Automotive marketers are increasingly recognizing the enduring effectiveness of direct mail, with a remarkable 83% identifying it as their top-performing channel.* This remarkable statistic underscores the channel’s pivotal role in driving customer acquisition, retention, and service marketing within the automotive sector. By utilizing direct mail, automotive businesses can deliver tailored messages directly to their target audiences, making their marketing efforts not only more effective but also more personal. The ability to craft compelling, targeted communications enables brands to connect with potential customers at critical moments in their buying journey, fostering engagement and encouraging brand loyalty.

Moreover, these marketers are at the forefront of leveraging automation to enhance the impact of their direct mail campaigns. By implementing smarter targeting techniques and integrating digital tools, automotive operators can ensure that every piece of mail works harder to drive results. This seamless integration of automation with direct mail not only streamlines marketing processes but also enhances the overall customer experience. As automotive companies continue to embrace these strategies, they will likely find success in creating more meaningful interactions with customers, ultimately leading to improved retention rates and stronger brand connections. As the industry evolves, the combination of direct mail and cutting-edge automation suggests a promising future for automotive marketing.

*LOB State of Direct Mail Report 2025

The automotive AI software market is on the brink of a significant transformation, projected to reach approximately $200 billion by 2032.* This surge in value highlights the growing importance of AI technologies both inside and outside vehicles. Within the vehicle, advancements range from sophisticated sensors and intuitive infotainment systems to enhanced safety measures and real-time interactions with the surrounding environment. Externally, customers can look forward to innovative tools that allow them to visualize car configurations instantaneously, dynamic pricing capabilities, improved supply chain processes, and more efficient manufacturing practices.

Industry leaders are pioneering the integration of conversational AI tools like ChatGPT into their vehicles. These innovations enable a more natural and engaging interaction between passengers and their cars, effectively serving as virtual travel companions. With these systems, occupants can access valuable insights about destinations and local attractions, enriching their overall travel experience and making every journey more enjoyable.

As we move deeper into 2025, several trends propelled by AI are shaping the future of the automotive landscape. The development of autonomous driving technology is expected to accelerate, fueled by increasing consumer confidence in driverless vehicles. Alongside this, electrification will gain momentum as electric vehicles (EVs) benefit from rising consumer demand, favorable regulations, and significant advancements in battery technology. The rise of software-defined vehicles, characterized by enhanced connectivity, will further personalize the driving experience by integrating vehicles into the Internet of Things (IoT), allowing for tailored journeys based on user data.

Furthermore, changing customer preferences are prompting automakers to place a greater emphasis on understanding individual consumer needs to deliver more relevant services and experiences. The industry’s focus on creating resilient supply chains, bolstered by adopting sustainable practices and advanced technologies, is also on the rise. Additionally, manufacturers are exploring servitization models, shifting from traditional sales to offering products as services. This evolving approach reflects a broader commitment to sustainability and the development of smart cities, which will increasingly impact business models and consumer behavior in the automotive sector. As the market continues to evolve, it’s clear that the intersection between automotive technology and AI will play a pivotal role in shaping the future of mobility.

Based on an article by The Future of Commerce.

Servitization is revolutionizing the traditional concept of business transactions by emphasizing the sale of outcomes as a service rather than mere one-off sales. In this innovative model, customers pay a fixed cost based on the quantity of service they use, while ownership and associated operational expenses remain with the technology providers. This shift allows businesses to foster long-term relationships with clients, as the emphasis moves away from transactional sales to continuous service delivery, enhancing customer engagement and satisfaction.

Originating in the manufacturing sector during the 1980s, servitization enabled companies to differentiate themselves from their competitors and develop closer connections with their customers. Over the years, this concept has evolved, expanding its application beyond simple consumer models to more comprehensive business frameworks. In industries where the capital expense of equipment can be a significant barrier for buyers, the servitization model allows manufacturers to attract customers by offering access to equipment and charging fees based on usage metrics such as hours operated or throughput, making advanced machinery more accessible.

To effectively implement servitization, manufacturers must elevate their products to become smarter and more connected. This entails integrating Internet of Things (IoT) technology that enables real-time monitoring of equipment performance, usage data, and predictive maintenance needs. By creating a digital twin of their equipment, manufacturers can efficiently track performance and leverage machine learning algorithms to optimize usage, thus ensuring that they deliver their promised value to customers without interruption. The integration of real-time data not only enhances the customer experience but also plays a vital role in operational efficiency and equipment reliability.

As businesses adopt servitization, they can redefine their service models and foster immersive customer experiences. For instance, a fictional washing machine company could implement a “wash-as-a-service” model, charging customers based on the frequency of usage. This approach requires reliable performance metrics and service level agreements to ensure that customers can always depend on the machines when needed. By providing real-time data through a dedicated app, both manufacturers and third-party maintenance providers can streamline the entire service lifecycle, from installation and billing to repairs and recycling efforts. Ultimately, servitization not only offers new revenue streams but also drives sustainability and reduces the environmental impact by promoting a circular economy founded on mindful consumption and resource management.

