Inside Automotive
Are the tables turning on Tesla? — Karl Brauer | iSeeCars.com
Tesla broke sales records in 2023 but struggled to maintain profits as a series of aggressive price cuts failed to spur adequate demand. With the company’s fourth-quarter earnings dropping 40% from the year before and its increasingly controversial CEO Elon Musk expressing uncertainty toward the future, the brand is in an increasingly dire situation as it faces accelerating competition from other automakers in the electric vehicle segment. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Karl Brauer, executive analyst at iSeeCars.com. Watch full segment here.
Top Stories
On February 6, a news release by the United Auto Workers (UAW) revealed that most employees at Volkswagen AG’s factory in Chattanooga, Tennessee, have registered to join the Detroit-based union. This announcement came less than two months after the UAW reported that 30% of VW employees in the United States had signed union authorization cards. Read More
Tesla may be gearing up for a round of layoffs, according to a recent Bloomberg report. According to those acquainted with the situation, U.S. supervisors recently had to evaluate their deputies’ roles visually. Some of the people said that after canceling some employees’ biannual performance reviews, Tesla sent out a single-line query for each job. Read More
Honda boosted its earnings forecast for the fiscal year ending March 31 after reporting impressive profitability improvements over its third quarter. The automaker now expects to generate roughly $8.4. billion in annual profits, up 4.2% from its previous target of $8 billion. Read More
Hyundai is suing in federal court to open a new storefront in Danvers, Massachusetts after a nearby dealership complained that the move violated state regulations. The automaker originally planned to open McGovern Hyundai in mid-January. McGovern Automotive Group runs multiple outlets in Massachusetts, New York, and New Hampshire, including McGovern Hyundai of Brockton, roughly 50 miles south of Danvers. Read More
For Dealers
Challenges in electric vehicle repairs and insurance
Last year, we witnessed all 10 of the top auto insurers in the U.S. raise rates by double digits. U.S. auto insurers had a tough time adjusting in 2023 as rate increases failed to keep up with jumps in claim frequency and severity. A report from S&P Global observed that increases in severe auto crashes have resulted in a rise in litigated claims, and severe weather and a surge in vehicle thefts resulted in higher losses in comprehensive coverage. Read More
