Nissan Goes Sub-Invoice, 150 Hybrids Rising, 1st eVTOL Passenger Test

May 10, 2024
Four days away from ASOTU CON we’re talking about Nissan’s move to push Dealers to advertise below invoice. We also talk about the growing percentage of F150 Hybrids being sold, as well as the very first passenger test of an eVTOL in Abu Dhabi.
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Show Notes with links:

As a triple digit days supply grows, Nissan is taking an unprecedented step to clear overflowing inventories by allowing dealers to advertise 2024 vehicles up to 10% below invoice, a first since the pandemic, with the Armada being advertised as low as 15% below.

  • Dealers however, are concerned, feeling the burden of moving the vehicles has been shifted from Nissan to them, as Nisaan pulls back on direct incentives.
  • "Nissan is saying, 'We can't afford to be in the market, so you need to be,' " said one of several retailers interviewed, who requested not to be identified for fear of retaliation from the automaker. "The responsibility has been moved from the factory to us."
  • With high floorplan costs, some dealers welcome the opportunity for more pricing flexibility to increase store traffic and reduce inventory.
  • This aggressive pricing strategy could hurt Nissan's brand value long-term, mirroring problematic practices from the last decade.
  • Many plan to use below-invoice pricing selectively, boosting profitability through finance, insurance deals, and upselling on features.
  • "This move provides more flexibility when warranted," says Nissan spokesperson Brian Brockman, highlighting the company's adaptive strategy to current market conditions.

Ford is significantly increasing its production of hybrid vehicles, with CEO Jim Farley announcing that 20-25% of F-150 pickups are now hybrids.

  • Following a freshening of the F-150 lineup, Ford aims to make the model the nation's top-selling hybrid. Hybrid sales overall have risen 47% in early 2024.
  • Farley emphasized the importance of offering customers a choice between gasoline, hybrid, and electric vehicles, acknowledging slower-than-expected EV adoption.
  • Ford is exploring advanced battery technologies like semisolid-state batteries, promising enhancements in the mid-2020s.
  • Despite postponing some EV investments, Ford remains committed to electrification, with Bill Ford expressing continued enthusiasm for the segment.
  • Further emphasizing their position, CEO Jim Farley said,"Our key strategy as a company is to give customers choice."

eVTOL maker EHang recently made aviation history by completing the world's first passenger-carrying demo flight of its EH216-S eVTOL in Abu Dhabi

  • The EH216-S, the first certified pilotless eVTOL to carry passengers, demonstrated its capabilities in front of distinguished guests, including Emirati royals and civil aviation authorities. He said, "Being part of this historic moment is truly exhilarating," 
  • Mr. Mohamed Al Dhaheri, a board member of EHang's local partner MLG, expressed pride in the achievement, emphasizing the integration of technology and aviation as a leap forward for the UAE.
  • The event also featured other EH216 models designed for firefighting and logistics, highlighting their potential to tackle urban challenges like congestion and emissions.
  • Mr. Huazhi Hu, CEO of EHang, discussed fostering collaboration with aviation authorities to bring commercial eVTOL flights to the UAE, aiming to transform Abu Dhabi into a hub for air mobility.

Paul J Daly: 0:16You all know what's going on in four days. It's a sort of Con. We're packing the vans we're getting ready. But first we're talking about Nissan was talking about.

Kyle Mountsier: 0:25

I can't remember f1 vehicles flying cars. The people really want to know to

Paul J Daly: 0:32

people at any idea when they have no idea what just happened before this podcast, but we're about to head into all things use cars, clubhouse room, you know, a soda con tickets are on sale at ASOTU con.com. We are all day long. We're getting pinged with ticket sales, ticket sales, ticket sales. We just crossed this morning. 200 dealers we sold 202 101. So we're gonna have over 200 dealers there. And there's people are still buying tickets. We've sold more dealer tickets,

Kyle Mountsier: 1:01

oh my God in the last two days, just tickets in general over the last couple of days, and we've done at pace, you know, any day so it sold just like everybody else. We're just waiting around. They're like, hey, we come in. Oh, we gotta go. Oh, you gotta

Paul J Daly: 1:15

get my tickets yet. Yeah. So it's a lot of fun. Our team is ready. We're ready to create a very special special experience. I was working on our panel yesterday with the the daily family counselor therapist, we're going to do a parenting session. We have graphs and charts and he blew my mind yesterday. Again, I was like, Oh, I was like, yeah, I hope you're ready to take this show on the road because people can't get back to this stuff. Yeah, we have to talk about some news. Don't wait. Let's do it.

