April auto sales stay flat, Ford's AI platform, Hyundai's hybrid plans

Hey everyone. Welcome back to this Wednesday edition of the automotive industry daily roundup. Before we dive in—has anyone else seen the Cybertruck knock-off at the Beijing Auto Show?

X user @TeslaSg shared this photo of the Dong Feng 2024 Concept Pickup Truck:

The Chinese EV market certainly doesn’t waste any time, does it? Tell me what you think in the comments…would you ever buy a Cybertruck “dupe?”

—CDG

1. April sales end without usual tax bump

At a glance: Consumer spending was strong in March, buoyed by tax refund season and wage growth. Yet, durable goods like cars didn’t see the uptick many were expecting, and this appears to have spilled over into April. 

Why?

A very high interest rate environment. So far, in 2024, auto loan rates have moved higher. The average new car loan rate has increased to 9.74%, while the average used car loan rate has held steady at 14.12%. 

New car inventory has risen and driven prices down. But, due to higher interest rates, consumers aren’t seeing much relief to their monthly payments. 

But car buyers can find deals with low annual percentage rates (APR). Manufacturers advertise low-interest car loans through their captive finance companies to spur demand.

In February, less than 3% APR deals gained the highest market share in two years. While this market share declined in March and April, conditions are still favorable relative to the past few years. 

How does this impact sales?

• Estimates from vAuto show that new retail sales were about the same in the last week of April and flat for most of the month. But, they are still up 8% from last year. 
  

• In the used car market, estimated retail sales were soft week-over-week but are also up by 9% from this time last year. 
  

• Wholesale used vehicle prices ended the last week of April down 0.8% week-over-week.

Why it matters: Neither new or used vehicle sales saw the usual tax season bump in the last week of April. And with almost all tax refunds issued, dealerships that overbought used vehicles in anticipation will be left holding the bag.

2. Ford launches AI platform to train dealership staff

Top line: Ford announced on Wednesday it will leverage an AI-driven, streaming service-like platform (think Hulu or Netflix) to train more than 164,000 salespeople, technicians, and service managers at 3,000 of its U.S. stores.

The platform dubbed “Ford University” aims to improve the customer experience, equip personnel with more knowledge to sell products better, and collect more data on franchise operations. 

At launch: 

• There will be videos on electrified vehicles like the F-150 Lightning and Mustang Mach-E, covering basics like EV charging. These videos aim to address the knowledge gaps slowing EV adoption.

• Initially, for sales staff, this program will expand to service and technical teams. The AI tool helps employees hone their skills by offering practice conversations and video analysis.

• It can assess factors like enthusiasm, communication style, and knowledge. Then, it recommends learning content for each employee's strengths and weaknesses.

Of note: With her background as a New York University film student, experience telling stories in Hollywood, and previous roles making similar AI training tools for Amazon Web Services, Vietor joined Ford a year ago to work on the project.

Why it matters: This could be a win-win scenario for Ford dealers and car buyers. If the platform delivers on its promises, salespeople could have a competitive advantage in communicating with and educating consumers. But it’s important to keep in mind that relying too heavily on AI could be detrimental, and it shouldn’t replace traditional training methods entirely.

3. Hyundai pivots to hybrids at Georgia plant

Scheduled for a Q4 2024 launch, Hyundai Motor Group's Metaplant America near Savannah, GA, was set to be an all-electric vehicle production hub for Hyundai, Kia, and Genesis in North America. 

But now, the Korean automaker has plans to introduce hybrids to the mix. 

The primary reason? 

Rising demand for hybrid vehicles. 

Hyundai's EV market share dropped in all key regions (Korea, U.S., Europe) during Q1 2024 compared to last year. Meanwhile, hybrids gained ground. EV share fell from 6.5% to 4.5%, while hybrids rose from 8.2% to 9.7%. Hyundai's total sales dipped slightly (1.5%) to 1 million vehicles in Q1.

Hyundai targets a 28% jump in global hybrid sales this year (480,000 units), but details on how this translates to U.S. offerings remain unclear.

What’s more: Following a similar pivot by Ford and GM, sister brand Kia is also retooling its electrification strategy in response to a slowdown in EV demand. The automaker plans to introduce more hybrids alongside a lineup of affordable electric vehicles. 

What it means: Consumer demand for hybrid vehicles is growing. They are seen as a “gateway” to electrification and automakers are taking notice. By incorporating hybrid production at its new U.S. plant, Hyundai gains the flexibility to meet demand for hybrids while still being able to produce EVs.

• Tesla CEO Elon Musk dismissed the automaker’s Supercharger team.
  

• Over 1,000 UAW members at Stellantis’ Warren Stamping facility plan a strike authorization vote.
  

• Toyota establishes a North American hydrogen headquarters in California.
  

• Penske Automotive Group’s Q1 revenue increased 1.5% to $7.4 billion.
  

• Gov. Gavin Newsom’s office announced that there is one EV charging station for every five gas stations in California.

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• Feel at home in the dealership? Tom Whiteside Chrysler Dodge Jeep Ram, near Columbus, OH, is hiring a sales rep.

• SaaS company BizzyCar has put the call out for account executives in Los Angeles and Orlando (remote).

• OPENLANE is looking for tons of new talent—they’re hiring market sales managers across the country. In Pensacola, Chicago, and Las Vegas to name a few.

Looking to hire? Add your roles today—it’s 100% free.

Thanks for reading. Hope to see you again tomorrow morning.

— CDG