Nutson's Weekly Automotive News Wrap-up August 4-10, 2024
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Here are Larry's top story picks from this past week's important to you, relevant, semi-secret, or snappy automotive news, opinions and insider back stories presented as expertly crafted easy-to-understand automotive news nuggets.
Nutson's Auto News Wrap-up Week Of August 4 - August 10, 2024
* July sales. After a slowdown caused by a widespread dealer software outage in June, July saw a recovery in sales. Approximately 1.27 million vehicles were sold, slightly lower than the foretasted 1.29 million by Cox Automotive. The seasonally adjusted annual rate (SAAR) for July is estimated at 15.8 million, below the forecast of 16.0 million. Smaller, more affordable vehicles are gaining strength. In the first half of 2024, the Subcompact SUVs segment outperformed, growing over 20% year over year. Compact SUVs and Compact Cars also showed positive growth. In today’s environment, affordability matters.
* What features do drivers want?AutoPacific’s 2024 edition of its respected Future Attribute Demand Study (FADS) has been released, and the study shows comfort and convenience features at the top of new vehicle shoppers’ wish lists. The annual nationwide study contains responses from over 14,900 licensed drivers in the U.S. who intend to acquire a new vehicle within the next three years. The results show strong interest in customizable driver settings and wireless charging for smartphones. Get the details HERE
* Excitement needed. A surprisingly large number of U.S. auto dealers say their Sales staff aren't enthusiastic about selling EVs. Dealership leaders in regions across the country took part in a recent CDK study, and a startling 49% said their Sales teams weren’t excited at all about selling EVs. There were also significant differences between regions. Find out more in CDK's latest blog. HERE
* US DoE Factoid of the week. Electric Vehicle battery pack costs for a Light-Duty Vehicle in 2023 are 90% lower than in 2008, according to DoE estimates. The Department of Energy’s (DOE’s) Vehicle Technologies Office estimates the cost of a electric vehicle lithium-ion battery pack for a light-duty vehicle declined 90% between 2008 and 2023 (using 2023 constant dollars). The 2023 estimate is $139/kWh on a usable-energy basis for production at scale of at least 100,000 units per year. That compares to $1,415/kWh in 2008. The decline in cost is due to improvements in battery technologies and chemistries, as well as improvements in manufacturing and increases in production volume.
* Best car for you. Newsweek is shaking up how vehicles are ranked. Why? Because most people don’t want to buy the best car on the market, they want to buy the best car for them. It’s with this philosophy in mind that Newsweek has changed how they rank vehicles. They’ve gone away from the typical category divisions, instead rating vehicles across 13 consumer profiles. Which profile fits you? Have a look at Newsweek’s 2024 Autos Awards HERE
* Politics and the car business. Tesla EVs are being shunned by a German drugstore chain after Elon Musk backed Trump. Rossmann has joined software company SAP and car rental firm Sixt in axing Tesla cars from their fleets.
* J.D. Power on EVs. The share of new-car sales that are EVs rose through the first half of this year to 8.3%, according to J.D. Power, a slower growth rate than the industry saw last year. But, presenting at the Center for Auto Research's Management Briefing Seminars in Traverse City, Michigan, Elizabeth Krear, vice president of EV Practice at the market research firm, says consumer interest and willingness to buy EVs are rising as product choices in the most popular segments namely SUVs and CUVs expand, and more products are offered below $50,000. Among demographic groups, says Krear, Generation Y, or millennials, have the highest current consideration of EVs at 36%, compared with 31% for Gen Z, 24% for Gen X, 17% for Baby Boomers and 8% for post-Boomers. Income-wise, EV consideration is highest among consumers with a household income above $150,000 at 43%, and 40% among households earning between $100,000-$150,000. Because of the price of EVs, current consideration diminishes the lower the income is, based on J.D. Power's monthly surveys. And in this election year, with EV mandates being a political football, Krear says 35% of Democrats say they are very likely to consider an EV for their next vehicle purchase, compared with 22% of Republicans and 19% of independents.
* Auto shows sell cars.At the Center for Auto Research Management Briefing Seminars in Traverse City, Michigan, Chicago Automobile Trade Association President Jennifer Morand and Cars.com's Editor-in-Chief Jennifer Newman discussed the impact of auto shows on shoppers, automakers and sponsors. According to research findings from Amie Lindaas, Cars Commerce Research & Insights director into car-shopping habits, Gen Z wants to work with a dealer when purchasing a car or that they view the car they intend to buy three or more times. A Cars Commerce survey of recent car purchasers found that of those who attended an auto show, 78% said the show influenced their purchase and 75% said they purchased a car they saw at an auto show.
* Lower gasoline prices.Fears of a slowdown in the U.S. and China, the two biggest oil consumers, dragged benchmark Brent crude prices down about 8% over the past month. U.S. petroleum prices have fallen too, pulling down shares of companies including Chevron and refinery operator Phillips 66. Average regular gas prices are down almost 5 cents to $3.46 a gallon over the past month, according to AAA. That is a drop from $3.82 a gallon a year ago. For drivers, there could be more relief to come. Read more in the Wall Street Journal:HERE
* Chevy and TikTok. A Chevrolet dealership in upstate New York has gone viral for promotional videos parodying “The Office.” Mohawk Chevrolet’s TikTok series, 'The Dealership,' shows co-creator Grace Kerber visiting GM headquarters to pitch a rebrand of the Silverado pickup. Located in Ballston Spa, New York — about 30 miles north of Albany — Mohawk Chevy got General Motors CEO Mary Barra and other top executives in on the act during the visit to the automaker in Detroit.
* Anti-theft software helps. A software upgrade offered to the owners of Hyundai and Kia vehicles that were sold without electronic immobilizers cut theft rates by more than half, new research from the Highway Loss Data Institute shows. Roughly two dozen 2011-22 Hyundai and Kia models are eligible for the upgrade. Get the full story: HERE
* BMW recall. BMW is recalling 105,558 vehicles due to a faulty engine starter that could increase the risk of fire. The recall affects various models, including some X5, X7, 3 and 7 Series models. Software updates are planned to fix the issue.
* Bonneville Salt Flats. The Southern California Timing Association’s annual Speed Week at the Bonneville Salt Flats just wrapped up. Check out all the hot rods in this story. HERE SEE ALSO: Tribute To Dick "Goldie" Guldstrand And Other Hot Rodders, SoCal Pioneers of Power & Speed; By Steve Ford, The Car Guy®
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