Kyle Mountsier: 1:42

Let's talk about some news. Here

Paul J Daly: 1:43

we go. All right. So this is going to be a fun one. As triple digit day supplies grow for Nissan, they're taking an unprecedented step to clear overflowing inventories by allowing dealers get this to advertise 2024 vehicles up to 10% below invoice. And actually, if it's an armada, it can be up to 15% below invoice. Dealers, however, are concerned feeling the burden of moving these vehicles has now been shifted from Nissan to them as Nissan's pulling back on direct incentives. Here's a quote from that's the one that's the right one. Everybody quoted in this automotive news article. It's anonymous for fear of retribution. Here's all anonymous Oh my goodness. Here's one quote from a dealer. Nissan is saying we can't afford to be in the market. So you need to be said one dealer. Also somebody else saying the responsibilities moved from the factory to us. Obviously, floorplan costs are high. Now with this big day supply. And people are worried this aggressive pricing strategy could hurt Nissan's brand value long term mirroring pretty much what happened before the pandemic. Nissan however, says this move provides more flexibility when warranted.

Unknown: 2:54

So wow, I think this is

Paul J Daly: 2:57

a few Nissan dealers out of so to kind of talk about this

Kyle Mountsier: 2:59

point, I don't remember actually ever seeing Nissan say yep, it's okay to advertise below invoice in the last seven years. Like, we could do that back in 2011 1213. When like map pricing wasn't a thing. You know, it's kind of a it's kind of the opposite version of the stairstep money of Nissan in the past, right? They used to kind of go all in on the stairstep or trunk money on the car. But now you can put that thing right up on the website and advertised low. Man, scary thing is a brand to just go yep, all my dealers can basically drop the value of this car by 10 10% in the market below what it used to be.

Paul J Daly: 3:42

Just think of what that's gonna do for residuals that can happen it's like the same thing is like the Tesla effect recently. I don't know it's it's tricky, but I mean, you get triple de supplying.

Kyle Mountsier: 3:51

It's not like we didn't say this wasn't coming two years ago. We knew it was coming. I know we didn't expect it to be this hot. So speaking of something

Paul J Daly: 3:59

that's hot. We could have seen this one coming. I like to see it. This is a good news Ford significantly increasing its production of hybrid vehicles. Let's go with Jim Farley announcing that 20 to 25% of all f150 pickups are now hybrids. Following of the freshening up of the F 150 lineup. They're trying to make the model the nation's top selling hybrid not truck top selling hybrid. There's their hybrid sales overall have risen 47% in 2024. Farley emphasize the importance of giving customers a choice between gasoline hybrid or fully v this just sounds so familiar. They're obviously developing their battery technology even further and they are still committed to a full or to electrified future. However Farley says our key strategy as a company is to give customers choice. Yeah, there's gonna do consumers gonna do

Kyle Mountsier: 4:58

consumers gonna do what consumers want Do OEM is going to do what OEM is going to do and someone needs to make a compilation video of all the CEOs from and their trend in vocalization of key strategies over the last 24 months. You know, everybody gets like a pass now, everyone gets a pass. It's okay.

Paul J Daly: 5:23

Speaking of it's okay, they went okay, thank goodness. Thank goodness this one. Okay. Evie

Kyle Mountsier: 5:30

toymaker EHang recently made aviation history by completing the world's first passenger carrying demo flight of its eh 216 s Evie tall in Abu Dhabi. The electric vehicle takeoff and landing. Electric Vehicle takeoff and landing vehicle was the first certified pilotless evtol To carry passengers and in demonstrated his capabilities in front of him bunch in front of a bunch of just people with some money we'll call it we'll call people the dollar people with the dollar the guy his name is Mr. Mohammed Agha Hari. He's a board member of EA hangs local partner MLG expect Express pride in the achievement emphasizing the integration of technology and aviation as a leap forward for the UAE so big big crazy thing if you go look at it you got to click into this article or find it it's on electrified news look don't get caught within a centimeter of that thing with those blow

Paul J Daly: 6:40

those blades because oh no no no. Yeah, it's not like a helicopter where they're like 10 feet in the air. These are like midsection their midsection level let's call it that. But the show you see picture like a drone like you picture them like little camera drones but with a little cockpit in the middle and a guy sitting in there looking out the window giving you the peace sign of the thumbs up. Also, I think important this thing doesn't have a pilot know it's autopilot. It's fully autonomous so

Kyle Mountsier: 7:10

you're trying to skip right past the pilot part. We're just gonna do this all the way. I feel like

Paul J Daly: 7:15

solving autonomy in this vehicle is so much easier than solving autonomy in the Tesla, right?

Kyle Mountsier: 7:23

Plane there's nothing around the autonomous anyway, it goes

Paul J Daly: 7:25

up. Yeah, that's true. That's true. It goes up it balances itself we know that technology works really well because of what we're doing with like camera drones and things like that. They also had a few other versions they're like a like a firefighting one which is cool. Yeah, it's got like, you know, a fire suppression pack on it and it's got this long one.

Kyle Mountsier: 7:43

It's like how do we get to the fire quickest we just take off rollout it's coming. That's

Paul J Daly: 7:50

1020 years from now these things are gonna be in the air carry and people just fly no doubt, no doubt. But look, this is a quick shot show because we got to pack a van. We got to print stuff we got to make sure stuffs in order. We got to check on food and beverage because we will be ready for you next week at ASOTU CON, go to a soda calm.com You can still get some tickets.

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