🚗 July Dips 3.1% From High

TOGETHER WITH

Somehow, it is already Thursday.

It seems weeks zip or drags; they never just tick by anymore.

Today, we have some more price data, Polestar starts building in the US, UAW takes on anti-union implications, Nissan feels a pinch, and Rivian ups its sound game.

Don’t miss the story from Fiesta Subaru. Lives are being changed by the industry you work in and the community you work with. It’s worth celebrating.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

_{Was this email forwarded to you? Subscribe here!
Reading time: 4 mins 41 secs}

BUSINESS

News: Prices Dip and Polestar Production Begins

Overall Market Trends

In July 2024, the U.S. auto market saw a dip in average transaction prices (ATP) for new vehicles, settling at $48,401 — down marginally from June and 3.1% lower than the peak in December 2022. This follows a increase in inventory levels, which rose by 52% year-over-year to 2.91 million vehicles.

Incentives on the Rise

Incentives played a crucial role in stabilizing the market, with average incentives reaching 7.0% of ATP, or $3,383, the highest level in over three years.

Deets:

• Compact and Subcompact SUVs:

  • Accounted for 25% of July's sales.

  • ATPs: $36,621 (Compact) and $29,827 (Subcompact).

• Full-Size Trucks:

  • Maintained strong demand, making up 14% of sales in July.

  • ATP: $65,713.

  • Notable Models: Ford F-Series and Chevrolet Silverado, both with ATPs exceeding $60,000.

EV Market Dynamics

The electric vehicle market presented a mixed picture in July. While the overall average price for EVs dropped by 1.5% year-over-year to $56,520, Tesla bucked the trend with an 11% increase in its ATP, reaching $59,593.

• Tesla's Performance:

  • Cybertruck: Contributed to the rise in ATP, with prices over $100,000.

  • Model 3 and Model Y: Continued price increases since January, with July ATPs at $53,878 and $52,055, respectively.

• EV Incentives:

  • EV incentives soared to over 12% of ATP—74% higher than the industry average.

  • This marks the highest level of EV incentives in over three years.

EV prices are coming down, but are profits going up? You know, maybe like…above $0?

Polestar Begins U.S. Production

Swedish EV maker Polestar has started producing its Polestar 3 SUV at Volvo's South Carolina plant, aiming to sidestep tariffs on Chinese-made cars.

U.S. deliveries are set to begin next month.

In the first half of 2024, Polestar sold 3,555 Polestar 2 sedans in the U.S.

MORE THAN CARS MOMENTS

Fiesta Subaru Makes a Difference

In the wake of the devastating Ruidoso fires, which have ravaged over 25,000 acres and destroyed numerous homes, Fiesta Subaru went above and beyond to support a family in need. When a customer visited the dealership for a routine service, service advisor Richard learned of her tragic circumstances—she had recently lost her husband to a drunk driver and was displaced from her home due to the fires.

Upon hearing her story, service manager Jessica immediately knew they could help. “We wanted to assist her by paying for her service because that is just one less thing on her plate,” Jessica shared. The gesture brought tears and gratitude from the customer, a loyal Subaru owner.

In addition to helping this family, Fiesta Subaru has donated to the Community Foundation of Lincoln County to support others affected by the fires. It’s a powerful reminder that at Fiesta Subaru, it’s always about loving people more than cars.

To join the Fiesta Subaru team in supporting this community, visit here.

TOGETHER WITH DEALERON

Seeing and Knowing The Person

Remembering faces at events is a lot like understanding a shopper's journey online—it’s all about truly seeing and knowing the person.

Join us on this episode of Auto Collabs as Tina Cuatto, Director of Product Management at DealerOn, dives into the world of website personalization and its transformative impact on the automotive industry.

With a unique background ranging from Public Affairs at the Smithsonian to journalism and the arts, Tina offers a fresh perspective on making technology more human.

Check out the episode and then learn how DealerOn is helping dealerships tailor the online car shopping experience.

AROUND THE ASOTU-VERSE

Coming Soon

👨‍⚖️ August 19th — Paul and Kyle judging the Automotive Amplifiers Contest with Reynolds & Reynolds in Leesburg, VA.

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

🍎 September 16th — The Welcome Conference in NYC.

🦀 May 13-16th, 2025 — ASOTU CON in Baltimore, Maryland.

BUSINESS

UAW Vs. Trump/Musk

UAW Takes Legal Action Against Trump and Musk
The United Auto Workers has escalated its battle for workers' rights by filing federal labor charges against Donald Trump and Elon Musk. The charges allege that both figures have publicly endorsed illegal practices aimed at dismissing workers who threaten to strike—a violation of federal labor law.

Controversial Comments Spark Outrage
The legal action follows a recent interview between Trump and Musk, where Trump openly praised the idea of firing employees involved in strikes.

Tensions in the Presidential Race
This legal confrontation comes at a critical time, as Trump seeks to garner support from labor unions in his bid for the presidency.

However, the UAW has already thrown its weight behind Vice President Kamala Harris, creating a clear divide in the labor landscape.

Broader Implications for Labor Rights
As the 2024 presidential race heats up, the outcome of these charges could have far-reaching implications for labor relations and the future of workers' rights in the United States.

Nissan Dealer Profits Plummet

Nissan dealerships are facing severe financial strain, with profits down 70% compared to 2023, reaching the lowest point in 15 years.

Nearly 38% of Nissan's U.S. dealerships are currently losing money, attributed to a lack of hybrid offerings and an oversaturated market.

To regain stability, Nissan plans to introduce hybrid models by 2027 and may reduce its dealership network by up to 40%.

Rivian Adds Apple Music, Plans Charging Enhancements

Rivian has rolled out an update allowing Apple Music to have spatial audio on its EVs, though it lacks CarPlay support. To access these features, drivers need a Connect Plus subscription at $14.99/month or $149.99/year, with a two-month free trial now available.

Additionally, Rivian's upcoming R2 SUV, launching in 2026, will feature a relocated charge port to better align with Tesla's Supercharger network. 

Quick Hits

• Shake Shack in Los Angeles will start using autonomous robots from Serve Robotics, in partnership with Uber Eats, to deliver orders to customers. 🍔 

• Disney is seeking to dismiss a wrongful death lawsuit by claiming that the plaintiff, who is suing over his wife's death from an allergic reaction at a Disney restaurant, waived his right to a court trial by signing up for Disney+ and purchasing Epcot tickets online. 🙄 

• Another Spider-Man villain is getting a movie. We don’t know why. Here is a trailer for “Kraven.” 🕷️ 

History

• 1947: Ferrari makes its racing debut. 🏎️ 

• 1969: The Woodstock Music Festival opens with 500,000 rock music fans going to this Peace and Harmony Music Festival. The groups that performed included some of the greatest performers of late 60s pop music. 🤘 

• 1998: Apple Computers, who’d been struggling over the previous three years with poor sales and financial problems, launch a new concept in home computers, the iMac. 🍏 

Thanks for reading, friend! We’re halfway through August. This means that we are one step closer to autumn. 🍂