#649 - 🚗 Taking Names, Burning Gas

TOGETHER WITH

Enjoy the Easter weekend, friends!

If you host an egg hunt at the showroom, send pictures after.
If you hide a new car key in one of the eggs, send an address before.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

_{Was this email forwarded to you? Subscribe here!
Reading time: 4 min and 24 sec}

BUSINESS

Friday News

Friday is a good day to look around at the economic implications of the week. Check out these bits of news with the market movements, and then check out the economic recap below. Whatever gets measured gets managed, but whatever gets tracked doesn’t sneak up on you and put extra weight on your back. It’s less snappy, but that doesn’t make it less true.

--

Hyundai Goes South

Hyundai Motor is contemplating the addition of hybrid or plug-in hybrid vehicles at its $7.59 billion Georgia plant, alongside all-electric cars, due to the slower EV adoption and revised emissions regulations. 

The brand also announced a $51 billion investment in South Korea to enhance electric vehicle production and new mobility solutions, signaling a robust commitment to electrification amidst industry-wide slowdowns. 

These strategic investments want to capture more of the EV market while the rivals focus on hybrids and protecting short-term shareholder returns.

⚖️ At the time of writing, Hyundai Motor Co is unchanged in the market.

Toyota: Down But Still Up

In February, Toyota Motor experienced a 7% decrease in global sales. Still well in the lead as the worldwide leader, here are the contributing details to the down month. 

• 🔻 Sales in China dropped 36%, influenced by the Lunar New Year holidays and intense market competition.

• 🔻 Sales in Japan also declined by one-third, impacted by production halts at Daihatsu and a safety test scandal.

• 🔻 Declines were noted in Indonesia and Thailand, with hybrid vehicles making up nearly 40% of sales.

• 🔻Overall global production decreased by 2.6%.

• 🔺 BUT US and European markets showed resilience, with sales up 16% and 14%, respectively.

 📉 At the time of writing, Toyota Motor Corp is down 0.14% in the market.

Ford and Porsche: Takin' Names, Burnin' Gas

The more, the merrier, but the fewer, the more profitable? At least, that seems to be Ford and Porsche's reason for staying in the V8 game as competitors bail. 

Mach-V (as in VROOOOM). Ford is making moves to dominate the American muscle car market with its V8-engine Mustang, following the discontinuation of competitors like the Chevrolet Camaro and Dodge Challenger. Ford is emphasizing the appeal of a traditional V8 amidst the industry's shift towards electric vehicles, with international markets bolstering Mustang sales.

EV8 (Environmentally friendly V8) Porsche is committed to advancing its V8 engine tech to meet Euro 7 standards. Porsche is preparing to adapt its V8 engines for stricter emissions without fully relying on hybrid technologies, aiming to maintain the emotive appeal of its performance cars even as it projects EVs to dominate its future sales.

📈 At the time of writing, Ford Motor Co is up 1.61% in the market, while Porsche AG is down 1.09% 📉

Some Things From China

BYD has another cheap car, Xiaomi is in a price-cut battle with Tesla, and Xpeng is in Germany with the rest of the EU in sight. 

• BYD: Launches the Yuan Up compact crossover in China at $13,400, targeting younger consumers with a range of up to 249 miles. 

• Xiaomi: Introduces the SU7 electric car, priced $4,000 less than Tesla's Model 3, with superior specs and over 20,000 orders received. 

• XPeng: Expands into Germany with the G9 SUV and P7 sedan, aiming for a 3% market share by 2024. Plans further expansion into France, Italy, and the UK, with 30 new models by 2027. 

--

In case you are wondering, a V8 engine has eight cylinders. No, " V " is not in the word “cylinder.”

The “V” part refers to the cylinders' arrangement. They are in a V-shape, according to Google.

TOGETHER WITH TVI MARKETPRO3

Master Your Market

Ever wondered how many potential customers are right in your own backyard? TVI MarketPro3 has the answer.

Strategically designed to elevate dealership service, MarketPro3's Acquisition Strategy offers precise insights to help:

• Target and engage both new and returning customers.

• Create retention strategies that foster client loyalty.

• Develop recall campaigns that put you in control.

• Craft custom solutions tailored specifically to your dealership's service goals.

Elevate your fixed ops game by partnering with TVI MarketPro3 today!

AROUND THE ASOTU-VERSE

DATA & INSIGHT

Kneading Through the Dough

The latest financial and economic indicators present a bit of a mixed bag, but here’s a taste of where things stand:

• The GDP is showing some drag in its stride with a Q1 '24 forecast down to 2.4% from the previous quarter's 3.2%.

• The job scene's a bit of a roller coaster – unemployment was up to 3.9% in February from a low of 3.5% in March 2023.

• People were feeling pretty good about spending money in February, with consumer sentiment hitting 76.9 (though it dipped slightly in March).

• Auto loan rates continue to rise, with new car loan rates hitting 9.70% in March.

Consumer Reports’ brand loyalty study for 2024 just dropped, and it’s Rivian that’s charging ahead and stealing Tesla’s thunder (they held the #1 spot in last year’s ranking).

• Despite it being an adventurous newcomer, 86% of owners are eager to repeat a Rivian purchase.

• Mini made the most significant leap, climbing 11 spots, to secure the silver medal.

• At the opposite end, Infiniti faces challenges, with only 43% of owners considering a repeat purchase.

Dealer sentiment has shown a very modest improved in the first quarter of the year, with the Cox Automotive Dealer Sentiment Index ticking up from 40 to 42 in Q1.

• Franchised dealers have seen a steep decline in their profitability index, now at a historic low of 41, down from highs above 80 in early 2022.

• The market is shifting to favor buyers, challenging dealers to battle shrinking profits amid rising costs.

• The outlook for the next quarter is brighter, however, with a “spring bounce” expected to push the future market over the neutral line to 51.

👉 For more knead to know market updates, keep reading here. 👀

Quick Hits

• Walgreens beat revenue estimations, but lowers profit outlook. 💊

• For some reason, Jerry Seinfeld will star in a Pop-Tart origin story on Netflix. 🎥

• The White House released its rules for federal government employee use of AI. 🤖

• Disgraced FTX founder Sam Bankman-Fried has been sentenced to 25 years in federal prison for crypto-fraud. 🚨

History

• 1927: Henry Segrave becomes the first person to go 200 MPH on land, driving the Sunbeam 1000hp. 🏎

• 1974: The Terracotta Army is discovered in Shaanxi, China. 🇨🇳

• 1999: The Dow Jones Industrial Average closes above the 10,000 mark for the first time during the height of the dot-com bubble. 🧼

Thanks for reading, friend! With Easter candy in mind, do you prefer the chocolate stuff or the fruit stuff? We like to mix em’. Skittles and M&Ms. Each bite is a surprise.