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Episode #1323: Carvana keeps buying rooftops while Stellantis slows consolidation. GM delays its next-gen EV trucks amid weak demand, and Sony-Honda scale back Afeela.

Show Notes with links:

• Carvana just scooped up its seventh CDJR store, planting its first franchised flag in Ohio. The online disruptor continues its push into traditional retail—while Stellantis quietly pumps the brakes.
  • Carvana acquired Avon Lake CDJR near Cleveland, strengthening its hybrid model, pairing physical rooftops with its online sales and distribution network.
  • Stellantis recently limited buyers to one CDJR store per year, signaling a push to slow consolidation and maintain dealer network balance.
  • Analysts say these stores double as regional logistics hubs, keeping delivery distances within that 300–400 mile sweet spot.
  • “Nobody wants to sell a Lexus store…with Stellantis, there’s a ready supply.” said analyst Jeff Lick of Stephens Inc.

• GM is hitting pause on the future of its electric truck lineup, shelving plans for a next-gen refresh and signaling a sharper pivot back to gas-powered pickups as EV demand—and profitability—continue to lag.
  • GM has indefinitely delayed its planned 2028 refresh of full-size EV trucks and SUVs, including Silverado EV and Escalade IQ.
  • The move follows $7.6B in EV-related charges and a sharp drop in sales after federal incentives disappeared.
  • Current EV truck volumes remain low, while GM is adding production capacity for gas-powered heavy-duty pickups.
  • Factory Zero, once the centerpiece of GM’s EV strategy, has seen layoffs, shutdowns, and reduced shifts amid weak demand.
  • “EVs remain the end game for GM,” the company said, despite the pause in next-generation planning.

• Sony and Honda are scaling back their joint venture after deciding the current setup couldn’t deliver competitive products anytime soon.
  • Sony Honda Mobility is reducing operations after scrapping plans for its Afeela EV lineup.
  • Employees will be reassigned back to Sony and Honda as the JV winds down activity.
  • The companies cited challenges bringing products to market under the current structure.
  • Even as EV plans fade, the partners say they’ll continue focusing on software and user experience innovation.
  • “It would be difficult…to bring products and services aligned with the JV’s purpose to market,” the companies said.

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Episode #1322: The FTC wants dealers to report rule-breakers, Tesla turns Cybertrucks into grid assets with a simpler V2G play, and Apple announces a historic CEO transition

Show Notes with links:

The FTC is now asking dealers to help police each other on advertising. In a recent NAD webinar, regulators emphasized reporting bad actors and clarified key pricing rules, especially around doc fees and how total vehicle price must be presented.

• • The FTC is encouraging dealers to report competitors who violate ad rules, aiming to level the playing field.
  • Complaints can be submitted directly or through NADA, signaling a more collaborative enforcement approach.
  • Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection clarified that doc fees must be included in the advertised total price—not added later in the deal.
  • Total vehicle price must be displayed more prominently than MSRP in ads across all channels.
  • “[It’s important that] the consumer understands what it is that they’re going to be paying to get the car out the door,” said Christopher Mufarrige.

• The Cybertruck is officially now a grid asset. Tesla and PG&E just approved it for vehicle-to-grid use in California, and the bigger story isn’t just capability—it’s a simpler, cheaper path that could finally make energy-sharing scalable.
  • Unlike Ford and GM setups, Tesla uses an AC-based system—avoiding $6K–$10K DC charger installs.
  • Lower hardware complexity could remove a major barrier for homeowners to join grid programs.
  • Owners opt in to send energy back during peak demand—and get paid for it.
  • With 123 kWh onboard, each Cybertruck adds ~9x the storage of a typical home battery.
  • “Electric vehicles can do more than move people — they can help power homes,” said PG&E’s Jason Glickman.

• One of the most influential CEOs in modern business is stepping aside. Apple announced that Tim Cook will transition to executive chairman this fall, handing the CEO role to longtime insider John Ternus—marking the first major leadership shift since the Steve Jobs era.
  • John Ternus, Apple’s hardware engineering chief, will become CEO on September 1, 2026.
  • Cook will stay on as executive chairman, focusing in part on global policy and regulatory relationships.
  • The move caps a long-planned succession, not a sudden shakeup—Apple signaling stability.
  • Ternus brings a product-first background, having led hardware during Apple’s silicon and device expansion era.
  • “He is without question the right person to lead Apple into the future,” said Tim Cook.

