Port Strike Parts Impact, 672 Flooded Kias, Q3 Sales Growth Slows, Ford’s Power Promise

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Shoot us a Text.

We’re looking for the silver lining today as we talk about how US auto sales have slowed considerably through Q3. Plus, we give updates on how the port strike will affect the automotive supply chain, how Helene took out 672 Kias at one dealership, and Ford’s forward-thinking EV home charger program.

Show Notes with links:

• As a major U.S. dockworkers strike at East Coast and Gulf Coast ports enters day 2 with no resolution, European automakers face the brunt of the disruption, threatening to cripple supply chains and disrupt vehicle production.
  • Affected ports handle 34% of U.S. motor vehicle and parts trade, worth $135.7B.
  • Professor Jason Miller posted a list of the most affected goods on LinkedIn and auto parts are #2, accounting for almost 3.3M tons a year.
• While dealerships are still tallying the effects of Hurricane Helene, Ken Ganley's Florida Kia dealership took a massive hit from Hurricane Helene, with nearly the entire inventory wiped out by floodwaters.
  • 672 vehicles, including 12 customer cars, were totaled due to flooding.
  • Estimated losses range from $28 million to $30 million, with $3.5 million in deductibles.
  • The dealership reopened just two days after the storm, despite severe damage.
  • "Kia was incredible throughout this," Ken said. "They immediately had cars available for us. Believe it or not, we sold two new Kias yesterday."
• As the third quarter ends, U.S. auto sales growth slowed to an estimated 3.88 million units, just 0.2% YOY, far below expectations, signaling caution in the market.
  • Inflation and higher costs are making consumers cautious, pushing demand toward smaller, budget-friendly vehicles like subcompact SUVs and compact pickups.
  • GM is expected to retain the top spot in sales, though it will see a 3% decline, while Toyota and Ford are close behind.
  • Interest rates for auto loans remain high, with rates nearing 9.61% for new vehicles and nearly 14% for used, keeping buyers on the sidelines.
• Starting October 1st, Ford is offering free home chargers and installation to electric vehicle buyers through its new "Ford Power Promise" program, aiming to remove barriers for potential EV customers.
  • The Ford Power Promise includes free installation of the Ford Charge Station Pro, a Level 2 home charger.
  • Ford hopes the offer will ease concerns about charging infrastructure, boosting EV sales, especially for models like the Mustang Mach-E.
  • Buyers who opt out of the charger program can receive $2,000 toward their EV purchase or lease.
  • The program also highlights Ford’s robust battery warranty, covering the EV’s high voltage system and battery for 100,000 miles or eight years.
  • “We think the way it’s set up, it’ll provide education for shoppers and intenders. We’re trying to

Hosts: Paul J Daly and Kyle Mountsier
Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Read our most recent email at: https://www.asotu.com/media/push-back-email