🏛️ Emission Rule Roll Back, CDK Settlement, and Repo’s Rise

The Gist

• 🚫 VW Cancels ID.7 for the US – The sleek electric sedan never made it across the pond. Blame America’s love for trucks, SUVs, and the looming EV incentive rollback. But hey, at least we’re getting the ID.Buzz.

• 📉 New DOT Secretary Rolls Back EV Rules – Sean Duffy wasted no time gutting federal fuel standards, claiming they drive up car prices. Less regulation = potential ICE revival, but let’s see how this plays out.

• 💰 CDK Coughs Up $630M in Data Lawsuit – Dealers and vendors accused CDK of price-gouging for years. Now they’re paying up. First dealers, now vendors… who's next?

• 🔋 Northvolt Ditches Volvo Battery Venture – The Swedish battery maker is dumping projects, struggling with delays, and eyeing North America for a fresh start. But can they actually deliver?

• 🧐 Tesla Investors Want Answers – Musk’s political side quests (and an alleged salute) have investors worried. With Tesla’s brand value down 26%, shareholders are asking: “Elon, do you even Tesla?”

• 🔄 China Swaps Lithium for Lead-Acid E-Bikes – Because who doesn’t love heavier, weaker, outdated batteries? The gov is worried about fires, but this ‘fix’ feels like a step back in time.

• 📈 Used Car Sales Stay Strong – December sales jumped 12% YoY, though CPOs are lagging. 2025 forecast? Meh. Inventory constraints are still a headache.

• 🚗💸 Repo Rates Climb Past Pre-Pandemic Levels – More borrowers are losing their cars, and even after repossession, many still owe over $11K. Inflation + high rates = a rough road ahead.

Volkswagen Cancels ID.7 for the US—Because Why Sell a Sedan in Truck Country?

Remember the Volkswagen ID.7? Yeah, neither do most Americans.

The electric sedan was supposed to be VW’s answer to the Tesla Model 3, boasting luxury, aerodynamics, and over 400 miles of range. It did fine in Europe and China, but after multiple delays, VW is officially pulling the plug on its North American debut. Why?

• "Challenging environment for EVs" (translation: Americans still love their trucks and SUVs).

• The upcoming policy shift away from EV incentives isn’t helping.

• VW is still pushing EVs, just...not this one. The ID. Buzz minivan, though? Full speed ahead.

VW says it's committed to electrification, but this latest move suggests a more selective approach. Maybe they'll call us back when they have an EV that can tow a boat.

New DOT Secretary Wastes No Time Dismantling EV Rules

Sean Duffy was sworn in as the 20th U.S. Secretary of Transportation yesterday and immediately started pushing buttons and pulling levers—by hitting the undo button on federal fuel economy standards.

• First move: Directing staff to roll back Corporate Average Fuel Economy (CAFE) standards, claiming they artificially inflated new car prices.

• Big claim: CAFE rules drove the average new vehicle price to nearly $48,000.

• Auto industry impact: Unclear yet, but less strict fuel rules could mean a return to more traditional powertrains (and maybe fewer automakers scrambling to push EVs).

Duffy says this is about “choice and affordability” for consumers. Critics say it’s a rollback of environmental progress. Either way, it’s a major shift in federal auto policy—stay tuned for the ripple effects.

CDK Settles $630M Dealer Data Lawsuit—Because Price Gouging Has Consequences

CDK Global just agreed to pay a whopping $630 million to settle an antitrust lawsuit over its dealer data practices.

• The accusation? CDK and Reynolds & Reynolds made software vendors overpay for access to dealer data.

• The result? A class action from 243 vendors claiming they were strong-armed into sky-high fees.

• The defense? CDK denies wrongdoing but decided to cut its losses and settle.

This follows a $100 million settlement last year with dealers who also claimed CDK was overcharging them. If this trend continues, the next big payout might come with a bow on it.

Northvolt Dumps Battery Venture with Volvo, Eyes North America

Swedish battery maker Northvolt is officially bailing on its joint venture with Volvo, selling its stake in Novo Energy after failing to keep up its funding commitments.

• Volvo took over the project and will look for a new partner to build a battery plant in Sweden.

• Northvolt says it’s "exploring North American opportunities," hinting at supply deals in Canada and the US.

• The company has struggled with quality issues, production delays, and financial instability, even losing a $2 billion BMW contract last year.

With its European ambitions faltering, could Northvolt find a fresh start on this side of the Atlantic? Only if it can actually deliver the batteries.

Tesla Investors Want Musk to Explain His ‘Salute’ and Political Moves

Tesla’s earnings report is coming, but investors seem way more interested in Musk’s extracurriculars.

• Questions flooding in: How much time is he actually spending at Tesla vs. hanging out in Washington?

• Concerns mounting: Musk’s political moves—including his public support of far-right politicians in Germany—are hurting Tesla’s brand.

• Financial impact? Tesla's brand value fell 26% last year according to analysts, and consumer interest is dropping.

Will Tesla address the elephant in the room on its earnings call? Based on history: probably not.

China Wants Citizens to Trade Lithium E-Bikes for… Lead-Acid Models?

In a move that makes about as much sense as trading a smartphone for a rotary dial, China is pushing e-bike riders to swap their lithium-ion batteries for old-school lead-acid ones.

• The reason? Lithium-ion fires (though rare) have spooked regulators.

• The problem? Lead-acid batteries are heavier, weaker, and don’t last as long—which is why China phased them out years ago.

• The loophole? New sodium-ion batteries might offer a middle ground.

For now, China is offering subsidies for those who make the switch, but long-term, this feels more like a bandage solution than a real fix.

Used Sales End 2024 Strong, but Certified Pre-Owned Stumbles

The used car market finished the year with some good news: December sales jumped 12% YoY to 1.4 million units.

• Month-over-month sales were flat, but that’s normal for the season.

• CPO models? Up 4% from November, but still down 5% YoY—partly due to fewer off-lease units available.

• 2025 outlook: Modest 1% growth projected, thanks to ongoing inventory constraints from low pandemic-era production.

The takeaway? Used cars are still moving, but finding the right inventory remains a challenge.

Auto Repossessions Are Higher Than Pre-Pandemic Levels—Not a Great Sign

A new CFPB report shows auto repossessions are outpacing pre-pandemic rates, signaling rising financial strain for borrowers.

• 0.75% of all auto loans were assigned to repossession in December 2022—a 22.5% increase from December 2019.

• Lenders are outsourcing repossessions more than ever, which drives up consumer costs.

• Even after a repo, many borrowers still owe over $11,000 on their loans.

With car prices still sky-high and interest rates biting, this trend isn’t likely to improve anytime soon.

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