🚗 EV Pullback or EV Reroute? Build the Bridge

TOGETHER WITH

Howdy Fam,

Before we get into a nice, long look at the ever-elusive EV Retreat, we wanted to share a quick little throwback.

Last year at ASOTU CON, we were already talking about a trap we still see today: letting “data” turn into baggage instead of fuel. We revisited a session from Faulkner Automotive Group with one question in mind: is it still relevant eight months later?

Honestly, so few things hold up these days that a conference stage feels like an odd place to look for fundamentals.

And yet, point by point, this one did.

The market moves, consumers shift, and the chain of supply and command rattles, but a few practices stay true in any climate: clean inputs, usable reporting, meaningful segments, and baseline-first measurement.

That same lens applies to today’s EV news, where the real value is spotting what changes next quarter versus what changes the way customers shop for the next decade.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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TOGETHER WITH ESi-Q

How Can Your Business Grow with Constant Turnover?

As you map out 2026 sales targets, inventory strategy, marketing budgets, here's a question: What's your plan for keeping your best people?

Most dealerships have a revenue growth plan. But few have an employee retention plan.

When a top salesperson or service advisor leaves, you lose months of productivity, tribal knowledge, and customer relationships.

The best retention strategy? Know where you stand before they walk out the door.

ESi-Q's Pulse Survey delivers real-time insight into employee satisfaction, helping you spot early warning signs and take action before small frustrations become resignations.

Discover how ESi-Q helps dealerships reduce turnover before it starts.

THE NEWS

Today’s news makes one thing feel clear: build the bridge. Last-minute leaps are risky.

If a customer asks, “Are EVs dying?” the honest answer is: “No. The plan’s getting practical, and the bridge is getting bigger.”

Right now, that looks like leaning into hybrids and range-extended options, leading customer conversations with ownership confidence (charging, routines, fit), and watching the real market signals in trims, allocations, and factory support. On the floor, feature demos are doing more work than powertrain debates. Globally, pressure keeps showing up locally as faster refresh cycles and tighter pricing.

Are you seeing the same in your market, or is your store telling a different story? Hit reply, we read them.

EV pullback or EV reroute?

We keep hearing “EV pullback,” but this looks less like a retreat and more like a reroute.

A Car and Driver overview traces the delays, revisions, and cancellations that followed the early rush to go all-electric, and lands on a simple conclusion: the industry is still moving toward electrification, but with sharper priorities. The sprint to be first has given way to building what buyers will actually adopt, which means hybrids, price discipline, and more attention to real-world usability like charging access.

For dealers, that shift shows up in what sells, what incentives look like, and how confidently shoppers can picture ownership.

You can see the pivot in two opposite moves this week.

Stellantis says it will phase out plug-in hybrid programs in North America beginning with the 2026 model year, shifting emphasis toward traditional hybrids and range-extended options. At the same time, Toyota, long cautious on full battery electrics, debuted an all-electric Hilux pickup in Europe, a reminder that global EV momentum continues even when the path varies by market.

CES 2026 shows EVs fading from the spotlight as autonomy and in-car AI take over

This shift in attention is not just happening inside automakers. It is happening with shoppers, too.

At CES this year, the EV “ooos” and “ahhs” of past shows gave way to autonomy, robotics, and in-car AI. Electrification still sat underneath much of the tech on display, but it no longer commanded the room. The idea of skipping gas station trips is familiar now. A vehicle that can drive itself, learn your preferences, or make daily driving feel easier captures attention in a different way.

It also matches what dealers see every day. Customers rarely fall in love with a powertrain. They fall in love with features, comfort, confidence, and the experience the vehicle delivers.

Global EV reality check: China, legacy, Europe

Zooming out globally, the EV story looks less like a single trend and more like a set of feedback loops. What happens in one market increasingly shapes decisions everywhere else.

In China, the world’s largest auto market, growth is slowing. Industry groups expect overall vehicle sales to flatten in 2026, with electric vehicle growth cooling as subsidies are reduced and competition intensifies. Exports helped offset softer domestic demand in 2025, but that release valve may narrow as trade barriers rise and global demand steadies. That pressure is already forcing faster product cycles, tighter margins, and quicker global knock-on effects.

Legacy automakers are feeling it.

Volkswagen fell to third place in China last year, overtaken by local brands BYD and Geely, which move faster and price aggressively. In response, global brands are leaning deeper into regional partnerships, local development, and China-led platforms that may eventually flow back into other markets.

At the same time, some EV-focused brands are finding traction by narrowing their focus. Polestar’s sales rose in 2025 after it leaned heavily into Europe, expanded its dealer network, and adjusted away from a pure direct-to-consumer model. Success now depends on matching product, pricing, and go-to-market strategy to each region, then carrying those lessons across borders.

AROUND THE ASOTU-VERSE

Dealer Conferences and Industry Events (2026)

• January 22: Public Policy Day, D.C. Auto Show, DC

• February 3-6: NADA Show 2026, Las Vegas, NV (Looking for a party?)

• May 12-15: ASOTU CON 2026, Hanover, MD

Quick Hits

• 🤖 AI: Google is removing some AI summaries after user health is put at risk.

• 💰 Economy: Credit card companies are dipping in the market following a White House call to cap their rates.

• 👽 Weird: Apparently, there is a yee haw aesthetic fad going on right now, and people you know, maybe even love, have been line dancing.

Today in History: January 13

• 1906: The newly formed American Motor Car Manufacturers’ Association staged its first auto show at NYC’s 69th Regiment Armory, showcasing U.S.-built cars and boosting public interest in automobiles.

• 1942: Ford received a patent for its “Soybean Car,” a lightweight prototype with plant-based plastic body panels, unveiled in 1941 as Henry Ford chased safer materials and wartime metal shortages.

• 1968: Johnny Cash performs live at Folsom State Prison.

Thanks for spending some time with us, Friend. If you found something helpful, pass it along. We’ll see you back here first thing tomorrow.