Nissan Goes Sub-Invoice, 150 Hybrids Rising, 1st eVTOL Passenger Test

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Four days away from ASOTU CON we’re talking about Nissan’s move to push Dealers to advertise below invoice. We also talk about the growing percentage of F150 Hybrids being sold, as well as the very first passenger test of an eVTOL in Abu Dhabi.

• As a triple digit days supply grows, Nissan is taking an unprecedented step to clear overflowing inventories by allowing dealers to advertise 2024 vehicles up to 10% below invoice, a first since the pandemic, with the Armada being advertised as low as 15% below.
  • Dealers however, are concerned, feeling the burden of moving the vehicles has been shifted from Nissan to them, as Nisaan pulls back on direct incentives.
  • "Nissan is saying, 'We can't afford to be in the market, so you need to be,' " said one of several retailers interviewed, who requested not to be identified for fear of retaliation from the automaker. "The responsibility has been moved from the factory to us."
  • With high floorplan costs, some dealers welcome the opportunity for more pricing flexibility to increase store traffic and reduce inventory.
  • This aggressive pricing strategy could hurt Nissan's brand value long-term, mirroring problematic practices from the last decade.
  • Many plan to use below-invoice pricing selectively, boosting profitability through finance, insurance deals, and upselling on features.
  • "This move provides more flexibility when warranted," says Nissan spokesperson Brian Brockman, highlighting the company's adaptive strategy to current market conditions.
    
    
• Ford is significantly increasing its production of hybrid vehicles, with CEO Jim Farley announcing that 20-25% of F-150 pickups are now hybrids. 
  • Following a freshening of the F-150 lineup, Ford aims to make the model the nation's top-selling hybrid. Hybrid sales overall have risen 47% in early 2024.
  • Farley emphasized the importance of offering customers a choice between gasoline, hybrid, and electric vehicles, acknowledging slower-than-expected EV adoption.
  • Ford is exploring advanced battery technologies like semisolid-state batteries, promising enhancements in the mid-2020s.
  • Despite postponing some EV investments, Ford remains committed to electrification, with Bill Ford expressing continued enthusiasm for the segment.
  • Further emphasizing their position, CEO Jim Farley said,"Our key strategy as a company is to give customers choice." 
    
    
    
• eVTOL maker EHang recently made aviation history by completing the world's first passenger-carrying demo flight of its EH216-S eVTOL in Abu Dhabi
  • The EH216-S, the first certified pilotless eVTOL to carry passengers, demonstrated its capabilities in front of distinguished guests, including Emirati royals and civil aviation authorities. He said, "Being part of this historic moment is truly exhilarating," 

Hosts: Paul J Daly and Kyle Mountsier

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