Several automakers are trying to convince first-time buyers to return to showrooms, Elon Musk testified that he truly believes he can take Tesla private in 2018 with some help and Audi took Nio to court and won. All that and more in Morning shift for January 24, 2023.
First gear: ‘Nomad sustaining challenge’
Obviously there’s a name for people who buy cars from one brand, but don’t buy their next car from that same brand. Analysts call them “nomads”. I would have assumed that half to the majority of shoppers operate this way, but that is clearly not the expectation in the industry. Nissan really believes they have a chance to keep you in the family for life just because you’ve earned a decent lease on a kick once. Go picture.
Either way, the data from S&P Global claims to show which brands are failing the most in the “nomadic retention challenge” and which are succeeding at it. The answers are actually a bit surprising, at least in the former category. polite auto news:
Dodge, Ram, Audi, Mazda, GMC, Volkswagen, Acura and Mercedes-Benz are all facing “the nomadic retention challenge” in the US, a report from S&P Global Mobility shows.
This means that these eight brands face the challenge of keeping their conquered customers [new customers not previously within a brand’s base] From being “one and done” to moving elsewhere after one purchase, the research firm says.
These brands are one of three major groups identified in S&P Global’s analysis of their ability to retain and leave so-called nomadic customers with unidentifiable patterns of loyalty.
On the other side of this challenge are Tesla, Subaru, Jeep, Kia, Hyundai and BMW – brands with a high percentage of nomads returning to the market and higher retention rates. Tesla stands out here, with a first-time owner rate of 83% and the lowest one-time ownership rate of all brands measured at 39%.
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As you might figure, S&P has a profile for the prototypical nomad: they apparently have a high disposable income, live in the suburbs, and have a predisposition to “chase the latest trendy product.”
“Conquest loyalty” (sheesh, this marketing lingo) appears to be a growing concern for most automakers, as data collected last July found that 58 percent of nomads chose to leave their previous brand with their latest car purchase in the preceding 12 months. Regardless, you do have to wonder why precisely Mercedes-Benz and Audi are struggling with this issue, while BMW apparently isn’t.
Every few weeks I get another notice from the dealer where I bought my Fiesta ST five years ago that my hot hatch is very much in demand, but unless Ford suddenly decides to resurrect all of its compact passenger cars from the dead, the chances of them getting this one back ain’t high.
2nd Gear: Elon Really Thought He Could Do It
The Tesla CEO took the stand a second time on Monday to defends that infamous 2018 tweet “sponsor guarantee”, says he believes he has backing from Saudi Arabia’s sovereign wealth fund and as well as his stake in SpaceX that will help him take the electric car maker private. polite Reuters:
At a trial in San Francisco federal court, the billionaire, who said he was tired from lack of sleep, spoke softly and calmly for about five hours of testimony.
“Just with the shares of SpaceX, I feel funding is secured” for the acquisition, he told the jury, referring to the aerospace company where he is also CEO, without giving any details.
But Nicholas Porritt, an attorney for the plaintiffs’ investors, cast doubt on whether he was looking to use SpaceX shares to fund the deal, which would raise the stakes. his in Tesla. Porritt pointed out that at the time, Musk told Tesla employees that he expected his stake in Tesla to stay the same after the deal.
Musk also recounted his fateful meeting with Saudi officials:
Musk told Porritt that he met on July 31, 2018 with representatives of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, at Tesla’s factory in Fremont, California.
He acknowledged that the acquisition price was not discussed, but said Saudi representatives had made it clear that they would do what was necessary for the acquisition to take place.
Musk said that never materialized because the fund’s governor, Yasir Al-Rumayyan, later withdrew his pledge to take Tesla private.
“I’m upset because he used to be in favor of privatizing Tesla when we met and now he seems to be backing down,” Musk testified.
That testimony appears to contradict the meeting minutes admitted in court as evidence, which suggests that Al-Rumayyan was not “clearly supportive” as Musk had said, but requested more information. from CEO. Today, Musk will stand up again; let’s hope the opposing attorney pushes him further on the “cultural importance of cannabis” of the proposed $420 stock price.
