Happy Thursday! It’s April 11, 2024 and that is The morning shift, your daily roundup of the biggest automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st course: European Tesla investors are fed up with Elon Musk’s anti-union stance
Over in Sweden, Tesla mechanics have gone on strike against the company. That’s not unusual in Sweden, where unions are popular, but it doesn’t seem to have caught the attention of a certain CEO Elon Musk. Musk seems to think the whole “strike” thing is over, but investors are less sure. Out of Reuters:
Tesla (TSLA.O) opens new tab. Investor KLP may ask the automaker’s annual general meeting to address CEO Elon Musk’s reluctance to negotiate collective bargaining, the Norwegian pension fund said Thursday.
A strike by Tesla mechanics in Sweden, one of the country’s longest labor disputes, has crippled the automaker’s operations for months and raised concerns among several Nordic institutional investors.
On Monday, Musk said “the storm has passed on this front.” But the strike continues and the union that led the action told Reuters this week it may strengthen the strike.
KLP, Norway’s largest pension fund, was a signatory to a letter from Nordic investors in December expressing concern about the strike in Sweden and Tesla’s reluctance to recognize a right to collective bargaining.
I wish I had enough money to just pretend that the very real obstacles facing my many businesses don’t exist. Once you reach a certain level of wealth, the reality no longer applies to you in everyday life, so it’s easy to assume that it doesn’t apply to your company either. That’s basically what “discipleship” is all about. was about, except that a scion of the publishing empire played the role of Grimes.
2nd gear: The cars are back in stock
Cars have been difficult to come by since COVID-19 disrupted supply chains. Dealers liked this because it meant markups on everything they got in stock, but those days appear to be coming to an end – inventories are back to 2020 levels. Out Automotive News:
According to Cox Automotive, U.S. new vehicle inventory continued to rise in March, reaching its highest level since December 2020.
Cox said inventory in its latest estimate was at 2,837,400, a 74-day supply, up slightly from the previous month. A year earlier there were 1.9 million vehicles, a 35 percent increase from the previous year, Cox said.
Cox said inventory varies widely depending on sticker price. Vehicles valued at $30,000 to $40,000 had the tightest supply at 59 days, while vehicles priced under $20,000 had a 66-day supply. Vehicles between $20,000 and $30,000 have a 67-day supply, Cox said. Offering was greatest for vehicles in the $60,000 to $80,000 range at 98 days, down slightly from the previous month.
People, mission accomplished: We solved the biggest problem of 2020. What do you mean? people are I still have COVID? There is now a vaccine, they shouldn’t get infected anymore. Here’s how it works: You make a vaccine, and then no one has to think about the incredibly contagious, brain-destroying disease anymore. Come back to the office everyone.
3rd gear: Has your insurance premium increased? You’re not alone
Getting a new car is great: the smells, the pristine materials, and the way the center screen isn’t yet covered in driving-greased finger smudges. But then you have to get insurance – and that part has gotten a lot worse in the last few months. Out of Reuters:
In one of the cruel twists of an inflation-weary U.S. economy, car prices are falling after rising by records during the COVID-19 pandemic. However, at least some of these consumer benefits are being offset by rising auto insurance rates, which now account for more than a quarter of the total cost of owning a vehicle for some models.
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“We hear from a number of buyers that they are reluctant to buy a car – or return it – because they can afford the car but don’t have the insurance for it,” said Sean Tucker, senior editor at Kelley Blue Book, an auto valuation and research company in Irvine, California.
Tucker said Kelley Blue Book recently added insurance advice to its list of buying tips and encouraged customers to get an insurance quote before investing money.
Car insurance rates vary widely across the country and are influenced by many factors, from the cost charged by local collision repair shops to potential damage from tropical storms and wildfires. According to insurance shopping website Insurify, the average cost of comprehensive insurance in the U.S. has risen 24% over the past year and is now just over $182 per month. The company said 63% of motorists it surveyed saw rates increase in 2023 and predicts rates will rise another 7% in 2024. However, this number could increase.
Here, too, I can only warmly recommend motorcycling. I have comprehensive coverage on my GS—a BMW, no less—and pay less than $40 a month as a driver with a less-than-perfect record. Two wheels good.
4th gear: CarMax sells more cars for less money
CarMax has an interesting business model – buying and selling cars, regardless of any particular brand – and it has become a nationally recognized name. Still, things haven’t looked great for the company in recent months, according to fourth-quarter results analyzed by Automotive News:
Used car retailer CarMax Inc. on Thursday reported fourth-quarter net income of $50 million, a 27 percent decline from the same period last year. Revenue fell 1.7 percent to $5.6 billion in the quarter ended February 29, 2024.
Richmond, Va.-based CarMax also said it sold more used vehicles to private customers in the fourth fiscal quarter than in the same period last year. The company said it sold 172,057 used vehicles in the fourth quarter, up 1.3 percent year over year. Same-store used vehicle sales rose 0.1 percent.
CarMax said its gross profit per used retail vehicle was $2,251, a decrease of $26 compared to last year’s fourth quarter.
CarMax sales overall were down in 2023, but a high-volume, low-earnings fourth quarter looks poor. A business is only considered booming if you actually make money from it.
Reverse: unlucky number
Neutral: Were you able to see the solar eclipse?
I drove nearly 1,600 miles round trip to my old college town in the path of totality, except that on the day of the eclipse it was completely cloudy. It was still amazing to see the sky darkening, but I think I need to start plan a trip to Australia.
On the radio: Total Yuppies – “Normal Life”
Speaking of my old university town. Try to spot a college-aged Amber in some of these shots.