Carmakers Think They’re Recession-Proof

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car manufacturers have decided that they are Going to jump from top to top, Everyone and their moms are investing in semiconductor production, and Winfast officially has a US showroom presence. in all that and more morning shift For Monday, 1 August 2022.

1st Gear: 2008 Never Happened, Car Sales Will Go Up Forever, We’re Never Gonna Die

Depending on who you ask, we are either on the verge of a recession or already a, If you ask automakers, though, they’ll tell you they simply don’t care: Everything is fine, and will last forever, historical evidence be damned. From wall street journal,

Even as consumer spending cools, there’s one place buyers split off at car dealerships.

Auto executives reporting earnings earlier this week showed confidence that not only will demand for cars and trucks remain resilient in the second half of the year, but easing supply-chain disruptions will help power profits in the coming quarters. Will help.

A customer-order backlog, historically low dealership stocks and car buyers paying higher prices for vehicles have led to a string of profitable quarters for most global car companies. The unique dynamism is fueling optimism across the industry that it can better withstand rising economic uncertainty than in previous recessions.

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“Dealers’ inventory hasn’t really changed in about six quarters, even as production has gone up,” said Paul Jacobson, GM’s chief financial officer. “There is a huge pocket of demand which is yet to be met,” he said.

The upbeat tone is unusual for the car business, which is typically one of the first sectors to be hit by any decline in consumer sentiment.

Look, well, okay, recession is right around the corner. but that’s never going to happen We, Man! We are invincible! We sell cars, and who doesn’t love cars? Don’t you worry, everything will be fine. I mean yes we are thousands of jobs cutBut it’s just like precaution, you know? Don’t sweat it, it’s all good.

2nd gear: Come on, invest in semiconductor production, all the cool kids are doing it

If we all learned one thing from the pandemic, because we clearly learned nothing about public healthThis is the importance of semiconductors in modern life. For the past two years, it’s been a huge struggle to get your hands on anything with Microchip, and where there’s conflict there’s often profit. From Automotive News,

In response to a catastrophic chip shortage around the world that has taken more than 13 million vehicles out of production since early 2021, chipmakers including Bosch, and governments including the US Congress, are looking to ramp up semiconductor capacity unprecedentedly. The money is promising – not only to address the shortfall but also to meet the huge demand for chips in many regions.

Congress passed a bill last week that would provide more than $52 billion to US companies making chips and provide tax credits for investments in chip manufacturing.

The European Commission is setting up a more than $45 billion investment war chest, similar to the recently passed US bill.

There is a huge amount of funding being done by different companies around the world. More than 90 new wafer fabs or expansions to existing wafer fabs – the industry term for chip manufacturing plants – are expected to come online globally over the next four years, according to semiAn electronics design and manufacturing industry group.

As technology generally advances, investing in semiconductor production is likely to be a very good step for the future. But especially doing this for cars, where the chips are vintage by designCould lead manufacturers to some dead ends.

3rd Gear: Winfast Now Has Stores

Winfast used to make a LS-Powered BMW X5and now makes Electric crossovers that look like Pontiac Trans Ams, If this sounds like a downgrade to you, you haven’t realized how much fun EVs can be — or you’ve forgotten how great a ’77 Trans Am sounded. But if you need a reminder, Winfast now has stores where you can check for yourself. From wall street journal,

Vietnam’s Winggroup became a corporate juggler in its home country, operating everything from luxury resorts to hospitals, shopping malls and supermarkets.

Now, it wants to enter the US car market with a little-known electric-vehicle startup called Winfast, which has a new way of pricing its models.

The young Vietnamese carmaker opened its first US showroom in California in July and is moving aggressively to expand its operations in the states, with plans to spend $2 billion to build a new EV factory in North Carolina. also includes.

To fund its growth, Winfast has also filed paperwork with US regulators for an initial public offering to take place this year or later, making it the latest company to rapidly test investor appetite. focused on competitive startups. EV market.

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Winfast is starting with six outlets in California and plans to open another two dozen locations in the state this year, before expanding to other U.S. markets. The sites do not sell vehicles, but instead act as galleries, where shoppers can browse options and work with staff to make reservations online.

