#735 - 🚗 Popcorn and Practicals

TOGETHER WITH

Time for some Friday feelings.

Today, we see some White House investments, ICE engines, more Q2, and a pile of robo-driving tech.

Check out today’s More Than Car Moment for popcorn and practical tips. 🍿 

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

One: GM + Stellantis, Toyota, Q2, and BMW

The White House collects taxes from dealers to give to automakers to make EVs that dealers have reported have smaller markets than inventory reflects. Can we just get those taxes back instead?

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White House EV Investments

The Biden administration is set to award nearly $1.1B to General Motors and Stellantis for electric vehicle production. This funding is part of a larger $1.7B initiative to convert 11 "at-risk" plants in eight states into EV manufacturing facilities. The program aims to preserve 15K jobs and create 3K new positions.

Who's Gettin' The Cash?

• General Motors will receive $500M to convert its Lansing Grand River Assembly Plant in Michigan.

• Stellantis will get $334.8M for its Belvidere Assembly Plant in Illinois and $250M for its Indiana Transmission Plant.

This move aligns with President Biden's strategy to modernize auto manufacturing and bolster union jobs. The initiative ensures a strong future for the American auto industry by supporting the transition to electric vehicles.

Toyota's New Sporty Gas Engine

While the White House is talking about EVs, Toyota is proving that gas engines aren't dead—some are just smaller.

Their new family of four-cylinder engines, with 1.5- and 2.0-liter displacements, promises more power and better fuel economy. These engines, showcased in a stripped-down Lexus IS, reveal Toyota's future intentions: compact, powerful engines aimed at sports cars and efficiency.

The 1.5-liter engine, 10% smaller and 12% more fuel-efficient, and the 2.0-liter engine, 10% lighter with a 30% efficiency boost, highlight Toyota's commitment to innovative, eco-friendly performance.

Q2 2024 U.S. EV Sales Summary

ICE isn't going anywhere while we got oil in the ground, but EVs are establishing their own wedge of the market, with or without Tesla.

• Record Sales Growth: EV sales grew by 11.3% year-over-year, reaching 330,463 units in Q2.

• Tesla Decline: Tesla's sales volume dropped 6.3%, and its market share fell below 50% for the first time.

• Market Expansion: EVs accounted for 8% of total new-vehicle sales, up from 7.1% in Q1 and 7.2% in Q2 2023.

• Competitive Landscape: New models from GM, Ford, and other automakers increased competition, leading to more aggressive pricing and higher discounts.

• Future Outlook: The growth in EV infrastructure and technology is expected to drive further adoption despite current market fluctuations.

BMW Q2 2024 Sales Overview

BMW Group reported 618,826 global vehicle sales in Q2 2024, down 1.3% year-over-year. Battery electric vehicle (BEV) sales grew 22% to 107,933 units, representing 17.4% of total sales.

However, plug-in hybrid vehicle (PHEV) sales declined 17% to 38,550 units, continuing a six-quarter downward trend. Total plug-in car sales increased by 9%, reaching 146,483 units.

TOGETHER WITH AUTOMOTIVE INNOVATORS TOUR

Two Great Cities, One Great Tour

Finally, a day event that offers a hands-on, immersive experience with platforms and systems you can take back to your store the next day to immediately upgrade your game!

Introducing the Automotive Innovators Tour hosted by Gray Scott, a 2024 40 Under 40 Honoree, and Brian Pasch, a leading automotive consultant. If you've considered what AI would look like in your operations and want a hands-on experience, this is the event for you.

Why Attend?

• Solve a monthly business objective using AI.

• Ensure your scheduling process is frictionless.

• Jump into audience creation using in-house databases.

This is not a sit-back-and-listen event. Join for a full day of focused learning, including breakfast, lunch, and happy hour.

