DEALERS
IADA Challenges Direct-To-Consumer Ruling
A decision in December 2022 gave the luxury EV brand Lucid and Rivian permission to begin direct-to-consumer sales in Illinois.
The judge ruled based on a 2017 deal allowing Tesla to operate its dealer network, which was updated in 2019 to specifically say the brand could operate up to 13 dealerships within the state. Later in 2020, a state lawmaker said OEMs were under no obligation to set up a network of franchise dealers.
OK, so, zooming up to today. Illinois Auto Dealer Association executive director Joe McMahon says the Tesla deal and the IADA's approval was a one-time thing and should not be used to make ongoing decisions. He said the IADA's stance is that the law is clear; you cannot be a manufacturer and a dealer in the state.
In a filing in Chicago last Friday, the group states that the ruling violates the law and should be reversed.
Telling it like it is - Sometimes it seems like a disagreement stems from interpretations of a law… this one just seems to stem from a judge outright ignoring a law. Judges can’t do that, right? We thought it was illegal.
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AUTOMOTIVE
Ford And VW Drift Apart
Ford is developing an EV platform to carry its EVs into the next era. The in-house platform will be the brand's current use of VW's MEB platform- which was used in the F-150 Lightning and Mustang Mach-E.
This will bring Ford and VW's EV partnership to an end after just a few fruitful years.
VW does not seem too worried. They are working toward expanding high-end and low-end offers in China. Volkswagen has dominated the ICE market in the nation for some time but is not keeping up with domestic EV makers like BYD, who sold 40K EVs in China last year compared to VW's nearly 2K.
Telling it like it is - Breaks-ups are never easy. To get your mind off it try taking up a new hobby, watching your favorite movies, reinventing your electric vehicle platform from scratch, increasing your aggression in the biggest auto market in the world, or call your mom.
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TOGETHER WITH STELLA
The Perfect Receptionist
"A chain is only as strong as its weakest link" may be a cliche, but that doesn't make it less accurate.
Data shows in a dealership: the phone is the weakest link.
- 32% of calls are missed.
- Extended hold times lower customer review scores.
- Associates spend hours answering simple questions instead of serving in-store customers or making outbound calls.
The STELLA platform is the perfect receptionist. STELLA helps dealers reclaim hours by handling simple calls 24/7/365 and passing essential questions to associates.
Enjoy a drink with STELLA at NADA booth 6047 and delight your associates and customers with the perfect receptionist!
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QUICK HITS
- Teachers take to in-class first draft writing to combat rise in AI “cheating.”
- New podcast creation rate is down 80% since 2020.
- Pension reform strikes in France halt most train and some air travel.
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AROUND THE ASOTU-VERSE
Pitchtank on LinkedIn
Join us today for the most informative 30 minutes in automotive! Three companies get three minutes each to tell our panel of industry leaders about their product. Contestants receive a score for their pitch and product, but it is the audience who really wins. 😉
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AUTOMOTIVE
Chevy’s E-Ray
Chevy's Corvette E-Ray is the first hybrid version of the iconic sports car. The $104K will go on sale in 2024 and feature AWD for the first time in Corvette's 8 generations.
A 12-volt battery powers a 160hp motor on the front wheels while a 495hp V8 will power the back wheels, like in past Corvettes.
The result is a 2.5 second 0-60, AKA the quickest Vette ever.
Stealth Mode will allow the car to use only the electric motor, sacrificing the V8 rumble and noise that many fans adore.
Telling it like it is - It’s the perfect Corvette to loan a teenage driver… just siphon out the gas first.
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AUTOMOTIVE
Making Movies, Keeping Up, and Starting The Price Cut Cascade
ACTION! A video used to promote Tesla's self-driving tech was staged. Testimony by a senior engineer regarding a 2016 video showing the tech's ability to stop at a red light or accelerate at a green light was made before the system could actually do such things.
It is the first confirmation by a Tesla employee that the test drive was staged. They used 3D mapping to set a predetermined route and had a driver intervene during the test runs, despite a caption that the driver was there for legal reasons only.
Get in line. Following price cuts around the globe, Tesla is seeing "unprecedented demand" in the US and a surge in retail sales in China.
The company says the cuts were due to inflation, while many experts say the company needed price cuts to create demand.
Ripples. The price cuts also signal a shift in the EV market. The price cuts qualify many Teslas for US EV tax credits, and some analysts say they could be the first shot in a coming price war.
It is unknown how other EV makers will respond as material sourcing and the supply chain limit OEM production ability.
TL: DR - Tesla staged a self-driving video they tried to pass as real back in 2016, their price cuts are working, and it is likely other EV makers will follow in what has been referred to as a “price cut war.” We know it as “business as normal when OEMs have inventory to move.”
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