TOGETHER WITH:
Howdy, Fam!
Some of the best technicians we know got their start the same way: someone handed them a wrench and let them get their hands dirty.
That's exactly what's happening in Flandreau, South Dakota, where high school students are restoring a rusty 1976 Ford F-350 for the 2027 SEMA Show. Techs from Einspahr Auto Plaza are helping out, and half the build team is female for the first time in the program.
Asked what on the truck could use some welding, one senior didn't hesitate: "Oh yeah. The floor."
That's the next generation of our industry. Let's keep making room for them.
In today's email...
California's CARS Act is now in effect, and it changes how dealers price, sell, and take back cars
Gas-only cars fell below half of global sales, and GM says hybrids are coming
Fuel economy moves used values, Europe gets affordable cars the US doesn't, and AI enters the C-suite
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
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California's CARS Act Is Now in Effect
If a shopper at a California dealership asks what a car costs this week, the first answer now has to be the total price. The California CARS Act took effect October 1, 2026, imposing substantial new disclosure obligations on new car dealers and creating new rights for used car purchasers.
Here's what changes at the store:
Total price, up front: Dealers must clearly disclose a new car's total price in any ad that references a specific vehicle, and in the first communication with a consumer. nelsonmullins
Optional means optional: New car dealers must disclose that optional add-ons aren't required, and that customers can buy or lease without them. Dealers also can't charge for add-ons that provide no benefit to the buyer or lessee. nelsonmullinscomplyauto
Used-car cooling-off period: Buyers get three days to cancel a used car purchase under $50,000, as long as the car is in good shape with fewer than 400 added miles, and dealers can charge a restocking fee of 1.5% of the price, between $200 and $600. Full details here. slashgear
Signage: Dealerships must post a notice in every sales office and signing room, in at least 36-point type, about the used-car cooling-off period.
Why dealers outside California should pay attention
The CARS Act is California's response to the FTC's CARS Rule, which a federal appeals court struck down in February 2025. Dealers had a hand in the final version, too: the California New Car Dealers Association secured several clarifications and revisions. And consumer advocates are already urging other states to follow, with the National Consumer Law Center encouraging state legislatures across the nation to act.
Wherever your store is, this is the clearest preview yet of where pricing rules are headed. The stores that already lead with an honest total price will have the least to change.
Better Info. Better Call. Better Kung Fu.
A lead hits your CRM. You pick up the phone. What do you actually know about the shopper?
Protomiq IQ enriches leads with buyer context gathered through your dealership’s digital experiences, giving your team better information before the first conversation even starts. Our IQ advantage shows you how to read the lead with recommended next steps. This is your “I know Kung Fu” moment. Speed up discovery, get to what matters faster, and have a more relevant first call while the shopper is still in market.
The World Is Moving Past Gas-Only Cars, and GM Says It's Listening
On Monday's show, we looked at a milestone: gas-only vehicles fell below half of global sales for the first time, dropping from 73% in 2021 to 49% in the first half of 2026. Hybrids climbed to 18% of global sales, and battery EVs to 17%.
Now the Detroit automaker with the biggest hybrid gap is responding.
"We're not tone deaf to our customers. We know what they want and we want to give that to them as quickly as we can." Mike Anderson, GM vice president of propulsion engineering
How GM's hybrid gap affects its dealers
GM confirmed hybrids are part of its plan but declined to share timing. Today, its only hybrid is a version of the Corvette. AutoForecast Solutions expects GM plug-in hybrids with about 70 miles of electric range in late 2027 or early 2028. Meanwhile, hybrids hit a record 16.3% of US sales in Q2, up 23% from a year earlier.
Until those hybrids arrive, GM dealers need a clear answer for every customer who asks for one.
Fuel economy is now moving used-vehicle values.
Cox Automotive's latest data shows the vehicles with the worst fuel economy depreciating fastest, while vehicles rated above 40 mpg are holding or even gaining value.
Large truck and SUV values have declined over the past couple of months, and diesel costs are starting to show up in Manheim wholesale prices.
It all comes as consumer confidence falls to its lowest level since 2014.
Europe is getting affordable cars US buyers can't.
In Britain, Chery's Jaecoo 7, a Chinese SUV with a luxury look at about half the price, was September's best-selling vehicle, and nearly one in six cars sold there this year carries a Chinese brand.
Now Hyundai's new Ioniq 3 starts around $25,000 in the UK after a government grant, with up to 308 miles of range on Europe's WLTP cycle. Hyundai says it drew more pre-launch interest than any Hyundai ever introduced in the UK, but it has no plans to bring it to the US.
AI is moving into the C-suite.
Ford required its top 200 leaders to build AI agents for daily work, Stellantis rolled out AI training for its managers, and Daimler Truck CEO Karin Radstrom uses AI to double-check her own decisions.
Bosch North America CEO Paul Thomas draws a clear line: "If the decision affects safety, people or large investment, I always want to be involved."
⚙️ Under the Hood
CDK has a new CEO this week. Sudhakar Ramakrishna, most recently CEO of SolarWinds, succeeds the retiring Brian MacDonald at the dealer software provider.
Ford, JPMorgan Chase, and Michigan are launching a $3 billion program offering companies financing, workforce support, and other resources to scale production, per Ward's Auto.
European EV sales hit a record, with 1.64 million sold from January through August, up 45%, as EVs climbed to 22% of the EU market.
1889: The Moulin Rouge opens in Paris.
1927: "The Jazz Singer" premieres, the first feature-length film with synchronized dialogue.
2010: Instagram launches on Apple's App Store.
