13 min
Insurance Rises, F-150 Lightning Drops, Pentagon Goes Solar The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier
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- Business
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Welcome to a fresh week in retail auto as we talk about the reason for rising auto insurance rates. We also talk about Ford’s more balanced EV strategy shift, as well as the big solar project underway at the Pentagon.
Show Notes with links:
In 2023, the auto insurance industry faced a wave of soaring rates, with the 10 largest insurers in the U.S. implementing double-digit increases, shaking up the market.This trend is attributed to rising claim frequencies and severities, including more severe crashes, litigated claims, and losses from weather and theft.Farmers Insurance led the charge with a 17.6% average rate increase across 43 states, reflecting a broader trend among top U.S. auto insurers.Notably, American Family and USAA followed closely, hiking their rates by 17.5% and 16.9% respectively, while other major players like Nationwide and State Farm also crossed the 16% threshold.The duo of GEICO and Allstate, despite being among the biggest rate raisers in 2022, ended 2023 with comparatively lower increases.Nevada experienced the highest increase at 28.3%, while states like Hawaii, North Carolina, and Colorado saw more modest rises under 5%.
Ford Motor Company announced an adjustment to its EV strategy, scaling back F-150 Lightning production due to decreasing demand, while simultaneously ramping up its focus on Bronco and Ranger models.On Friday, Ford announced a reduction in F-150 Lightning production, affecting 1,400 workers, with a shift from two to one at the Rouge Electric Vehicle Center from April.The company plans to reallocate 700 of these workers to its Michigan Assembly Plant, which is increasing production of the Bronco and Ranger models.Despite the shift, Ford sold over 24,100 F-150 Lightnings in 2023, marking a significant increase from the previous year.Ford's restructuring is part of a broader strategy to balance its vehicle lineup, including gas-powered, hybrid, and electric models for optimized financial returns.“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability," said Ford CEO Jim Farley in a statement
The U.S. Department of Defense is set to install rooftop solar panels and a heat-recovery heat pump system at the Pentagon, targeting a drastic cut in fossil fuel dependence.These installations are expected to cover over 95% of the space and hot water heating needs, previously fueled by natural gas and oil.With over 6.6 million square feet of space, the Pentagon aims for net zero, projecting annual energy savings of over $1.36 million.Avg commercial bldg costs 22.5 kw/h per sf. Avg cost .23 per sf. Pentagon is 6.6m sf. 148,500,000 kw/h = 34,155,000 1.36M = 3.9%Hosts: 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.
Welcome to a fresh week in retail auto as we talk about the reason for rising auto insurance rates. We also talk about Ford’s more balanced EV strategy shift, as well as the big solar project underway at the Pentagon.
Show Notes with links:
In 2023, the auto insurance industry faced a wave of soaring rates, with the 10 largest insurers in the U.S. implementing double-digit increases, shaking up the market.This trend is attributed to rising claim frequencies and severities, including more severe crashes, litigated claims, and losses from weather and theft.Farmers Insurance led the charge with a 17.6% average rate increase across 43 states, reflecting a broader trend among top U.S. auto insurers.Notably, American Family and USAA followed closely, hiking their rates by 17.5% and 16.9% respectively, while other major players like Nationwide and State Farm also crossed the 16% threshold.The duo of GEICO and Allstate, despite being among the biggest rate raisers in 2022, ended 2023 with comparatively lower increases.Nevada experienced the highest increase at 28.3%, while states like Hawaii, North Carolina, and Colorado saw more modest rises under 5%.
Ford Motor Company announced an adjustment to its EV strategy, scaling back F-150 Lightning production due to decreasing demand, while simultaneously ramping up its focus on Bronco and Ranger models.On Friday, Ford announced a reduction in F-150 Lightning production, affecting 1,400 workers, with a shift from two to one at the Rouge Electric Vehicle Center from April.The company plans to reallocate 700 of these workers to its Michigan Assembly Plant, which is increasing production of the Bronco and Ranger models.Despite the shift, Ford sold over 24,100 F-150 Lightnings in 2023, marking a significant increase from the previous year.Ford's restructuring is part of a broader strategy to balance its vehicle lineup, including gas-powered, hybrid, and electric models for optimized financial returns.“We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability," said Ford CEO Jim Farley in a statement
The U.S. Department of Defense is set to install rooftop solar panels and a heat-recovery heat pump system at the Pentagon, targeting a drastic cut in fossil fuel dependence.These installations are expected to cover over 95% of the space and hot water heating needs, previously fueled by natural gas and oil.With over 6.6 million square feet of space, the Pentagon aims for net zero, projecting annual energy savings of over $1.36 million.Avg commercial bldg costs 22.5 kw/h per sf. Avg cost .23 per sf. Pentagon is 6.6m sf. 148,500,000 kw/h = 34,155,000 1.36M = 3.9%Hosts: 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
13 min