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TOGETHER WITH
Fantastic Friday to you, Friend!
Today, we have some news from GM in China, Holman’s new partner, Toyota, which is still not going Electric, Waymo’s Twilight Bark, and BMW’s new subscription option.
Check out the economic update and what’s new from The Wheelhouse a little lower too!
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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Reading time: 3 mins 45 secs
News: GM, Holman, Toyota, Waymo, and BMW
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GM's Great Chinese Reset: Cutting the Red and Eyeing the Green
Business is easy. Make more than you spend. And since GM can't control how much they make, they will control how much they "spend" in China.
General Motors is trimming its Chinese workforce and planning a major strategic overhaul with SAIC, aiming to regain profitability in the world's largest car market. As sales continue to plummet, GM is shifting focus toward upscale models and electric vehicles.
Q2 loss in China: $104 million
SAIC-GM-Wuling sees better prospects with affordable EVs like the Hongguang Mini EV
Holman's Strategic Play: FM Capital Investment
Holman has acquired a minority stake in FM Capital, marking the first time an integrated automotive services company has taken a general partner interest in an automotive VC. The partnership aims to accelerate the identification and scaling of transformative automotive technologies.
Focus: Early to mid-stage companies in automotive tech
Holman's venture capital arm leverages strategic investments for growth
Want to hear more about this? Check out this time-stamped segment from The Automotive Troublemaker on YouTube to hear Paul and Kyle talk about the partnership.
Toyota's Hybrid Bet: Slow and Steady Wins the Race
Toyota is doubling down on hybrids, potentially moving to an all-hybrid lineup as EV demand slows. This strategy could position Toyota to avoid regulatory fines while extending the life of its gasoline-electric hybrids.
RAV4 Hybrid-only by 2026
U.S. hybrid sales surged 66% through June 2024
Waymo's Midnight Honk-Fest: A San Francisco Wake-Up Call
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Residents of a San Francisco neighborhood are losing sleep because Waymo's self-driving taxis honk at each other while idling. An anti-collision feature's unintended consequence has led to noisy nights, prompting Waymo to update its software.
Peak honking time: 4 a.m.
Waymo promises quieter nights with updated software.
Weird right? Not as weird as an endless live stream showing these cars while playing chill music.
BMW's Pay-to-Play Suspension: A Bumpy Ride
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Although already installed, BMW's M Adaptive Suspension is locked behind a paywall. Customers can unlock this feature via a subscription or a one-time payment, sparking debates on the growing trend of automakers charging for pre-installed features.
One-time fee: $500
Subscription option: $30/month in Europe
Crack the Code
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Looking for the key to outmaneuvering your competition?
Our friends at Stream Companies have just the thing— their Market Insights Report is like a secret code for your dealership. It pinpoints where your sales are thriving and uncovers hidden opportunities in your market. Whether it's optimizing your inventory or sharpening your marketing strategy, these insights will give you an edge.
You’re gonna love what Stream Companies has to offer.
Ready to crack the code? Request your Market Insights Report today and see how it can unlock your dealership’s full potential!
AROUND THE ASOTU-VERSE
Coming Soon
👨⚖️ August 19th — Paul and Kyle judging the Automotive Amplifiers Contest with Reynolds & Reynolds in Leesburg, VA.
🌴 August 20-24th — NAMAD Conference in Miami, FL.
🍎 September 16th — The Welcome Conference in NYC.
🦀 May 13-16th, 2025 — ASOTU CON in Baltimore, Maryland.
The Wheelhouse Season 2
Did you catch the new season of The Wheelhouse?
Host Daniel Govaer invited industry voices like Joe Lockerd, Anita Stout, Joe Zorn, and Steven D. Adragn to share actionable insights.
They share practical advice on tackling recruitment challenges in automotive, emphasizing the importance of nailing the first 90 days, understanding resume gaps, and navigating the complexities of hiring service advisors.
Economic Update: 8.16.24
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Stabilizing Inventory Amid Reporting Challenges
Despite the turbulence caused by the June cyber breach at a key dealer management system (DMS) supplier, new vehicle inventory has shown signs of stabilization. As of August 1, the total inventory stood at 2.79 million units, representing a 3.6% month-over-month decline. However, this stability comes with a caveat as days’ supply data has been inconsistent, showing a sharp 43% drop to 68 days. This volatility is expected to level out throughout August as data normalizes.
New Models and Rising Incentives
The arrival of 2025 model-year vehicles has shifted inventory dynamics on dealer lots. Brands like MINI, Honda, and Genesis are leading the charge, with 40% or more of their current inventory of the latest models. Meanwhile, brands like Dodge and Chrysler are grappling with high days’ supply, holding onto significant portions of older models and impacting their inventory turnover.
Pricing Trends: A Mixed Bag
The average listing price for new vehicles remains high at $47,307, slightly down from last year. However, not all brands are equally affected. Honda, Mazda, and Buick offer more competitively priced options that appeal to cost-conscious consumers. As incentives increase, dealers may find opportunities to move older inventory, particularly as used-car supply tightens.
Strategic Adjustments for Dealers
The current market conditions suggest dealers need to be strategic in pricing and inventory management. With new vehicles becoming more available and used-car prices starting to soften, focusing on inventory turnover and exploring value-added services will be vital in maintaining profitability. Keeping an eye on economic indicators and adjusting strategies will help navigate the ongoing market uncertainties.
Quick Hits
History
1906: The first Mason Motor Car 🥇
1937: Harvard introduces traffic engineering 🧑🎓
1954: The first issue of Sports Illustrated is published. 🏈
Thanks for reading, friend! Enjoy your Friday. We know we will. 🙂
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