#648 - 🚗 Buddy System(s)

TOGETHER WITH

We’re still sizzling with excitement from sharing More Than Cars Episode 3 with you yesterday!

But, we’ve never been a team to lean on our laurels and take a moment when the momentum was moving.

So, expect Episode 4 sooner rather than later. 😉

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

What’s New

With the collapse of the bridge in Baltimore, a lot more than the dealership inventory is in the air right now. We are not willfully blind to that fact, but we try to offer a focused view of things so you can start your day well-informed.

We avoid opinion pieces, rage-bait, and doom-scroll vibes when we take these moments to sit with our community and look around the world we get to inhabit. Please enjoy the email and hold hope for the families affected by today’s and everyday’s news.

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The Baltimore Bridge

A cargo ship collided with the Francis Scott Key Bridge in Baltimore, leading to its collapse. The collapse resulted in the temporary closure of the Port of Baltimore, a critical hub for auto and light truck shipments, ranking as the 11th largest in the U.S. 

Several major car manufacturers, including Mercedes-Benz, Volkswagen Group of America, Volvo Group, General Motors, Ford, Toyota, Nissan, and Mitsubishi, have reassured stakeholders of minimal disruptions to their operations. 

Companies are adapting by rerouting shipments to other East Coast ports, with Mercedes-Benz highlighting the use of alternative distribution centers and Volkswagen noting potential trucking delays without significant impacts on vessel operations. 

The full impact of the crisis on the auto industry is yet to be determined, but we will keep updates coming as they become available. 

Nissan's EV Buddy System(s)

Nissan knows you gotta spend money to make money, and if you wanna make money on something that seems to be losing money for your peers, you may need to spend even more money. 

• Nissan Motor commits to investing 600M Euros (about $650M) in Renault's EV unit, Ampere.

• The investment aims to bolster Nissan's position in the global EV market.

• The move signifies a deepened partnership between Nissan and Renault despite Ampere's IPO setbacks.

• Nissan is thinking about similar partnerships with Honda to best prepare for BYD and Tesla competition. 

Service Lane: Ups and Downs

Service revenue is up at dealerships despite a decrease in service tickets. A recent Cox Automotive report shows some details:.

• Repair Order Volume Index: Dropped to 78.8 in February, a 4.1% decrease from January, but a 2.2% increase from February last year.

• Year-over-Year Volume Change: 12.3% decrease compared to February 2019.

• Repair Order Revenue Index: Rose to 139.9 in February, marking a 1.6% increase from January and a 4.5% increase year over year.

• Revenue Growth Since 2019: Significant 26.4% increase from February 2019, largely driven by inflation in labor and parts costs.

• Service Performance Insight: Despite a decrease in service appointments, revenue growth indicates higher costs per service and potential efficiency gains.

Diesel, Discounts, and De-Human-ing the Work Force? 

Volvo's Sustainability Shift: Volvo says it has officially ended diesel production. The brand has an all-electric lineup planned by 2030. 

Fisker's Financial Strategy: Facing financial challenges, Fisker slashes Ocean model prices by nearly 40% to stay competitive. The company hopes to avoid bankruptcy. 

Tesla's Optimus Vision: Elon Musk unveils ambitious plans for Optimus, a low-cost humanoid robot to revolutionize labor. The Tesla AI and tech-equipped robot will cost "less than half a car," according to a recent quote by Musk.

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Volvo cutting out its diesel models doesn’t mean there is less diesel fuel around; it is simply that the fuel we have can be used for other things instead of getting people to the grocery store.

So, now there is more for important things like oil rigs, moving cargo, and of course, monster trucks.

TOGETHER WITH NADA

Next-Level Learning

Elevate your dealership’s performance with the NADA Education Subscription! 💡

Unlock unlimited access to NADA’s Professional Series classes and Academy Seminars for every team member, including the new Essential Service Advisor and Talent Management Seminars.

For the cost of a single monthly car payment, you can:

• Empower your staff with continuous training and development, transforming new managers into leaders and driving profitability.

• Make career growth discussions effortless and boost employee satisfaction.

• Choose the dates that suit your team with in-person and live online offerings.

Commit to excellence with a 12-month subscription, invest in your team’s future today, and watch your dealership thrive!

AROUND THE ASOTU-VERSE

Agenda is Locked! (Is Your Hotel Room?)

Check out the completed agenda for ASOTU CON 2024, including another exciting development for this May in Baltimore, MD!

Brian Benstock will be the closing keynote speaker on day one of the event. Experience one of the most focused and ferocious people we know share his contagious love for the industry and hard-earned wisdom.

Note: The hotel continues to inch toward full, so please secure your room at the event space.

🎟️ Grab your ticket now! 🎟️

DATA & INSIGHT

Privacy and Protection

In today's digital world, one wrong move can put your business in some serious hot water. In light of progressively intensified data privacy laws, a single regulatory misstep, data breach, or legal challenge could jeopardize your organization's entire future.

 
This week, we’re dissecting data privacy laws to arm you with clarity — understanding their scope, recognizing who's at risk, and discovering how you can best protect your customers and business.

👉 Dig deeper with the full article here. 👀

Quick Hits

• A new Marvel game lets players join a team-based battle as their favorite heroes. 🦸‍♀️

• The FDA approved a new cancer treatment that actually targets the source of rare and often fatal lung cancer, not just the symptoms. 🔬

• Trader Joe's increased the price of bananas for the first time in 20 years but also dropped prices on a few other items. 🍌

History

• 1930: The City of Constantinople is changed to Istanbul. 🦃 

• 1964: The Beatles have ten hits on Billboard's Hot 100 at the same time surpassing the previous best by Elvis Presley. 💯

• 1990: President George H. W. Bush posthumously awards Jesse Owens the Congressional Gold Medal. Jesse Owens won four gold medals at the 1936 Summer Olympics in Nazi-controlled Germany, publicly defeating the regime’s claims about Aryan superiority. 🥇

Thank you for reading and joining us for More Than Cars Episode 3 yesterday! Hit reply and let us know: What was your favorite part?

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