#707 - 🚗 Bite by Bite

TOGETHER WITH

Ya know, sometimes life can be daunting and it’s easier just putting those tough tasks on the back burner. But, we all know that the only way to eat an elephant is one bite at a time.

For anyone tackling big game on this Monday, we wish for you a strong will, a healthy appetite, and some hungry friends to help along the way.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

News That is Easy to Digest

While some automakers are trying to get their vehicles back, others are practically giving theirs away. Never a dull moment in auto, amirite?

. . .

Recall Round-Up

Just since Q1 of this year, more than 9M vehicles have been affected by recalls. Yikes. Let’s look at some of the most recent ones:

• Ford — Recalled over 8K manual-equipped 2024 Mustangs due to a fire risk from leaking clutch fluid. The improperly secured clutch pressure line can lead to engine stalling or under-hood fires.

• Tesla — Recalled 125K vehicles due to a seat belt warning light and chime failure, impacting models S, X, 3, and Y from 2012-2024.

• Chrysler — Recalled over 211K 2022 Dodge Durango, Ram 2500, and 3500 vehicles due to a software malfunction that can disable the electronic stability control system, increasing crash risk.

• Kia — Recalled 463K Telluride SUVs (2020-2024) due to overheating front power seat motors that pose a fire risk. Owners are advised to park outside and away from structures until repairs are made.

Fisker Gets Desperate

In Fisker’s latest move to stay afloat, the EV maker is selling its Ocean mid-size crossover to employees at a significant discount. Though it’s still hoping to turn the tides, this seems like yet another desperate measure during desperate times for the company.

• Recent Troubles — Fisker has been on a downward spiral for a while now. From facing delisting from the NYSE, to missed interest payments, to up-hill legal battles, things aren’t looking good.

• Over-Estimating Demand —Their current challenge has been moving inventory. Of the 10,142 units produced in 2023, only 4,700 have sold. Despite recent efforts, Fisker had a measly ten sales in Germany in May.

• Steep Discounts — In an effort to bring in quick revenue, Fisker is offering employees an Ocean Extreme or Ocean Ultra at a hefty discount — $20K (despite these models initially being priced at $61,499 and $52,999, respectively).

Amazon Expands Its Self-Driving Fleet

Zoox is expanding its autonomous robotaxi service to Miami and Austin, continuing its mission to revolutionize ride-hailing with its custom-built driverless boxes.

• New Testing Grounds — Zoox will begin by mapping the cities and using retrofitted Toyota Highlander test fleets to gather important data before deploying its bespoke EVs.

• City-Specific Challenges — Austin’s unique traffic light configurations and Miami’s diagonal traffic lights will provide valuable data to enhance Zoox’s technology.

• Commercial Focus — While testing in these new cities is imminent, Zoox's primary focus for commercial ride-hailing remains on San Francisco and Las Vegas, with plans to expand to more cities in the future.

TOGETHER WITH STREAM COMPANIES

Level-Up with Stream

You know, working with an ad agency helps your business. So, it only makes sense that working with a full-service, fully integrated, tech-enabled ad agency that loves helping dealers reach the next level is, well, next level.

Stream Companies is just such an ad agency; they're a full-service, tech-enabled partner committed to elevating your brand.

With over 4,000 partners and 25 years of consecutive growth, their team excels in SEO, paid search, social media, and more. By combining creativity, data-driven strategies, and cutting-edge technology, they transform ordinary tasks into extraordinary results.

And again, they love every moment of it. An irreplaceable bonus that you don't even have to budget around.

Contact Stream and find out what a real partnership can do for your business here.

DATA & INSIGHT

Breaking Down FTC's Non-Compete Ban

Non-compete agreements have traditionally been used to safeguard employers from unfair competition or practices from departing employees.

But after the upcoming Federal Trade Commission ruling goes into effect, almost all non-competes will be rendered unenforceable.

WHAT DEALERS ARE SAYING

• Non-Competes are Vital: Dealers argue that non-competes are essential to protect their investment in training and developing employees. They worry about employees taking valuable knowledge and experience to competitors.

• Protection of Proprietary Information: Non-competes help ensure that confidential information, such as customer lists and business strategies, remains protected.

WHAT THE FTC IS SAYING

The FTC believes non-compete agreements are stifling economic growth and innovation. According to FTC Chair Lina M. Khan, “Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism.”

• Nationwide Ban on Non-Competes — Announced on April 23, 2024, and set to take effect on September 4, 2024, the new rule prevents employers from entering into, enforcing, or attempting to enforce non-compete clauses with most workers.

• Exceptions — Existing non-competes for senior executives will be exempt, but no new non-competes can be created, even for top-level positions.

👉 HOW CAN DEALERS PREPARE? Keep reading here. 👀

AROUND THE ASOTU-VERSE

Time to Wake Up

Join us on June 26th at 2:00pm EST for "Reawakening Your Dealership: Overcoming Industry Challenges from the Covid Coma."

Discover strategies to rebuild trust, adapt to new consumer behaviors, and enhance customer loyalty.

Don’t miss out — sign up today!

MORE THAN CARS MOMENTS

Funding the Future

Our pals over at the Reynolds and Reynolds Company pledged a monumental $5M gift to help fund the construction of the new Center for Automotive & Mobility Studies at Northwood University. The Center will replace the current NADA Hotel and Conference Center on Northwood's campus in Midland, Michigan.

Said Northwood University president, Kent MacDonald: "We are immensely grateful to Reynolds for this transformative gift. Their support will significantly elevate Northwood's top-tier automotive education programs.”

Architectural plans are still being finalized but their goal is to construct the facility within the next two years, with the center fully operational by 2026.

Big shout-out to Reynolds and Reynolds for the massive donation. This is exactly the kind of support that keeps our industry moving forward, and we love to see it. 👏

Quick Hits

• Governor Kathy Hochul indefinitely pauses plans for a congestion fee in New York City. 🍎

• The iconic San Francisco Victorian from the TV series “Full House” is for sale for $6.5M. 📺

• Pat Sajak, who has been hosting the gameshow “Wheel of Fortune” since 1981, retired from the show last week. 🔠

History

• 1760: New York passes the first effective law regulating the practice of medicine. 🩺

• 1845: Andrew Jackson's African Grey parrot "Poll" is removed from his funeral for swearing. 🦜

• 1947: Saab produces its first automobile. 🥇

Thanks for reading, friend! We can’t wait to see and hear about all the good you put out into the world today. We’ll even help get you started: we’re at nearly 7K subscribers for the Daily Pushback here — help us make it over the hump and share us with a buddy! 😉