ASOTU CON Speaker On Fallon, CARS Big Insights, Farley on Ford

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We’re screaming toward the end of another great week in auto as we talk about a great new insights report from our friends at CARS Commerce. We also talk about Jim Farley’s rather direct comments about Ford, as well as an ASOTU CON Speaker who was recently featured on the Jimmy Fallon Show. 

• Our friends at CARS Commerce are leveraging their data to provide a new monthly Industry Insights Report that will pull out key industry and car-shopping data across their platforms. Here are some of the highlights:
  • Shift to a buyer's market: The automotive industry is seeing a potential shift toward a buyer's market as of 2024, driven by a combination of lower prices, a 36% year-over-year increase in new car inventory and vehicles staying on dealer lots for longer periods — ultimately enhancing negotiation leverage for shoppers. 
  • New-car prices dipped again, but total vehicle cost is still elevated: As new-car inventory returns, prices are softening. However, Cars Commerce’s just-launched New Car Pricing Index (NCPI) reveals the total cost to purchase and finance a vehicle is still 32.7% above MSRP.
  • Increased options for budget-conscious consumers: There's a notable uptick in the availability of new vehicles priced under $30K, with a 63% year-over-year increase, indicating a broadening of options within an accessible price range for budget-conscious buyers – however, the market is still below average, down 79% when compared to pre-pandemic Jan. 2019 levels. 
  • Used-car scarcity increasing: Despite a slight decrease in average prices, an 800,000-vehicle drop in availability exacerbates the scarcity of used cars, indicating increased volatility in the market this year and highlighting the need for monitoring lease returns to project future inventory.
  • Growing EV inventory and market adjustments: The EV market is fluctuating, with a 136.7% increase in dealer inventory allowing more consumers to test-drive vehicles previously limited by supply issues, while the used-EV market is experiencing an uptick in demand bolstered by increased supply and lower prices.

During the Wolfe Research Global Auto Conference in New York, Ford CEO Jim Farley announced a strategic shift towards developing smaller, profitable electric vehicles (EVs) amidst a changing market and a new dynamic with the UAW post-strike.

• "It's nonnegotiable that we're going to allocate capital to a new affordable electric vehicle ... and you have to make money in the first 12 months," he said Thursday, recounting the message he gave his team. "And I don't want a bullshit road map. I want, like, a real plan. And if you can't [execute] that plan, we ain't launching the car."

• Around the ASOTU halls, we think it’s a pretty cool thing when the keynote speaker for your big upcoming event, Will Guidara, suddenly appears with his wife on a segment of the Tonight Show with Jimmy Fallon.  

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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