Welcome to today's edition of the Daily 5.
It's just the beginning, but we can start to see how artificial intelligence is emerging in the dealership world. We have two stories today shedding new light on what's going on.
C.J. Moore, in this story today, talks to thought leaders at used-car behemoths Carvana and CarMax about their efforts.
Carvana in 2023 launched Carli, its proprietary software platform for managing vehicle inspections and reconditioning from start to finish. Carvana is "just scratching the surface" with AI, an executive told Moore.
As we've reported before, Carvana suffered through a couple difficult years but turned its business around in about 12 months. This kind of innovation had to play a key role.
CarMax is pursuing those same goals. "We are looking at the core business problems that are important for us to solve, and we are finding where gen AI can help us solve those problems," Nick Anderson, vice president of data science and artificial intelligence at CarMax, told Automotive News.
Meanwhile, earnings reports are coming fast and furious today. Hyundai Motor Co. reported a lackluster third quarter. As Reuters reported, profits were hurt by warranty costs of about $231 million for its Santa Fe crossover engines in the U.S. and increased sales incentives as a global slowdown in car demand weighed.
The news was somewhat better at Sonic Automotive, where third-quarter net income rose 8.5 percent to $74.2 million.
It's hard to argue with the third-quarter numbers at Tesla Inc., which reported its results yesterday. All the significant numbers improved across the board. Note, as you'll see below, shares in Tesla have surged more than 18 percent in midday trading.
On the retail front, Ford Bronco sales in the U.S. slipped 16 percent through September, but dealers aren't sounding any alarm bells yet. As Michael Martinez reports, dealers may be unbothered by lower volume of the SUV because the subbrand remains a lucrative business through accessories and, to a lesser extent, merchandise and experiences. In short, the vehicle is still very popular. Dealers would, however, like to see cheaper trims offered.
On Friday, look for more from our series on artificial intelligence. Mark Hollmer's story will walk us through all the "what happens next" angles for auto retailing.
That's it for now. Have a great rest of your day.
Editor's note: Daily 5 is being sent early today as we create an all-new website here at Automotive News. The stock charts below reflect midday stock prices.
— Philip Nussel, online editor