Check out these two opportunities and agendas to elevate your game:

• July 23rd, 2024  in Chicago, IL (I hear there is going to be some fire chicago chow)

• August 7th, 2024  in Atlanta, GA

BUSINESS CONT’D

Two: FDS, Vision-Only, and Robotaxis

Tesla Rolls Out New FSD Update

Tesla has finally begun pushing its new Supervised Full Self-Driving (FSD) v12.4.3 update to the wider fleet after months of delays.

This update, highly touted by Elon Musk, aims to reduce the need for driver interventions significantly. However, Tesla has faced criticism for focusing data annotation resources on routes driven by Musk and influencers, leading to unrepresentative experiences for average FSD users.

XPeng Joins Vision-Only ADAS Trend

Chinese automaker XPeng revealed its P7 Plus electric car, featuring vision-based self-driving technology similar to Tesla's FSD. Previously relying on Lidar, XPeng's shift reflects a growing trend among automakers betting on camera-based systems for achieving autonomous driving.

China's Robotaxi Expansion Raises Job Security Concerns

China's push for robotaxis is gaining traction, with Baidu's Apollo Go leading the way. This rapid adoption, highlighted by fully driverless vehicles operating 24/7 in Wuhan, has sparked concerns about job security among traditional taxi drivers. With more than 7M registered ride-hailing drivers as of May, competition is fierce.

While robotaxis offers a glimpse into the future of mobility, their rise has led to calls for regulatory measures to protect existing jobs and balance the market. As major cities support autonomous driving, the impact on employment and the broader economy remains a critical issue.

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MORE THAN CARS MOMENTS

Marketing and Popcorn

Matt Lasher, Director at West Herr Automotive Group, recently shared a behind-the-team glimpse on LinkedIn about managing "popcorn ideas" in marketing. These are spontaneous suggestions that can consume a team's resources without thorough consideration of their practicality. Matt's approach to handling these ideas includes:

• Creating a Ticketing System: By adding a little “friction,” a ticketing system helps organize and prioritize ideas, allowing the team to evaluate their feasibility and importance.

• Implementing the 'Two Ask' Rule: This means that an idea will only be considered if it is brought up twice, filtering out less serious suggestions.

• Proactive Communication: Regularly updating leaders on current priorities and resource constraints to manage expectations and reduce unnecessary workload.

In The Comments:
Brad Paschal from Dynatron Software recognized that good things become great with a few extra steps: "Love me some popcorn ideas but they have to be refined into cracker jacks."

Ben Rodilitz from Northrop Grumman reminded us that too many cooks in the kitchen, or ingredients in the pot, make an uneatable soup: "Reminds me of CRM products that were full of features. Slow and fragile, but lots of (mostly rarely-used) bells, whistles, and buttons - lots and lots of buttons."

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What do you think? How do you balance team resources, idea refinement, and the free flow of creative energy? Hit reply and let us know.

AROUND THE ASOTU-VERSE

Where Y’all At?

⛳️ July 15th — Paul and Kyle will be MCing the Beaver Toyota Charity Golf Tournament in Cumming, GA.

🏔️ July 16-18th — Paul speaking at the Darren Doane Brand Summit in Moscow, ID.

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

👨‍⚖️ August 19th — Paul and Kyle judging 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

• Mall of America is using facial recognition tech on its shoppers. People aren’t thrilled. 🎥 

• Inflation is cooling, which has people looking for a rate cut. ✂️ 

• “Inside Out 2” is Pixar’s highest-grossing box office movie, dethroning “Incredible 2.” 🥇

History

• 70: The armies of Titus attack the walls of Jerusalem after a six-month siege. Three days later they breach the walls, which enables the army to destroy the Second Temple. ⚔️ 

• 1916: A GMC loaded with milk departs Seattle on the first transcontinental trucking delivery. 🚚 

• 1933: Bunkminster Fuller and the Dymaxion car both debut. 📰 

Thanks for reading, friend! Don’t forget to hit us up with your tips for leading unstoppable teams!