👍 November 20: Wholesale Prices, EV Credits, and Customer Satisfaction

The Gist

👆️ Wholesale used-car prices ticked upward in November, defying typical trends, though EV resale values are still struggling.

⏱️ Ram’s electric trucks are facing delays, with Stellantis admitting it has too much on its plate.

🚜 Meanwhile, Volkswagen is making a surprising move into farming tech, rolling out electric tractors in Rwanda.

🪓 With the $7,500 EV tax credit likely on the chopping block under the next administration, buyers are moving fast to lock in savings.

💪 Kia remains confident in its ambitious EV sales goals, though market uncertainty is clearly testing that optimism.

🏆️ Porsche topped customer satisfaction rankings again, while Lexus and Toyota need to rethink their approach.

🍎 Apple News is doubling down on ad sales to bring more dollars (and ads) to its platform, retail sales are steadily climbing, and VinFast’s aggressive price cuts may shake up the three-row EV market.

Today's Email

• 🚗 Wholesale Woes and Wins

  • A Look at November’s Used-Car Market Trends

• ⚡ Rambling Ram Delays

  • Why Are Your EV Trucks MIA?

  • What’s taking so long?

  • Shoul dealers even care?

  • What about those quality issues?

• 🌎 Farm-fegnugen: VW Plows Into Africa

• 🔋 EV Credit Crunch

  • Time’s Ticking for That $7,500 Tax Break

• 💼 Kia’s EV Vision Faces Choppy Waters

• 📈 The So-So Sales Experience

  • Why Some Brands Just Don’t Click

• 🍏 Apple News Gets Aggressive

• 🛍️ Retail Sales Climb Steadily

• 🏎️ VinFast’s Value Play

BUSINESS

🚗 Wholesale Woes and Wins

A Look at November’s Used-Car Market Trends

Wholesale used-vehicle prices have taken an unexpected turn in November, with seasonal adjustments revealing surprising strength. Here's a breakdown of the numbers and what they mean for dealers.

• Mid-November Manheim Index: Increased by 1.6% to 206.1, up 0.5% from November 2023. This suggests stronger demand compared to typical seasonal patterns.

• Segment Highlights: SUVs and mid-size cars led the charge with a 1.7% rise, while compact cars and pickups lagged with a modest 0.9% increase.

• EV Impact: Depreciation for electric vehicles is stark—down 11% year-over-year—while non-EVs rose 0.2%, underscoring continued market hesitancy around EV resale values.

• Consumer Sentiment: Improved by 3.5% in November according to the University of Michigan Index, signaling potential for increased retail activity.

⚡ Rambling Ram Delays

Why Are Your EV Trucks MIA?

Electric trucks from Ram were supposed to revolutionize the market in 2024, but we’re still waiting. What gives?

What’s taking so long?

Stellantis CEO Carlos Tavares admits they bit off more than they could chew. Quality control, workload, and shifting priorities delayed both the Ram 1500 REV and Ramcharger until mid-2025.

Shoul dealers even care?

With Ram’s U.S. sales down 24% this year, the delays aren’t helping. But Stellantis isn’t optimistic about high EV demand anyway, citing “lukewarm adoption” in the U.S.

What about those quality issues?

The conventionally powered Ram 1500 has been plagued with post-assembly repairs. Combined with production cuts for the 1500 Classic, it’s not a great look for a brand synonymous with durability.

🌎 Farm-fegnugen: VW Plows Into Africa

Volkswagen is doing more than making cars—they’re building electric tractors in Rwanda.

• Modern Farming Tech: VW's electric tractors run on swappable 32 kWh batteries, offering sustainable options where both fuel and electricity are scarce.

• Global Sustainability Push: Part of the GenFarm Project, VW aims to electrify rural Africa, where agriculture accounts for 25% of Rwanda’s GDP.

• Expanding Footprint: “We’re committed to sustainable practices,” says VW Africa Chair Martina Biene, aligning with their strategy for mobility solutions across diverse communities.

VW's holistic approach integrates clean energy with rural mobility, tackling both environmental and logistical challenges.

🔋 EV Credit Crunch

Time’s Ticking for That $7,500 Tax Break

If you’ve got buyers in the market for an EV, 2024 might be their last chance to grab that sweet tax credit before it’s gone.

• Why the rush? President-elect Trump plans to slash Biden-era green subsidies, including the $7,500 EV tax credit, to fund sweeping tax cuts.

• Dealer Buzz: Showrooms report rising demand as buyers rush to secure credits before the potential repeal.

• Loophole Alert: Leasing an EV could lock in savings over a multi-year term, even under new legislation.

Dealers are feeling the heat as inventory tightens, and consumers are scrambling to make decisions amidst political uncertainty.

💼 Kia’s EV Vision Faces Choppy Waters

Kia is holding firm on its 1.6M EV sales target for 2030, but near-term challenges loom large.

• CEO Perspective: “The market is rapidly changing, with uncertainties from government policies,” says Kevin Ahn.

• Global Strategy: Kia plans U.S. production in Georgia and small EVs for Europe, bracing for possible tariffs and shifting regulations.

• Trump-Era Concerns: Automakers are preparing for potential changes to trade and EV policies under the incoming administration.

Kia’s confidence is admirable, but market and political conditions could make this a bumpy road.

📈 The So-So Sales Experience

Why Some Brands Just Don’t Click

J.D. Power’s 2024 Sales Satisfaction Index revealed surprises: brands like Lexus, known for quality, are underperforming in customer experience.

• Porsche Tops the List: With just 202 U.S. dealerships, Porsche scored 851/1000, far above Lexus at 812.

• Toyota Tumbles: Ranked third from the bottom in the mass-market category, highlighting a disconnect despite strong product offerings.

• Dealer Dynamics: High-volume brands like Lexus and Toyota struggle to deliver a premium experience compared to niche competitors like MINI.

Customer satisfaction isn’t just about selling cars—it’s about making buyers feel good about the purchase. Some brands clearly have homework to do.

🍏 Apple News Gets Aggressive

Apple News is flexing its ad muscle by taking ad sales into its own hands, ditching third-party vendors for direct control.

• What’s new? Premium sponsorships for events like the Met Gala and U.S. Open. Advertisers can even sponsor specific feeds.

• Why it matters: Publishers get a 70% revenue cut, incentivizing them to share more free content on the platform.

Apple's pivot could mean more content, more revenue, and a lot more ads in your News app.

🛍️ Retail Sales Climb Steadily

Retail and food service sales in October hit $718.9 billion—a modest 0.4% bump from September but a 2.8% boost year-over-year.

• Who’s winning? Non-store retailers saw a 7% increase, while restaurants and bars posted a 4.3% gain.

• What’s next? With consumer sentiment rising, holiday spending could see another lift.

It’s not a shopping spree, but the numbers show a steady march forward.

🏎️ VinFast’s Value Play

VinFast has slashed prices for its VF9 electric SUV by $12,000 as U.S. deliveries begin, making the VF9 cheaper than some competitors.

• Key Specs: Up to 330 miles of range, 402 horsepower, and a slick $529/month lease deal for early buyers.

• Tough Competition: Kia EV9 and Cadillac Vistiq are both cheaper or offer better features, but VinFast hopes its price drop makes it stand out.

VinFast’s VF9 is in the race, but it’s up against some serious competition in the three-row EV space.

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