BYD unveils hybrid pickup, April's new car sales, dealer Nick Saban speaks out

Hey everyone. Big email headed to your inbox tomorrow morning. This week, I explore why the future of automotive is all about software. Find out how software updates could change car repairs forever and why OEMs are putting so much money into these “computers on wheels.” If you haven’t already, subscribe to the CDG newsletters here.

Now, let’s dive into today’s daily roundup of top industry stories.

—CDG

1. BYD debuts new hybrid pickup in Mexico

At a glance: Chinese EV leader BYD is making further inroads in the Latin American market with the debut of the Shark hybrid pickup.

• South of the U.S., North America’s largest pickup market, the Shark will be available to Mexican car buyers starting at 899,980 pesos, or about $53,400. 

• The 2024 BYD Shark is a midsize truck with a plug-in hybrid powertrain that can cover over 500 miles.

• The Shark can travel 62 miles on electric power only before needing to be charged again.

Timing: Only hours after President Biden announced he was increasing tariffs for Chinese EV imports to around 100%, the Shark was unveiled at an event in Mexico City. 

At the event, Stella Li, Chief of Americas at BYD, told Reuters that the tariff hikes have no impact on BYD, which plans to build a plant in Mexico although the site has yet to be chosen.

The intrigue: It's rare for a Chinese brand to unveil a new vehicle outside of its home market. The move shows Mexico's growing importance to BYD despite all the controversy about Chinese EVs in North America. 

• While sales growth has slowed in China, the market share for Chinese brands has grown meaningfully in Mexico. Chinese brands account for about 87% of EV sales in South America and 20% in Mexico, according to BloombergNEF.

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2. Average new car prices rise for the first time since last Dec.

Big picture: Despite months of rising new vehicle inventory driving car prices down, the average new car transaction price (ATP) in April ticked up to its highest level since December 2023.

At a glance: According to the latest data from Cox Automotive, ATPs rose by 2.2% to $48,510 month-over-month. Compared to this time last year, prices are still down 0.5%.

The reasons?

• New vehicle incentives declined last month. The average incentive package was 6.3% of the ATP, down from 0.3% from March. This is the first time in six months that incentives dipped. 

• New vehicle inventory has also been largely unchanged since March. This suggests that dealers are maintaining a steady balance of inventory and sales despite the increase in ATP. 

Of note: While there was a slight decline in incentive spending last month, there are deals out there worth looking into.

Luxury vs. non-luxury:

• ATPs for luxury vehicles rose 2.4% month-over-month, but remain down 2.1% year-over-year. Tesla led the pack with a 5.7% price increase in April compared to March. Non-luxury car prices reversed a three-month decline in April, rising 2.1% month-over-month to $44,989. Year-over-year, prices have stayed nearly identical.

• In the non-luxury market, pickup trucks fueled the price increase. In April, full-size pickups averaged $66,631, up 2.8% from the same time last year. Unlike the overall market, pickup prices are also higher compared to 2023.

Correction: A previous version of this story incorrectly stated prices rose for the first time since October 2023.

3. Nick Saban speaks out against UAW ads

Top line: Prominent Alabama Mercedes-Benz dealer Nick Saban, better known as the former head football coach of the University of Alabama, has found himself caught up in the UAW’s election to unionize a Mercedes-Benz plant in the state. 

Zooming out: Saban recently retired from coaching after securing several national championships for the Crimson Tide.

• He is also a co-owner of Dream Motor Group, which has seven Mercedes dealerships in five states.

• Last fall, Dream Motor Group acquired Mercedes-Benz of Cutler Bay, and a Mercedes-Benz of Coral Gables, as well as other property, from Bill Ussery Motors for $700 million. 

What’s happening: In a statement, Saban says his words and likeness were used out of context and without permission by the UAW to run pro-union ads.

Key quote: “I do not personally endorse the UAW or its campaign and have asked the UAW to remove any advertisements featuring me from circulation. I encourage all Team Members to exercise their right to vote in the upcoming election,” Saban’s statement read.

The ad in question: According to AL.com, Saban’s statement is in reference to TV and radio commercials produced by pro-union group More Perfect Union Solidarity. The ad uses past comments from Saban on unions for college football players:

Faiz Shakir, president of More Perfect Union Solidarity said the organization didn’t take Saban’s words out of context.

Key quote: “When a lot of college coaches weren’t willing to talk up the value of organizing college athletes, Coach Saban did,” Shakir said. “I understand that, in the closing moments of a union drive at the Vance plant, he’s probably getting pressure from the Mercedes leadership to speak out, so he felt he needed to say something. We didn’t take anything Coach said out of context; we presented his public statements exactly as he made them; and we’d ask people to watch the ad and judge for themselves.

Why it matters: Mercedes-Benz workers in Tuscaloosa County are casting their votes this week to decide whether to join the UAW. 

• This could be the UAW's second win in just two months, following their success at a Volkswagen plant in Tennessee. 

• The UAW is aiming to expand its reach to more autoworkers, including those in the South where BMW, Honda, Hyundai, Kia, and Nissan also have factories. To achieve this, they've pledged $40 million in funding through 2026.

What we’re watching: Voting is still ongoing and the National Labor Relations Board will announce the results of the election come Friday.

• Polestar is launching a new cheaper Polestar 3 electric SUV.

• A new report by InfluenceMap says car companies' lobbying efforts threaten global efforts to fight climate change.

• The total auto loan debt reached $1.56 trillion at the end of Q1 2024 according to the St. Louis Federal Reserve.

• Federal auto safety regulators are warning people not to stick decals on their steering wheels.

• U.S. opens probe into Alphabet's Waymo over 'unexpected behavior' of self-driving vehicles.

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• Want to take your buy/sell career to the next level? DSMA is seeking an Automotive M&A Associate.

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Thanks for reading everyone. We’re halfway through the week—let’s finish strong.

— CDG