#740 - 🚗 Vans and Fans

TOGETHER WITH

Howdy, Friend!

Do you ever celebrate Throwback Thursday? Send us a picture, song, or YouTube video that reminds you of younger years, simpler times, or just a moment before this one.

Today, we got a fun story from Lincoln, some news from Honda, Mercedes, and Tesla, and then some data from Cox and the wild world of vehicle leasing.

Until we see you on and about…

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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MORE THAN CARS MOMENTS

Fixin' Cars and Cuttin' Yards with Anderson Ford

Our friends at Anderson Ford in Lincoln, Nebraska, went the extra mile, or at least "50 yards," for the Raising Men and Women non-profit.

What are you talking about, Chris?
Anderson Ford recently fixed a van for Rodney Smith Jr. Rodney is the founder of a local non-profit that inspires youth to complete the "50 Yard Challenge" by mowing lawns for those in need. Rodney provides the ride and the gear, the young folks provide the sweat.

When Smith's van broke down in Columbus, Nebraska, with a blown engine, Anderson Ford provided a new engine and $20,000 worth of repairs free of charge. Their efforts ensured that Smith could continue his mission of empowering 5,000 children to give back to their communities across the country.

General Manager Kurt Perkins emphasized the importance of their charitable actions, inspired by Proverbs 3:27. The dealership's generosity not only restored Smith's van but also rekindled the spirit of giving, encouraging more kids to join the cause.

TOGETHER WITH MORE THAN CARS

More Than a Series

The hearts, minds, and hands that keep the retail automotive world turning star in this docu-series. The curtain is pulled back, and previous perceptions of who auto dealers really are are challenged by this dive into the full story of the people in dealerships just like yours.

Check out this mashup of Season 1 and join the ongoing conversation to help us identify who we should visit next!

BUSINESS

Honda’s Stocks, Mercedes Vs Tesla Chargers, Wholesale Prices, and Leasing Deals

We grabbed a handful of news today; it almost feels like too much, so don’t let us stop you from diving in.

TL: DR - Honda is making money to make a move, Mercedes isn’t giving up on its charging network, wholesale used prices are up, and automakers are looking to leasing for a short burst of cash that may cost them in the long run.

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Honda Raises Funds

Honda is making money the way you’d expect a car maker to…by selling parts of their company on the stock market. Oh, did you think we mean “selling cars?”

Honda Motor has set its secondary share sale price at a 3% discount to the previous closing price, raising $3.16B by selling 300M shares held by insurers and financial firms.

This move allows Honda to raise significant capital, potentially funding new projects or reducing debt. For investors, the 3% discount provides an incentive to buy, but it may also indicate Honda's strategic push to restructure ownership and improve governance by reducing cross-shareholding practices.

Charging Ahead or Losing Steam?

Mercedes-Benz and Starbucks are collaborating to install fast EV chargers at 100 Starbucks locations along Interstate 5. This initiative is part of Mercedes-Benz's $1B plan to establish 2,000 EV charging hubs globally. The new stations will feature 400kW charging speeds and will be supported by MN8 Energy.

This partnership aims to expand charging infrastructure in key urban areas and travel corridors, providing EV owners with convenient charging options while enjoying Starbucks facilities.

Meanwhile, Tesla is facing a significant slowdown in its Supercharger deployment, with a 19% reduction in installations compared to last year. This decline follows the firing of Tesla's entire charging team earlier this year, leading to operational disruptions despite subsequent rehirings.

The slowdown comes at a critical time as Tesla opens its Supercharger network to non-Tesla EVs, impacting both current Tesla owners and new EV buyers' confidence in network reliability.

Wholesale Used Prices Are Up

Data shows wholesale used-vehicle prices are rising amidst improved sales conversions and seasonal supply trends. This increases demand and creates opportunities for U.S. auto dealers in a fluctuating market.

• Wholesale used-vehicle prices increased by 1.8% in the first half of July compared to June.

• The Manheim Used Vehicle Value Index rose to 199.7 but is down 5.7% from July 2023.

• Sales conversion rates have improved, indicating higher dealer demand for used vehicles.

• Major market segments saw year-over-year declines, with luxury cars down 7.7%.

• Non-EV prices rose 2.4%, and EV prices increased 1.5% from June.

• Wholesale supply rose to 28 days by mid-July, consistent with seasonal trends.

• Rental risk unit prices fell 10% year-over-year.

• Consumer sentiment showed mixed trends, with concerns over vehicle prices and interest rates remaining negative.

Check out the full article and data set by Cox here.

Re-Lease The Beast?

Automakers are offering aggressive lease discounts to boost EV sales. Over 70% of EV purchases at dealerships are leased. While this strategy helps increase EV adoption and bypasses federal tax credit limitations, it raises concerns about long-term profitability and the potential for future losses when these vehicles enter the used market.

For the global and U.S. auto industry, heavy lease discounts may lead to an oversupply of used EVs, depressing resale values and potentially harming automakers' profits. U.S. auto dealers should prepare by strategizing for the influx of returning leased EVs, considering market conditions, and adjusting their sales approaches to maintain profitability amidst fluctuating EV prices.

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Based on your experience, is it common for a buyer to be convinced to lease and vice versa? Seems like no matter the deal, a person who wants to buy a vehicle isn’t going to accept a lease. How do you help them see opportunities?

AROUND THE ASOTU-VERSE

Out and About

🏔️ July 16-18th — Paul speaking at the Darren Doane Brand Summit in Moscow, ID.

👊 August 9-11th —VeeCon in Los Angeles, CA.

👨‍⚖️ August 19th — Paul and Kyle judging Automotive Amplifiers Contest w/ ReyRey in Leesburg, VA.

🌴 August 20-24th — NAMAD Conference in Miami, FL.

🍎 September 16th —The Welcome Conference in NYC.

Quick Hits

• Samsung’s new AI image-maker is a little “too good” according to The Verge. 🤖

• “The Bear” sets a record for comedy Emmy nominations with 23, while “Shogun” leads with 25.

• Industrial output in the U.S. just had its largest back-to-back gains since 2021. 🥽

History

• 1936: The Wienermobile makes its debuts. 🌭

• 1976: The first perfect 10 ever recorded in Olympic gymnastics was achieved by Nadia Comaneci. 🤸

• 2013: The Government of Detroit, with up to $20B in debt, files for the largest municipal bankruptcy in U.S. history. 💔

Thanks for reading, friend! We don’t like slinging mud, talking smack, or even teasing real-life people, but did you know raccoons are trying to get into Cybertrucks, and people think it’s because the animals think they are dumpsters? Wow wee.