#635 -👨‍💻🏹🛑 Beta, Battle, and Brakes

TOGETHER WITH

We got some news about Tesla, China, luxury brands, and insurance today.

There are plenty of things to consider in the industry today, but we hope this email keeps you informed enough to focus on what matters most - the person you are serving.

Let’s do our best work, remember why, and, as always…

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

News and Context

The days of competing with the other dealers in your town are over. Sure, you can stay competitive in your local market, but competition is online, overseas, in the news, and at the pump. There are a lot of answers to the mobility question, and few partners are available to consumers.

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Tesla Broad and Detailed 

You know the old saying, "hurt people, hurt people?" Well, turns out "cut prices, cut prices" too. 

Tesla cut prices on its Model 3 and Model Y in Feb, leading the whole EV economy to fall by 13% compared to the same month in 2023. 

• The average EV price also dropped about $2,500 from January to February 2024. 

• While discounts and incentives are adding up to less (huh?) EVs are still priced about 19% higher than the average non-luxury vehicles, about $5,000 more than the industry average. 

• The Nissan LEAF is the cheapest outlier at just over $28K. 

Of course, there is always a little more in the news with Tesla. 

• FSD Beta v12 has been pushed out to Tesla drivers. Elon says it is a "big release" and focuses on "end-to-end neural nets," which just sounds like crazy sci-fi gibberish to us. 

• Researchers discovered a spare-key hack that works like a card skimmer. The trick leads owners into entering their account info at a Supercharger station, granting KiaBoy style access to the vehicle. 

• Remember all the "Don't sell your Cybertruck" paperwork that came to light when deliveries started? Well, some people have found out that Musk was serious about that. Some people listed their Cybertrucks online only to find their other existing reservations were canceled, and they were blacklisted. 

BYD's Big (and Small) Plans

BYD, the #1 EV company in the world since overtaking Teals last year, is at war with ICE vehicles. They say they are shifting their focus to compete with combustion engine vehicles to expand their market share. With a $15K EV and an $11K PHEV coming to the market, they are breaking through to a "cheaper than oil" space EVs have not seen before. 

On the other end,  BYD also has a $230K supercar on the way. The 1,300 HP all-electric Yangwang U9 will accompany the company's push into Europe, Japan, South America, and Thailand (but still not the US). 

Luxurious Moves

Porsche expects a profitability decline in 2024 with an operating return on sales between 15% and 17%, down from 18% in 2023 due to new model launches and economic conditions. However, it increased its dividend after a profitable 2023.

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Alfa Romeo plans to debut the new Giulia in 2026, built on the Charger EV platform. The brand aims to offer both ICE and EV versions of its models and targets electric versions for all models by 2027, signaling a significant shift towards electrification.

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BMW, once seen as behind in the EV market, sold 376,000 electric vehicles in 2023, a 75% increase from the previous year. The company is preparing to launch a new line of cars designed solely for electric propulsion, featuring advanced battery technology and autonomous driving capabilities, which will challenge Tesla's market dominance. 

Snitches Get Ditches? 

A Seattle driver is paying 21% more for insurance now. Oh no, did he have a crash or get a ticket? Nope. His Chevy Bolt wrote a 130-page report about his driving time, including every instance of speeding, hard braking, or sharp accelerations. oh, that's nice. To keep him informed? Nope, to snitch to his insurance company. Of course, it isn't a direct pipeline, but the data broker LexisNexis gets the data from GM and then sells it to insurers so they can "personalize coverage." 

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In a perfect world, everybody would drive like they loved every other driver; unsafe people wouldn’t be allowed to drive at all in a less perfect world. This whole “Computer chip data police” world is some weird third option that doesn’t seem to scratch either itch.

TOGETHER WITH UPSTART

Register Now!

Part two of our 2024 Dealership Dynamics webinar series is just a week away!

In this session, we’ll unpack the findings of Upstart’s 100 dealer survey through the lens of someone on the frontlines of customer service themselves — Chad Bouchard, GM of Ron Bouchard Honda and Kia.

You’ll learn about:

• 2024 Dealer Outlook: Insights into 100 dealers' predictions and strategies for maximizing sales

• Tech-Savvy Practices: Explore advanced online, in-store and financing processes that Ron Bouchard is implementing

• Financing Challenges: Unveiling pain points in the financing process and how dealers can tackle them through strategic partnerships

You don’t want to miss these valuable stats — register today!

/MTCM

We talk a lot about “Unreasonable Hospitality” around here, and we are excited to hear more from Will Guidara at ASOTU CON about how we can learn from his experience.

Have you seen any stories of unreasonable hospitality in our industry? We call those More Than Car Moments, and we LOVE telling people about them.

Hit reply or the link below and let us help share your story!

WHAT WE’RE READING

The Heart of Hospitality

As you may have noticed, we’re pretty fond of this book called Unreasonable Hospitality. It's packed with heartfelt insights that resonate deeply with our “More Than Cars” ethos, and we get genuinely giddy to share them with you each week.

Here are our top five takeaways from chapters four and five to help elevate your dealership's approach to service, leadership, and care:

1️⃣ It’s everyone’s job to take care of everyone. 💞

2️⃣ Strike a balance between control and creativity. ⚖️

3️⃣ Make the charitable assumption. 🕊️

4️⃣ Splurge wisely with the 95/5 rule. 🤌

5️⃣ Always look for ways to go above and beyond. 🚀

Shout-out to BMW of South Atlanta for absolutely slaying number five on this list after GM Robert Fowler and his team turned a simple flat tire into an opportunity for connection and education this week.

👉 Read more on our website here. 👀

AROUND THE ASOTU-VERSE

ASOTU CON 2024: Speakers!

We are still adding names to the long and fabulous list of speakers at ASOTU CON 2024. Check out the speaker list, the agenda, and the many collaborators who are making it happen.

THEN, grab your early bird ticket!

Quick Hits

• Some states want to ban lab-grown meat, citing a “war on ranching.”

• A Super Mario Bros. Sequel is coming in 2026. 🍑

• Walmart is trying to mass produce compassion with manager training. 🏭

History

• 1639: Harvard College is named after clergyman John Harvard.

• 1947: The Maserati A6 1500, the company’s first production car, debuts.🥇

• 1969: The Love Bug, a popular Disney movie, is released. 🐞