Costco Goes EV, REALLY Deep Employee Discount, Big Check For Auto Students

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It’s a fresh week and we’re talking about GM's strategy with Costco to boost EV sales, Fisker's aggressive move to sell the Ocean to employees at a discount, and Reynolds and Reynolds' $5 million donation to Northwood University for a new automotive studies center.

Show Notes with links:

• General Motors is using its partnership with Costco to increase sales of its electric vehicles (EVs).
  • GM is promoting EVs like the Chevrolet Equinox and Blazer through the Costco Auto Program.
  • The partnership leverages Costco’s 50 million U.S. members with special pricing and discounts.
  • Costco Auto acts as a facilitator, offering haggle-free pricing via franchised dealers.
  • Members can get a $1,000 incentive on select GM EVs through July.
  • Costco's affluent and loyal customer base, typically aged 42-59 with higher-than-average incomes, aligns well with EV buyer demographics.
  • "Our membership has always liked new things, and EVs are absolutely new to the marketplace," said Jay Maxwell, Costco Auto Program general manager.
• In a new effort to sell some of their EVs, Fisker is selling its Ocean crossover to employees at a steep discount amid financial struggles and low sales.
  • The Ocean is available in three trims: Extreme, Ultra, and Sport; only the latter two are offered to employees.
  • The entry-level Ocean Sport for retail customers now starts at $24,999, down from $61,499.
  • However, employees can buy the Ocean Extreme and Ultra for $20,000 plus additional fees.
  • Fisker sold only 4,700 of the 10,142 units produced in 2023, far below its target.
  • "We are beyond excited to help you join the Fisker Ocean Family," read the company's email to employees, despite the company's financial woes.
    
    
• Reynolds and Reynolds has pledged $5 million to Northwood University to support the new Center for Automotive & Mobility Studies.
  • The donation will fund the construction of state-of-the-art facilities, including classrooms and a conference center.
  • The new center will replace the NADA Hotel and Conference Center on Northwood’s campus in Midland, Michigan.
  • An advisory council of automotive industry leaders will guide the center's governance.
  • Reynolds and Northwood are partnering on a talent recruitment program for Northwood graduates.
  • "Their support will significantly elevate Northwood's top-tier automotive education programs," said Northwood University President Kent MacDonald.

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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