The Automotive Troublemaker: Rivian CEO Speaks Out

Today is Tuesday! Things are happening in the auto industry, like how lower used car prices are driving down inflation, VinFast is forming a US dealer advisory board and Rivian is pressing ahead on future plans.

Used car prices have plummeted over the past year, reaching their lowest level since 2021, and are now the leading category reducing inflation, according to CoPilot’s analysis of CPI data.

• Cox Automotive reports that the average list price for a used vehicle is now $25,251, down 7% from last year and the lowest since summer 2021.

• The June CPI report shows a 10.1% drop in used vehicle prices over the past year, with a 1.5% decline in the last month alone.

• The previous surge in used car prices was driven by a supply crunch in new vehicles.

• CoPilot CEO Pat Ryan explains that the supply of new vehicles has increased by about 50% since July 2023, easing pressure on the used market.

• “Consumers have finally found themselves with more options to buy new, rather than used,” Ryan noted.

EV manufacturer VinFast is strengthening its presence in the U.S. by forming a Dealer Advisory Board to navigate the American market.

• VinFast aims to expand its U.S. dealership network with strategic advisory board members including David Coyle of Leith VinFast in NC, Damian Mills of VinFast Triad in NC, David Sansing, Elie Hanna, Bill Auffenberg

• VinFast has received 70 applications from dealers and plans to establish 125 third-party sales points by the end of 2024.

• David Coyle, Dealer Principal of Leith VinFast commented “This board represents a great opportunity for open communication and collaboration, ensuring VinFast remains at the forefront of the EV market.”

Rivian CEO RJ Scaringe recently sat down with the Verge to cover the EV maker’s future plans, why every EV looks like a Tesla, and the joint venture with VW.

• Rivian announced five new models this year: R2, R3, R3X, and updated versions of R1T and R1S. The R2 is set to launch in 2026 and already has 100K pre-orders.

• Scaringe believes that the slowdown in EV growth is not due to a lack of demand but rather a lack of variety in available models. He believes there is significant latent demand for EVs that meet diverse consumer needs. -“Because of the Model Y’s success, you have a lot of incumbents that have built products that look and feel and are shaped a lot like a Model Y.”

• The $5 billion joint venture with VW focuses on co-developing Rivian's streamlined electronic architecture, which reduces the number of ECUs (electrical control units) in vehicles, simplifying software updates and cost efficiency. VW aims to leverage Rivian’s advanced technology across its brands, including Porsche, Audi, and Bentley.

• Scaringe held firm on Rivian’s plans to exclude Carplay and instead add CarPlay-like features to the system on an a la carte basis, with things like Apple Music and Youtube already available.

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