#670 - 🚗 Spending and Sales

TOGETHER WITH

We are three weeks out from ASOTU CON 2024, and we cannot stop thinking, talking, writing, and dreaming about the amazing time we have planned for our community. (that’s you)

It is one thing to sit back and send these care packages to the front line, where you all put in the work every day, but we cherish these opportunities to be there with you in person, skin in the game, ready for the moment-to-moment stuff of real life.

We are hosting, planning, and preparing, but each person who shares that space and time with us is contributing something to ASOTU CON that can’t be bought or planned—real life.

Grab your ticket and do some living with us three weeks from today in Baltimore, MD.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Tuesday Comes At You Fast

VW unionizes in TN, Tesla fixes stuff, a concept EV shows OUT, and automakers consider getting pennies from your light bill.

A day full of weird news, but somehow not surprising at all.

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VW, TN, UAW

Volkswagen workers in Chattanooga, Tennessee, voted to join the UAW, marking the union's first success at a foreign automaker's plant despite prior failures in 2014 and 2019.

• Vote Details: 73% (2,628 workers) voted in favor; overall, 84% of eligible workers (3,620 of 4,326) participated.

• Historic Significance: First time UAW organizes at a Southern autoworker plant outside Detroit's Big Three.

• Broader Campaign: Part of UAW's larger effort to organize 13 automakers across the US.

Unionized workers get more say in the price of their time, skills, and labor. Turns out, when workers get a say in their wages, their wages go up, kinda like when companies get a say in their profits. #EveryBodyLikesUp

Cybertruck Recall: A Rivet-ing Solution.

On the scale between "Expert engineer" and "dad with a workshop," the perfect solution is somehow in the exact middle: Put a rivet in it. 

Tesla Cybertruck owners in Virginia face a pedal problem, but a quick fix is in place pending a comprehensive recall.

• Immediate Fix: A temporary rivet secures the slipping accelerator pedal pad; a more permanent solution is expected soon.

• Recall Details: All 3,878 Cybertrucks made from November 2023 to April 2024 were recalled due to a faulty pedal causing potential sticking. All models from April 17 onward will already have the solution in place. 

• Safety Assurance: Despite the serious fault, no collisions or injuries were reported; brakes remain operational if the pedal sticks.

2Fast.Exe

It's said people can't actually imagine infinity OR total nothingness. We trust the experts on that, but we know accelerating from 0-62 in less than 2 seconds has to be beyond the reach of our imaginations. 

MG's new electric hypercar, the EXE181, debuts at the 2024 Auto China show, boasting revolutionary aerodynamics and performance:

• Performance: Accelerates from 0 to 62 mph in just 1.9 seconds, rivaling some of the fastest electric vehicles like the Lucid Air Sapphire and Rimac Nevera.

• Power and Drivetrain: Suggested four electric motors and all-wheel drive, with a total power output likely exceeding 1,000 horsepower.

• Concept Car Status: Unlikely to enter production, serving more as a technological showcase and design exploration.

“You Pay, We Earn!”

EVs are rolling out and equipped with the ability to take power from the grid when power is cheapest and then sell it back to the grid when it is at its most expensive. This generates a small amount of revenue for the EV owners, which the automakers are trying to figure out how to get a piece of. 

The rise of two-way EV charging technology, also known as vehicle-to-grid, is becoming more tangible, promising a new revenue stream for automakers and energy companies:

• Technology and Adoption: V2G technology allows EVs to sell excess power back to the grid, especially during peak hours, potentially turning EVs into mobile power sources.

• Challenges: Despite its promise, V2G faces regulatory and technical hurdles, including higher costs of bidirectional chargers and grid integration issues.

• Financial Impact: Automakers and energy platforms vie to capture a share of V2G revenues, though the bulk of profits will benefit EV owners, with a small margin going to service intermediaries.

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You buy the car, install the charger, pay the mortgage, and pay the light bill, but Nameless-Automaker-1 gets a cut of the power buyback? Something feels weird here. Imagine if your mortgage company could nap on your porch anytime they wanted.

TOGETHER WITH UPSTART

Clicks to Bricks!

Don't Miss Out!

Join Jeremy Nowling from Rohrman at ASOTU CON for a fireside chat on how his dealership is improving the customer buying experience through connected retail.

On Wednesday, May 15th at 1:45 PM EST, our friends at Upstart and Jeremy will share the secrets behind their partnership and how Jeremy’s team at Rohrman Auto Group uses Upstart’s solutions across its rooftops to drive greater results through superior customer experience.

Jeremy will come prepared with real-world results – don't miss this session at ASOTU CON!

DATA & INSIGHT

Spending is Up; Sales are down

Cox Automotive's recent market summary shows some mixed sentiments in consumers.

While consumer spending rose in March, auto sector sales specifically declined by 0.7%. Despite broader economic signs of stability, such as steady jobless claims, the auto market's dip contrasts with gains in other retail sectors and a robust increase in e-commerce sales.

The retail growth and stable labor market may provide some positive momentum, but the specific downturn in auto sales presents a challenge for dealers.

Check out the rest of the data here.

AROUND THE ASOTU-VERSE

ASOTU CON Swag!

You already love people more than you love cars; it is time to wear it on your sleeve, your neck, your wrist… and your notebook.

We got swag! From moleskin-style notebooks to this year’s version of our ASOTU CON scarf, thanks to DealerOn.

Read more here!

Quick Hits

• A new Octopus documentary is out. Secrets of the Octopus puts the alien-like ocean geniuses in the spotlight. 🐙

• Apple and FIFA are nearing a deal to stream the next World Cup. ⚽️

• Chipotle’s sales and prices have gone up. 🌯

History

• 1635: The first public school in the United States, the Boston Latin School, is founded. 141 years BEFORE the US is technically founded. 🎓

• 1970: President Richard Nixon signs the Public Health Cigarette Smoking Act, which banned the advertising of cigarettes on television and radio, beginning on January 2, 1971. 🚭

• 1987: Chrysler buys Lamborghini. 🧾

Thanks for reading, friend! Aside from leading your team, selling cars, securing inventory, and looking dope while doing it, staying informed is a full-time commitment, and we honor your willingness to share some of your days with us to stay on top of the news.