12 min
Are We Level?, Wholesale Stability, Sixt Shifts Gears The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier
-
- Business
Shoot us a Text.
It’s a beautiful new week as we delve into the U.S. auto market's resilience amidst pricing pressures. We also talk about the stabilization of wholesale vehicle prices, and German rental car company Sixt's strategic shift away from Tesla to BYD for its rental fleet.
Show Notes with links:
U.S. auto sales in November rose by about 9%, with significant gains for brands like American Honda, Volvo, and Toyota, amidst ongoing inventory rebuilds. However, analysts caution about the market's future, noting potential impacts of pricing and interest rates, especially as fleet sales decline and car share reaches near-record lows.
"We're going to run a 15.5 SAAR this year, which is pretty freaking healthy... But going into '24, there's no question we're going to have to be more aggressive on our incentive spending to work on that affordability issue." - Andrew Gilleland, Senior VP, Toyota Motor North America.Affordability concerns loom, with expectations of more aggressive incentive spending in 2024 as automakers adapt to shifting market conditions and consumer preferences.The YoY growth: American Honda: +33%, Volvo: +26% Toyota Motor North America: +17% Hyundai: +11% Kia: +3%Ford Motor Co. was the only reporting automaker whose sales declined in November, falling by 0.4%.
After a wild 2023, there may be hope for smoother sailing in 2024 according to some analysts, as the industry adjusts to post-strike market conditions.
Manheim Used Vehicle Value Index reports a 2.1% month-over-month and 5.8% year-over-year decline in wholesale values, suggesting a move towards stability.Cox Automotive senior manager of economic and industry insights Chris Frey noted they predict a 4% year-over-year decline by December 2023, and foresee less volatility in 2024.Significant price drops observed in various vehicle categories, including compact cars (-11.3%) and luxury vehicles (-6.3%), as the market adjusts post-UAW strike.Black Book's Used Vehicle Retention Index also shows a decline, reflecting a correction phase in the used vehicle market, with improved auction conversion rates.
Major German rental car company, Sixt, is saying goodbye to its Tesla fleet, citing high repair costs and plunging residual values, while shifting focus to more sustainable and cost-effective options.
Sixt, announces plans to phase out Tesla EVs from its fleet, deeply impacted by Tesla's price cuts and resulting depreciation.Unlike Hertz, which is cautiously stepping back from EVs, Sixt is keen on expanding its electric fleet, aiming for 90% electric vehicles by decade's end.The company is pivoting to Chinese EVs from BYD, citing lower costs and easier repairs, with a commitment to purchase 100,000 BYD electric cars.Sixt was the first rental car company to ever partner with BYDHosts: Paul J Daly and Kyle Mountsier
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JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
Read our most recent email at: https://www.asotu.com/media/push-back-email
Shoot us a Text.
It’s a beautiful new week as we delve into the U.S. auto market's resilience amidst pricing pressures. We also talk about the stabilization of wholesale vehicle prices, and German rental car company Sixt's strategic shift away from Tesla to BYD for its rental fleet.
Show Notes with links:
U.S. auto sales in November rose by about 9%, with significant gains for brands like American Honda, Volvo, and Toyota, amidst ongoing inventory rebuilds. However, analysts caution about the market's future, noting potential impacts of pricing and interest rates, especially as fleet sales decline and car share reaches near-record lows.
"We're going to run a 15.5 SAAR this year, which is pretty freaking healthy... But going into '24, there's no question we're going to have to be more aggressive on our incentive spending to work on that affordability issue." - Andrew Gilleland, Senior VP, Toyota Motor North America.Affordability concerns loom, with expectations of more aggressive incentive spending in 2024 as automakers adapt to shifting market conditions and consumer preferences.The YoY growth: American Honda: +33%, Volvo: +26% Toyota Motor North America: +17% Hyundai: +11% Kia: +3%Ford Motor Co. was the only reporting automaker whose sales declined in November, falling by 0.4%.
After a wild 2023, there may be hope for smoother sailing in 2024 according to some analysts, as the industry adjusts to post-strike market conditions.
Manheim Used Vehicle Value Index reports a 2.1% month-over-month and 5.8% year-over-year decline in wholesale values, suggesting a move towards stability.Cox Automotive senior manager of economic and industry insights Chris Frey noted they predict a 4% year-over-year decline by December 2023, and foresee less volatility in 2024.Significant price drops observed in various vehicle categories, including compact cars (-11.3%) and luxury vehicles (-6.3%), as the market adjusts post-UAW strike.Black Book's Used Vehicle Retention Index also shows a decline, reflecting a correction phase in the used vehicle market, with improved auction conversion rates.
Major German rental car company, Sixt, is saying goodbye to its Tesla fleet, citing high repair costs and plunging residual values, while shifting focus to more sustainable and cost-effective options.
Sixt, announces plans to phase out Tesla EVs from its fleet, deeply impacted by Tesla's price cuts and resulting depreciation.Unlike Hertz, which is cautiously stepping back from EVs, Sixt is keen on expanding its electric fleet, aiming for 90% electric vehicles by decade's end.The company is pivoting to Chinese EVs from BYD, citing lower costs and easier repairs, with a commitment to purchase 100,000 BYD electric cars.Sixt was the first rental car company to ever partner with BYDHosts: Paul J Daly and Kyle Mountsier
Get the Daily Push Back email at https://www.asotu.com/
JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
Read our most recent email at: https://www.asotu.com/media/push-back-email
12 min