#710 - 🚗 Tariffs Again

TOGETHER WITH

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BUSINESS

News: Cutting up Quilts

Sometimes, the headlines form a quilt, and we stitch it together and send it your way. Other times, the headlines are overwhelmingly focused on the same thing, so we cut them into pieces and send them your way. Either way, you're getting a lot of fabric. Enjoy.

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EU (Finally) Announces Tariff Details

Most of us don’t live in China or Europe, but the automotive industry is like baseball. Sometimes, it’s a big team situation (in the field), and sometimes, it is a solo effort (at bat). The EU’s Chinese Tariff news feels like something that could change how either side is playing for a bit.

What's Happening?

Starting in July, the European Commission will impose additional duties of up to 38.1% on imported Chinese electric vehicles. This follows the United States' recent decision to increase tariffs on Chinese EVs to 100%. The tariffs target what the EU describes as excessive subsidies to Chinese automakers.

Who's getting these terrifying tariffs?

• BYD: 17.4%

• Geely: 20%

• Nio: 21% (But they've already said they aren't worried about it)

• SAIC: 38.1%

• Tesla and BMW: Potentially lower tariffs due to cooperation with the investigation.

Chinese Response

While The Chinese Passenger Car Association believes the impact on most firms will be minimal, the nation's leaders called the decision protectionistic. They warned it could damage China-EU relations or disrupt the global auto supply chain. Beijing said it would do what it must to protect its interests.

Effect on European Automakers

• Shares in European companies like BMW and Volkswagen fell due to fears of Chinese retaliation.

• Analysts suggest the immediate economic impact will be small, but the tariffs aim to curb the future growth of Chinese EV imports.

This is a big trade policy change with effects we have yet to see or consider. We imagine some shake-up in the markets, starting with the stock market.

Tax Credit Reimbursements Hit $1B

The federal government has issued over $1B in upfront tax credits for EV buyers, as the Treasury Department and IRS announced.

• Upfront Credits: Available from January 1, 2024.

• Amounts: $7,500 for new EVs and $4,000 for used EVs.

• Eligibility: Available at the point of sale, regardless of federal tax liability.

• Adoption: The credits have been utilized by 125K new EV buyers (90% of eligible transactions) and 25K used EV buyers (80% of eligible transactions).

• Impact: Aims to make EVs more affordable and competitive with gasoline-powered vehicles.

• Manufacturing Standards: Some models must meet North American manufacturing criteria to qualify.

Charging Infrastructure Investments

Ionna, an EV charging company backed by BMW, Honda, General Motors, Hyundai, Kia, Mercedes-Benz, and Stellantis, is set to revolutionize the U.S. EV infrastructure.

Headquartered in Durham, North Carolina, Ionna plans to establish a national DC fast charging network. With $10.1M invested, the project promises 203 jobs and the installation of 30K chargers by 2024.

The "Quarterback Lab" will enhance interoperability and customer service. Despite political challenges and reliance on NEVI funding, Ionna is committed to advancing EV adoption in the U.S., aiming for a user-friendly charging experience akin to traditional gas stations.

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/MTCM

If we tried to tell all the wonderful, charitable, and creative stories happening in dealerships across our industry, we would need a bigger email. But we have just enough space in this email for YOUR story.

Let us help show the community and world what you have going on in your store! 🕊️

DATA & INSIGHT

Trade a Car for Clout

As NIL (Name, Image, and Likeness) deals roar into 2024 as a billion-dollar industry, more brands are jumping on board with college athletes to promote their products or services.

As community stewards, dealerships have long-since been interested in featuring and promoting their local athletic super-stars. But, it wasn’t until July 2021 that the NCAA (National Collegiate Athletic Association) threw out the old rulebook and ruled to allow NIL agreements, thus permitting athletes to sign endorsement deals and receive compensation for things like autographs, social media content, and appearances.

Nearly three years later and NILs now make up a billion-dollar industry.

How do you know if a NIL deal is right for you? Here are some things to consider:

🌟 Hometown Heroes — Consider partnering up with a local athlete with a strong following. If they can fill stadiums, they can fill your showroom too.

🧲 From Followers to Foot Traffic — Ensure the athlete has a significant and engaged social media presence to maximize your ROI. Their followers should be potential customers who’ll notice your brand. Likes, shares, and retweets can equal test drives and sales.

👯 Matching Vibes for Maximum Impact — If your brand screams luxury and theirs screams budget, swipe left. An alignment in values and style will make the partnership more credible and effective.

🕵️‍♀️ Due Diligence — Read up on the NIL policies currently in place in your state to ensure you’re abiding by local laws. Once you’ve selected your athlete ambassador, get ready to crunch the numbers and lawyer up to ensure clear contracts, evaluate explicit tax implications, and secure the necessary insurance.

Current NIL Laws and Policies By State:

▶️ Wanna learn more about NIL partnerships? Check out the full article here. ◀️

Quick Hits

• Consumer prices remained flat in May; rate cut expected. ✂️ 

• A person is running for office in Wyoming, but they are getting all their marching orders from an AI. Wyoming isn’t thrilled. 🤖 

• An almost 1,800-year-old manuscript, the older privately owned book in the world, just sold for $3.9M. The Crosby-Schøyen Codex is an early Christian liturgical book and one of the earliest in the shape we would call a “book” today. 📗 

History

• 1953: Tony Rolt and Duncan Hamilton win 24 Hours of Le Mans, apparently drunk. 🍻 

• 1966: The U.S. Supreme Court rules that police departments are required to give “Miranda rights.” 👮 

• 1983: Pioneer 10 becomes the first man-made object to leave the central Solar System when it passes beyond the orbit of Neptune. 🛰️ 

Thanks for reading, friend! The best advice is detailed and precise, but broad advice exists, too, like drinking more water. That is almost always safe to say. So, drink more water, and we will see you tomorrow.