#449 - 🌶️ Heat and Greet

TOGETHER WITH

For most people in the world, the last day of the month is just a run of the mill transition to the next month.

For all of us, well, you know….👊🔥🏎️

Keep Pushing Back
-Paul, Kyle, & Chris

DEALERS

Hot Takes with Gates

Jordan Cox is paying homage to a popular YouTube series with his very own auto-fied rendition called “Hot Takes by Gates Automotive.” 🥵

With a plate of increasingly spicy wings before them, Jordan and his guest take on the challenge of eating them while simultaneously engaging in an inspiring interview full of captivating conversations about the auto industry and beyond. 🍗

David Martinez, Sales Manager for Chevrolet, found himself in the hot seat for the very first episode. No spoilers, though – you’ll just have to watch for yourself to see if he made it all the way to the end! 👀

Telling it like it is – Gates Automotive is turning up the heat in more ways than one. 🔥

AUTOMOTIVE

Down But Still Up

Do you get the Haig Report? You oughta, but in case you don't, you can count on us to pull out the choice bits:

1️⃣ Pre-tax profits at dealerships owned by publicly traded auto retailers are trending downward, falling by 5% in the year to 3/31/2023 and by 22% in Q1 2023 compared to Q1 2022. Despite this, profits remain over 3x higher than 2019 levels.

2️⃣ The buy-sell activity saw a 31% decrease in Q1 2023 compared to the same period in 2022. However, it's expected to rebound due to available cash, substantial profits, and larger groups seeking future advantages by acquiring additional dealerships.

3️⃣ The "blue sky" value of dealerships declined by an estimated 3% from 2022-end to Q1 2023-end, a decrease in line with buyer expectations given the anticipated profit decline. Despite this drop, values remain strong due to ongoing dealership acquisitions by private buyers and public companies.

Telling it like it is – So profits are down but still up, and activity is down disproportionately compared to the dip in profits. Still, large groups and private buyers are (placing bets) investing wisely in a solid recovery by acquiring stores while the value is down.

TOGETHER WITH SPRIG

Don’t Guess, Ask!

There are really only two ways to know what a customer wants. Since genies only exist in fantasies, our options narrow to one: asking customers what customers want.

Sprig gives you a direct line to your customers, so you know your data is backed up by living, breathing, and maybe most importantly, buying people! Their platform offers real-time researchable data you can use to test consumer reactions to concepts even BEFORE they launch.

Check out Sprig today to take the guessing out of offering the best customer experience possible! 🧞‍♂️

AROUND THE ASOTU-VERSE

This morning’s ATUC is all about leading with impact. 🥊

Join us as we talk with automotive leaders who have made a lasting impression on the industry, and discover how you too can drive change and make a meaningful difference.

AUTOMOTIVE

Motor Morsels: Toyota’s May, VinFast’s Support, Formula Sun, and Barra’s 2024

May Flowers. Toyota Motor reported a 10% increase in global sales in May 2023 compared to 2022, selling 838,478 vehicles, including the Lexus brand. Sales in Japan soared 35.1%. Global hybrid sales increased by 25.8% to 261,147 units. Meanwhile, battery electric vehicle sales reached 9,923, contributing to 35,980 units in 2023. In China, sales rose 9.3% to 162,381 vehicles. The growth reflects the easing of the parts supply shortage.

One way to make money… VinFast has launched a "Special Aftersales Policy" to enhance customer support worldwide. Effective June 15, 2023, it offers compensation for vehicle issues. "Type 1" issues earn customers Canadian Dollars (CAD) 160, while "Type 2" issues warrant CAD 480. For "Type 3" issues, which involve extended repair times, customers get CAD 160 for each day beyond the third. The policy, available as service vouchers or cash, operates separately from VinFast's warranty and applies to the Canadian market.

Fun in the sun. The Electrek Formula Sun Grand Prix 2023, sponsored by Tesla, Blue Origin, and others, is underway at Topeka's Heartland Motorsports Park. Top North American engineering schools compete in solar and electric propulsion car races. The event is open to the public from June 29 to July 2.

Big plans, New Blazer. During the Aspen Ideas Festival, General Motors CEO Mary Barra revealed that the automotive company is on track for significant changes in 2024 and beyond. Here are the key takeaways:

• GM sold over 20,000 battery EVs in Q1 2023, up from 457 in the previous year.

• The company plans to transition its light-duty portfolio to electric vehicles by 2035.

• GM's all-electric Ultium platform, which debuted on the Hummer EV, will underpin future EV offerings.

• Battery production scaling-up issues are currently causing delays in GM's plans.

• The company aims to manufacture 400,000 plug-in vehicles by mid-2024 and reach one million by 2025.

• The Chevrolet Bolt EV and EUV will retire by the end of 2023, with hints at a successor.

• From 2025, GM vehicles will feature built-in Tesla's North American Charging Standard connector.

• Mary Barra communicates directly with Tesla CEO Elon Musk and sees him as a partner and a competitor.

• The first sellable Chevy Blazer EV came off GM's Ramos Arizpe plant production line.

TL; DR – Toyota’s up, VinFast will pay for that, Solar Cars are Racing, and Barra has plans for 2024.

CULTURE

Happy Birthday, Grimace!

Ok, so, for some reason, McDonald's has, like, eight mascots. From Ronald to The Fry Kids, each seems to represent a different primordial aspect of humanity. Laughter, burger theft, dreaming of flying, and, of course, being a mayor with a cheeseburger head. But the McMascots aren't all fun and games; included in their ranks is Grimace, a 9-foot-tall purple lump who harkens back to humanity's fear of the unknown.

This month, McDonald's is celebrating Grimace's 52nd birthday with a custom purple milkshake, and the internet is celebrating too.

As you may expect from the collective sense of humor and creativity of internet denizens, the celebration is as bizarre as it is funny. A recurring theme of spooky, dark, mysterious, and at times, kinda gross has formed around the hallowed season, as people across the US create taste test videos of the new milkshake with disturbing results.

Our talented Myles created his own take on the video, which perfectly represents the meme. Enjoy…if you dare.

Quick Hits

• Wife outshines husband at this year’s World Mustache and Beard Championship. 🏆

• NASA plans to mine resources on the moon in the next decade with the goal of excavating the soil by 2032. 🌜

• Barbie's real-life Malibu Dreamhouse is available to rent on Airbnb. 💅

History

• 1936: The book “Gone with the Wind” is published. 📖

• 1953: The first Chevrolet Corvette rolls off the assembly line in Flint, Michigan. 🏭

• 1955: “The Johnny Carson Show” debuts on CBS. 📺 (Have you seen Live Tonight with ASOTU though!?)