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It’s full speed ahead this Monday as we hit the ground running on some lingering items from last week and take a fresh look at what’s happening with Automotive, retail, consumer demand, and preview what’s in store this week as we move toward closing out June with massive momentum. 

• Catch up stories from last week:
  • Carlotz closes 11 stores (50%) and reduces workforce by 25-30%
    • Consignment model, went public in 2021 (share price 11.49 to .46)
    • May release facilities to ‘interested parties’
  • New Tesla Factories are ’gigantic money furnaces’ - Musk
    • Producing a ‘puny’ amount of vehicles compared to what they could if supply lines were freed up
• High gas prices aren’t swaying owners and buyers toward smaller cars
  • In 2008 gas was over $4 and there was an exodus to smaller, more fuel efficient vehicles
  • In some segments, there has been an almost 50% increase in fuel efficiency, like the 2022 4WD F150 that has 21 mpg combined
  • Only 17% of SUV owners say they want to downsize
  • It’s all about supply. Very few sedans even being made comparatively to 2008
  • EV sales are substantially up over 2008, but that is also due to availability
  • Take Away: You can’t change your new car inventory, but you can make some lifestyle marketing cues from this data

• Vehicle subscription options making a comeback because of EV hesitancy
  • EV leasing company, Autonomy, offers as little as 3 month subscription for Tesla Model 3 with flex payment options between 1k down and 1k mo and 4,900 down, $490/mo
  • Capitalizes on ‘try before you buy’ value prop
  • All fees and insurance included, doesn’t show up on your credit report
  • Take Away: Find a pain point, and work to solve for it. 

• Several retailers (Target, Walmart, Gap, American Eagle) consider  the ‘returnless return’
  • With shipping, and logistical cost at all time highs, it’s sometimes cheaper to have consumers ‘keep it’
  • Net margins 1-5%. Return handling costs can be 15-30%
  • Some companies already have a glut of inventory from many spring clothing items
  • The downside can be extensive fraud
  • Take Away:  Creative solutions often require us to let go of the way it has always been done

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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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