Device 3: Job cuts for Ford of Europe
In yesterday morning shift we discussed Ford’s plans to cut at least 1,000 employees from its European business, mainly at its Cologne, Germany facility formerly known for building the Fiesta. Today we have a little more insight thanks to the country’s IG Metall alliance, and it turns out that the real number could be more like 3,700 jobs. The words Reuters:
IG Metall said the company wants to cut up to 2,500 jobs in product development and up to 700 jobs in administrative roles, with locations in Germany the most affected.
Workers at the US carmaker’s Cologne plant, which employs about 14,000 people – including 3,800 at a development center in the Merkenich region – were briefed on the plans at meetings by the works council on Monday.
A spokesman for Ford in Germany declined to comment, referring to a statement on Friday in which the company said the shift to electric vehicle (EV) production would require structural changes and it would say nothing. add until the plan is complete.
Ford doesn’t expect a specific number until spring. Manufacturer used a total of about 45,000 in Europe.
Gear 4: Nio ordered to lose the letter ‘S’
Audi and Nio have been embroiled in a dispute over vehicle names since late 2021, with the German carmaker alleging that the Chinese EV startup’s model names, such as the ES6 and ES8, are too similar to those of their own. firm, same but without the “E.” A district court in Munich upheld the Ingolstadt-based brand, according to car. Normally, I would call for home advantage, but the basis for the decision is actually quite reasonable. Translated, it reads:
The [court’s] The argument goes on: “The Chamber explained that it was therefore assumed that an insignificant portion of the target group would also see an ‘E’ in the challenged sign and that the only difference would be between the two signs as described in this sign is understood by the senses and considers it only as an indication of the engine type of the vehicle. There is a risk that consumers will assume that the ‘ES 6’ is the ‘S 6’ in the electric version, that the two vehicles come from the same manufacturer. Therefore, there is a risk of mistaken transfer through the link that goes beyond the pure association.
The penalty is a $270,000 fine for Nio and/or possibly six months in prison. jailed the chief executive of the company’s German division. The latter seems pretty steep! Also, Nio cannot advertise relevant cars in the country at the moment. That’s not a big deal as the brand hasn’t started offering ES6 or ES8 there yet and ES7 has been cautiously renamed “EL7” for Europe only. will come.
5th Gear: Volkswagen has a new design director
Overall, Volkswagen cars look a bit boring. No bad, but it’s also easy to miss in traffic. (The Arteon and ID.Buzz getting tickets of course.) It seems VW management will agree that the brand needs something to change, because it has just replaced its current head of design, Josef Kaban, with Andreas Mindt, Bentley’s former. Again, from auto news:
The VW brand’s new CEO, Thomas Schaefer, has been unimpressed by some of the Kaban’s designs, according to sources.
Kaban was asked to change the classic styling of the ID Life concept unveiled at the 2021 IAA Munich auto show for a more modern look. The concept is said to preview the look of VW’s entry-level ID electric car that will debut in 2025.
Schaefer also asked Kaban’s design team to restyle the VW brand’s upcoming Trinity flagship electric vehicle to give it a crossover look instead of a sedan look.
Kaban began his career in 1999 at the VW Group, where he worked for Audi, Bugatti and Skoda.
Kaban is not leaving completely, as he is expected to move elsewhere in the VW Group family. The personnel changes have yet to be officially announced but are expected to take effect from February 1.
Reversed: A boy named Jenson
On this day 23 years ago, Jenson Button, 20, became Britain’s youngest Formula One driver when he signed a multi-year contract with Williams BMW. He was only there for a year, before the team loaned it to Benneton, which became Renault. The words 365 Days of Driving:
“I’m still on cloud nine,” Button said as he was brought to face the media. “The last 45 minutes have been amazing; very difficult to explain because I have never experienced anything like this before.” [Stirling] Moss was full of praise. “It’s a great achievement and I wish him all the best,” he said. “I obviously regret being dropped from the record books as the youngest British F1 driver, but what the hell is this. We’ll have to start calling him ‘The Boy’, as they called me when I first got used to it.
Stirling moss is irreplaceableladies and gentlemen and friends.
Neutral: Nomadic or Loyal?
Let’s be honest: Are you “loyal” to any manufacturer? Ford would have held me back if it hadn’t killed the only things I care about it makes.
