⚙️ Auto Market Shifts: Wholesale Prices, Global Car Demand & EV Strategies

TL;DR: Used wholesale prices dipped 0.2% in early September; SUVs, midsize cars, and pickups take the biggest YoY hit. Supply is up to 26 days but still tight. Meanwhile, consumer confidence is climbing with inflation expectations down to 2.7%. Dealers, stay sharp—monitor inventory strategies as the market isn’t in free fall… yet.

Digest Rundown

• 📉 Wholesale Prices Dip: What’s the Inventory Impa …

  • So, how are used-vehicle prices holding up?

  • What about supply—is there enough to go around?

  • Consumer Sentiment: Buyers Ready to Spend?

• 🌍️ EU: Traditional Cars Hold Steady as BEVs Surg …

• 🛠️ Stellantis vs. Volkswagen: Plant Closures and …

  • Stellantis Takes Proactive Measures

  • Audi's Brussels Plant in Limbo

  • Workers Rally Amid Uncertainty

• 🔄 Volvo’s EV Strategy: Flexibility Over Full Elec …

  • Is Volvo backing off from its 2030 all-electric go …

  • So why mention Renault’s new van here?

  • Should we expect it soon?

• 📣 UAW vs. Stellantis: Labor Disputes Heat Up Over …

• 🎤 Karaoke On the Road? Yes, Really! 🎶

BUSINESS

📉 Wholesale Prices Dip: What’s the Inventory Impact?

So, how are used-vehicle prices holding up?

In short, they’re dipping but not plunging. Wholesale prices fell by 0.2% in the first half of September, pushing the Manheim Used Vehicle Value Index down to 203.6—a 5.0% year-over-year drop. However, the non-adjusted prices actually rose 0.2% from August, suggesting we’re in a lower-than-normal depreciation trend. A win for dealers? Maybe.

Segment Breakdown: Who’s Hurting Most?

• SUVs: Down 5.2% YoY

• Midsize Cars: Dropped 5.7%

• Pickups: Taking the biggest hit at 7.5%

Interestingly, the Manheim Market Report (MMR) prices for the Three-Year-Old Index fell only 0.4%, less than the usual 0.7% decline, signaling that depreciation isn’t spiraling out of control.

What about supply—is there enough to go around?

Sort of. Wholesale supply increased to 26 days by mid-September, just one day up from the end of August. This might ease some inventory pressure, but it’s still relatively tight compared to historical levels.

Consumer Sentiment: Buyers Ready to Spend?

Good news here! Consumer sentiment is showing signs of improvement, with inflation expectations declining to 2.7% for the next year—the lowest since December 2020. It means buyers may feel more confident, translating to a healthier retail market.

Bottom Line: While wholesale prices are down, the controlled depreciation and improved consumer sentiment suggest the market isn’t in free fall. Dealers should keep an eye on segment performance and be ready to adjust inventory strategies as supply stabilizes.

🌍️ EU: Traditional Cars Hold Steady as BEVs Surge

Despite SUVs dominating the U.S., traditional cars remain strong globally. In H1 2024:

• Europe: Only 3 SUVs made the top 10 best-sellers. The Dacia Sandero led with 143,596 units, followed by the Volkswagen Golf and Renault Clio.

• China: The world's largest car market had the BYD Qin Plus sedan top the sales charts.

• India: Cars claimed 3 of the top 5 slots.

While some cars are being discontinued, SUVs haven’t fully replaced traditional body styles.

Meanwhile, Battery-Electric Vehicles (BEVs) are set to reach a 20-24% market share in the EU by 2025:

• Affordability: Seven new electric models under €25,000 are expected in 2024-2025.

• Impact: BEVs will contribute 60% of required CO2 reductions; hybrids, 20%.

Transport & Environment urges lawmakers not to delay 2025-2030 targets, cautioning that protecting automakers could hurt EU competitiveness.

🛠️ Stellantis vs. Volkswagen: Plant Closures and Workforce Cuts

Stellantis Takes Proactive Measures

Stellantis CEO Carlos Tavares emphasized the company's proactive approach to avoid plant closures like Volkswagen's recent announcement. Despite criticism for implementing "unpopular" measures, Stellantis aims to offer electric vehicles at competitive prices compared to traditional petrol models. Formed from the merger of Fiat Chrysler and PSA, Stellantis has already reduced its European workforce by 20,000 through voluntary redundancies. Tavares acknowledged that while they're working hard to avoid similar shutdowns, the future remains uncertain.

Audi's Brussels Plant in Limbo

Volkswagen's Audi is seeking an investor for its struggling Brussels plant, according to production director Gerd Walker. Despite exploring multiple options, none have proven economically viable. The plant, which employs about 3,000 workers, faces possible closure due to low demand for Audi's high-end EVs, like the Q8 e-tron. This aligns with Volkswagen's broader cost-cutting efforts, including potential factory closures in Germany.

Workers Rally Amid Uncertainty

Over 5,000 people marched in Brussels on Monday to support the plant's workers. This show of solidarity highlights the growing concerns over job security and the challenges European automakers face as they navigate market shifts and rising competition.

🔄 Volvo’s EV Strategy: Flexibility Over Full Electrification

Is Volvo backing off from its 2030 all-electric goal?

Not exactly. They're "revising" it to 90-100% electrified sales, allowing some mild hybrids in the mix. CEO Jim Rowan calls it "flexibility," adapting to market challenges while staying on course. They’re still pushing for a 30-35% CO2 cut per car by 2025 and up to 75% by 2030. With 47% of their August sales already electrified (25% fully electric), it’s less a retreat and more a smart sidestep to ensure long-term sustainability.

So why mention Renault’s new van here?

Because it’s part of the same electrification story. Volvo is co-developing Renault's Estafette concept, a tall electric van designed for urban delivery. Standing 8.5 feet high, it lets drivers walk through the cab to the cargo area, and it’s built on an 800-volt platform for faster charging. This partnership shows how Volvo is adapting to electrification by focusing not just on passenger cars but also on commercial vehicles.

Should we expect it soon?

Not until 2026. But both Volvo’s revised approach and Renault’s van concept highlight how automakers are finding flexible paths to electrification without abandoning their green goals.

📣 UAW vs. Stellantis: Labor Disputes Heat Up Over Contract Violations

The United Auto Workers (UAW) union has filed federal unfair labor practice charges against Stellantis, accusing the automaker of violating contract terms and attempting to move Dodge Durango production out of the U.S. This action follows Stellantis’ production cuts and layoffs since their 2023 contract agreement.

UAW President Shawn Fain emphasized the union's commitment to enforcing the contract, including reopening the Belvidere, Illinois plant and building the Durango in Detroit. Stellantis has denied the accusations, asserting they haven't breached the contract's investment commitments. The UAW currently has over 24 open grievances against Stellantis concerning its product and investment plans.

🎤 Karaoke On the Road? Yes, Really! 🎶

Ford F-150 Lightning owners just got a software update that'll make road trips (or charging breaks) way more fun: built-in karaoke through the Stingray Karaoke app! 🎵 The best part? It’s not just for the U.S.—drivers in Canada, Mexico, and Europe are getting the feature too. And Mustang Mach-E folks, you’re next!

Here’s how it works:

• Choose a song from a huge catalog in 38 languages.

• Lyrics pop up on the screen so you can belt out your favorite tunes. 🎤

• Scan a QR code, browse the catalog, and you’re good to go—no app login needed!

Available for 2024 Lightning models with the SYNC 4A system.

So, what's your go-to karaoke jam? Drop it below! 🎶🕺💃 

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