Presidential Buy/Sell Market, Huge Rivian Loan, Cheap Turkeys

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Warm up those appetites, folks. As we get ready to loosen our belts, the buy/sell market seems to be doing the same thing as the Trump era nears. We’re also talking about a gigantic but conditional loan from the government to Rivian, as well as cheaper turkeys for everyone this year.  

Show Notes with links:

• The 2024 presidential election outcome is expected to rejuvenate dealership buy-sell activity, as regulatory rollbacks and economic optimism provide a favorable environment for acquisitions.
  • Dealers anticipate eased EV mandates and fuel economy standards, creating market stability.
  • Regulatory changes could improve dealership valuations, especially in California and CARB states.
  • Lower interest rates under Trump could simplify financing for buyers and boost car sales.
  • “It’s going to be the Roaring ’20s,” said Stuart McCallum of Withum.
  • “Trump is certainly bullish on business... I think the M&A market in the dealership world will follow suit,” said Mike Sims of Pinnacle Mergers & Acquisitions.
  • “Should California’s strict requirements get overturned... I would expect a significant increase in buyer demand,” said Erin Kerrigan of Kerrigan Advisors.

• Rivian has locked in a $6.6 billion DOE loan to resume construction of its delayed Georgia factory, aiming to expand its EV production capacity and create jobs.
  • Rivian originally announced the $5 billion factory in 2021, aiming for 400,000 vehicles annually by 2024.
  • Faced with a cash crunch, construction paused, and plans shifted to build its R2 SUV in Illinois, saving $2.25 billion.
  • The Georgia factory, now slated for 2028, will employ 7,500 by 2030, supported by a $1.5 billion incentives package from Georgia.
  • The DOE loan aligns with federal efforts backing EV infrastructure, such as Ford’s $9.2 billion for battery plants.
  • "This federal support enables us to lay the groundwork for long-term growth," Rivian stated.

• Thanksgiving dinner costs have dropped slightly this year, but they remain significantly higher than pre-pandemic levels, according to the American Farm Bureau Federation.
  • The average dinner for 10 people costs $58.08, a 5% decrease from 2023 but still 19% above pre-pandemic prices.
  • Turkey prices fell 6% to $25.67 for a 16-pound bird, thanks to lower demand despite a smaller turkey flock due to the avian flu.
  • Other items like milk (-14%), peas (-8%), and celery (-6.4%) saw price drops, but stuffing (+8%) and cranberries (+12%) rose.
  • Regional price disparities exist, with the South offering the cheapest dinners at $56.81 and the West the highest at $67.81.

Hosts: Paul J Daly and Kyle Mountsier

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