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VW's CEO Oliver Blume wants to double job cuts to 100,000 and warns four German plants are at risk, citing more than 150 Chinese competitors now entering Europe. At the same time, this quarter's numbers actually show real stabilization. One analyst called it "an almost impossible needle to thread."
Also in today's email:
Why Penske's own stock says $210 a share probably isn't the final offer
The wage math pulling young people into skilled trades over a four-year degree
A 14-year-old's rodeo skills just saved a man's life
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
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Volkswagen's Impossible Needle to Thread
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VW's CEO wants to double job cuts to 100,000 and warns four German plants are at risk, citing more than 150 Chinese competitors now entering Europe. Analysts say he's trying to do two things at once that don't fit together.
Volkswagen CEO Oliver Blume made his case Friday for deeper cost cuts, telling reporters the company faces mounting risk as Chinese competitors expand into its home market.
When we look to the future, we have more and more risks coming... and all are coming to the market.
The Numbers Are Actually Stabilizing. The Warning Isn't.
📊 The Quarter
Operating profit: down 9.5% to €3.5 billion
Revenue: €82.4 billion, above forecast
Operating margin: 4.2%, within the full-year 4.0-5.5% target range
Revenue growth target: scrapped, now forecasting up to a 3% decline for 2026
Blume wants to double previously agreed job cuts to 100,000 and has floated closing four German plants after 2030. His own supervisory board already rejected the full restructuring plan once this month, and unions are bracing for another tense round of negotiations.
Trying to Reassure Investors and Warn the Workforce at the Same Time
VW management is trying to walk the tightrope of reassuring investors while at the same time telling its workforce that the house is on fire. That is an almost impossible needle to thread.
That tension is the real story here. The quarter itself shows genuine stabilization, margin holding inside guidance, strong free cash flow. But Blume needs the workforce to accept dramatic cuts based on a threat that the same earnings call is simultaneously downplaying for shareholders.
What This Means for Your Store
If you carry VW, Audi, Porsche, or Skoda, this isn't a today-action story, but it's worth watching closely over the next several months. Real production and plant decisions are expected before year's end, and the outcome directly shapes what inventory and pricing pressure looks like on these brands heading into 2027.
The Auction That Actually Knows EVs
If your lot is stocking used EVs, you already know the problem: legacy auctions weren't built for them. No battery health, no range data, no software condition, just a VIN and a guess.
Plug fixes that. It's the only EV-only wholesale auction, with full data visibility on every listing so dealers bid with confidence instead of risk. New inventory drops daily, sourced from a wide network of channels, meaning cleaner cars and less competition from other channels.
Dealers already using Plug are turning EVs faster and with fewer surprises post-sale. If you're not on the auction yet, now's the time to join.
The Penske Story Isn't Over. Its Own Stock Says the Offer Might Be Too Low.
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Penske shares closed above the $210/share buyout offer this week, a signal the market thinks Penske and Mitsui aren't done raising their bid.
Penske Automotive shares closed at $215.54 on July 23, above the $210 per share Penske Corp. and Mitsui offered just one day earlier to take the group private.
Want the full conversation?
🎙️ We covered this deal in depth last week. Listen to that episode for the full breakdown of what going private actually means for the industry's second-largest dealer group.
The Market Already Doesn't Believe $210 Is Final
Analysts had already flagged the original offer as thin. A price premium under 15% over the prior trading price is unlikely to satisfy non-insider shareholders, and $210 represented just 7.6% over Penske's July 21 close.
I wouldn't be shocked if maybe a little bit of a boost comes into the $210 price.
Analysts remain clear this deal is specific to Penske's unique ownership structure. Asbury, AutoNation, and Group 1 could still attract private equity interest independently, but none carry the same closely-held ownership that makes going private this straightforward for Penske.
What This Means for Your Store
If you're tracking this deal, or public dealer group valuations generally, expect a revised offer before this closes. The gap between the offer price and the current trading price is a real, measurable signal, not speculation, worth watching directly rather than assuming $210 is the final number.
Ford, BlackRock, and Google Just Teamed Up on the Problem Every Dealership Already Has
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The technician shortage just got national-scale attention.
A new coalition, the Alliance for America's Skilled Trades, is pairing major companies with labor unions to expand apprenticeships.
📊 The Wage Math
Entry-level office job with a degree: ~$18/hour
Paid trade apprenticeship: comparable pay, zero student debt
Five years in: often $130,000/year
As AI compresses white-collar work, hands-on trades are heading toward a real, growing premium, and automotive service sits squarely in that lane.
If you're recruiting technicians, this national momentum is worth leveraging locally.
Honda's CR-V Just Made History. Its Truck Isn't So Lucky.
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One nameplate hit a milestone. The other is pausing to rethink itself.
Honda's CR-V led all U.S. vehicle sales for the first half of the year, a first for the model, as Ford F-Series and Toyota RAV4 dealt with production bottlenecks.
📊 Meanwhile, at the Truck End of the Lineup
Ridgeline production pauses later this year
Possible shift to true body-on-frame construction on return, around 2028
Current annual sales: 41,000-52,000
Segment-leading Tacoma: 270,000+
A real bet on adding ruggedness to a truck long known more for smooth driving than capability. Worth watching whether it moves the needle.
🚘 Car Stuff
Ford confirmed its upcoming $30,000 Universal EV Platform will embed Apple Maps directly into the vehicle display, a middle path between GM's move away from CarPlay entirely and Lucid's full smartphone-mirroring approach.
Rivian sued the federal government for a full refund of tariffs paid under the now-invalidated "Liberation Day" duties, joining a growing line of automakers seeking repayment as CBP reports over $121 billion in refunds already accepted for processing industry-wide.
Audi revealed its most affordable EV yet, the A2 e-tron, with over 400 miles of range and a starting price around $44,000 when it launches in Europe this fall.
💰 Not Car Stuff
A 14-year-old Montana ranch kid used his rodeo lassoing skills to rescue a man being swept away by the Yellowstone River, turning a cattle-roping habit into a real, on-the-spot save.
Solar power alone saved New England ratepayers $130-149 million during a brutal early-July heat wave, at one point contributing more electricity to the grid than the region's entire nuclear fleet.
Deforestation in the Brazilian Amazon just hit its lowest level since 2016, down 38% year-over-year, real, measurable progress on one of the world's most closely watched environmental fronts.
1912: A Navy lieutenant successfully transmitted Morse code wirelessly from an aircraft in flight for the first time, sending the letter "D" to a torpedo boat a mile away over the Chesapeake Bay.
1940: Bugs Bunny made his official cartoon debut in "A Wild Hare," the short that cemented his now-iconic look and personality for good.
1949: The world's first jet-propelled airliner, the British de Havilland Comet, completed its maiden test flight, a breakthrough that would eventually cut air travel time roughly in half.
Thanks for reading, Friend! Happy Monday!
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