🚗 April Mood Swings

🚙 AI Power, Hospitality, and the 40-Hour Week

May 01, 2025

TOGETHER WITH

 

Hello May!

Time to see if those April showers produced any May flowers, amirite?

Send me (Chris) a picture of some spring flowers, and I may send you a special discount code for ASOTU CON 2025 tickets.

You don’t want to miss sessions like:

And so much more.

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

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April Mood Swings, Profits Tank, and Toyota’s Torch for Gas

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April closed out like a weird weather pattern: heatwave up front, cold front on the way out. The auto market felt it too early buyers rushed in to beat tariffs, but the second half of the month saw momentum fizzle. Add earnings whiplash and a little EV drama, and we’ve got plenty to unpack.

🇺🇸 April Auto Sales: Surge, Then Stall

Cox Automotive says April will likely land at a 16.4M SAAR, up YoY, but noticeably down from March. The early rush of buyers trying to outpace tariffs gave way to price hikes, fewer incentives, and a mid-month slowdown. Compact SUVs like the CR-V, Equinox, and Forester led the charge early, tightening inventory fast. Meanwhile, used car demand stayed elevated, and Manheim lanes stayed hot.

Dealer Impact:
Inventory is tight in all the same spots nationwide. Used cars are moving, but clean units are harder to source. And with parts tariffs kicking in May 3, service ops should prep for quote revisions and sourcing surprises.

💶 VW & Mercedes Profits Tank

Volkswagen’s Q1 profit dropped 37%. Mercedes? Down 41%. Both are blaming Trump’s tariffs and pulling full-year forecasts. Stellantis and Volvo already did the same. Imported vehicle costs are climbing, and CFOs aren’t making promises.

Dealer Impact:
Expect thinner incentives and more pricing volatility, especially on luxury imports. Now’s the time to spotlight U.S.-built models and conquest with smart lease terms.

🏁 Toyota Doubles Down on ICE Performance

Akio Toyoda is clear: “Sports cars should smell like gas and make noise.” While Toyota continues to explore EVs, it’s leaning into ICE icons like the Supra and 86, and maybe even reviving the Celica.

Dealer Impact:
This is gold for engaging performance buyers. With EV fatigue setting in, Toyota’s stance may win over purists and skeptics alike.

➕ More

We got more news, more metaphors, and a reference to cake in today’s Digest. Check it out on LinkedIn.

🥊 Quick Hits

  • New bill suggests taxing EV owners another $200 a year. 🔋 

  • We all knew it was going to happen eventually, but a movie made with generative AI is on the way. 🤖 

  • Even Santa is feeling the tariff pinch. Retailers are worried toy supplies won’t last by the holidays. 🎅 

AI-Powered Profits: Turning Tariff Turbulence into Faster, Higher-Margin Deals

In our latest ASOTU Edge webinar with Upstart, Used Car Manager Evan Driscoll (Audi Jacksonville) and Business Operations Manager Danielle Mills Walden broke down how tariffs, shifting shopper behavior, and AI financing are rewriting the playbook.

3 takeaways you can use today

  • Tariffs change the math—digital data evens it out. Real-time pricing and inventory tools help dealers stay competitive even as import costs rise.

  • AI financing keeps the deal alive. Upstart’s instant credit decisions and soft pulls slash approval times and give every shopper a clear path to “yes.”

  • Digital-first funnels convert browsers to buyers. By letting customers configure payments, accessories, and financing online, Audi Jacksonville turns web traffic into closed deals without showroom bottlenecks.

“Using AI financing is a great way to get immediate approval with a good rate. Some of these CUs take hours or days, but we can keep the deal moving without waiting 2–3 hours, no matter the time of day. Upstart gives you the full deal structure in a clean grid, so I’m not rehashing numbers while trying to sell a lot of cars.” —Evan Driscoll.

Why it matters:

AI is no buzzword. It is a margin-saving tool that helps dealers:

  • Close deals faster during volatile market conditions

  • Build trust through transparent, personalized offers

  • Future-proof operations with fully integrated digital journeys

Watch the replay, then level up.
Catch the full 24-minute conversation and see exactly how Evan and Danielle navigate tariffs, pricing swings, and shopper expectations with AI-powered financing.

Ready for deeper insights? Connect with Upstart today, and don’t forget to meet Evan and Danielle live at ASOTUcon, May 13–15.

ActivEngage Leads with People-First Hospitality at ASOTU CON 2025

At ActivEngage, real conversations aren't just a courtesy; they're the key to sales and revenue growth. As the largest exclusively automotive live messaging platform, ActivEngage helps dealerships transform casual website traffic into engaged buyers ready to take the next step.

With more than 14,000 dealerships served, their 100% human engagement experts know how to create the kind of genuine, people-first connections that customers remember, and BDCs can actually close.

It's digital hospitality that drives results.

🔁 Today in History

  • 1926: Ford Motor Company and the adoption of the 40-hour work week, fought for by unions. 🧑‍🏭 

  • 1931: The Empire State Building is dedicated in New York City. 🇺🇸 

  • 1956: The polio vaccine developed by Jonas Salk is made available to the public. 😷 

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