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Episode #1321: Sedans eye a comeback as affordability bites, tax refunds rise but don’t fully convert to sales, and a $2K stripped Tesla proves EV durability in the wildest way possible.

Show Notes with links:

https://www.autonews.com/manufacturing/automakers/an-general-motors-sedan-strategy-0419/#
After years of getting crowded out by crossovers, sedans are quietly making a return. Rising prices, shifting regulations, and a hunger for something different have automakers reconsidering the segment many left for dead.
Automakers like GM, Stellantis, and Infiniti are exploring new sedan entries, some targeting sub-$30K price points to win back budget-conscious buyers.
Sedans are gaining traction again, with Camry, Accord, and K5 posting double-digit sales increases while some crossovers lose share.
With average vehicle prices over $50K, sedans offer a more affordable alternative and fill an underserved gap in the market.
Design fatigue is real—executives say SUVs are getting “boring,” while sedans offer more room for style and brand differentiation.
“There’s opportunity for sedans to nibble into utility vehicles,” said S&P’s Stephanie Brinley.

https://news.dealershipguy.com/p/https-news-dealershipguy-com-p-first-tax-season-under-one-big-beautiful-bill-ends-refunds-up-11
The first tax season under the “One Big Beautiful Bill” brought bigger refunds—but not a clean win for dealers. Higher cash in pockets met higher costs at the pump and on loans, creating a mixed bag on showroom floors.
Average refunds jumped 11% to $3,462, with total payouts up 14.5%, boosted by new deductions, credits, and no tax on tips or overtime.
Dealers saw uneven results—some stores surged, others lagged—as gas prices topped $4 and interest rates stayed elevated.
Used market demand leaned toward “near-new” value buys, as shoppers stretched dollars against $50K new-vehicle pricing.
Subprime activity ticked up, but down payments shrank, signaling affordability pressure despite larger refunds.
“If the war ends…we could see a monster Q4 in ’26,” said Potamkin CEO Cole Potamkin.

https://electrek.co/2026/04/18/youtuber-buys-stripped-tesla-model-3-go-kart-2000-212-miles-range/
YouTuber, Remmy Evans, bought a completely stripped Tesla Model 3 for $2,000—and drove it like a go-kart. Somehow, the battery and motors didn’t get the memo.
The car had no body panels, windshield, or seatbelts—just the core EV components—and still showed 212 miles of range.
Despite 78 error codes and missing safety systems, it was driven on public roads, drifted, off-roaded, and even jumped.
Charging proved tricky, with hacked adapters and slow Level 2 charging due to software limitations.
Tesla’s software may eventually restrict functionality as it detects missing components, highlighting challenges for rebuilders.
The big takeaway: EV drivetrains are incredibly durable—even when everything else is gone.

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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There's nothing better than Saturday morning, especially because Kyle and Paul get to sit down with Chris Reeves and talk about some of the amazing things happening across their industry today. We talk about how retail automotive's largest auto group, Lithia, is still able to get hyper local with their service to the community.

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Episode #1322: Dealers brace for long-awaited FTC answers, Ford walks a tightrope with China partnerships, and automakers could be heading back to wartime production.

Show Notes with links:

https://nada.zoom.us/webinar/register/9017738594625/WN_PU_CgJt2Rx-fOlCP7hJ6yw#/registration
After a frustrating first attempt, NADA is back with the FTC for a do-over webinar addressing the 97 warning letters sent to dealers. This time, expectations are high—and so is the pressure to finally deliver clarity.
The initial webinar drew 4,000+ attendees but ended abruptly when the FTC declined to answer questions—leaving dealers needing guidance.
Dealers are still seeking clarity on key issues like advertising practices, including whether doc fees must be included in vehicle pricing.
NADA escalated concerns directly to FTC leadership, prompting a second session with new representation from the Bureau of Consumer Protection.
Senator Bernie Moreno emphasized alignment on transparency goals but stressed the need for clear, actionable rules.
NADA President Mike Stanton didn’t hold back: “A complete waste of everybody’s time… We were told that we would get our questions answered.”

