The Automotive Troublemaker: Trucks Versus EVs

As another week comes to a close, we’re grateful for the auto industry. Today we’re covering how inflation is affecting repos, how demand is affecting Ford’s production plans and how iPhones and Androids might finally get along.

Auto repossessions are up 23% in the first half of 2024, surpassing pre-pandemic levels and indicating financial stress among consumers as interest rates and inflation strain household budgets.

• Vehicle seizures decreased during the pandemic due to leniency and stimulus checks, but have now surged back, with repos increasing 14% compared to 2019.

• Subprime auto borrowers are struggling, with 5.62% at least 60 days late on payments in June.

• Average interest rates: 7.3% for new cars, 11.5% for used cars; monthly payments average $739 for new and $549 for used, according to Edmunds

• Relief might come later this year, with some anticipating the Fed lowering interest rates in September, allowing the opportunity for refinancing and new buyers.

• Jeremy Robb, senior director of economic and industry insights at Cox Automotive summed it up: “I think a lot of consumers are really waiting to see if interest rates come down a little. That’s kept a lot of people on the sidelines.”

Ford Motor Company again has slowed down its EV plans, repurposing its Canadian Oakville Assembly plant to build larger gasoline-powered F-Series trucks, delaying the launch of three-row electric SUVs.

• The Oakville facility will now add capacity for 100,000 F-Series Super Duty trucks.

• “Super Duty is a vital tool for businesses and people around the world, and, even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can’t meet the demand,” said Ford CEO Jim Farley.

• Ford lost nearly $4.7 billion on its EV business in 2023, with projected losses up to $5.5 billion this year.

• The company plans to invest about $3 billion to expand Super Duty production, securing 1,800 jobs at Oakville and adding about 220 jobs at engine and component plants.

Apple's iOS 18 finally brings RCS support to iPhones, significantly improving messaging between iPhone and Android users. Photos are now high-resolution, ending the era of blurry, tiny images.

• iOS 18, currently in Beta but available on iPhone, includes homescreen customization, Siri improvements, and revamped Photos app.

• Apple added RCS (Rich Communication Services) support as a minor feature, this comes after years of Apple refusing to bow to pressure to adopt the messaging standard.

• RCS improves messaging with features like typing indicators, read receipts, and high-res media.

• The green bubble persists with Android users, and Apple's RCS implementation lacks encryption.

🎙️ Check out more from The Automotive Troublemakers here! 🎧