Used Cars Driving Inflation Down, VinFast Dealer Advisors, Rivian’s Future Plans

07/23/24 • 13 min

Today is Tuesday! Things are happening in the auto industry, like how lower used car prices are driving down inflation, VinFast is forming a US dealer advisory board and Rivian is pressing ahead on future plans.

Show Notes with links

Used car prices have plummeted over the past year, reaching their lowest level since 2021, and are now the leading category reducing inflation, according to CoPilot’s analysis of CPI data.
- Cox Automotive reports that the average list price for a used vehicle is now $25,251, down 7% from last year and the lowest since summer 2021.
- The June CPI report shows a 10.1% drop in used vehicle prices over the past year, with a 1.5% decline in the last month alone.
- The previous surge in used car prices was driven by a supply crunch in new vehicles.
- CoPilot CEO Pat Ryan explains that the supply of new vehicles has increased by about 50% since July 2023, easing pressure on the used market.
- “Consumers have finally found themselves with more options to buy new, rather than used,” Ryan noted.
EV manufacturer VinFast is strengthening its presence in the U.S. by forming a Dealer Advisory Board to navigate the American market.
- VinFast aims to expand its U.S. dealership network with strategic advisory board members including David Coyle of Leith VinFast in NC, Damian Mills of VinFast Triad in NC, David Sansing, Elie Hanna, Bill Auffenberg
- VinFast has received 70 applications from dealers and plans to establish 125 third-party sales points by the end of 2024.
- David Coyle, Dealer Principal of Leith VinFast commented “This board represents a great opportunity for open communication and collaboration, ensuring VinFast remains at the forefront of the EV market.”
Rivian CEO RJ Scaringe recently sat down with the Verge to cover the EV maker’s future plans, why every EV looks like a Tesla, and the joint venture with VW.
- Rivian announced five new models this year: R2, R3, R3X, and updated versions of R1T and R1S. The R2 is set to launch in 2026 and already has 100K pre-orders.
- Scaringe believes that the slowdown in EV growth is not due to a lack of demand but rather a lack of variety in available models. He believes there is significant latent demand for EVs that meet diverse consumer needs. “Because of the Model Y’s success, you have a lot of incumbents that have built products that look and feel and are shaped a lot like a Model Y.”
- The $5 billion joint venture with VW focuses on co-developing Rivian's streamlined electronic architecture, which reduces the number of ECUs (electrical control units) in vehicles, simplifying software updates and cost efficiency. VW aims to leverage Rivian’s advanced technology across its brands, including Porsche, Audi, and Bentley.
- Rivian also just launched an EV Charging Outpost

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Show Notes with links

Used car prices have plummeted over the past year, reaching their lowest level since 2021, and are now the leading category reducing inflation, according to CoPilot’s analysis of CPI data.
- Cox Automotive reports that the average list price for a used vehicle is now $25,251, down 7% from last year and the lowest since summer 2021.
- The June CPI report shows a 10.1% drop in used vehicle prices over the past year, with a 1.5% decline in the last month alone.
- The previous surge in used car prices was driven by a supply crunch in new vehicles.
- CoPilot CEO Pat Ryan explains that the supply of new vehicles has increased by about 50% since July 2023, easing pressure on the used market.
- “Consumers have finally found themselves with more options to buy new, rather than used,” Ryan noted.
EV manufacturer VinFast is strengthening its presence in the U.S. by forming a Dealer Advisory Board to navigate the American market.
- VinFast aims to expand its U.S. dealership network with strategic advisory board members including David Coyle of Leith VinFast in NC, Damian Mills of VinFast Triad in NC, David Sansing, Elie Hanna, Bill Auffenberg
- VinFast has received 70 applications from dealers and plans to establish 125 third-party sales points by the end of 2024.
- David Coyle, Dealer Principal of Leith VinFast commented “This board represents a great opportunity for open communication and collaboration, ensuring VinFast remains at the forefront of the EV market.”
Rivian CEO RJ Scaringe recently sat down with the Verge to cover the EV maker’s future plans, why every EV looks like a Tesla, and the joint venture with VW.
- Rivian announced five new models this year: R2, R3, R3X, and updated versions of R1T and R1S. The R2 is set to launch in 2026 and already has 100K pre-orders.
- Scaringe believes that the slowdown in EV growth is not due to a lack of demand but rather a lack of variety in available models. He believes there is significant latent demand for EVs that meet diverse consumer needs. “Because of the Model Y’s success, you have a lot of incumbents that have built products that look and feel and are shaped a lot like a Model Y.”
- The $5 billion joint venture with VW focuses on co-developing Rivian's streamlined electronic architecture, which reduces the number of ECUs (electrical control units) in vehicles, simplifying software updates and cost efficiency. VW aims to leverage Rivian’s advanced technology across its brands, including Porsche, Audi, and Bentley.
- Rivian also just launched an EV Charging Outpost

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Previous Episode

GM Pushes Ahead on EVs, BP’s EV Chargers, What is Luxury?

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It’s Monday and that means we GET to work in automotive retail. Today we’re talking about GM’s adjusted EV plans, BP’s investment into EV charging and what it means to be “luxury.”

