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- #667 - 🚗 More Less for Rivian
#667 - 🚗 More Less for Rivian
Lightning orders, honor time, and skimping on shrimp
TOGETHER WITH
Happy Friday, friends!
Hit reply and tell us your weekend plans. We will tell you if you should add a nap to it.
Spoiler: You should.
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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BUSINESS
Friday Again
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Friday is as good a time as any to practice some optimism.
Because optimism is something we have to practice. Especially when everybody wants to sell us their fear.
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US Pressures Mexico-China EV Relations
We've all been 🎶under pressure🎶 to figure things out with our neighbors: who mows what, who parks where, and who can have Chinese guests over. Wait, no, not that one.
Under US pressure, Mexico's decision to halt incentives for Chinese EV manufacturers could significantly impact US market access and NAFTA-related trade dynamics. This development should raise concerns among business professionals and investors.
Chinese automakers constitute about a third of total car brand offerings in Mexico but still need to establish manufacturing plants there.
US tariffs on imported Chinese electric vehicles currently stand at 27.5%.
In December, Nuevo Leon approved $153 million in incentives for a Tesla plant.
Ford Opens Lightning Orders
🎶 Everybody wants to rule the world 🎶
Something, something, something rhymes with Ford.
Details like Ford's move to open online orders for the 2024 F-150 Lightning, coupled with lower prices and new tech upgrades, all point in one obvious direction: Ford wants The Lightning to be as synonymous with electric trucks as the F-150 is with pickup trucks.
The 2024 Ford F-150 Lightning Flash trim received a significant price cut of $5,500. It is now priced at $67,995 and has a range of up to 320 miles.
Ford's F-150 Lightning sales in the first three months of 2024 increased by 80% compared to last year.
Ford recently cut the workforce by one-third at its Rouge EV plant, where the F-150 Lightning is manufactured.
Hydrogen Speed
The Car
University of 🎶 Bath 🎶 students have successfully tested a prototype hydrogen combustion engine to set land speed records and advance hydrogen fuel technology.
University of Bath students have ignited a prototype hydrogen combustion engine designed to set land speed records.
The engine started as a single-cylinder unit and was modified to run on hydrogen with assistance from various corporate sponsors.
The ultimate goal is to mount a hydrogen-adapted Ford 2.3-liter EcoBoost engine in a Ginetta G20 for record attempts.
The Engine
Did you know hydrogen is the lightest element, placing it about 14 times lighter than air? So if a hydrogen engine goes this fast FORWARD, it must go 14 times faster straight up? #We'reNotScientists
More Less for Rivian
We aren't fans of layoffs or polite jargon surrounding job cuts. It isn't a "reduced workforce"; It's "Working people losing their income." Makes us wanna write a 🎶 country song 🎶 .
Rivian is cutting an additional 1% of its "workforce" to align with its strategic priority of achieving profitability by year-end amidst ongoing economic challenges.
Rivian aims to become gross margin positive by the end of the year, following a loss of $43,372 per vehicle in the fourth quarter.
This marks the second round of layoffs this year, totaling 1% of its workforce.
Rivian's stock has fallen over 58% in 2024, reaching near all-time lows.
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People say you can’t save your way to wealth, but you CAN save your way to having more money to invest, but if you don’t have enough workers who generates a return on the investment?
What's your take? Do you think these job cuts are a strategic step toward achieving profitability?Leave a comment after choosing to let us know more of your thoughts. |
TOGETHER WITH AUTO GENIUS
The Experience Begins Online
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Data and anecdotal evidence totally agree: Slow websites kill experiences.
The Auto Genius community takes efficient digital marketing personally. (that includes websites with some MOVE)
Their platform brings together automotive marketing professionals who share proven strategies for optimizing website performance. As a member of Auto Genius, you will have access to resources to improve your digital operations and customer engagement.
Join their network of industry leaders now and ensure your dealership’s website operates at peak efficiency, your customers receive a great experience, and you don't miss another opportunity to engage with your shoppers.
/MTCM
We talk a lot about “Unreasonable Hospitality” around here, and we are excited to hear more from Will Guidara at ASOTU CON about how we can learn from his experience.
Have you seen any stories of unreasonable hospitality in our industry? We call those More Than Car Moments and LOVE telling people about them.
Hit reply or the link below and let us help share your story!
MORE THAN CARS MOMENTS
Credit Where Credit is Due
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These More Then Cars Moments are all about honor. Taking time to honor what we see in the people, teams, and leaders who make the automotive industry one that can never be replaced.
We wrote yesterday about a story our friend George Oppel brought to our attention, and we wanted to provide more context and honor to accompany it.
The event, hosted by Skills/USA, could not have happened without BMW North America and Subaru of America recognizing the opportunity to support these developing auto pros and rising to the occasion. Along with the teams at Bozard Ford / Lincoln and Tom Brush BMW / Mini, these brands, who are often labeled as competitors, created a united effort for the good of these students and the teams they will eventually connect with and serve.
A fantastic example of collaboration producing good far beyond the sum of its parts.
AROUND THE ASOTU-VERSE
The Automotive Troublemaker
Two things happen each weekday: The sun rises, and Paul and Kyle talk about the news.
Knowledge is power, but context is key to applying knowledge effectively. Join us for a dive into the facts and where they all point.
CULTURE
RIP Red Lobster?
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All good things must come to an end, even endless seafood.
Red Lobster is talking bankruptcy following a catastrophic backfire of their $20 endless shrimp promotion. Turns out, people willing to pay $20 cash for unlimited access to shrimp can eat more than $20 worth of shrimp in one sitting. Who knew?
The failed promo cost them $11 million in one quarter alone. Despite hiking the price to $25, the chain, known for its addictive Cheddar Bay Biscuits, saw eight locations close in 2023, facing a $22 million annual loss.
They're turning to renegotiated leases or escaping long-term contracts to stay afloat.
So, while the ocean will still have plenty of shrimp, if you want cheddar biscuits, you should stop in soon before the lobster is sunk.
Quick Hits
History
1782: John Adams secured Dutch recognition of the United States as an independent government. The house he had purchased in The Hague became the first American embassy. 🇺🇸
1934: Shirley Temple appears in the American musical movie with many well-known actors and actresses who stole the show and went on to appear in 10 movies in 1934, including four starring roles in major feature-length films. ☀️
1951: Mercedes-Benz 300 & 220 debut at the Frankfurt Motor Show 🇩🇪
Thanks for reading, friend! Ask somebody today how you can help them something. One person, be specific.