Shift into Gear (our chat for today)

Gooood morning, Ayrton here, how are you doing?

Welcome to the latest edition of our newsletter, today I am taking you on a journey through the latest shifts in the auto world, from Ford's electrifying price cuts, bugs on vehicle software and retirement of iconic models.

We will navigate dawn of a new era in car manufacturing led by China's groundbreaking advancements, understand a bit about some concepts of car ownership and investments (depreciation - dont worry, I will explain later) and talk about some curiosities that you can share with friends. As always, a pit stop to relax and check what else in the car world.

Again, I am here to keep you in the driver's seat, informed, and inspired. So buckle up, and let's explore what's driving the future together.

Auto Buzz (news news)

💸 Discounts on the radar: Ford has announced significant price reductions for its 2023 Mustang Mach-E models and introduced new incentives for the F-150 Lightning. The move aims to enhance Ford's competitiveness in the electric vehicle market, super competitive with the new players

👨‍🔬 Not rusting: Tesla engineer clarified that the issue involves tiny, pinhead-sized rust specks, not the vehicle's stainless-steel body itself. This clarification, supported by Elon Musk, addresses concerns over the Cybertruck's durability and maintains the vehicle's reputation for innovation and quality

👾 Bug: General Motors stopped sales of the 2024 Chevrolet Colorado and GMC Canyon trucks due to a software issue, now resolved. The software glitch does not affect 2023 models or require a recall. GM's recent experience with software problems includes a temporary stoppage of Chevrolet Blazer EV sales, signaling ongoing efforts to enhance software quality and validation processes

👋 Sad times: several iconic cars will be discontinued in 2024, including the Audi R8, TT, Chevrolet Camaro, Dodge Charger, Challenger, Ford Edge, Escape, Jeep Cherokee and Renegade and the Chrysler 300, signaling a significant shift towards new models and technological advancements in a even more competitive industry

🌐 This is the year: 2024 starts the partnership between Amazon and Hyundai to sell vehicles on the U.S. e-commerce platform. This collaboration aims to revolutionize the U.S. auto industry, tapping into an annual market of nearly 14 million vehicles and $1.53 trillion in trade revenue

On the Road Ahead (what is coming)

A Glimpse into the Future: Embracing the new Automotive Revolution ….. China on the road

Picture this: You're standing at the forefront of an automotive revolution, witnessing history in the making. Gone are the days when German engineering and Japanese precision ruled the roads. When discussing about cars everyone used to think on German luxury Mercedes, BMW and Audi or Japan for its reliability and quality with Toyota and Honda.

Today, there's a new player in town, and it's coming from China. With a relentless push towards electric vehicles (EVs) and cutting-edge technology, China is not just stepping into the limelight; it's racing to redefine it. China was projected to surpass Japan as the world's top auto exporter in 2023, with an estimated export of 5.26 million vehicles. Chinese vehicle exports to Russia increased by 545% in the first 11 months of 2023, showing this growing trend.

Imagine the possibility of driving a car that's the result of this bold ambition, a vehicle powered by innovation and supported by a nation's dream to lead the green revolution. When I say imagine, its not dream, its reality already since over a quarter of the exported Chinese vehicles in 2023 were electric, with exports of all EVs up by 70% and production of expected 8.6 million units.

Now, let me ask you something personal: How would you feel about making a Chinese car your next ride? It's a question that invites us to reflect on our perceptions of quality and trust in the automotive world. Remember when owning a Japanese car was the new trend, and then German cars became the epitome of automotive excellence? We're at a similar crossroads again, but this time, looks like it's China's turn to challenge the status quo.

This isn't just about cars; it's about witnessing a shift in global power dynamics, about being open to change, and about the thrill of embracing the future on four wheels. As China accelerates its global automotive push, it challenges us to reconsider what we value in a car and to be part of a movement that's driving towards a more sustainable future. So, the big questions now are: are you ready for this change? Do you trust this new wave of innovation?

In case you want to read more about the topic, here some additional resources: WSJ, Global Times, Bloomberg and CNN.

In the Driver's Seat (steering your way to a smarter car ownership)

The Invisible Tax on New Cars: Can You Avoid It?

Imagine walking into a store, buying a brand-new laptop for $1,000, and the moment you step outside, it's suddenly worth only $800. That, my fellow road enthusiasts, is the essence of car depreciation in a nutshell. When you buy a car, it starts losing its value the second you drive it off the dealership lot. It's like an invisible tax on newness, where your car's price tag shrinks over time, not because it's any less useful but simply because it's getting older, racking up miles, or newer and more modern versions were launched.

But here's where it gets interesting: not all cars depreciate equally. While the average vehicle sheds 39% of its value in five years, luxury models fare worse, dropping by about 60%. But there's a silver lining for savvy investors.

Porsche stands out in value retention, with the Porsche 911 and Cayenne experiencing minimal depreciation at 9.6% and 17.6%, respectively. This means investing $100k in a Porsche could cost you less than $200 monthly over five years—significantly lower than standard leasing rates.

Don't have $100k or prefer something more understated? Opt for the Toyota Corolla or Honda Civic, boasting modest depreciation rates of 25% and 22%. For those who favor ruggedness, the Toyota Tacoma and Jeep Wrangler are excellent picks, depreciating only 20% and 21%, showing you can still make your investment count without breaking the bank.

So, next time you're on the hunt for a new set of wheels, remember that depreciation isn't just a fancy term to ignore. It's a crucial factor that can either cost or save you thousands in the long run. Will your next car be a champion of value, or will it vanish like a magician's assistant in a puff of smoke? Choose wisely, and you might just find yourself ahead of the depreciation curve, cruising happily into the sunset with more of your investment intact.

We will talk more about depreciation in the next newsletters and share how different it is by cars and brands!

Fuel for Thought (curiosities to share)

Tesla Cybertruck - curious to learn more about the hottest auto launch in recent years?

Pit Stop (recommendation for a fun time)

🎬 Full Throttle Movie: "Ford v Ferrari" brings to life the legendary battle between automotive titans at the 1966 Le Mans. With Matt Damon and Christian Bale steering the drama, this film isn't just about racing; it's an exploration of ambition, innovation, and determination. A must-watch for those captivated by the spirit of competition and the brilliance behind the machines.

🚗 Ad Blitz: 2024 Super Bowl's line-up of car commercials took viewers from laughter-filled roads to heartfelt highways, showcasing the latest in automotive innovation, adventure, and the bonds they forge.

🚘 Show Stealers: Gear into the top 10 cars from Chicago Auto Show 2024, featuring electrifying performances, ground-breaking technology, and sleek designs.

🔌 Electric Journey: Tune into "Road Trip: Electric Avenues" a podcast that chronicles a daring 2,300 km winter adventure across electric roads. It's a deep dive into the experiences of EV travel, spotlighting the evolving landscape of road trips in the electric age.

The end for today

Thank you very much for reading the newsletter and, please, don’t keep us a secret.

Refer just 3 passionate drivers, people that love cars so they can be part of our community.

Ayrton