The Automotive Troublemaker: Waymo Chaos

It’s a busy Thursday as we dig into Cox Auto’s data from July, talk about Holman buying a stake in FM Capital, discuss Polestar producing vehicles on US soil and relax while watching Waymos trying to get out of a parking lot set to lofi beats.

The U.S. auto market in July 2024 saw a decline in average transaction prices (ATP) for new vehicles, down to $48,401, with inventory levels increasing 52% YoY to 2.91 million vehicles, in data from Cox Automotive.

• Average incentives reached 7.0% of ATP ($3,383), the highest in over three years.

• The top 2 best-selling vehicles in July were the Ford F-series and the Chevrolet Silverado, with full size trucks accounting for 14% of July Sales. Compact and Subcompact SUVs represented 25% of July's sales.

• Fun fact: Cox Automotive shouted out Mohawk Chevrolet in their report, saying “the Chevrolet Rado will possibly replace [the Silverado] in model year 2026.​​”

• EVs experienced price adjustments with a unique twist, particularly for Tesla. Overall EV Prices decreased by 1.5% year-over-year to $56,520.

• Tesla bucked the trend with an 11% ATP increase, reaching $59,593, driven by the Cybertruck's high price of over $100,000.

• Incentives for EVs soared to over 12% of ATP, 74% above the industry average, marking a three-year high.

• Erin Keating, executive analyst at Cox Auto said, “We hear this from the large dealers all the time: “No matter the budget, chances are we can make something work.” This is particularly true where inventory is higher, and incentives are following.”

Holman, a global leader in automotive services, has acquired a minority interest in FM Capital, a venture capital firm focused on early-to-mid stage technology companies in the automotive and transportation industries.

• This is the first time an integrated automotive services organization has acquired a general partner interest in an automotive VC.

• FM Capital specializes in transportation technologies, including dealership operations, autonomy, and electrification.

• Holman's venture capital arm strategically invests in early-stage businesses to stay ahead of industry trends.

• Chase Fraser, FM Capital's Managing Partner, praised Holman’s combination of dealerships, fleet management, and corporate venture capital as “truly unique.”

• Bill Cariss, CEO of Holman Growth Ventures, emphasized the partnership’s potential to accelerate the funding and scaling of promising automotive technologies.

Polestar is gearing up for significant growth in the U.S., expanding its retail network to support a broader lineup that will triple in size this year.

• The EV brand plans to add 20 stores to its current 27-store network by the end of 2025.

• New models include the Polestar 3 and Polestar 4, with two more nameplates planned within the next two years.

• U.S. sales of the Polestar 2 sedan dropped by 41% in the first half of 2024, prompting a shift in strategy.

• Polestar is adjusting its retail model, increasing dealer inventories and making the brand more proactive.

Residents near a Waymo robotaxi depot in San Francisco are being woken up by the cars honking at each other during the night, even though no one is inside them.

• The self-driving cars often get in each other's way when in this parking lot, triggering their honking systems to avoid low-speed collisions.

• Neighbors, who once welcomed the idea of quieter streets, are now frustrated by the noise that happens at all hours of the night, with some feeling there's no one to address the issue with.

• One resident, Sophia Tung, has turned the situation into a 24/7 livestream on YouTube, showcasing the driverless chaos and adding a humorous twist with LoFi music.

• Waymo responded with a software update to reduce the noise, acknowledging the unexpected frequency of the honking in their own parking lots.

• "This should keep the noise down for our neighbors moving forward," a Waymo spokesperson shared.