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- 🚗 China’s Market Meltdown?
🚗 China’s Market Meltdown?
🚙 China’s Car Glut, VW Price Hikes, and a Dealership Fundraiser That Moved a City
TOGETHER WITH
Happy Monday, Friend!
It’s a new week, and the first day of Fall.
Seems like most people agree, Fall is kinda the best.
As a Tennessee native, I (Chris) can’t name a better time to visit the South.
Hit reply and let us know what you’re looking forward to this season in or out of the store.
Keep Pushing Back,
-Paul, Kyle, Chris & Kristi
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From The News w/ ASOTU
Click to read the full digest.
VW Hikes U.S. Prices
Volkswagen raised stickers on many 2026 models by up to 6.5%, its second hike since tariffs took hold. Even Chattanooga-built Atlas models are pricier due to imported components.
Expect tighter margins unless OEM incentives adjust—and consider trim/finance strategies to keep payments digestible.
China’s Market Meltdown
Government-first production targets flooded China with vehicles, creating half-off luxury deals and “zero-mile used” cars. Only ~30% of dealers are profitable, and gray-market dumping is rising.
Implication for U.S. dealers: global oversupply can pressure pricing and used values.
Who’s Really Buying
Affluent shoppers are propping up new-car sales. The share of vehicles over $50K is nearly double 2019 levels, while true sub-$30K options keep shrinking. Plan merchandising and outreach for high-income buyers, and balance with certified/pre-owned pathways for payment-sensitive customers.
From the Automotive State of the Union
Playbook: Lithia’s Relentless Scale
From one Dodge store (1946) to the largest U.S. group, the DeBoers turned timing into torque. Sid rebuilt after 1968, took Lithia public in 1996, and kicked off a national acquisition run.
Bryan’s 2012 handoff accelerated mega-deals (DCH), international expansion, finance, and fleet. By 2024, they had 459 stores, $36.2B revenue, and 780k+ vehicles.
Sid’s mantra: “We won’t stop growing…even if the franchise system falls apart.”
On the Ground: EV Auto (Brentwood, TN)
Kyle dropped by EV Auto to catch up with Alex Lawrence. After a behind-the-scenes tour (some plans still under wraps), they dug into what drives the team and why they’re aiming to become the world’s biggest EV retailer.
Tech Watch: Meta’s Ray-Ban Display Glasses
Meta’s new specs project texts/maps/calls/translations onto a right-lens display, controlled via a neural wristband. Price: $800+, phone-tethered, ~6-hour battery, and heavier than standard frames.
Keep More of the Money You Make
When costs are spread across as many as 130 categories, it's easy to lose track of what's actually dragging down your bottom line.
This webinar will show you exactly where the biggest savings are, what targets to aim for, and how to hit them without slowing anything down.
StrategicSource has helped dealers Keep More of the Money They Make for over 30 years. If you want to protect profit without wasting time, this is 30 minutes you can’t afford to skip.
Join us September 24th at 2:00pm EST—grab your seat today!
(Can’t fit us into your schedule? No problem! Register now and we’ll send the video after it premieres.)
EVERYTHING ELSE
Quick Hits
AROUND THE ASOTU-VERSE
Gear Up & Give Back
On September 13th, Herrin-Gear’s Jackson, MS campus turned into a museum and block party with purpose.
“Gear Up & Unleash” drew more than 200 show cars and raised $29,280 for Children’s of Mississippi.
Organizers Shanehan Westphal and Shelly Hux didn’t skip delivering details that mattered either. The event included a National Guard flag presentation, WWII flyover, family zones (with face paint, balloons, and inflatable axe-throwing), and DJ Dave spinning 78s.
Hear more on this from Paul, Kyle, and Chris here!
Today in History
1893: Duryea Bros test their first car. đźš—
1910: The Duke of York's Picture House opens in Brighton, now the oldest continually operating cinema in Britain. 🎞️
1991: The Dead Sea Scrolls are made available to the public for the first time. đź“ś
It’s Monday. Get ready!
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