🕵️‍♂️ December 30: Honda + Nissan Confusion, CarMax Used Data, and Stellantis Backs Off.

The Gist

🤷 Honda + Nissan = ??? Honda’s CEO admitted the merger with Nissan is a head-scratcher. Some say it’s a government play to block a Foxconn takeover. Either way, no one seems thrilled.

📈 CarMax’s Numbers: Sales are up 5.4%, but prices dropped nearly 4%. Online sales hit 15%. It’s a mixed bag, but hey, there’s an opportunity for dealers to stand out.

🙌 Stellantis Saves Jobs: Ohio layoffs are off the table, keeping 1,100 workers on the Gladiator line. A rare win for stability in a shaky market.

📺 Lamborghini TV: Yes, it’s a thing. Expect engine deep dives, fancy Revuelto shots, and a weird lack of necessity.

🔋 CATL’s Big Move: The battery king wants to raise $5B in Hong Kong. It might shake up supply chains and competition in the EV game.

⚡ NY’s Charger Cash: $28.5M for fast chargers. Great for EVs, but maybe someone could toss a few bucks at those potholes? Just saying.

Fuel for Thought

• 🤷 Honda-Nissan Merger: Awkward Answers and Uncert …

  • The Situation is Murky

  • More on This Story

• 🍭 CarMax's Q3 Numbers: A Mixed Bag of Growth and …

  • The Numbers

  • What does this mean for local dealers?

• ⏮️ Stellantis Walks Back Ohio Layoffs: A Win for W …

  • Why the Change?

  • The Bigger Picture

• 📺 Wait, Lamborghini Has a TV Channel Now?

• 👀 CATL Eyes Hong Kong Listing: What It Could Mean …

  • Why Does This Matter to US Dealers?

  • What Happens in China…

• ⚠️ $28.5 Million for EV Chargers… But Still No Fix …

🤷 Honda-Nissan Merger: Awkward Answers and Uncertain Outcomes

It’s not every day you see a CEO openly admit they’re unsure about a multi-billion-dollar decision, but that’s exactly what Honda CEO Toshihiro Mibe did when questioned about Honda’s potential merger with Nissan. Mibe called the partnership a “difficult one” to justify, leaving analysts and journalists scratching their heads.

The Situation is Murky

Honda, struggling with its EV strategy, and Nissan, in financial chaos, may seem like odd bedfellows. Analysts speculate the merger could be government-driven, as whispers suggest Japan’s Ministry of Economy, Trade, and Industry is backing the move to thwart a possible Foxconn takeover of Nissan.

Whatever the reasoning, it’s clear this isn’t a match made in heaven. And with the clock ticking on Nissan’s financial recovery before Honda fully commits, the road ahead will be anything but smooth.

More on This Story

🍭 CarMax's Q3 Numbers: A Mixed Bag of Growth and Margin Pressure

CarMax’s latest quarterly report highlights a 5.4% increase in retail used vehicle unit sales, totaling 184,243 units. While this suggests improving demand in the used vehicle market, the story gets more nuanced upon closer inspection. Average retail selling prices dropped by 3.9%, or about $1,100 per unit, highlighting ongoing affordability challenges.

For dealerships, this data signals broader trends in the retail automotive landscape, including shifts in pricing strategies, consumer buying habits, and the increasing role of online sales in the car-buying journey.

The Numbers

• Retail Used Sales Growth: Comparable store sales rose by 4.3%, while total revenues climbed 1.2% year-over-year.

• Pricing Pressure: Despite unit sales growth, declining vehicle prices pulled average revenue per sale lower.

• Wholesale Momentum: Wholesale vehicle unit sales increased by 6.3%, though average wholesale prices dipped 5.7%.

• Online Sales Push: Online retail accounted for 15% of unit sales, a modest increase from last year’s 14%.

• Vehicle Acquisition Trends: CarMax bought 270,000 vehicles in Q3, with dealer purchases surging 46.7%, reflecting heightened competition in sourcing inventory.

CarMax CEO Bill Nash credited a “more stable environment for vehicle valuations” and “solid execution” for the company’s results, but affordability concerns loom large. For locally owned dealerships, this could signal an opportunity to emphasize personalized customer service and community-driven values while adapting to evolving price sensitivities.

What does this mean for local dealers?

Now’s the time to monitor pricing trends closely, lean into trade-in incentives, and consider ways to match consumer affordability needs without compromising margins.

