#693 - 🚗 Projected Increases

Nissan In Mississippi, Kia's ESUV, and Age Only Goes One Way

TOGETHER WITH

Howdy, Friends, and welcome to Friday!

We’ve got a full email today. News, data, sarcastic comments, even a Mickey Mouse GIF.

What more could we ask for?

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

News: Getting To The Point

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We got some news cooked up for the day.

The gist is that May should be good for dealers. GM is looking to cut EV costs by recycling old EVs, Nissan is delaying some EV production, Kia is bringing a new (cheaper) EV to the US, and some cats in Paris want to let people drive your car over Facetime.

Can’t make this stuff up. And if I could, why would I?

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Data Points To May Sales Increase

The difference between a guess and a projection is data and knowing how to really read them. This is also the difference between a fortune cookie and a palm reader if you ask palm readers. (Don't do that) 

New vehicle sales in the US are projected to see a 2.9% increase in May 2024, driven by demand for crossover SUVs and pickup trucks. JD Power and GlobalData forecast total sales to reach 1,446,800 units, with average transaction prices around $45,033. 

Despite a 48.1% increase in incentives, retailer profit per unit is expected to drop by 31.5%. Interest in electric vehicles has decreased, with only 24% of shoppers likely to consider an EV, down from 26% last year due to concerns about charging infrastructure and costs.

Nissan Slows Mississippi Plant

Following some humbling sales numbers in Q1, Nissan has postponed plans to produce new electric vehicles at its Canton, Mississippi factory due to slower-than-expected EV sales growth.

  • Deets: The EV push was planned for 2025 but is now delayed. Five new EV models will be affected, touching both the Nissan and Infiniti brands. 

  • Q1?: Sales rose 2.6% in Q1 2024, compared to 46.4% growth the previous year.

Despite the delay, Nissan remains committed to its goal of offering 19 global EV models by 2030 and maintains its $500 million investment in the Canton facility.

Recycling with GM and Redwood. 

Remember when they told us recycling would save the planet? It was right around the time they told us to be on the lookout for quicksand. Coincidence?

General Motors has teamed up with Redwood Materials, the startup founded by former Tesla CTO JB Straubel, to recycle all scrap from its Ultium Cells LLC battery facilities in Warren, Ohio, and Spring Hill, Tennessee.

  • Redwood will process cathode and anode materials, transforming them into high-quality battery components for reuse.

  • This partnership boosts Redwood's portfolio, which includes recycling EV batteries from giants like Tesla and Ford.

  • Ultium Cells, a venture between GM and LG Energy Solution, aims to produce 80GWh of battery cells annually, with scrap recycling contributing to sustainability and efficiency.

Kia's $30 E-SUV Comes To The US.

Kia

Kia's subcompact EV3 electric SUV is set to arrive in the US, potentially debuting as early as 2025. 

  • Price: Approximately $30,000

  • Platform: E-GMP (same as EV6 and EV9)

  • Range: Up to 350 miles

  • Charging: Fast charging capabilities

  • Interior: Two 12.3-inch touchscreens, a head-up display, advanced safety technologies

  • Driving: i-Pedal 3.0 for one-pedal driving

With affordability playing an increasingly significant role in buyer preference, the new Kia could see people compromise brand, style, and powertrain loyalty. "Could."

Peugeot Trials Teledriving Tech for Amazon-Style Deliveries

Peugeot announced at the Viva Technology trade fair in Paris that it is joining forces with German startup Vay to explore "teledriving" technology. This involves cars driven remotely by human operators through live video feeds, setting it apart from traditional self-driving vehicles. "Teledriving" I guess "Dial-a-Chauffeur" was taken?

Currently, the tech will focus on last-mile delivery for B2B customers who mostly use Peugeot's electric SUVs and vans. 

Tech like this could remove human idle time from the delivery industry by letting one driver quickly flip to new vehicles each time they park one for delivery. While the tech will mostly function within the fleet business for now, it is no stretch to imagine an Uber-style personal application for private vehicles as connectivity and tech continue to develop. It's like owning your own access to the convenience of ride-sharing. 

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Big day, we visited with some optimistic data, read about GM and recycling for what felt like the 200th time, and added “Teledriving” to our dictionary. We’ve earned a water break.

TOGETHER WITH VEHICLES FOR CHANGE

A Car With All The Fixin’s

Vehicles for Change, our charity partners at ASOTU CON 2024, invited the community to participate in one of their car giveaways. Thanks to all our generous friends, all participants joined in by giving additional helpful things (and toys!).

Shoutout for Extras:
- Koons Ford Mazda - 1-Year Mazda Warranty (thanks to TVI-MarketPro3 for helping make that happen)
- Auto Tag Connect - Emergency kit
- The whole community contributed a $500 gas card for the new owner!

Check out this exciting recap video of the car giveaway event, showcasing the joy and gratitude shared by the community!

AROUND THE ASOTU-VERSE

More Than Cars

Have you seen More Than Cars episode 3 yet?

Paul and Kyle ventured to West Herr Automotive Group for their annual company picnic and got way more than a grilled hotdog and ants.

Check out the full episode above or the trailer, and plan to catch more of the behind-the-scenes human-centered whole story of retail auto in future episodes of More Than Cars.

/MTC

Docu-series, podcasts, and this email are some of the ways we are committed to showing the world what YOU are like. Dealers across the country are pouring good things into their communities every day, and we want to let people know.

DATA & INSIGHTS

Average Car Age Continues To Increase

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According to S&P Global Mobility, the average age of vehicles on U.S. roads has hit a record 12.6 years, up two months from last year. Passenger cars are older on average at 14 years, while light trucks are 11.9 years.

So cars are starting to listen to Nirvana, and trucks have almost outgrown Paw Patrol. Got it! 

S & P GLOBAL MOBILITY

This trend has been rising steadily for the past decade, especially since the COVID-19 pandemic, which saw new-car sales drop. The good news? The growing vehicle age boosts the aftermarket service industry as more cars require repairs outside manufacturer warranties. 

It may be a good time to be sure typing "car maintenance + your city" into Google points people toward you. 👨‍🔧

Quick Hits

  • The US is preparing to sue Ticketmaster’s owner, Live Nation. The goal is to break up the two, citing potential monopoly practices. 👩‍⚖️

  • Not quite renewable. The largest heavy truck company in the US powered its trucks with electricity from natural gas. ⚡️

  • Eddie Murphy is back as Axel F in a Netflix Beverly Hills Cop movie. 🚔

History

  • 1607: Jamestown, the first permanent English colony in North America, is founded.

  • 1844: The first Morse telegram was sent between Baltimore and Washington. 🆘

  • 1883: The Brooklyn Bridge opened to traffic. 🚙

  • 1991: Thelma & Louise is released, spurring a new love for the open road — and air 🧳

  • 2010: Hummer shuts down ✌️

Thanks for reading, friend! It’s always good to spend time thinking about you and your day as we prepare this email. I can’t wait to hear how learning about the first Telegram changes your life forever.