GM Raises Salaries, Which OEMs Do Dealers Trust Most, Audi ♥s Subscriptions

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Today’s show features that new car smell as we enter the first full week of November. Today we’re talking about GM’s voluntary salary increases, a new Dealer survey revealing their level of trust in OEM’s, as well as another take on on-demand features built into cars.

General Motors (GM) has announced a pay raise and improved benefits for its 43,500 U.S. salaried employees, following a tentative agreement with the United Auto Workers (UAW) union.

• GM's salaried employees will receive an average base pay increase of 3.5% in March 2024.
• The company will enhance its 401(k) match from 4% to 6% and improve certain medical and vision benefits.
• These changes follow a tentative agreement with the UAW, which covers about 46,000 employees and includes significant raises and richer benefits.
• "GM provides competitive compensation and benefits for salaried employees, benchmarked across industries," stated GM spokesperson Kevin Kelly. "Next year, GM will increase base pay and company matching for 401(k) plans, as well as offer enhanced health care benefits."

A Dealer survey by Kerrigan Advisors reveals their trust levels of various OEMs. The annual dealer survey shows a shift in dealers' sentiment towards various car brands, with some expecting an increase and others a decline in franchise values.

• Ford perceived as the least trustworthy brand by nearly half of the dealers, with concerns over its EV/future retailing strategy.
• Toyota emerges as the most trustworthy brand, with 72% of dealers expressing high trust, attributed to its thoughtful EV strategy.
• A majority of dealers remain optimistic about their dealership values, with 52% expecting valuations to remain the same
• Changes in automaker strategies, particularly regarding over-the-air updates and agency models, have dealers divided on future profitability impacts.
• Erin Kerrigan, Managing Director of Kerrigan Advisors, stated, 'Dealers' trust in their manufacturer partners is crucial, especially when evaluating dealership value. Our survey reflects a dynamic shift in the industry, underscored by the strategic realignments towards evolving consumer demands and electric vehicle strategies.'

Despite skepticism, Audi has announced plans to offer more 'on-demand' features in future models, according to a report by Autocar, insisting that the move is customer-driven rather than profit-oriented.

• Audi to introduce an array of 'on-demand' features, controllable via the Audi phone app, in response to purported customer demand.
• Tech lead Oliver Hoffmann emphasizes that the motive is not purely profit-based, but to cater to customer desires for new functionalities.
• Current electronic models already include advanced lighting options and a parking assistant, with undisclosed additional features planned.
• Hoffmann acknowledges the challenges faced by BMW in similar endeavors but predicts such feature

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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