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Howdy Fam!

Season 2, Episode 1 is out there in the world now, and Episode 2 is coming this week.

Take some time to check out Season One of The Truth about Car Dealers on Amazon Prime, YouTube, and Tubi.

Or just reply about why you love working in retail auto.

Keep Pushing Back,
-Paul, Kyle, Chris & Kristi

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According to Bloomberg (via Automotive News), Ford CEO Jim Farley discussed a blueprint with Trump administration officials that would allow Chinese automakers to build vehicles in the U.S. through U.S.-controlled joint ventures. The structure would allow shared profits and technology, while keeping majority control on the American side.

This was not positioned as an endorsement of Chinese entry. It was framed as preparation. If Chinese brands gain a foothold, how does Detroit compete without surrendering pricing power or technology leadership?

Bloomberg reports that GM has told the administration it opposes Chinese entry, warning of market share loss and supplier disruption. At the same time, Chinese brands continue expanding in Europe, Mexico, and Canada, where consumer resistance appears to be softening.

For dealers, this is not abstract geopolitics. If Chinese OEMs influence the U.S. market, even indirectly, the impact would show up in pricing pressure, feature expectations, EV value perception, and potentially in fixed ops through parts sourcing dynamics.

On the Automotive State of the Union yesterday, they framed the strategy simply: “The idea? Compete without getting steamrolled.” They also noted early rumblings of these conversations at NADA, underscoring that this has been building for months.

The Wall Street Journal reports that after years of prioritizing trucks and SUVs, GM, Ford, and Stellantis are reconsidering affordable sedans, including hybrids priced under $30,000.

Passenger cars now represent just 18% of U.S. sales, down from 50% fifteen years ago. But the customer did not disappear. They migrated. As Detroit exited, Toyota’s share of the sedan market grew significantly, reinforcing what many dealers have said for years: when you remove the entry product, you lose the future upgrade.

Sedans historically functioned as a gateway. First-time buyers came in on a Focus, Fusion, Malibu, or 300. Later, they returned for an Explorer, Tahoe, or Ram. Without that first rung, the lifetime value equation changes.

Apparently, minivans are cool now.

The latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index shows improvement in January. Lower transaction prices, slightly lower loan rates, and stronger income growth combined to ease conditions month over month. The average monthly payment dipped, even as incentives declined year over year.

That does not mean affordability is solved. It means there is movement in the right direction. For dealers, this creates an opportunity to reset conversations with data instead of headlines.

When dealerships respond faster and follow up consistently, results follow. Mia’s always-on conversational AI helps increase engagement rates, recover missed leads, and support outbound efforts across text and voice.

Trusted by 3 out of 5 of the nation’s largest dealer groups, Mia has:

Curious to see what Mia could do for your dealership? Request a demo today and start seeing results from the first conversation.

Volkswagen is reportedly planning a 20% cost reduction across brands by 2028 as it battles high software spend, dual ICE/EV development costs, U.S. tariffs, and a brutal price war in China. The company is already cutting 35,000 jobs in Germany by 2030. Plant closures are officially denied. For dealers, this is the tell: global OEM margins are under pressure, and that pressure eventually rolls downhill.

Axios highlights that the trade squeeze is not just a Detroit problem. Nissan’s losses doubled. Mercedes profit nearly halved. Honda profits fell 42%. Toyota replaced its CEO after projecting a 25% net income drop. Even brands with U.S. factories rely heavily on global supply chains. Meanwhile, BYD is outselling legacy players abroad. The takeaway: nobody is insulated from cost, trade, and tech disruption.

Rivian jumped 26.6% after Deutsche Bank upgraded the stock and raised its price target, with Wedbush reaffirming its outperform rating. Strong Q4 results and aggressive 2026 growth guidance helped fuel optimism. Analysts pointed to AI voice integration and custom self-driving chips as upside catalysts. Translation: public markets still reward credible execution stories in EV, even while legacy OEMs tighten belts.

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