#684 - 🚗 All Three Sorts

TOGETHER WITH

Today’s email is a touch different from the norm. We’ve moved the ASOTU-VERSE section up and the news down.

While the majority of our community is back home keeping the world turning, a few hundred of you are with us in Baltimore for the next few days, and the email will reflect that.

Know this — while some of our content speaks directly to the impact, power, and unity we experience when we get together, what you are doing back home is essential to this whole industry thriving.

Some folks row the boat, some fish off the side, and some design jet engines out of coconuts and driftwood.

ASOTU is for all three sorts.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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AROUND THE ASOTU-VERSE

It is Indeed Today

Good morning, and welcome to ASOTU CON 2024 Day 0!

. . .

Today!

We will see you soon for registration and later on for a reception worthy of the hundreds of dealers and hundreds of industry partners who made the journey to Baltimore.

. . .

Book a Meeting

Scan the QR codes to set up a meeting with the corresponding team.

OR…

Grab the app! After you set up your profile and topics of interest, you can navigate to the collaborator page and set up a meeting that way!

Seriously, you need this app. Imagine a treasure hunt without a map. App = Map — that rhymes so it must be true.

TOGETHER WITH REYNOLDS & REYNOLDS

Succeeding Takes Teamwork. It Takes a Partner!

Swickard Auto Group set out to find the best possible partner to support their 40 store group.

They reached out to all the DMS players to review their offerings and understand how they might help their business. In the end, they chose Reynolds and Reynolds.

Check out the video to see what drove Swickard’s decision.

Watch their story!

BUSINESS

U.S. vs. China News

It’s hard to talk about U.S. automotive business and technology without talking about China, so today we gathered up a series of content about automakers, technology, manufacturing, sales, politics, and profits all with China sitting in the middle of the table. Enjoy (享受)!

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New U.S. Automotive Actions

The United States is significantly intensifying tariffs on Chinese-made EVs, potentially quadrupling them from 25% to 100%. This action aims to curb the entry of affordable, often superior Chinese EVs, safeguarding American automakers from competitors that could undermine their market with models as inexpensive as $10,000. This protective measure aligns with ongoing policies from both the Biden and Trump administrations, which favor domestically sourced materials and broader tariffs on other green goods like solar panels to shield US industries from Chinese dominance.

Chinese Situation

Despite geopolitical tensions, Chinese EV maker Zeekr made a strong U.S. market debut, surging nearly 35% on its first trading day. This introduction, the first major U.S. listing from a China-based company since 2021, signals robust investor confidence in Chinese EV technologies. Zeekr — part of Geely which also owns Volvo and Lotus — has already delivered nearly 200K vehicles, primarily in China. It is targeting the luxury EV market and indicating its global ambitions despite increasing U.S. tariffs.

Maybe Thailand is a Solution?

Thailand, recognized as the "Detroit of Asia," is emerging as a strategic manufacturing hub that could hedge against the risks associated with manufacturing in China. With significant government incentives and a robust automotive infrastructure, Thailand offers a compelling alternative for companies like Tesla to diversify their production bases away from geopolitical pressures. This move is part of a broader "China Plus One" strategy aimed at mitigating dependency on China by exploring manufacturing opportunities in Thailand, potentially leading to more affordable EV production.

EV Sales Surge (But is it Enough?)

Hyundai, Kia, Ford, and BMW showcase strong market performances in EV sales, challenging Chinese competitors. Hyundai and Kia have particularly benefited from new model introductions, like the Kia EV9 and Hyundai IONIQ series, driving record sales.

Despite financial setbacks in its EV division (losing about $100K per EV sold in Q1), Ford continues to push towards affordability with plans for a sub-$30K EV, reflecting a strategic adaptation to market demands and consumer preferences.

From Auto(motive) to Auto(maton)

On the technological front, the U.S. and China have initiated diplomatic talks in Geneva to discuss AI safety and risk standards. This dialogue, led by senior officials from both nations, is crucial as both countries vie for dominance in the AI sector. The talks aim to exchange insights on managing AI risks without expecting immediate joint statements or technical cooperation, underscoring a cautious approach to collaboration amid broader competitive tensions.

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There are two ways to solve a problem: with what you have and with what you don’t have (yet). The U.S. has an amazing system of small, medium, and large local and often family-owned businesses interested in meeting U.S. consumer automotive needs. Automakers already have access to partner with these dealerships. Can anyone say they are fully realizing the potential in these relationships?

Quick Hits

• A federal judge in Texas has blocked a new government rule that would limit credit card late-payment charges. 👨‍⚖️

• The solar storm that pushed the Northern Lights much farther south than normal is expected to continue Sunday night and possibly into the week. 🔆

• The Miami Beach Police Department introduced a $250K Rolls-Royce Ghost patrol car to its fleet. 👻

History

• 1643: Louis XIV becomes King of France at the age of 4. 👑

• 1889: The National Society for the Prevention of Cruelty to Children (NSPCC) is launched in London, England. 👶

• 1932: "We Want Beer!" parade marches through New York City. 🍻

Thanks for reading, friend! What you do matters, and we appreciate each and every one of you.