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It’s a beautiful Monday in the Car Biz as we do our best to pick up all the gems Warren Buffet dropped during the annual Berkshire Hathaway shareholder meeting. We also talk about manufacturer investment in R&D, as well as a massive Cybertruck parts order.
- Although VW spends the most overall on R&D, General Motors (GM) leads the auto industry in R&D spending as a percentage of its 2023 revenues, reflecting significant investments in battery power, software, and connectivity.
- GM 6.25, MB 5.67, VW 5.13 (GM 9.8B, MB 9.3B, VW 15.8B
- Bottom of the list is Tesla at $3B (3.7%, Hyundai at nearly $2.5B and Nissan and Renault at $2.3 B
- Tesla has reportedly secured a significant order worth around $230 million for interior parts from Korean supplier Seoyon E-Hwa for its upcoming Cybertruck.
- Seoyon E-Hwa to supply A, B, and C pillars for the Tesla Cybertruck until 2028.
- Tesla plans to start Cybertruck production this summer with a release event in Q3 and volume production expected next year
- The large order indicates Tesla's confidence in the electric pickup truck's long-term impact on the EV and pickup truck markets.
- On Saturday, Warren Buffet hosted the annual Berkshire Hathaway annual shareholders meeting in what has been described as “Woodstock for Capitalists” in his hometown of Omaha, Nebraska.
- Regarding the banking crisis, Buffett criticized failed banks' leaders and flawed regulations, while supporting government intervention for SVB depositors to prevent catastrophe.
- He believes the dollar remains the reserve currency, dismissing cryptocurrencies as a "joke."
- Berkshire's $151 billion Apple stake is its best-performing investment. “It just happens to be a better business than any we own”
- 92 yr old Buffett on living a great life: “You should write your obituary and then try to figure out how to live up to it,” Buffett said. “It’s not that complicated.”
- He won’t be investing in auto makers anytime soon. Buffett and Vice Chair, Charlie Munger believe the auto industry is challenging and unattractive due to intense competition and the costly, uncertain transition to electric vehicles. “It’s just too tough…”
- He does like his auto dealership business 78 dealerships across the U.S. which generate more than $8 billion in annual revenue
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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