Based on an article from The Future of Commerce.

According to Deloitte’s 2024 Global Automotive Consumer Study, economic uncertainty has driven young people aged 18–34 across the globe to show a growing preference for vehicle subscription models over traditional car ownership. This trend is particularly prominent in India (67% of respondents), China (48%), and the United States (28%). Those interested in subscription plans cited the desire for a predictable cost structure, reliable vehicle availability, and overall convenience.

A vehicle subscription model is a relatively new way of using and accessing vehicles that provides an alternative to traditional car ownership or leasing. Some of the features include:

• Subscribers can often switch between different types of vehicles based on their needs (e.g., a sedan for daily commuting, an SUV for a weekend trip, etc.).
• The subscription fee typically includes various costs associated with car ownership, such as insurance, maintenance, repairs, and roadside assistance. This eliminates many of the unpredictable costs tied to owning or leasing a vehicle.
• Unlike traditional leases or financing plans, vehicle subscriptions usually offer shorter commitment periods (monthly or quarterly). This can be appealing for individuals who prefer not to be tied down to a long-term contract.
• Many vehicle subscription services offer a streamlined, digital-first experience. The process of subscribing, switching vehicles, and managing the subscription is often handled through an app or online portal.
• Subscribers can choose from a wide range of vehicles within the subscription plan. This can be particularly advantageous for people who like driving different types of cars or who want to try out a vehicle before committing to a traditional purchase or lease.
• The subscription service provider handles all administrative tasks like registration, insurance, and maintenance, allowing subscribers to focus purely on driving.

Vehicle subscription models are offered by various entities, including traditional automakers, rental car companies, and startups that specialize in this service. Examples of such services include Care by Volvo, Porsche Drive, and programs from rental companies like Enterprise and Hertz.

This model can be particularly attractive to urban dwellers, people who frequently relocate, or anyone looking for maximum convenience and flexibility in their vehicle usage. However, it’s important for potential subscribers to carefully review the terms and conditions, as the inclusions and exclusions can vary significantly between providers.

Across all age groups, the trend towards online vehicle sales and research is accelerating. Automotive research firm IMARC reported that online car sales in the United States reached 326billion in 2023, with projections expecting to grow to754.2 billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.6% from 2024 to 2032. Additionally, Cox Automotive’s 2022 Car Buyer Journey Study revealed that 80% of respondents were open to purchasing a car entirely online, an increase from 76% in 2020.

The pivotal role of software in modern vehicles has introduced a new term to the automotive lexicon: the software-defined vehicle (SDV), often referred to as a “computer on wheels.” An SDV is a vehicle where software heavily influences numerous aspects of its performance, operations, and features, including driver assistance systems, safety functionalities, infotainment, and more.

Wishing you and yours a safe and happy Thanksgiving Holiday.

In 2023, the demand for electric vehicles (EVs) saw a slowdown, primarily due to high interest rates and increased EV prices, which were exacerbated by inventory shortages stemming from supply chain issues like computer chip shortages. However, 2024 marks a turning point in this trend. According to Kelley Blue Book, nearly 600,000 EVs were sold in the United States in the first half of 2024, representing a 7.3% increase compared to the first half of 2023.

In the post-COVID landscape, the automotive industry has seen a new wave of buyers—individuals who previously relied on public transport and now seek car ownership. These buyers are often younger and more inclined to use online resources for their research. Millennials, in particular, employ more online sources during the car buying phase than the average buyer.

This trend isn’t isolated. An impressive 88% of potential car buyers now conduct their research online. Digital channels boost purchase confidence by making it easier to compare options and access detailed information about each model.

However, this shift doesn’t mean the end of brick-and-mortar dealerships. In fact, 79% of car buyers still prefer to shop in person.

As we approach 2025, the Consumer Bankruptcy Reform Act (CBRA) stands as a crucial legislative proposal aimed at overhauling U.S. bankruptcy laws. Introduced by Senator Elizabeth Warren and Representative Jerrold Nadler in December 2020.  It seeks to consolidate Chapters 7 and 13 into a new, streamlined Chapter 10. This proposed change aims to simplify the bankruptcy filing process, making it more accessible for individuals.

The CBRA also addresses issues within the current bankruptcy system, such as discharging of student loan debt. At present, federal student loans are not dischargeable in bankruptcy, despite existing loan forgiveness programs. The act would provide substantial financial relief to debtors, especially younger Americans burdened by educational loans.

Despite its introduction and support from key figures, the CBRA has encountered obstacles during the legislative process. Although it has been reintroduced in subsequent Congressional sessions, recent updates do not suggest a swift adoption. Shifting political dynamics and broader economic changes since 2020 contribute to the uncertainty surrounding its future.