Rivian Grows Normal, Indie Service Creeps on Franchised, Food Junk Fees

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Shoot us a Text.

It’s the first Friday in May as we talk about Rivian stepping up their presence in Normal, IL. We also cover the latest JD Power report regarding the service department as well as Cali taking aim at junk fees…for food.
As Tesla cuts jobs, EV startup competitor Rivian is set to expand its Normal, IL plant, adding over 500 jobs to produce the new R2 crossover, leveraging a significant $827 million incentive package from the state.

• The Illinois deal is not a cash infusion, but includes $75 million from a deal-closing fund and $634 million in tax incentives over 30 years, with a commitment to maintain at least 6,000 jobs.
• This move diverts from an initial plan to build in Georgia, aiming for quicker market entry and saving $2.25 billion by consolidating production in Illinois.
• The company adds that it has invested $2 billion in Normal which has generated $3.9 billion of “value add” for the local economy.
• Rivian CEO R.J. Scaringe said, "Gov. Pritzker has always been a strong advocate for providing economic opportunities for Illinois residents and business owners alike,"
  

J.D. Power's 2024 studies highlight aftermarket services gaining on franchised dealerships in customer satisfaction, driven by easier access and quicker service.

• "This is a key opportunity for aftermarket providers to not only compete with franchised dealers on price but also to add customer value with a quicker and easier service experience," noted Leonard Martin from J.D. Power.
• Younger customers, particularly Gen Z, report lower satisfaction levels with aftermarket services; J.D. Power suggests enhancing advisor interactions to build trust and loyalty, emphasizing the potential for aftermarket providers to secure long-term customer relationships through satisfying service experiences.
• Providing photo or video documentation of recommended repairs significantly increases customer approval for the work: 51% of customers who receive such documentation proceed with the suggested repairs, compared to only 24% who do not receive this visual confirmation.
• However, franchised dealerships were rated as more trustworthy in areas such as utilizing technology to enhance service efficiency and their capability to handle complex vehicle repairs, showing higher customer trust and satisfaction scores in these specific aspects compared to aftermarket service providers.

Starting July 1, California mandates the elimination of unexpected surcharges on restaurant bills, excluding taxes, requiring full disclosure of any fees in advertisements or menus.

• Diner opinions are mixed, with some appreciating the potential for a simplified billing process, while others worry about potential price increases as restaurants adjust to the new law.
• The law aims to prevent customers from double-tipping and paying for undisclosed fees, a practice especially common in San Francisco where service charges can be as high as 20%

Hosts: Paul J Daly and Kyle Mountsier
Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

Read our most recent email at: https://www.asotu.com/media/push-back-email