#751 - 🚗 Group 1 Q2 Surpasses Expectation

TOGETHER WITH

Welcome To Wednesday (Not to be confused with the Jungle)

Today, we took a trip back in time to get the long story behind ride-sharing, recalls, Group 1, and Fisker before checking in on our friends at Gary Rome Hyundai.

Remember: Every time somebody says, “The sky is falling,” we should check and see if the last person who said that was right.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

🚗 Then and Now: Throw Back Thursday Wednesday

Like an old timer in a country song, Paul and Kyle went digging into the past. Yesterday, they looked at what had us all abuzz back in 2014 and traced some of those stories to today.

Which is essentially what I've done here, but with more/less/different content. Enjoy!

Ride Sharing

2014: Millennials are drawn to car-sharing services, but eventually, they buy

Did all the millennials give up on car ownership? Nope. But, in many places, public transportation is evolving from gig drivers to...well, no drivers.

2024: Self-driving tech company WeRide adopts AI and expands

Hop, skip, and jump to today, and we see all kinds of ride-sharing and autonomous driving beginning to take hold.

WeRide, a self-driving tech firm, is not just focusing on car-sharing but on fully autonomous vehicles like robo-taxis, minibuses, and even sanitation vehicles.

With AI advancements, they're expanding globally, testing in cities across China and Singapore and even eyeing markets in Japan and Europe. It's a testament to how far we've evolved from simple car-sharing to sophisticated AI-driven transportation.

Recalls

2014: Nissan expanded the recall of cars with defective Takata airbags in the U.S.

Maybe in the last 10 years, we have defeated recalls?

Well, maybe it is unfair to compare any year to 2014 in terms of recalls since it is the record for most recalls in a single year.

By the Year, By the Number

Cars and light trucks affected by 2013 recalls: 21.5M
Cars and light trucks affected by 2014 recalls: 63.5M
Cars and light trucks affected by 2023 recalls: 35M

So, while all the electrification and software definitions are bringing new sorts of issues, it seems swinging big can lead to missing big no matter what sort of powertrain you're working with.

"Fun" Fact

At 63.5M, 2014's recalls exceeded new vehicle sales for the year by about 4x.

2024: Tesla recalls 1.85M U.S. vehicles over the unlatched hood issue

Recalls are a constant reminder of the challenges in the automotive industry. In today's headlines, Tesla faces a significant recall of 1.85M vehicles due to software issues with hood latches, and Chrysler also recently recalled nearly 20,000 Pacifica PHEVs for battery fire risks.

Y'all remember dialing "*69?" Talk about a re-call and throwback at the same time, amirite?

Dealer Groups

2014: Group 1 Q2 profit tumbles 55% on Brazilian problems

A decade ago, Group 1 Automotive was struggling with a 55% drop in profits due to issues in Brazil, with their stock price around $55.

Hey, businesses go under all the time, even dealerships and multi-rooftop dealer groups.

2024: Group 1 Automotive: Q2 Earnings Snapshot

Today, Group 1 is reporting a robust Q2 profit of $138.2M, with earnings surpassing expectations at $9.80 per share.

📈 514.55% in 10 years

Their revenue might have fallen slightly short of forecasts, but their turnaround story is impressive, with their stock closing at $338 yesterday. It's a clear indication of their resilience and strategic growth over the years.

EV Startups

2014: Fisker's Chinese owner plans second model after Karma output resumes

In 2014, Fisker was gearing up for a comeback with plans for a second model.

It's always wonderful to track the progress of rising stars. So many people are counting on automakers to be in it to win it for the long term when they decide to trust them for their mobility needs. How's Fisker now, you ask?

2024: Fisker Ocean owners create homemade fixes amid automaker's bankruptcy

Fast forward to today, and Fisker owners find themselves in a bind. Despite selling over 6,000 Ocean crossovers, the company has filed for bankruptcy.

DIY FTW?

Owners have banded together, forming the Fisker Owners Association, to create homemade fixes and secure parts to keep their vehicles running. It's a pretty stark contrast to the optimism of a decade ago.

TOGETHER WITH MOSAIC

Webinar Invitation: Stay Ahead of the CARS Rule

The CARS Rule is under review at the 5th Circuit Court of Appeals, with oral arguments scheduled for October 7th. A decision on its fate could come by the end of the year.

Don't miss this opportunity!

Join Paul and Kyle from ASOTU and Jim Ganther from Mosaic Compliance Solutions on Wednesday, August 7th, at 2:00 PM EST for an essential webinar on what to expect and how to stay ahead.

Register today to secure your spot!

MORE THAN CARS MOMENTS

🚙 Gary Rome Hyundai Safety Check

A few days ago, Gary Rome Hyundai hosted the second annual Car Seat Safety Check event, collaborating with Hyundai Motor America and Baystate Health. The event saw a great turnout of families, ensuring their car seats were properly installed and safe.

Over 50 brand-new car seats were available for families needing replacements, eliminating a potentially significant expense. The Massachusetts State Police provided education on proper installation, ensuring everyone's safety.

The event was a hit with kids, especially when Boomer from the Springfield Thunderbirds made an appearance. Representatives from Hyundai, including Brandon Ramirez and Benjamin Michajlyszyn, along with Baystate Health's Dr. Michael Tirabassi, also attended, emphasizing the importance of the initiative.

Gary Rome, along with his dedicated team, Lori Chatel, Brianna Zemrock, and Brittany Zabielski, played a key role in organizing and running the event. Their commitment to community safety and support is truly commendable. We look forward to an even bigger and better turnout next year!

AROUND THE ASOTU-VERSE

Out and About

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

👨‍⚖️ August 19th — Paul and Kyle judging the 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

• Scientists accidentally found a way to make hair regrow. 👱 

• Meta will pay $1.4B in a settlement for its use of biometric data in Texas. 🖥️ 

• Lawmakers are trying to hold banks accountable for about $880M in Zelle fraud cases. Banks aren’t into it. 🏦 

History

• 1790: The first U.S. patent was issued to inventor Samuel Hopkins for a potash process. 🔥 

• 1971: The first drive on the moon. 🌙 

• 2001: Napster is finally closed down by court order following an injunction on behalf of the Recording Industry Association of America. 🎶 

Thanks for reading, friend! Can’t wait for those pants to come back into style? Ready for the return of non-CGI sci-fi movies? Or, for people to realize disco really IS life? What’s a bit of throwback content on your mind?