⏮️ Stellantis Walks Back Ohio Layoffs: A Win for Workers and Dealers Alike

In a rare turn of events, Stellantis has reversed its decision to lay off 1,100 workers at the Toledo South Assembly Plant in Ohio. This move, announced just weeks after the sudden resignation of CEO Carlos Tavares, ensures that employees will remain on the job past January 5, despite earlier plans to reduce shifts.

For US dealers, this decision matters. More workers mean continued production stability, especially for Jeep Gladiator units—a crucial product in the Stellantis lineup that supports many local showrooms. Plus, it highlights the broader value of investing in people as the backbone of any industry.

Why the Change?

Stellantis is navigating some choppy waters:

• Leadership Shakeup: Carlos Tavares’ exit reportedly stemmed from internal disagreements over aggressive cost-cutting targets.

• Market Struggles: Slipping Jeep and Ram sales in North America are adding pressure to an already tight margin game.

• Union Scrutiny: UAW President Shawn Fain has been vocal about holding Stellantis accountable for job cuts, even threatening a nationwide strike.

The Bigger Picture

The decision to reverse layoffs could signal Stellantis is recalibrating its approach to balance efficiency with the human element—something local dealerships have championed for years.

Deets

• Worker Adjustments: Employees will continue work as scheduled after the holidays.

• Inventory Management: Layoffs were initially tied to reducing inventory and streamlining operations.

• Union Dynamics: The UAW remains a key player, with promises to hold Stellantis accountable under contract terms.

This reversal highlights the value of prioritizing people over short-term gains. With a stabilized workforce, dealerships can count on more consistent supply lines—essential for meeting customer demand without sacrificing quality or relationships.

Because let’s be honest: cars may come and go, but people—both on the factory floor and in your showroom—are what keep this industry thriving.

📺 Wait, Lamborghini Has a TV Channel Now?

Yep, because apparently owning the road isn’t enough, Lamborghini now wants a piece of your living room, too. Enter Lamborghini TV—a streaming app exclusively for Android TV, Tizen, or WebOS. Not on your phone, not on your laptop, and definitely not for that old plasma TV you’ve been hanging onto for sentimental reasons.

What’s on? Expect podcasts, deep dives into engines, model showcases, and yes, gratuitous shots of the Revuelto that’ll make you consider remortgaging your house. Most of it feels like reruns from their YouTube channel, but hey, if staring at a 3D Aventador in 4K makes your day, this app’s for you.

👀 CATL Eyes Hong Kong Listing: What It Could Mean for US Dealers

The world’s leading EV battery maker, CATL, is setting its sights on a Hong Kong stock exchange listing, aiming to raise at least $5 billion. While this is happening halfway around the globe, US auto dealers may want to pay attention. Moves like this often ripple across the EV landscape in ways that can affect supply chains, pricing, and competition here at home.

Why Does This Matter to US Dealers?

• EV Battery Domination: CATL already holds a staggering 37% share of the global EV battery market. A successful Hong Kong listing could give the company even more resources to expand, solidify partnerships, and potentially make inroads into the US market.

• Battery Swapping Expansion: CATL is pushing for battery swapping on a massive scale in China, with plans for 10,000 stations long-term. While swapping hasn’t gained traction in the US, any success in China could reignite interest—or competition—in alternative EV infrastructure models here.

• Pressure on US Suppliers: With CATL flush with new capital, domestic battery makers may feel the heat to innovate and compete, potentially impacting costs or availability of components for US automakers and dealers.

What Happens in China…

While this Hong Kong move may seem far removed from the US dealership world, it underscores how global shifts in EV production and strategy can impact the vehicles rolling onto your lot. Keeping an eye on CATL’s next moves might just offer a glimpse into where the EV market—and its supply chain—is headed next.

⚠️ $28.5 Million for EV Chargers… But Still No Fix for Those Potholes?

New York Governor Kathy Hochul announced another $28.5 million to install fast EV chargers along major travel corridors south of Interstate 84. Funded through NEVI, the Downstate Direct Current Fast Charger program aims to make charging faster, more accessible, and conveniently located near food and restrooms—because nothing says progress like grabbing a sandwich while waiting for your EV to juice up.

While the funding promises high-speed chargers that meet strict federal standards, it’s hard not to wonder: with all these millions being poured into EV infrastructure, when’s the last time someone thought about filling those tire-busting craters littering New York’s roads? Cleaner air is great, but so is keeping your suspension intact.

Have we considered this is a big play by Slim Jim lobbyists to gain access to a captive audience? Just asking the real questions over here.

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