🚗 Auto Supply Chain At Risk?

🚙 Roadblocks and Change!

March 05, 2025

TOGETHER WITH

Good morning and happy Wednesday, Friend!

We’re moving at cruising altitude these days, heading straight toward Baltimore and all ASOTU CON 2025 has for our industry. We are just over two months out and will share more about what you can expect on the ground in May.

So keep an eye on the email, Linkedin, and ASOTU.Be for more, and tell a friend.

Moving the industry is a team sport with only winners and folks on the sideline. (They win, too, but everybody remembers who played the game 😉 )

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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Tariffs (For Real This Time), BMW’s Future, and An AI Shaped Industry.

🇺🇸 Tariffs Hit North American Auto Supply Chain—What Now?

Kyle and Paul… no wait… Kyle and Nathan? (Weird change, but a welcome one!) talked about the tariff news yesterday on the show, check out the link above, or read more below:

New U.S. tariffs on Canadian and Mexican imports went into effect March 4, shaking up supply chains and raising cost concerns across the industry. Automakers and suppliers are bracing for impact—dealers should, too.

How bad could it get?
Potential price increases of $4,000–$10,000 on affected vehicles, plus supply chain disruptions that could hit inventory.

🔹 25% tariff on most imports from Canada and Mexico, with a 10% duty on Canadian energy.
🔹 Automakers and suppliers warn of halted production and higher costs passed down the chain.
🔹 Canada and Mexico have announced retaliatory tariffs, escalating trade tensions.

"Long-term, 25% tariffs across the Mexican and Canadian border would blow a hole in the U.S. industry that we have never seen." – Ford CEO Jim Farley

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📢 BMW Bets Big on EVs While Others Pull Back

While some automakers rethink their electrification strategies, BMW is doubling down. The German automaker is pouring billions into its Neue Klasse EV platform, unveiling new battery tech that promises to push the industry forward.

🔋 What’s new?

  • Next-gen batteries offer 30% more range, 30% faster charging, and 50% lower costs.

  • "Energy Master" controller optimizes power flow and enables bidirectional charging (V2H, V2L, V2G).

  • Local-for-local production strategy brings battery assembly closer to vehicle plants.

“The project of the century and the biggest investment in the history of the company.” – BMW Board Member Joachim Post

Join the conversation. Click the image to chime in.

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🤖 AI is Reshaping Dealerships—Are You Ready?

The retail auto industry is on the edge of a seismic shift. AI isn’t just another tool—it’s redefining how dealerships sell, service, and connect with customers.

How soon will AI change the dealership experience?
Faster than you think. Over the next decade, AI will streamline operations, personalize customer journeys, and even predict service needs before they happen.

  • Next 3 years: AI-powered data consolidation, predictive analytics, and hyper-personalized marketing will enhance efficiency.

  • By 2030: Expect real-time pricing, proactive service recommendations, and seamless digital-to-showroom experiences.

  • 10 years out: Autonomous sales models and AI-driven sustainability efforts will reshape the dealership landscape entirely.

"The dealerships that embrace AI early will be positioned to dominate their markets."

Check out more from the front lines at Autoindustry.AI!

🥊 Quick Hits

The Power of Change

For 25 years, Vehicles for Change has been proving just that, helping families break down barriers through car ownership and career training.

Take Brittny, a hardworking mother whose life came to a standstill when her car broke down. Facing a $4,000 repair bill she couldn’t afford, she risked losing her job and stability for her young son.

But when she was awarded a Jeep Grand Cherokee through Vehicles for Change, everything changed. She kept her job, built a thriving event business, and in 2024, she was named one of the Baltimore Business Journal’s Top 40 Under 40.

We’re thrilled to have Vehicles for Change back with us at ASOTU CON 2025 this May! Stay tuned for more on how we’re teaming up to create real impact—one car, one family, one future at a time.

EV Roadblocks: Charging Failures Are Pushing Buyers Back to Gas

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According to a recent J.D. Power survey, EV drivers say their public charging experience isn’t just frustrating, it’s actually getting worse.

A full 20% of EV drivers who visited a public charging station in Q4 2024 were unable to charge, marking a steady increase from 19% in Q3 and 18% in Q4 2023. With federal funding for charging infrastructure now on hold, these issues could become even more widespread.

  • Chargers Out of Order: The leading culprit? Broken chargers. A staggering 62% of failed charging attempts were due to out-of-service equipment.

  • Long Waits, No Slots: Nearly one in five (18%) drivers found no open chargers or refused to wait in long lines.

  • Payment Failures: Another 11% were unable to pay due to faulty processing systems.

J.D. Power

The survey found that concerns over public charging remain the biggest roadblock to EV adoption, and until charging infrastructure improves, automakers will have a tough time winning over reluctant buyers.

  • Nowhere to Charge: The top rejection reason (51%) is still a lack of charging stations, reinforcing long-standing infrastructure concerns.

  • Too Much Downtime: Nearly half (49%) of shoppers cite long charging times as a dealbreaker, preferring the quick fill-up of gas-powered vehicles.

  • Range Anxiety Lingers: Despite improving battery tech, 47% still fear running out of charge before reaching a station.

J.D. Power

Our very own Paul J Daly just bought his first electric vehicle and has already experienced some of these short-comings. Follow along with his EV journey on LinkedIn here!

AROUND THE ASOTU-VERSE

🗓️ Coming Soon

🦀 May 13-16th — ASOTU CON in Baltimore, Maryland. Get the app!
🚘 May 15th @ 4pm — Vehicles For Change Car Giveaway and Closing Keynote

🔁 Today in History

  • 1558: Smoking tobacco introduced into Europe by Spanish physician Francisco Fernandes. 🚬

  • 1770: Known today as the Boston Massacre, British soldiers kill five men in a crowd throwing snowballs and stones at them. 🇬🇧

  • 1904: Nikola Tesla describes the process of ball lightning formation in the trade journal, Electrical World and Engineer. ⚡️

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