The EV company, founded in 2017 in Vietnam, plans to start selling two all-electric sport-utility vehicles in the US: a mid-size SUV, called the VF 8, starting at $40,700 , and a large VF 9, starts at $55,500. , US buyers can place orders now, with the launch expected in late 2022.

Unlike other EV rivals in the US, Winfast has a unique business model in which buyers pay one price for the vehicle, but then lease the battery for a monthly fee. The company offers two battery-subscription plans, which cost from $35 to $160 per month, depending on how much the owner wants to drive, the model purchased, and the type of battery.

The fee includes maintenance of the battery and replacement when the charging capacity is less than 70% of the original capacity.

Buying a car but renting a powertrain is the kind of galaxy-brain business model I’d expect from Elon Musk, but at least WinFast offers full battery replacement—a good balm for anyone who’s ever to replace a Prius battery. pays the price.

4th Gear: Nio’s Expands into European Foothills Manufacturing

China-based Nio sells cars in Norway, and Wants to expand to more parts of Europe, To help with that goal, it is building a plant in Hungary – but not one that will produce cars. From Reuters,

Chinese electric car maker Nio plans to open its first overseas plant in September to make power products for the European market as it accelerates expansion overseas.

Neo said in a statement late Friday that the plant in Pest, Hungary, will develop and manufacture power products such as battery-swapping stations to serve European users.

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The company is partnering with oil giant Shell Plc (SHEL.L) to build battery swapping stations globally, starting with China and Europe this year, according to an NIO statement on Monday. Shell will open its charging network in Europe to Nio users.

Tesla quietly abandoned its much-anticipated battery swap plans years ago, but the Nio appears to be sticking with it. Battery swapping has its pros (speed) and its cons (unknown state of the replacement battery), so it’s good for owners to at least have the option of doing it. Bring it here, we love our long drive.

5th Gear: Get a Load of This Dirt

In the U.S., buying a car often means negotiating with a squiggly dealership, who wants nothing more than to rake you on coal and shell out every penny possible—then turn you over to the service department to do the same thing again. Give. Because of this behavior, the dealership is widely maligned by every living person. But, and listen to them here: What if they had a dumb name? Will this help? From Automotive News,

Van Horn Automotive Group has had a digital retailing presence since before the pandemic began in 2020, with the goal of selling vehicles entirely online to consumers.

The group, with 19 dealerships in Wisconsin and Iowa, initially drew on its established brand name and called its offering Van Horn Direct. But the process fell apart, and it was not possible to complete online purchases entirely, said Adam Gaedke, the group’s vice president of dealership operations.

Van Horn plans to change that with Cloudlot, a digital brand it launched in June for used vehicles. Underpinned by Cox Automotive’s new Esntial Commerce digital retailing tool – co-developed with Penske Automotive Group and white-label for other dealership use – to help ease vehicle selection, financing, delivery and signing online according to CloudLot Dealership Group make capable.

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Other dealership groups are trying a similar approach. Titus-Will Automotive Group launched Carbrizi, which is also a digital sales platform based on Cox’s technology, in March with six franchise stores in Washington state. Last year, Koons of Silver Spring in Maryland transformed its InRide vehicle subscription platform into a standalone used-vehicle acquisition brand with its own dedicated staff and a new website and mobile app in the works.

In some cases, launching a digital brand takes a page out of the playbook of online used vehicle retailers Carvana and Vroom, which have marketed themselves as a convenient and easy alternative to franchise dealerships. Some dealers say they hope a different brand can help them expand into markets outside their home turf or reach customers who may not have previously considered traditional dealerships.

If Your Business Model Is So Bad You Have to Pretend to Be One completely different company To Equal Buyers Only Consider Your crap victim, maybe the brand name isn’t the issue. Maybe it’s the customer experience, horrible websites, reckless (or actively colluding) sales teams, F&I rigmarole, lack of product knowledge, or the lobbying that drives car buyers to go through all those things. But, no, I’m sure putting a cloud in your name will fix all that.

Reverse: We’re Never Getting The Winds of WinterCan we?

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