qualification. 

• In addition to money talk, the discussion is focused on workplace issues.

• Honda has already fulfilled its union's demands, setting a precedent Toyota hasn't matched yet.

• Economists expect significant pay rises from big firms, with implications for Japan's monetary policy and interest rates.

Aston Martin Decides to Delay

Aston Martin is delaying its first BEV by one year until 2026. The delay follows a new deal the automaker signed with Lucid Group to enhance electrification through partnership. While they join companies like Mercedes-Benz in postponing their electric goals, they do still have a 2B euro commitment to transitioning from ICE to BEV tech. 

Apple Falls from the Automotive Tree

The Apple Car is dead. Apple canceled its project to develop an autonomous EV and will instead focus its effort on AI. So, instead of robots crashing our cars, they may crash our society. 

The entire car team has been disbanded, so if Apple were to enter the automotive market, it would require a whole new beginning for their efforts.

JLR Sticks with Franchises in Europe

We saw news about Jaguar Land Rover abandoning its fixed-price car sales plan in Europe and will continue with a traditional franchise model.

We asked our friend Michael Wood, General Manager of Jaguar and Land Rover of Virginia Beach, for his thoughts. 

"It is a bit shocking to see this occurring in Europe with JLR. My understanding was that they were moving along smoothly, which seems to not be the case.

Joe Eberhardt, CEO of JLR North America, announced an alternative to this Agency model for the USA stores in 2022. The modern luxury sales platform was to roll out in 2023 but was met with resistance in a few states based on a few key features, like selling out of each other's inventory and market-based MSRP fluctuations based on demand. I, for one, was invigorated by Joe's plan. He recognized that there is a need and desire from the consumer for a better sales experience, all while recognizing that the dealer franchise model is key in delivering a leading-class after-sales experience.

Regardless of what has occurred in Europe, I stand behind the vision that Mr. Eberhardt has for JLR North America and am bullish on our future!"

Check out this chat with Michael on the Auto Collabs podcast.

Grab your ticket to ASOTU CON 2024 to hear more from Michael and many other leaders from the auto community in Baltimore May 14-17.

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Stories are weird. Almost all of them are told from the comfort of a place beyond their conclusion. Not many people possess the ability to look around in a given moment of tense uncertainty and say, “Well… this certainly seems to be unfolding.”

TOGETHER WITH OUTSELL

Lead the Pack

Paul J Daly and Kyle Mountsier recently dropped a killer podcast episode with John Clavadetscher, the brains behind Outsell, live from the 2024 NADA Show. This isn't your average chit-chat either, it's a masterclass in turning your dealership into a customer magnet.

🤫 Shh…Don’t Tell: Outsell is the secret weapon you didn't know you needed, turning casual customers into loyal fans. They know it’s not always about snagging new customers, it’s also about cherishing the ones that you’ve got.

💡 Unreasonable Hospitality: Imagine knowing your customers better than they know themselves and turning mundane tasks into magical moments. Well, that is the Outsell promise.

With the help of insights from John and expertise from Outsell, you can do more than talk about the future. You can steer it.

Check out the full replay here.

CULTURE

Leap Day

On February 29, Leap Day corrects the mismatch between our calendar year and Earth's orbit. Earth's orbit takes approximately 365.2422 days, not the neat 365 days our calendar counts, necessitating an extra day every four years to keep seasons consistent.

Originating from ancient efforts, the modern leap year system was refined by Pope Gregory XIII in 1582, improving upon Julius Caesar's initial leap year calendar. Without leap days, seasonal and calendar alignments would drift over centuries.

Leap years don't occur strictly every four years; to maintain precision, years divisible by 100 are leap years only if also divisible by 400. This adjustment keeps our calendar in sync over long periods.

Despite its quirks, the leap year system remains crucial for aligning our calendar with Earth's orbital period, ensuring seasonal consistency, and marking years filled with significant events like elections and Olympics.

Quick Hits

• Macy’s is closing 150 locations across the US. 🔒

• Home prices are inching up to new highs. 🏡

• “Shogun,” a bloody samurai TV show, is getting early reviews comparing it to Game of Thrones. ⚔️

History

• 1504: Christopher Columbus uses his knowledge of a lunar eclipse that night to convince Jamaican natives to provide him with supplies. 🌑

• 1916: In South Carolina, the minimum working age for factory, mill, and mine workers is raised from 12 to 14 years old. 🎂

• 1940: Hattie McDaniel becomes the first African American to win an Academy Award for her performance as Mammy in Gone with the Wind. 🏆

Another day, another email. We like to sip coffee while we write it and imagine you are sipping coffee while you scroll through. It’s like a really long-distance coffee catch-up session, and we live for it.