🌍 Top Automotive News: GM-Hyundai EV Partnership, China Tariffs on EVs, and Carvana’s Houston Megasite Expansion

TL;DR

GM and Hyundai are teaming up for EVs and hydrogen, while GM is considering sourcing Chinese batteries. Meanwhile, China is locking down EV tech, and the US is hitting Chinese EV imports with 100% tariffs. Oh, and Carvana’s flexing with a new Houston Megasite—200 jobs and faster deliveries. Dealers, brace yourselves!

Today's Email

• 🤠 GM and Hyundai Partner on EVs and Hydrogen & GM …

• 🇨🇳 From China, Staying In China.

• 🍿 Carvana Opens Houston Megasite

  • What’s all the buzz about Carvana in Houston?

  • So, what’s an IRC? Some new fancy tech acronym?

  • And what’s in it for Houston?

  • Should local dealers be worried?

• 🚕Uber Expands Robotaxi Partnership with Waymo

• ⏮️ Jeep CEO Plans Turnaround Amid Sales Decline

• ✋ Volvo Ends Subscription Program

• Sign up for more. Like, every single day, we will …

BUSINESS

🤠 GM and Hyundai Partner on EVs and Hydrogen & GM Considers Chinese EV Batteries

• Partnership Details:

  • GM and Hyundai are co-developing electric and hydrogen vehicles.

  • Focus on reducing costs for raw materials like batteries and steel.

  • Aims to speed up vehicle production and delivery.

• EV Lineups:

  • GM: Chevy Silverado EV, Cadillac Lyriq.

  • Hyundai: Ioniq 5, Kia EV9.

• Battery Sourcing Deal:

  • GM is in talks with China's CATL to source EV batteries.

  • Batteries will be assembled in a new US plant.

  • Expected to create 1,000+ jobs in the southern US.

  • May help stabilize EV battery costs, potentially affecting pricing and availability for dealers.

🇨🇳 From China, Staying In China.

China’s push to keep key electric vehicle (EV) technology domestic, despite automakers like BYD and Chery expanding production overseas, is reshaping global EV dynamics. Beijing’s restrictions, aimed at maintaining control over core innovations, complicate foreign investments and relationships, particularly in markets like Europe. Meanwhile, tensions with India further highlight the challenges Chinese EV makers face as they expand abroad.

Adding to these complications, the US is set to implement steep tariffs on Chinese EV imports, including a 100% duty on EVs starting September 27. These tariffs target China's state-driven production advantages and could disrupt EV supply chains, potentially raising costs for US dealers.

🍿 Carvana Opens Houston Megasite

What’s all the buzz about Carvana in Houston?

Oh, just Carvana casually transforming their Houston site into a “Megasite.” No big deal—unless you consider adding a giant Inspection and Reconditioning Center (IRC) and creating 200 jobs a big deal.

So, what’s an IRC? Some new fancy tech acronym?

You bet! The IRC is where Carvana gets down to the nitty-gritty—inspecting, reconditioning, and making sure those cars are good to go. Basically, it's like a spa day for cars, but with fewer cucumbers and more engine checks.

And what’s in it for Houston?

Faster delivery times, more inventory, and a possible increase in your competition. Oh, and 200 new jobs, because who doesn’t love fresh employment opportunities?

Should local dealers be worried?

Well, let’s just say Carvana’s expansion means they’re not exactly playing small ball anymore. Watch your inventory, folks.

🚕Uber Expands Robotaxi Partnership with Waymo

Uber announced the expansion of its autonomous ride-sharing service in partnership with Waymo to include Austin and Atlanta, starting in 2025. This builds on their initial collaboration in Phoenix, where Uber used Waymo’s vehicles for both passenger and Uber Eats deliveries.

For dealers, the push toward autonomous vehicles may signal a shift in the market dynamics of urban mobility, influencing how customers think about car ownership versus ridesharing services.

⏮️ Jeep CEO Plans Turnaround Amid Sales Decline

• Sales Decline:

  • Jeep’s US sales have dropped 34% since 2018, with further declines expected in 2024.

• Turnaround Strategy:

  • Target: 1 million US sales by 2027.

  • Lowering vehicle prices and offering 0% financing.

  • Increasing marketing and advertising spend.

  • Rolling out special offers and incentives for key models like Jeep Compass and Grand Cherokee.

• Dealer Impact:

  • Jeep’s focus on electrified models, including the all-electric Wagoneer S and Wrangler-inspired Recon.

  • Watch for shifts in consumer demand and potential market recovery in coming years.

✋ Volvo Ends Subscription Program

Volvo has suspended its “Care by Volvo” subscription service in the US and Europe to focus on operational efficiencies. The program, launched in 2017, attracted new customers but faced criticism from dealers.

Subscribers can complete their term and receive credit towards a new purchase or lease. Dealers should note this as a shift towards traditional sales models and be prepared for potential increased interest in leasing or purchasing as a result.

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