https://www.wsj.com/business/autos/ford-will-partner-more-with-chinese-automakers-overseas-66cc23c9?mod=autos_news_article_pos2
Ford CEO Jim Farley is threading a strategic needle—warning about China’s growing dominance while simultaneously expanding partnerships overseas. The message is clear: compete where you can, collaborate where you must.
Farley says Chinese automakers are leading in tech, cost, and speed—forcing global competitors to rethink strategy.
Ford plans to deepen partnerships with Chinese companies outside the U.S. to stay competitive in international markets.
At home, Ford is pushing for protections, warning that unchecked Chinese imports could “devastate” U.S. manufacturing and jobs.
The company is accelerating its own EV manufacturing overhaul to better compete on affordability and scale.
Farley didn’t mince words: “You don’t become fit like the rest of the Chinese… you aren’t going to be around much longer.”

https://www.jalopnik.com/2149778/pentagon-wants-automakers-build-fewer-cars-more-weapons/
As global conflicts strain U.S. supply chains, the Pentagon is turning to an unexpected ally—automakers. Early talks suggest OEMs may once again be asked to shift from building cars to supporting national defense.
Defense officials have approached leaders like GM’s Mary Barra and Ford’s Jim Farley about ramping up weapons production capacity.
Ongoing conflicts in Ukraine and Iran have rapidly depleted U.S. munitions stockpiles, accelerating urgency.
The strategy echoes WWII-era manufacturing pivots, with automakers potentially backstopping traditional defense contractors.
Automakers were asked how quickly they could shift production—and what barriers exist in contracts and bidding processes.
A Pentagon official emphasized the mission: expanding capacity to ensure warfighters maintain a “decisive advantage.”

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Episode #1321: Dealers double down on price transparency training, a new autonomy “Big Three” takes shape with Waymo, Tesla, and Uber, and AI boosts worker productivity but struggles to move the needle at the organizational level.

At the Ethical Finance and Insurance Managers Conference in Las Vegas, industry leaders made it clear: the FTC’s warning letters are just the trigger and the real focus is on how dealers adapt operations and training to meet rising expectations.

• • Speakers from compliance, F&I, and training organizations emphasized that execution—not awareness—is the biggest risk for dealerships right now.
  • Leaders like Shannon Robertson (AFIP) and Tony Dupaquier (iA American Warranty Group) highlighted that regulators are watching closely, pushing dealers to tighten processes.
  • The message: pricing consistency must be trained, reinforced, and monitored across sales, F&I, and even social media activity.
  • Experts stressed that today’s buyers shop online for months, making pricing accuracy critical before they ever walk in.
  • “Do we train employees that the price they quote has to match that online price?” Robertson said

• A new mobility power trio is emerging, but its not Detroit’s legacy OEMs. Waymo, Tesla, and Uber are moving autonomy from testing to real-world deployment, the race is shifting from building tech to scaling full-blown transportation networks.
  • Robotaxis and autonomous trucks are already operating in multiple U.S. cities but the next battleground is scale—charging hubs, maintenance depots, and fleet optimization will separate winners from the rest.
  • Waymo leads in deployment with 500,000 weekly rides, while Uber brings unmatched ride-matching infrastructure and partnerships.
  • Tesla’s edge lies in massive real-world driving data and its Supercharger network, though full autonomy still requires supervision.
  • “Waymo is probably less than a year from becoming a verb,” said autonomy expert Grayson Brulte.

• AI is making employees more productive—but companies aren’t seeing the payoff at scale. New data from Gallup shows a growing gap between individual efficiency gains and real organizational transformation, with leadership and engagement emerging as the missing links.
  • 65% of workers say AI improves their productivity, yet only 12% feel it’s truly transforming how their organization operates.
  • Leaders echo the disconnect—89% report no measurable productivity gains from AI so far, despite heavy adoption.
  • Manager involvement is the difference-maker, with employees far more likely to see value when leaders actively support AI use.
  • Many organizations are falling short—less than one-third of employees say their managers are actively backing AI adoption.
  • AI fears are rising too, with 23% of workers in

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Episode #1320: Today we unpack how CarMax is leaning into older inventory, Rivian is powering plants with old batteries, and resale is becoming the new customer acquisition engine for brands.

