#672 - 🚗 Cars, Tech, and Taxes

TOGETHER WITH

ASOTU CON is 19 days away. There are lots of things to prepare before the day arrives, and we are ensuring everything is ready.

Some part of us is already looking forward to the work that starts the day we get back from Baltimore, with a whole community of people charged up by time together and carrying a shared vision of what it means to serve our team, communities, and world.

We can’t wait to be together again!

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Thursday? Thirst-day?

Thursday is a good day to share one of our favorite pieces of unsolicited advice: one glass of water today is worth two cups of coffee tomorrow.

Hydration is magic, and so are you!

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SUVs, EVs, Hybrids, and 10-80 Speeds

You know what they say about fixing stuff that isn't broken. Well, sometimes they are wrong. For instance, if your SUVs are selling great, but you also want people to buy copies of your new book of oil stains that look like celebrities, you may toss them in with each of your most popular models. Or maybe you want to sell EVs, so you turn your most popular vehicle into an electric vehicle. It's totally backfire-proof. Totally. 

Mercedes

The fully electric Mercedes G-Wagen, rebranded as EQG, now boasts a 116 kWh battery, 432 kW power output, and 1,164 Newton-meters torque, enabling up to 293 miles range (WLTP). Starting at €142,621.50 (about $152,628.54), it offers advanced off-roading features like the G-Turn and retains a luxurious interior.

Lamborghini

The Lamborghini Urus SE, a plug-in hybrid, retains its 4.0-liter twin-turbo V-8 while integrating an 189-hp electric motor, boosting the total power to 789 horsepower and 701 lb-ft torque. It accelerates to 62 mph in 3.4 seconds and has a 194 mph top speed. This model features a 25.7-kWh battery providing over 37 miles of electric range.

Subaru

The 2024 Subaru Solterra, priced at $44,995, features enhanced fast charging that powers the battery from 10% to 80% in 35 minutes. It includes Subaru EyeSight® for top-rated safety and introduces three trim levels with upgraded amenities like a 12.3-inch touchscreen and panoramic moonroof in higher trims.

Volvo Q1 

Volvo Cars is anticipating strong demand in 2024, even with a slight dip in revenue. The optimism stems from strong EV sales and steady growth in the premium auto sector. Here's a closer look at what's happening with the automaker:

• Volvo's Q1 Performance: Despite a dip in revenue and some financial strain from its Polestar division, Volvo is experiencing robust demand and a notable rise in BEV margins to about 16%.

• Launch of Volvo EX30 in the US: Set at a competitive $35,000, the Volvo EX30 could grab a nice piece of the US electric vehicle market. While $35K is on the affordable end of the spectrum these days, another $7,500 in lease subsidies could push it deeper into US consumer consideration. 

• Volvo's Financial Health: Although there was an 8% fall in revenues in the first quarter, Volvo has seen a boost in core operating profits and a 12% increase in retail sales.

Polestar: Auto and Tech

Polestar's recent launch of the Polestar 4 EV in the US and its accompanying smartphone in China underscores a trend where automotive companies are diversifying into personal technology. This integration highlights the evolving synergy between auto manufacturing and tech industries, reflecting the broadening scope of modern automakers.

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Car companies are making phones, phone companies (were) making cars, social media is getting banned, and cars are being given permission to drive (and crash) themselves.

What even is 2024?

TOGETHER WITH UPSTART

🔥 Elevate Your Customer and Employee Experience!

Unlock the Future of Automotive Retail with Jeremy Nowling at ASOTU CON!

Date & Time: Wednesday, May 15th at 1:45 PM EST

Join Upstart for a fireside chat as Jeremy, the visionary behind Rohrman Automotive Group, reveals the success behind their connected online and in-store retailing experience.

Plus, he'll discuss how they improved the financing process with AI.

It's a session you won't want to miss!

DATA & INSIGHT

Refund Revelations

With the 2024 tax season winding down, the data that is emerging shows some significant opportunity for the industry. We're looking into how these dynamics are influencing consumer behavior and what it might mean for retail auto sales this spring.

🏛️ ‘Tis the Season 🏛️

Refund Projections: Economists expect tax returns to exceed $303B by the end of June, marking a 2.8% increase from 2023, and promising more disposable income for potential car buyers.

Not So Fast: This year's tax refund processing is seven days behind last year’s schedule, signaling a slower start to the season. However, with 62% of likely refunds already issued, the season is currently at critical mass.

Refund Reality: As of April 5th, a total of $201B has been refunded – a slight 1% increase YOY. The average refund amount has increased to $3,011 – up 5% from last year.

💸 Where is All That Money Going? 💸

Season Dynamics: While the current pace suggests larger refunds earlier in the season, this might be balanced by smaller refunds later.

Income Brackets: Data through March 31st shows that customers earning less than $50K have experienced a more significant increase in tax refunds compared to those in higher income brackets. This is primarily attributed to increases in the Earned Income Tax Credit (EITC), which benefits lower to moderate-income households.

Burning a Hole: According to recent survey data, while the majority of people still plan to pay debts or save their refunds, those intentions have slightly decreased year-over-year. In contrast, the intent to spend on shopping has nearly doubled compared to 2023, indicating a renewed interest in discretionary spending.

👉 Learn how to use these statics to your advantage — keep reading here. 👀

AROUND THE ASOTU-VERSE

ASOTU CON 2024: 19 Days!

Seeing the fantastic group of people, partners, and professionals who have come together to make ASOTU CON happen blows our minds! 🤯

We are honored and proud to be working with these folks to support dealers and move retail auto into a new and outstanding era.

Check out the full list here, and grab your ticket before it’s too late!

Quick Hits

• A TikTok ban has been signed into law by President Biden. But, it won’t just vanish. The owners of the app have until January 2025 to divest, or else. 🕺

• Want a dog? Miss out on your chance for a Tesla flame thrower? Don’t want to be last to bring personal robotics home? Well, you’re in luck! You can buy a robot dog with a long-range flame thrower for about $10K. 🐩

• The FTC voted to ban noncompetitive agreements nationwide. Essentially, people can’t be asked to sign a contract saying they won’t work for competitors if things don’t work out. 🚫

History

• 1901: New York becomes the first U.S. state to require automobile license plates. 🛻

• 1953: Watson and Crick publish an article on the structure of DNA. Fifty years later, in 2003, the Human Genome Project is published. 🧬

• 1954: Bell Telephone Laboratories publicly demonstrates the first practical solar cell. ☀️

Thanks for reading, friend! Enjoy your day — it’s the only April 25th, 2024 you’ll ever get. Unless you stumble into a Groundhog Day situation, but what are the chances of that happening twice?