Costco Goes EV, REALLY Deep Employee Discount, Big Check For Auto Students

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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It’s a fresh week and we’re talking about GM's strategy with Costco to boost EV sales, Fisker's aggressive move to sell the Ocean to employees at a discount, and Reynolds and Reynolds' $5 million donation to Northwood University for a new automotive studies center.

Show Notes with links:

• General Motors is using its partnership with Costco to increase sales of its electric vehicles (EVs).
  • GM is promoting EVs like the Chevrolet Equinox and Blazer through the Costco Auto Program.
  • The partnership leverages Costco’s 50 million U.S. members with special pricing and discounts.
  • Costco Auto acts as a facilitator, offering haggle-free pricing via franchised dealers.
  • Members can get a $1,000 incentive on select GM EVs through July.
  • Costco's affluent and loyal customer base, typically aged 42-59 with higher-than-average incomes, aligns well with EV buyer demographics.
  • "Our membership has always liked new things, and EVs are absolutely new to the marketplace," said Jay Maxwell, Costco Auto Program general manager.
• In a new effort to sell some of their EVs, Fisker is selling its Ocean crossover to employees at a steep discount amid financial struggles and low sales.
  • The Ocean is available in three trims: Extreme, Ultra, and Sport; only the latter two are offered to employees.
  • The entry-level Ocean Sport for retail customers now starts at $24,999, down from $61,499.
  • However, employees can buy the Ocean Extreme and Ultra for $20,000 plus additional fees.
  • Fisker sold only 4,700 of the 10,142 units produced in 2023, far below its target.
  • "We are beyond excited to help you join the Fisker Ocean Family," read the company's email to employees, despite the company's financial woes.
    
• Reynolds and Reynolds has pledged $5 million to Northwood University to support the new Center for Automotive & Mobility Studies.
  • The donation will fund the construction of state-of-the-art facilities, including classrooms and a conference center.
  • The new center will replace the NADA Hotel and Conference Center on Northwood’s campus in Midland, Michigan.
  • An advisory council of automotive industry leaders will guide the center's governance.
  • Reynolds and Northwood are partnering on a talent recruitment program for Northwood graduates.
  • "Their support will significantly elevate Northwood's top-tier automotive education programs," said Northwood University President Kent MacDonald.

Hosts: Paul J Daly and Kyle Mountsier
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