Show Notes with links:

• CarMax is leaning into lower-priced, higher-mileage inventory and looser credit to tackle affordability—but Wall Street isn’t buying it yet. Despite solid earnings, shares slid as investors question the cost and timeline of the turnaround.
  • CarMax stock dropped 14% after earnings, even with results meeting expectations.
  • The company is pausing share buybacks to preserve cash for a turnaround strategy.
  • CarMax is increasing its mix of older, higher-mileage “value” vehicles to meet affordability demand, now ~35% of inventory.
  • Its finance arm is working with stretched buyers, noting most customers outside top-tier credit are struggling with payments.
  • “This year we have absolutely increased our sales of older cars to meet the customer where they want to be met on affordability,” said CFO Enrique Mayor-Mora.

• Rivian is tapping into its own retired EV batteries to power its Illinois plant, partnering with Redwood Materials in a move that cuts energy costs and grid reliance—while hinting at a bigger long-term infrastructure play.
  • Once completed, the factory will draw power from 100+ reused EV batteries in a footprint the size of a small parking lot.
  • The setup will reduce reliance on the power grid, especially during peak demand hours.
  • The system is expected to deliver 10 MWh of energy, roughly equal to 1,000 home battery units.
  • Rivian sees potential to expand battery reuse across facilities, with more projects likely as it scales production.
  • “There’s hopefully a lot more… and there’s going to be a lot of batteries we’ll have access to,” said CEO RJ Scaringe.

• The global resale market is surging as affordability pressures push consumers toward secondhand goods—creating a powerful new customer acquisition channel for brands.
  • The global resale market is projected to hit $317B by 2027, up from $256B in 2025.
  • 84% of resale shoppers use secondhand platforms to discover new brands.
  • 58% of shoppers who first buy a brand secondhand go on to purchase new items from that brand.
  • “This is an interesting way for higher-price-point brands to acquire new customers,” said McKinsey’s Colleen Baum.

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Episode #1319: Dealers prove growth doesn’t require more rooftops, Amazon inches into car sales with real-world friction, and Slate Auto raises $650M to bring its affordable EV vision closer to production reality.

Show Notes with links:

• Forget “grow or die”—2025 proved you can win without adding rooftops. Many Top 150 groups drove serious gains through operational discipline, not acquisitions, signaling a shift toward smarter, not just bigger, dealership strategies.
  • 52 groups grew new-vehicle sales with zero footprint change, pointing to stronger same-store execution.
  • High performers leaned into used-car ops, inventory availability, and internal GM development.
  • Great Lakes Auto Group climbed 19 spots to #88, boosting volume 28% while holding steady at nine stores.
  • Late-year acquisitions (Q4 closings) meant organic performance—not M&A—drove most gains.
  • “We think that scale helps… but I don’t think it’s absolutely necessary,” said Hudson Automotive (#11) CEO David Hudson.

• Amazon is upping its new-car retail platform, and yes, you can now buy a Corvette there. What started with Hyundai has expanded to include multiple brands, bringing digital-native shopping into a $1.3T dealership market.
  • Amazon Autos now features Hyundai, Kia, Mazda, Subaru, Chevrolet, and Jeep in 130+ cities.
  • Customers can browse, price, finance, and start paperwork online, reducing time in-store—not replacing it.
  • Dealers pay to list inventory, gaining high-intent traffic from Amazon’s massive audience.
  • Early friction like inventory sync issues and incomplete deal structures highlights the complexity of auto transactions.
  • “Customers have a level of comfort with Amazon… but it’s definitely just in the starting phase,” said dealer Matthew Phillips.
• 
  
• Slate Auto just locked in $650M in Series C funding, keeping its low-cost EV truck plans on track—and putting a spotlight on its next big milestone: production.
  • The funding supports next-stage development and production ramp at its Indiana facility.
  • Slate just crossed the 160K reservation mark and still targets late 2026 deliveries, with preorders expected to open in June.
  • The truck will start at a mid-$20K starting price, using a stripped-down base model with modular add-ons that let customers upgrade into things like a 5-seat SUV or fastback configuration.
  • The company plans to invest $400M in its plant, creating 2,000+ jobs.
  • “We will deliver Slate Trucks at nearly half the cost of the average new vehicle—as promised,” said President Chris Barman.

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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