🚗 September Rate Cuts Anticipated

TOGETHER WITH

Happy Friday, Friend!

We know that many of you will be head-down, full-throttle, busting-butt preparing for this Labor Day weekend, so we’ll just keep you long enough for a quick update on:

• Production issues with Toyota and GM.

• Declining EU new car sales.

• U.S. market shows strength ahead of anticipated rate cuts.

Thank you for all of your hard labor today, this weekend, and every day!

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

The News: Sweet and Short

This morning’s automotive news highlights key trends that U.S. auto dealers should keep an eye on.

Toyota's global production dropped for the sixth consecutive month, with a 1% decline in July. Major contributing factors include a 5% dip in U.S. sales due to airbag issues.

Meanwhile, GM and Samsung SDI announced a $3.5B EV battery plant in Indiana, set to create 1,600 jobs, but production is delayed until 2027.

In the EU, new car sales were flat, with significant declines in battery-electric vehicles. Despite the rise of hybrids, challenges persist, especially in the electric vehicle market.

Read the full digest here (read time: 2 min 51 sec).

TOGETHER WITH STREAM COMPANIES

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DATA & INSIGHT

Rate Cuts on the Fed’s Horizon

Despite a dramatic dip earlier this month, the stock market will show a strong finish for August thanks in large part to the anticipated September rate cuts.

Even with stubborn inflation and ongoing political uncertainty, the S&P 500 has gained double digits this year with every sector posting positive returns (especially communication services and financials which are leading the pack).

• Upward Momentum: GDP for Q2 was revised up to 3% — a notable jump from the previous 2.8% estimate and a significant leap from the 1.4% growth in Q1. Consumer spending rose 2.9%, and business investment surged 7.5%, led by a 10.8% increase in corporate investment.

• The Fed’s Next Move: With inflation down to 2.9% — close to the Fed’s 2% target — the central bank is poised to cut interest rates in mid-September, aiming for a "soft landing" to sustain growth without sparking a recession.

The cost of the “American Dream” has jumped a staggering 36% since 2014, now requiring an additional $47,000 annually per family of four.

• Housing and Healthcare Costs: Housing costs alone have contributed $25,104 to the increased expense, with record-high home prices and mortgage rates 2.5% higher than a decade ago. Healthcare costs have surged by 32%, adding $3,123 more to the annual household budget.

• Other Essentials: Most dramatically, food prices have climbed nearly 36%, while clothing costs have only seen a modest increase of less than 3%.

👉 For even more market insights and updates, check out our weekly newsletter here. 👀

AROUND THE ASOTU-VERSE

Coming Soon

🍎 September 16th — The Welcome Conference in NYC.

🤠 November 5-8th — Opening presenters at the 2024 ATAE PR & Communications Focus Group Meeting in Austin, Texas.

⚜️ January 23-26th, 2025 — NADA Show in New Orleans.

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

Quick Hits

• A man in Georgia tried to pass off his modified Mitsubishi as a 1998 Cybertruck. 🤦‍♂️

• Maybe skip that sammy for lunch today. So far, Boar’s Head deli meats tainted with listeria have sickened 57 people and killed 9. 🤢

• More than twenty new cases of sloth fever were reported in the U.S. this week. Symptoms include fever, headache, chills, lethargy, furry back, three toes, a sudden desire to live in the trees…oh, wait. No, that can’t be right. 🦥

History

• 1980: “On the Road Again” hits the charts. 🤠 

• 2001: Euro currency is formally introduced. 💶 

• 2002: The last Mercury Cougar is built. ✌️ 

Thanks for reading, friend! According to the world wide web, today is “Forgive Your Foe Friday.”

In that spirit, we would like to say: We forgive you, Starbucks, for unleashing pumpkin spice upon us all a full month before Fall starts (but, if you launch Christmas cups before Halloween, we’re un-forgiving you).