Guest Host Todd Caputo, Ford Slashes Mach-E Prices, Standalone Used

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Today we welcome special guest host Todd Caputo to talk about the resilience of physical standalone used car models as well as some big price adjustments from Ford on their Mach E

Show Notes with links:

• It's appropriate that our Charlotte, NC based guest Todd is our guest host today to celebrate on this day in 1948, NASCAR was founded by William "Bill" France Sr. Bill was a race-loving mechanic who moved to Daytona Beach, and saw much corruption amongst disjointed race promoters who would run off with prize money so he initiated NASCAR to standardize racing rules and ensure fair competition, serving as its first president and significantly influencing its growth to become a major American spectator sport and a multi-billion-dollar industry.
  
• Ford Motor Co. has significantly reduced the prices of the 2023 Mustang Mach-E, slashing costs by $3,100 to $8,100 across different models to enhance its competitiveness against Tesla.
  • The price reduction is coupled with attractive financing offers, including 0% financing for 72 months for qualified buyers and a $7,500 cash incentive on leased vehicles, aiming to clear the path for the 2024 model
  • The Mustang Mach-E is second to the Tesla Model Y in US sales. Despite not qualifying for the $7,500 federal tax credit,
  • Ford CEO Jim Farley emphasized the need for affordable electric vehicles in the competitive market, with Ford developing a smaller, more affordable electric vehicle. "We are adjusting pricing," said Ford spokesperson Marty Gunsberg, highlighting the company's strategy to adapt to market dynamics and prioritize customer value.
    
• Despite the turbulent automotive market, some standalone used-car stores like Sonic Automotive's EchoPark have navigated through volatility with strategic adjustments, such as reducing store footprints to improve inventory allocation and sales.
  • The industry has seen a shift from ecommerce platforms like Vroom, Shift, Carlotz, and Carvana to physical used-car outlets, emphasizing the resilience and adaptability of these business models to market dynamics.
  • Sonic Automotive and other major players, such as AutoNation and Penske, have integrated additional services like F&I and repair to create synergies with their used-car operations, enhancing customer value and operational efficiency.
  • "Reducing our store footprint...allowed us to better allocate inventory across the platform," noted David Smith, Sonic's CEO, illustrating a strategic pivot towards a more focused and efficient operational model to weather the fluctuating used-car market.

Hosts: Paul J Daly and Kyle Mountsier
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