Monday News

Like a pocket that jingles when you walk, the U.S. automotive market is full of change. Some of these changes will happen way upstream of the Dealer-to-Community relationship, but some will be in your showroom before you know it.

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Kia Surging and Settling

Kia's January 2024 performance highlights a surging demand for electric vehicles, led by significant sales growth globally and a strong U.S. market presence. Here are the key takeaways:

• Global sales up by 4.2% (244,940 units)
• EV sales jumped 48% globally and 57% in the U.S.
• E-GMP-based models (EV6, EV9, EV5) drive growth, with shipments doubling
• Significant opportunity for U.S. auto dealers

Oh also... The Kia class action settlement addresses theft risks with reimbursements and software upgrades, impacting insurance rates and customer satisfaction. Dealers must balance transparency and trust, guiding vehicle security.

Lucid Listening

Lucid says it wants to listen to its customers more and rely on Saudi backer money less. The luxury EV maker says the 2024 Air, with more focus on battery tech and new models, will aid it on the path away from going broke or leaning too heavily on its current backers for fundraising.

Rivian's Big Reveal

Rivian Automotive's strategic pause in constructing its Georgia plant is a critical pivot in its business model, focusing on cost efficiency and accelerated production. Here's a quick snapshot:

• Rivian Automotive pauses its $5 billion Georgia plant construction to enhance production efficiency and reduce costs.
• The production of the R2 SUV is being shifted to the existing facility in Normal, Illinois to save about $2.25 billion in capital expenditures.
• Following the announcement, Rivian's stock experienced a 13% increase, indicating investor approval of the company's strategic adjustments.
• Despite slow EV sales in the U.S., Rivian is dedicated to broadening its product range with the introduction of models R2, R3, and R3X.
• This strategic shift challenges Georgia's ambition to become a key player in the EV industry amidst other manufacturers' regional expansion efforts.

China's Cuts and Challenges

In China, the slowdown in EV sales growth amidst intensifying competition and price cuts by leading automakers such as BYD signals a highly competitive market landscape. This dynamic, coupled with the impact of exports as a growth engine, offers valuable insights for U.S. auto dealers monitoring global trends and preparing for consumer preferences and pricing strategy shifts.

GM and Stellantis Buddy Buckles

Lastly, the bankruptcy of Charge Enterprises, a key charging station partner for major automakers including Stellantis and GM, highlights the financial challenges within the EV infrastructure sector. This development underscores the importance of robust and reliable EV charging solutions for dealerships aiming to support the growing number of EV owners.

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That's Monday. Funny how just Friday we reported Rivian's big plans for Georgia and by breakfast they had flipped the script. Tune in tomorrow to see who changes what and why.