Memorial Day Deals, Musk's Trade Flip, and California's Speed Beep

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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We’re heading into a huge sales weekend and we’re talking big Memorial Day discounts on 2023 cars, Elon Musk's reversal on Chinese EV tariffs, and California's new bill requiring cars to beep when speeding.

Show Notes with links:

• Edmunds reported that 2023 model year vehicles on U.S. lots rose to 6.8 percent in May. With higher inventories and many 2023 cars and trucks, Memorial Day weekend may be the ideal time to buy for some shoppers, but it depends on the brand
  • May saw an increase in the share of 2023 models on lots, rising to 6.8%.
  • Average new vehicle incentives expected at $2,640 in May, up 48% from last year.
  • Dodge had the highest concentration of 2023 models, offering discounts averaging $6,753.
  • "If you look at Honda, Toyota and Subaru, our days' supply are all under 30 still," said Joey Huang, president of Great Lakes Auto Group. "We're all still begging for inventory. We're selling more than we can get."
  • Average new-vehicle loan interest rate projected at 7.1%, with special financing offers like Tesla's 0.99% on the Model Y standing out.
  • Most dealerships anticipate high sales traffic over the holiday weekend due to increased promotions and warmer weather.
    
• Tesla founder Elon Musk reversed his stance on U.S. tariffs on Chinese electric vehicles, now opposing measures he once supported.
  • Musk, previously in favor of tariffs, now opposes them, calling market distortions "not good."
  • The Biden administration quadrupled EV tariffs to over 100%, affecting $18 billion in Chinese goods.
  • "Neither Tesla nor I asked for these tariffs... I’m in favour of no tariffs," Musk said at Viva Technology.
  • Musk went on to state that Tesla competes well in China without tariffs or special support.
  • Back in January, Musk warned "If there are no trade barriers established, they will pretty much demolish most other car companies in the world.”
    
• California has passed a bill to combat speeding by requiring new cars to alert drivers when they exceed the speed limit.
  • The bill, SB 961, mandates passive speed limiters in new cars, starting with 50% by 2029 and 100% by 2032.
  • These systems use GPS and a database of speed limits to issue visual and audio warnings when exceeding the limit by more than 10 mph.
  • The regulation will apply to all passenger vehicles, including trucks and buses, but will not physically prevent speeding.
  • Similar measures will soon be implemented in the European Union, with potential for national adoption in the U.S.
  • Supporters include the National Transportation Safety Board and the Insurance Institute for Highway Safety.

Hosts: Paul J Daly and Kyle Mountsier
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