Storms, Savings, Stockpiles and Support

Resiliency (or, lack thereof) seems to be the running theme in today’s email. Whether it’s rebounding from a natural disaster or overcoming disabilities, it’s all about how you bounce back and overcome. Let’s get into it.

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Debby’s Deluge Disrupts Dealers

Hurricane Debby has been a real downer this week after making landfall in Florida on Monday. The destructive storm has dumped over 16 inches of rain, left hundreds-of-thousands in Florida without power, and resulted in more than 1,600 flights canceled.

• State Response — Florida Governor Ron DeSantis declared a state of emergency for 61 counties, and mobilized 3,000 National Guard members to help rescue hundreds from flooded homes.

• Dealership Response — Florida auto dealers are now in assessment mode as the water recedes and showrooms recover from power-outages. Ted Smith from the Florida Automobile Dealers Association says it's too soon to know the full impact (especially those strongest hit between Tallahassee and Jacksonville), but that dealers are working to keep their operations running as smoothly as possible and offering helping-hands where they can.

• Who’s Next? — Debby has it’s sights set on the Carolina’s next and officials are warning of more rain and flooding with up to 20 inches possible on the coast.

Audi Revives Costco Discounts

After a continued decline in U.S. sales, Audi decided to partner once again with retail giant Costco for another round of limited-time vehicle specials. Costco’s Auto Program is offering members enticing discounts — from $1,000 to $3,000 — on new 2024 or 2025 Audi models.

• Sales Push — Earlier this year, nearly 4,000 Audi Q5s were sold during a similar spring special. However, Audi's U.S. sales are still down 12% in the second quarter and 14% for the first half of 2024 compared to last year.

• Past Success — Costco Auto Program said more than 25,000 Audi vehicles were sold through program-approved dealerships in 2023 (with around 9,000 of them being Q5 crossovers). Audi is hoping these incentives in partnership with with the wholesaler will help them to meet or exceed those numbers this year.

Mo’ Inventory, Mo’ Problems

A new study from S&P Global Mobility shows us that automakers are facing an inventory surplus at the moment with new vehicle stocks up 57% YOY reaching nearly 2.9M cars.

• Surge in Supply — June marked the 13th consecutive month of inventory increases, with a 1.8% rise over May. Most vehicle segments have grown steadily, but compact SUVs have seen especially sharp spikes in inventory over the past year.

• Buyer’s Market — With three times the inventory but not three times the buyers, consumers have a wide array of choices but many vehicles are sitting in lots waiting for shoppers who can afford them.

We wanna know…

ToyotAbility Triumphs in Texas

Toyota's truck plant near San Antonio, Texas recently celebrated it’s ribbon-cutting ceremony for their ToyotAbility Production Center (TPC), where differently-abled workers are playing a key role in production.

• Long Time Coming — Along with Toyota Texas employees, the TPC project has been a collaborative effort with Texas Workforce Solutions, Mission Road Development Center, local government officials, and community leaders more than five years in the making.

• Innovative Inclusion — The new subassembly area brings workers with intellectual and developmental disabilities (an estimated 15.6% of San Antonians) into the heart of operations. Designed with optimal lighting and soundproofing, the center provides a comfortable environment and easy access to resources and amenities.

• Valuable Contributions — The team of six has produced more than a quarter-million parts for the Toyota Tundra and Sequoia since opening earlier this year.