EV Tax Credits, Meet the New Walmart Shopper, GM Goes Luxury

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Welcome to Wednesday as we take a look at Walmarts earnings report which indicates a new type of clientele at its stores. We also cover GM welcoming a luxury brand member to its board, as well as an candid EV review we think every Dealership employee should read. 

• Credits for 70% of previously eligible EV models ended with a stroke of Joe Biden's Pen
  • The Inflation Reduction Act has substantially changed the game for EV tax credits now requiring EVs to be assembled in North America
  • There is a full list of eligible EVs in the AutoNews article here
  • All Toyota, Hyundai, Porsche, Kia EVs are no longer eligible
  • According to the IRS "if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract."
  • GM and Tesla who have burned through their 200k allocated EV credits will again be eligible for the credit on Jan 1
  • Starting in 2024, the credit can transfer credits directly to Dealers at the point of sale
• GM welcomes Lux brand CEO of Tapestry Inc, Joanne Crevoiserat, to its board
  • Tapestry holds brands Coach, Kate Spade and Stuart Weitzman 
  • From her bio on the Tapestry site: Joanne has deep industry, financial, and operations expertise having spent over 30 years in a variety of retail companies. She has held a variety of leadership positions in multi-brand, global companies with a focus on helping organizations successfully transform.
  • From the Tapestry mission: By bringing together different people and ideas under one roof and giving them a place to grow, we stretch what's possible for our brands, our consumers, our industry, and society.
  • Mary Barra commented:  "As we accelerate our transformation, we have an incredible opportunity to drive loyalty for our iconic brands and attract new customers, which is exactly what Joanne has done at Tapestry."
  • From Crevoiserat: "This is an exciting time to join the GM Board. The company is innovating across every part of the business to drive growth. I look forward to serving the Board and GM's shareholders through this transformation."
• Walmart beat sales expectations in its Q2 earnings report as trend of retail consumers trading down continues
  • Sales up 8% with much credit going to higher income individuals shopping for groceries
  • Grocery sales to 100k plus earners grew 75% in the quarter
  • “Trading down” trend is when consumers trade high priced items for cheaper alternatives and has happened before in 2009-2011 and then rebounded when the economy was stronger
  • Other areas we see the trend are with Applebees and iHop as their value proposition is more attractive to those typically splurgi

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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