🚗 Bracing for Tariff Tornados

TOGETHER WITH

Welcome to Tuesday, Friend!

We’re getting more excited for ASOTU Con 2025 by the moment and hope you are too. Check out the info as it rolls out, and grab your tickets now over at ASOTUCON.com

Or hit reply and ask us to convince you. Kristi and Chris are always ready.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

🌪️ Tariff Tornados, Bright January, and Honda's 1B Ohio Bet

🌪 Tariff Tornado: Dealers Brace for Price Hikes

The U.S. is rolling out 25% tariffs on vehicles and parts from Canada and Mexico, disrupting supply chains and inflating costs. Canada retaliated with its own 25% tariff on U.S. vehicles, particularly EVs, and Mexico is expected to follow. For dealers, this means fewer incentives, rising MSRPs, and more customers shifting to used cars. A $25K vehicle imported from Mexico could now cost $6,450 more, putting pressure on affordability. Longer buying cycles, increased leasing demand, and more interest in domestic models are expected. Dealers who adapt pricing strategies and focus on used inventory will be best positioned.

🚗 January Car Buyers Had It Easy

Good news for dealers—CDK’s Ease of Purchase score hit an all-time high of 92% in January, showing that buyers had a smoother time than ever finding and buying their vehicles. 80% found the exact car they wanted with ease, a big jump from 72% in December. While inventory dipped slightly, new car stock is just below 3 million units, keeping selection strong.

One downside? Customers spent more time than expected at the dealership (32% vs. 24% in December). But overall, buyers were happier, better informed, and more willing to stick it out for the car they actually wanted.

⚡ Honda’s Billion-Dollar EV Bet on Ohio

Honda is betting big on the U.S. EV market, investing $1B in Ohio to build its flagship EV production hub. The company is installing six massive giga-presses (yes, like Tesla’s), launching a flexible “cell” manufacturing system, and expanding its battery assembly operations. The Marysville plant will soon crank out EVs, hybrids, and gas models on the same line, starting with the Acura RSX EV. With onshoring incentives and streamlined production, Honda is positioning itself to compete directly with Tesla and legacy automakers. More U.S.-built EVs = more opportunities for dealers.

More on these stories and several others here.

TOGETHER WITH UPSTART

Smart Finance, Smart Sales: Harnessing AI to Boost Dealer Performance

Our friends at Upstart hopes everyone made it home safe and sound after the snowstorm! Despite the travel delays, they had an incredible time at NADA—and are excited to share a quick recap.

On Saturday, Upstart’s resident AI-lending expert Keishawn Batts led an insightful session, “Smart Finance, Smart Sales: Harnessing AI to Boost Dealer Performance,” where attendees learned how to:

• Rethink credit assessment

• Harness the latest technology

• Unlock flexible financing to get more customers driving off the lot

If you’d like to dig deeper into smarter financing solutions, you can check out Upstart’s newest financing and showroom enhancements here.

Thanks for bringing the energy, and here’s to continued success in 2025 and beyond!

MORE THAN CARS MOMENTS

Preston Automotive Group Pays It Back and Forward

Twenty-five years ago, Preston Automotive Group faced a devastating challenge—a fire that caused over $1M in damages at their original Preston Ford location. But in that moment of crisis, 142 firefighters from 26 departments across Maryland and Delaware answered the call, proving that community is more than just a word—it’s action.

Now, a quarter-century later, Preston Automotive Group is honoring that bravery by giving back. As a token of their gratitude, they are donating $2,500 to each of the 26 fire departments that stood by them in their time of need.

This act of generosity is more than just a donation—it’s a testament to the power of community and the lasting impact of support in times of hardship. Preston Automotive Group hasn’t forgotten the help they received, and today, they’re ensuring those who serve and protect their community know just how much they are appreciated.

AROUND THE ASOTU-VERSE

🗓️ Coming Soon

🍁 February 12-17th — 2025 Canadian International AutoShow in Toronto.

🦀 May 13-16th — ASOTU CON in Baltimore, Maryland. Get the app!
The NADA Show just ended, and we’re already counting the days until we can all get together again! ASOTU CON has improved each year, and we are ready to guarantee this year will be as unique as it is unmissable.

NADA FLASHBACK

👇 Derek Hansen, VP of Cox Automotive, Gets Real with the Numbers

• New car sales +7% YoY

• Used car sales +10% YoY

• Used car inventory -18% YoY

With consumers pushing for affordability while weighing their options several times before purchasing, the general outlook this year is one of optimism.

Inventory may continue to be a struggle, but sales are still there.

Thank you to Cox Automotive for making these interviews possible during the National Automobile Dealers Association Show this year!

🥊 Quick Hits

• OpenAI says its models are more persuasive than 82% of Reddit users. 🤖 

• CIV VII will let players combine leaders. 🎮️ 

• The Dow and S&P 500 recover some losses after Trump pauses tariffs on Mexico. ⏸️ 

🔁 Today in History

• 1789: George Washington is unanimously elected as the first President of the United States. 🇺🇸 

• 1922: Ford buys Lincoln. 🚘️ 

• 2004: Facebook is founded by Mark Zuckerberg and Eduardo Saverin. 💻️