Digital retailing vs. in-store car buying trends, Rivian Q3 earnings miss, Nissan cuts workforce

Hey everyone. CDG Recruiting has a large dealer client looking for a Platform Controller to oversee multiple rooftops in the Midwest.

Key experience:

- 5+ years of overseeing several high-volume stores
- Stable track record
- High-level accounting knowledge/background
- Leading large team in a fast-paced environment

If you’re interested in this opportunity, email Steven or click here to inquire.

— CDG

Even with increased inventory, new car prices remain stubbornly high:

Avg. price of a new car is $48,451 — still up about 20% from five years ago.

Why?

1. Rising MSRPs due to inflation and tech-loaded vehicles

2. Automakers’ focus on higher-margin models

3. Elevated auto loan rates

The result?

Many longtime new car buyers are still priced out of their desired vehicles, joining a growing wave of consumers turning to the used car market (or settling with heavily incentivized new vehicles).

(Data source: Cox Automotive / Bloomberg)

1. Digital car buying on the rise, but in-store remains preferred option — Study

Even with more interest in online car shopping, most buyers are sticking with dealerships, says new research from OC&C Strategy Consultants.

Digital retail in auto surged during the pandemic but has since leveled off, with only 36% of U.S. buyers saying they’d go fully online.

Younger shoppers and EV buyers are a bit more open to the idea, though, hinting at an opportunity for dealers to expand their online presence … (Go deeper: 3 min. read)

2. Rivian stumbles in Q3 but is betting on a swift turnaround

Rivian’s Q3 results missed expectations, with revenue dropping 35% year-over-year due to supply chain delays that slowed deliveries.

The company has lowered its 2024 production goals, but it’s already looking ahead, with new supply partnerships and the launch of its lower-cost R2 model set for 2026.

CEO RJ Scaringe is aiming for a positive gross profit by the end of the year, betting that these moves will put Rivian on a steadier path forward in the EV market … (Go deeper: 2 min. read)

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3. Nissan slashing 6% of global workforce

Nissan is slashing 9,000 jobs and reducing production as it grapples with rising costs and slow sales.

The cuts come after a quarterly loss of $60 million and a high inventory backlog, especially in the U.S. and Nissan is lowering its production capacity by 20% to better align with demand.

CEO Makoto Uchida has laid out other urgent cost-cutting measures, hoping to set a more sustainable path by 2026. With new models and hybrids (finally) on the horizon, Nissan aims to spark some momentum … (Go deeper: 3 min. read)

• GM to discontinue Cadillac XT4 crossover in January.

• Lucid Motors slightly tops Wall Street’s Q3 expectations amid widening losses.

• As government EV regulations heat up, performance models fall.

• BYD puts the brakes on its Canada launch – for now.

• Toyota preps dealership service departments for Tundra engine replacement.

Thanks for reading everyone.

— CDG