Show Notes with links

General Motors is gearing up to launch a series of new electric vehicles across its Chevrolet, GMC, and Cadillac brands this year, aiming to capture a broader market despite current sales challenges.
- Although EV sales growth has slowed due to high prices and charging concerns, GM still aims for zero-emission light-duty vehicles by 2035.
- GM has already cut EV production targets by up to 50,000 units this year.
- The Chevrolet Equinox EV is expected in all trims this year, and is set to be GM's most affordable electric vehicle. MSRP will start at around $35,000, including shipping before the $7,500 federal tax credit.
- Looking ahead, GM will introduce the new-look Chevy Bolt in 2025 and plug-in hybrids in 2027.
- GM’s Mary Barra said "I think we all know that the growth of EVs has slowed. We never expected it to be linear."
BP is partnering with Simon Property Group to install 900 electric vehicle (EV) chargers at various locations as a part of BP’s broader strategy to expand its EV charging network and support the increasing demand for electric vehicles.
- Last year, BP Pulse made plans to invest $1 billion in America's EV infrastructure by the end of the decade.
- BP Pulse has more than 33,900 EV charge points globally, the company said, and plans to have 100,000 points by 2030.
- This initiative supports BP's commitment to advancing sustainable energy solutions and reducing carbon emissions.
  - Mercedes-Benz and Starbucks are also teaming up to install fast electric vehicle chargers at 100 coffee-slinging locations on Interstate 5, which runs along the West Coast from Canada to Mexico.
  - These new stations will be part of the German automaker’s $1 billion plan to build 2,000 new EV charging hubs across the globe.
A recent Morning Consult Intelligence brand tracker study highlights shifting priorities among luxury shoppers, with over 75% saying quality is more important than cost in luxury retail.
- 65% of consumers value exclusive access to products as part of their luxury shopping experience, and 64% believe that high price is an important aspect of luxury.
- Superior customer service is crucial, with 72% citing it as a key expectation and 63% expect personalized shopping services as part of their experience.
- In travel, luxury is defined by comfort; in food and beverages, it's fresh, rare ingredients.
- Most luxury purchases are still made in brick-and-mortar stores, including secondhand items.

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Next Episode

GM Pickup and SUV Record, Tense Tesla Earnings, Cookies To Stay

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We’ve made it to the middle of the week! Today we’re talking about GM’s record pickup and SUV sales in Q2, Tesla’s tough Q2 and how Google is not getting rid of cookies after all.

Show Notes with links

General Motors has raised its 2024 earnings forecast following a strong second quarter, driven by record North American sales of pickups and SUVs.
- CEO Mary Barra emphasized in a letter to shareholders that responsible growth and efficient capital use amid shifting market conditions. "As excited as we are about our portfolio, we are committed to growing responsibly and profitably in any demand environment," Barra said. "Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years. As a result, we are adjusting our spending plans to make sure we're capital-efficient and moving in lockstep with customers."
- Q2 net income rose 14% to $2.9 billion, with global revenue hitting $47.97 billion.
- North American profit surged 39%, setting a new record at $4.4 billion.
- GM adjusted its full-year EBIT guidance to $13-$15 billion, despite lowering net income forecast slightly.
- The company reported increased EV sales but scaled back production targets due to lower-than-expected demand.
Despite slightly better-than-expected revenue, Tesla's Q2 earnings report highlighted declining profits and raised investor concerns, particularly during a tense earnings call with CEO Elon Musk.
- In Q2, Tesla's net income dropped 45% to $1.5 billion, down from $2.7 billion the previous year, while revenue rose to $25.5 billion, exceeding analyst estimates of $24.8 billion.
- The company also experienced a 4.8% decline in global deliveries to 443,956 vehicles, following an 8.5% decline in the first quarter.
- Musk had a elevated Q&A session as he was asked a variety of questions, most of which received short, blunt answers
  - When asked about diverting GPUs from Tesla to xAi, Musk by stating that the news was based on an "old article." as he assured that the diversion of GPUs to xAI was "in Tesla's interest," not detrimental to the company
Google no longer intends to remove third-party cookies from Chrome, a major shift from its 2020 announcement. The company will retain third-party cookies, focusing on enhancing user choice instead.
- Cookies are an important part of the $180 billion ad-tech industry, allowing advertisers to track users and target ads effectively.
- The original cookie deprecation date was in 2022, and has been pushed several times by Google since then.
- Google's alternative, Privacy Sandbox, aimed to preserve ad mechanisms while protecting privacy but had a rocky rollout.
- Early reports indicated significant revenue losses (up to 60%) for publishers without cookies, though

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Automotive State of The Union - Used Cars Driving Inflation Down, VinFast Dealer Advisors, Rivian’s Future Plans

Transcript

Unknown00:00:00.000

Unknown00:00:13.169

It is Tuesday, July

Paul J Daly00:00:14.369

23. Is this Are we officially in the dog days of summer right now? I kind of feel like this is the dog days of summer. Today we're talking about inflation and vinfast. Having a dealer Advisory Council, check on our friend RJ to see what reviens plans are, overall speaking drove up from the bottom of the barrel. Everythi